Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 25, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GNW | |
Entity Registrant Name | GENWORTH FINANCIAL INC | |
Entity Central Index Key | 1,276,520 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 500,624,199 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed maturity securities available-for-sale, at fair value | $ 61,080 | $ 62,525 |
Equity securities, at fair value | 799 | 820 |
Commercial mortgage loans | 6,336 | 6,341 |
Restricted commercial mortgage loans related to securitization entities | 99 | 107 |
Policy loans | 1,789 | 1,786 |
Other invested assets | 1,674 | 1,813 |
Total investments | 71,777 | 73,392 |
Cash, cash equivalents and restricted cash | 2,843 | 2,875 |
Accrued investment income | 698 | 644 |
Deferred acquisition costs | 2,699 | 2,329 |
Intangible assets and goodwill | 339 | 301 |
Reinsurance recoverable | 17,482 | 17,569 |
Other assets | 431 | 453 |
Deferred tax asset | 602 | 504 |
Separate account assets | 6,902 | 7,230 |
Total assets | 103,773 | 105,297 |
Liabilities and equity | ||
Future policy benefits | 37,946 | 38,472 |
Policyholder account balances | 23,751 | 24,195 |
Liability for policy and contract claims | 9,651 | 9,594 |
Unearned premiums | 3,797 | 3,967 |
Other liabilities | 1,841 | 1,910 |
Borrowings related to securitization entities | 32 | 40 |
Non-recourse funding obligations | 310 | 310 |
Long-term borrowings | 4,654 | 4,224 |
Deferred tax liability | 27 | 27 |
Separate account liabilities | 6,902 | 7,230 |
Total liabilities | 88,911 | 89,969 |
Commitments and contingencies | ||
Equity: | ||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 589 million and 588 million shares issued as of March 31, 2018 and December 31, 2017, respectively; 501 million and 499 million shares outstanding as of March 31, 2018 and December 31, 2017, respectively | 1 | 1 |
Additional paid-incapital | 11,979 | 11,977 |
Net unrealized investment gains (losses): | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 905 | 1,075 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 12 | 10 |
Net unrealized investment gains (losses) | 917 | 1,085 |
Derivatives qualifying as hedges | 1,927 | 2,065 |
Foreign currency translation and other adjustments | (217) | (123) |
Total accumulated other comprehensive income (loss) | 2,627 | 3,027 |
Retained earnings | 1,111 | 1,113 |
Treasury stock, at cost (88 million shares as of March 31, 2018 and December 31, 2017) | (2,700) | (2,700) |
Total Genworth Financial, Inc.'s stockholders' equity | 13,018 | 13,418 |
Noncontrolling interests | 1,844 | 1,910 |
Total equity | 14,862 | 15,328 |
Total liabilities and equity | $ 103,773 | $ 105,297 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Class A common stock, par value | $ 0.001 | $ 0.001 |
Class A common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Class A common stock, shares issued | 589,000,000 | 588,000,000 |
Class A common stock, shares outstanding | 501,000,000 | 499,000,000 |
Treasury stock, shares | 88,000,000 | 88,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Premiums | $ 1,140 | $ 1,136 |
Net investment income | 804 | 790 |
Net investment gains (losses) | (31) | 34 |
Policy fees and other income | 202 | 211 |
Total revenues | 2,115 | 2,171 |
Benefits and expenses: | ||
Benefits and other changes in policy reserves | 1,311 | 1,246 |
Interest credited | 156 | 167 |
Acquisition and operating expenses, net of deferrals | 240 | 270 |
Amortization of deferred acquisition costs and intangibles | 104 | 94 |
Interest expense | 76 | 62 |
Total benefits and expenses | 1,887 | 1,839 |
Income from continuing operations before income taxes | 228 | 332 |
Provision for income taxes | 63 | 116 |
Income from continuing operations | 165 | 216 |
Loss from discontinued operations, net of taxes | 0 | 0 |
Net income | 165 | 216 |
Less: net income attributable to noncontrolling interests | 53 | 61 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ 112 | $ 155 |
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | ||
Basic | $ 0.22 | $ 0.31 |
Diluted | 0.22 | 0.31 |
Net income available to Genworth Financial, Inc.'s common stockholders per share: | ||
Basic | 0.22 | 0.31 |
Diluted | $ 0.22 | $ 0.31 |
Weighted-average common shares outstanding: | ||
Basic | 499.6 | 498.6 |
Diluted | 502.7 | 501 |
Supplemental disclosures: | ||
Total other-than-temporary impairments | $ 0 | $ (1) |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 |
Net other-than-temporary impairments | 0 | (1) |
Other investments gains (losses) | (31) | 35 |
Net investment gains (losses) | $ (31) | $ 34 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 165 | $ 216 |
Other comprehensive income (loss), net of taxes: | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (341) | (12) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 1 |
Derivatives qualifying as hedges | (152) | (49) |
Foreign currency translation and other adjustments | (87) | 119 |
Total other comprehensive income (loss) | (580) | 59 |
Total comprehensive income (loss) | (415) | 275 |
Less: comprehensive income attributable to noncontrolling interests | 4 | 118 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (419) | $ 157 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.'s stockholders' equity | Noncontrolling interests |
Balances, beginning at Dec. 31, 2016 | $ 14,467 | $ 1 | $ 11,962 | $ 3,094 | $ 287 | $ (2,700) | $ 12,644 | $ 1,823 |
Cumulative effect of change in accounting, net of taxes | 9 | 9 | 9 | |||||
Comprehensive income (loss): | ||||||||
Net income | 216 | 155 | 155 | 61 | ||||
Other comprehensive income (loss) net of taxes | 59 | 2 | 2 | 57 | ||||
Total comprehensive income (loss) | 275 | 157 | 118 | |||||
Dividends to noncontrolling interests | (39) | (39) | ||||||
Stock-based compensation expense and exercises and other | 4 | 2 | 2 | 2 | ||||
Balances, ending at Mar. 31, 2017 | 14,716 | 1 | 11,964 | 3,096 | 451 | (2,700) | 12,812 | 1,904 |
Balances, beginning at Dec. 31, 2017 | 15,328 | 1 | 11,977 | 3,027 | 1,113 | (2,700) | 13,418 | 1,910 |
Cumulative effect of change in accounting, net of taxes | 17 | 131 | (114) | 17 | ||||
Repurchase of subsidiary shares | (36) | (36) | ||||||
Comprehensive income (loss): | ||||||||
Net income | 165 | 112 | 112 | 53 | ||||
Other comprehensive income (loss) net of taxes | (580) | (531) | (531) | (49) | ||||
Total comprehensive income (loss) | (415) | (419) | 4 | |||||
Dividends to noncontrolling interests | (36) | (36) | ||||||
Stock-based compensation expense and exercises and other | 4 | 2 | 2 | 2 | ||||
Balances, ending at Mar. 31, 2018 | $ 14,862 | $ 1 | $ 11,979 | $ 2,627 | $ 1,111 | $ (2,700) | $ 13,018 | $ 1,844 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 165 | $ 216 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (25) | (33) |
Net investment (gains) losses | 31 | (34) |
Charges assessed to policyholders | (178) | (183) |
Acquisition costs deferred | (18) | (22) |
Amortization of deferred acquisition costs and intangibles | 104 | 94 |
Deferred income taxes | 26 | 93 |
Trading securities, held-for-sale investments and derivative instruments | (152) | 365 |
Stock-based compensation expense | 7 | 10 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (45) | (79) |
Insurance reserves | 377 | 377 |
Current tax liabilities | (39) | (37) |
Other liabilities, policy and contract claims and other policy-related balances | (144) | (112) |
Net cash from operating activities | 109 | 655 |
Cash flows used by investing activities: | ||
Fixed maturity securities | 934 | 1,060 |
Commercial mortgage loans | 205 | 166 |
Restricted commercial mortgage loans related to securitization entities | 8 | 6 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 792 | 2,173 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | (2,013) | (2,710) |
Commercial mortgage loans | (199) | (161) |
Other invested assets, net | 104 | (676) |
Policy loans, net | 2 | |
Net cash used by investing activities | (167) | (142) |
Cash flows from (used by) financing activities: | ||
Deposits to universal life and investment contracts | 255 | 218 |
Withdrawals from universal life and investment contracts | (591) | (467) |
Proceeds from issuance of long-term debt | 441 | |
Repayment of borrowings related to securitization entities | (8) | (7) |
Repurchase of subsidiary shares | (36) | |
Dividends paid to noncontrolling interests | (36) | (39) |
Other, net | 22 | (9) |
Net cash from (used by) financing activities | 47 | (304) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21) | 25 |
Net change in cash, cash equivalents and restricted cash | (32) | 234 |
Cash, cash equivalents and restricted cash at beginning of period | 2,875 | 2,784 |
Cash, cash equivalents and restricted cash at end of period | $ 2,843 | $ 3,018 |
Formation of Genworth and Basis
Formation of Genworth and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Formation of Genworth and Basis of Presentation | (1) Formation of Genworth and Basis of Presentation Genworth Holdings, Inc. (“Genworth Holdings”) (formerly known as Genworth Financial, Inc.) was incorporated in Delaware in 2003 in preparation for an initial public offering (“IPO”) of Genworth’s common stock, which was completed on May 28, 2004. On April 1, 2013, Genworth Holdings completed a holding company reorganization pursuant to which Genworth Holdings became a direct, 100% owned subsidiary of a new public holding company that it had formed. The new public holding company was incorporated in Delaware on December 5, 2012, in connection with the reorganization, and was renamed Genworth Financial, Inc. (“Genworth Financial”) upon the completion of the reorganization. On October 21, 2016, Genworth Financial entered into an agreement and plan of merger (the “Merger Agreement”) with Asia Pacific Global Capital Co., Ltd. (“the Parent”), a limited liability company incorporated in the People’s Republic of China, and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and an indirect, wholly-owned subsidiary of the Parent. Subject to the terms and conditions of the Merger Agreement, including the satisfaction or waiver of certain conditions, Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as an indirect, wholly-owned subsidiary of the Parent. The Parent is a newly formed subsidiary of China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, “China Oceanwide”). China Oceanwide has agreed to acquire all of our outstanding common stock for a total transaction value of approximately $2.7 billion, or $5.43 per share in cash. At a special meeting held on March 7, 2017, Genworth’s stockholders voted on and approved a proposal to adopt the Merger Agreement. The transaction remains subject to closing conditions, including the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions. Both parties are engaging with the relevant regulators regarding the applications and the pending transaction. The accompanying unaudited condensed financial statements include on a consolidated basis the accounts of Genworth Financial and the affiliate companies in which it holds a majority voting interest or where it is the primary beneficiary of a variable interest entity (“VIE”). All intercompany accounts and transactions have been eliminated in consolidation. References to “Genworth,” the “Company,” “we” or “our” in the accompanying unaudited condensed consolidated financial statements and these notes thereto are, unless the context otherwise requires, to Genworth Financial on a consolidated basis. We operate our business through the following five operating segments: • U.S. Mortgage Insurance. • Canada Mortgage Insurance. • Australia Mortgage Insurance. • U.S. Life Insurance. • Runoff. non-strategic non-strategic In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements include all adjustments (including normal recurring adjustments) considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes contained in our 2017 Annual Report on Form 10-K. |
Accounting Changes
Accounting Changes | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes | (2) Accounting Changes Accounting Pronouncements Recently Adopted On January 1, 2018, we early adopted new accounting guidance on the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”), or “stranded tax effects.” Under current U.S. GAAP, deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the period that the changes were enacted. This also includes situations in which the related tax effects were originally recognized in other comprehensive income as opposed to income from continuing operations. The following summarizes the components for the cumulative effect adjustment recorded on January 1, 2018 related to the adoption of this new accounting guidance: Accumulated other comprehensive income (Amounts in millions) Net unrealized Derivatives Foreign currency and other Retained Total Deferred taxes: Net unrealized gains on investment securities $ 192 $ — $ — $ (192 ) $ — Net unrealized gains on derivatives — 12 — (12 ) — Investment in foreign subsidiaries (3 ) — (46 ) 49 — Accrued commission and general expenses — — (1 ) 1 — Cumulative effect of changes in accounting $ 189 $ 12 $ (47 ) $ (154 ) $ — The accounting for the temporary differences related to investment in foreign subsidiaries recorded in accumulated other comprehensive income at adoption of the TCJA, were provisional. Therefore, additional reclassification adjustments may be recorded in future periods as tax effects of the TCJA on related temporary differences are finalized. Other than those effects related to the TCJA, our policy is to release stranded tax effects from other comprehensive income using the portfolio approach for items related to investments and derivatives, and upon disposition of a subsidiary for items related to outside basis differences. On January 1, 2018, we early adopted new accounting guidance related to the hedge accounting model. The new guidance amends the hedge accounting model to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting and removed the requirements to separately measure and report hedge ineffectiveness. We adopted this new accounting using the modified retrospective method and recognized a gain of $2 million in accumulated other comprehensive income with a corresponding decrease to retained earnings at adoption. This gain was the cumulative amount of hedge ineffectiveness related to active hedges that was previously included in earnings. On January 1, 2018, we adopted new accounting guidance that clarifies when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification as a liability or equity of the share-based compensation. We adopted this new accounting guidance prospectively and therefore, the guidance did not have any impact at adoption. On January 1, 2018, we adopted new accounting guidance that clarifies the scope and accounting for gains and losses from the derecognition of nonfinancial assets or an in substance nonfinancial asset that is not a business and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control. We adopted this new accounting guidance using the modified retrospective method, which had no impact on our consolidated financial statements at adoption. On January 1, 2018, we early adopted new accounting guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. We adopted this new accounting guidance prospectively and will apply it to our 2018 goodwill impairment test. On January 1, 2018, we adopted new accounting guidance related to the classification and presentation of changes in restricted cash. The new guidance requires that changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents be shown in the statements of cash flows and requires additional disclosures related to restricted cash and restricted cash equivalents. We adopted this new accounting guidance retrospectively and modified the line item descriptions on our consolidated balance sheets and statements of cash flows in our consolidated financial statements. The other impacts from this new accounting guidance did not have a significant impact on our consolidated financial statements or disclosures. On January 1, 2018, we adopted new accounting guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We adopted this new accounting guidance using the modified retrospective method, which did not have any significant impact on our consolidated financial statements or disclosures at adoption. On January 1, 2018, we adopted new accounting guidance related to the classification of certain cash payments and cash receipts on our statement of cash flows. The guidance reduces diversity in practice related to eight specific cash flow issues. We adopted this new accounting guidance retrospectively. We will reclassify a $20 million make-whole premium that was incurred in the first quarter of 2016 previously included in the operating activities section of the statement of cash flows, within the line item “other liabilities, policy and contract claims and other policy-related balances” to the financing activities section within the line item “repayment and repurchase of long-term debt” in our 2018 annual consolidated financial statements filed on Form 10-K. On January 1, 2018, we adopted new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, are measured at fair value with changes in fair value recognized in net income. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale On January 1, 2018, we adopted new accounting guidance related to revenue from contracts with customers. The key principle of the new guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services. Insurance contracts are specifically excluded from this new guidance. The Financial Accounting Standards Board (“the FASB”) has clarified the scope that all of our insurance contracts, including mortgage insurance and investment contracts are excluded from the scope of this new guidance. We adopted this new accounting guidance using the modified retrospective method, which did not have any significant impact on our consolidated financial statements at adoption. Accounting Pronouncements Not Yet Adopted In March 2017, the FASB issued new guidance shortening the amortization period of certain callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019 using the modified retrospective method, with early adoption permitted. We are in process of evaluating the impact the guidance may have on our consolidated financial statements. In June 2016, the FASB issued new guidance related to accounting for credit losses on financial instruments. The guidance requires that entities recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most debt instruments not measured at fair value, which would primarily include our commercial mortgage loans and reinsurance receivables. The new guidance retains most of the existing impairment guidance for available-for-sale In February 2016, the FASB issued new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-to-use |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share | (3) Earnings Per Share Basic and diluted earnings per share are calculated by dividing each income category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated: Three months March 31, (Amounts in millions, except per share amounts) 2018 2017 Weighted-average shares used in basic earnings per share calculations 499.6 498.6 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 3.1 2.4 Weighted-average shares used in diluted earnings per share calculations 502.7 501.0 Income from continuing operations: Income from continuing operations $ 165 $ 216 Less: income from continuing operations attributable to noncontrolling interests 53 61 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 112 $ 155 Basic per share $ 0.22 $ 0.31 Diluted per share $ 0.22 $ 0.31 Loss from discontinued operations: Loss from discontinued operations, net of taxes $ — $ — Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ — $ — Basic per share $ — $ — Diluted per share $ — $ — Net income: Income from continuing operations $ 165 $ 216 Net income 165 216 Less: net income attributable to noncontrolling interests 53 61 Net income available to Genworth Financial, Inc.’s common stockholders $ 112 $ 155 Basic per share $ 0.22 $ 0.31 Diluted per share $ 0.22 $ 0.31 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments | (4) Investments (a) Net Investment Income Sources of net investment income were as follows for the periods indicated: Three months (Amounts in millions) 2018 2017 Fixed maturity securities—taxable $ 635 $ 641 Fixed maturity securities—non-taxable 3 3 Equity securities 10 8 Commercial mortgage loans 82 77 Restricted commercial mortgage loans related to securitization entities 2 2 Policy loans 43 42 Other invested assets 39 32 Cash, cash equivalents and short-term investments 12 6 Gross investment income before expenses and fees 826 811 Expenses and fees (22 ) (21 ) Net investment income $ 804 $ 790 (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: Three months (Amounts in millions) 2018 2017 Available-for-sale Realized gains $ 7 $ 63 Realized losses (16 ) (34 ) Net realized gains (losses) on available-for-sale (9 ) 29 Impairments: Total other-than-temporary impairments — (1 ) Portion of other-than-temporary impairments included in other comprehensive income — — Net other-than-temporary impairments — (1 ) Net realized gains (losses) on equity securities sold 2 — Net unrealized gains (losses) on equity securities still held (18 ) — Limited partnerships 7 — Commercial mortgage loans — 1 Net gains (losses) related to securitization entities — 2 Derivative instruments (1) (13 ) 3 Net investment gains (losses) $ (31 ) $ 34 (1) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). We generally intend to hold securities in unrealized loss positions until they recover. However, from time to time, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, we sell securities in the ordinary course of managing our portfolio to meet diversification, credit quality, yield and liquidity requirements. If a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we determined that we have the intent to sell the securities or it is more likely than not that we will be required to sell the securities prior to recovery. The aggregate fair value of securities sold at a loss during the three months ended March 31, 2018 and 2017 was $619 million and $876 million, respectively, which was approximately 98% and 96%, respectively, of book value. The following represents the activity for credit losses recognized in net income on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (“OCI”) as of and for the three months ended March 31: (Amounts in millions) 2018 2017 Beginning balance $ 32 $ 42 Reductions: Securities sold, paid down or disposed (4 ) (1 ) Ending balance $ 28 $ 41 (c) Unrealized Investment Gains and Losses Net unrealized gains and losses on available-for-sale (Amounts in millions) March 31, December 31, Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 3,452 $ 5,125 Equity securities — 69 Subtotal (1) 3,452 5,194 Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (2,207 ) (3,451 ) Income taxes, net (282 ) (583 ) Net unrealized investment gains (losses) 963 1,160 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 46 75 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 917 $ 1,085 (1) Excludes foreign exchange. The change in net unrealized gains (losses) on available-for-sale (Amounts in millions) 2018 2017 Beginning balance $ 1,085 $ 1,262 Cumulative effect of changes in accounting: Stranded tax effects 189 — Recognition and measurement of financial assets and liabilities, net of taxes of $18 and $— (25 ) — Total cumulative effect of changes in accounting 164 — Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (1,681 ) 392 Adjustment to deferred acquisition costs 442 (305 ) Adjustment to present value of future profits 36 (5 ) Adjustment to sales inducements 20 (5 ) Adjustment to benefit reserves 740 (68 ) Provision for income taxes 95 (2 ) Change in unrealized gains (losses) on investment securities (348 ) 7 Reclassification adjustments to net investment (gains) losses, net of taxes of $(1) and $10 7 (18 ) Change in net unrealized investment gains (losses) (341 ) (11 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) 8 Ending balance $ 917 $ 1,243 (d) Fixed Maturity and Equity Securities As of March 31, 2018, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,735 $ 674 $ — $ (11 ) $ — $ 5,398 State and political subdivisions 2,692 217 — (33 ) — 2,876 Non-U.S. 2,239 85 — (25 ) — 2,299 U.S. corporate: Utilities 4,444 472 — (42 ) — 4,874 Energy 2,232 174 — (23 ) — 2,383 Finance and insurance 6,119 395 — (67 ) — 6,447 Consumer—non-cyclical 4,331 385 — (46 ) — 4,670 Technology and communications 2,663 135 — (35 ) — 2,763 Industrial 1,242 76 — (10 ) — 1,308 Capital goods 2,193 216 — (24 ) — 2,385 Consumer—cyclical 1,481 82 — (21 ) — 1,542 Transportation 1,174 99 — (17 ) — 1,256 Other 351 20 — (1 ) — 370 Total U.S. corporate 26,230 2,054 — (286 ) — 27,998 Non-U.S. Utilities 989 28 — (14 ) — 1,003 Energy 1,341 124 — (11 ) — 1,454 Finance and insurance 2,583 128 — (23 ) — 2,688 Consumer—non-cyclical 674 15 — (11 ) — 678 Technology and communications 945 47 — (8 ) — 984 Industrial 946 61 — (7 ) — 1,000 Capital goods 610 21 — (5 ) — 626 Consumer—cyclical 500 4 — (4 ) — 500 Transportation 657 54 — (7 ) — 704 Other 2,485 148 — (13 ) — 2,620 Total non-U.S. 11,730 630 — (103 ) — 12,257 Residential mortgage-backed 3,664 180 14 (22 ) — 3,836 Commercial mortgage-backed 3,355 57 — (70 ) — 3,342 Other asset-backed 3,077 10 1 (14 ) — 3,074 Total available-for-sale $ 57,722 $ 3,907 $ 15 $ (564 ) $ — $ 61,080 As of December 31, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,681 $ 870 $ — $ (3 ) $ — $ 5,548 State and political subdivisions 2,678 270 — (22 ) — 2,926 Non-U.S. 2,147 106 — (20 ) — 2,233 U.S. corporate: Utilities 4,396 611 — (9 ) — 4,998 Energy 2,239 227 — (8 ) — 2,458 Finance and insurance 5,984 556 — (12 ) — 6,528 Consumer—non-cyclical 4,314 530 — (13 ) — 4,831 Technology and communications 2,665 192 — (12 ) — 2,845 Industrial 1,241 106 — (1 ) — 1,346 Capital goods 2,087 273 — (5 ) — 2,355 Consumer—cyclical 1,493 116 — (4 ) — 1,605 Transportation 1,160 134 — (3 ) — 1,291 Other 355 25 — (1 ) — 379 Total U.S. corporate 25,934 2,770 — (68 ) — 28,636 Non-U.S. Utilities 979 42 — (4 ) — 1,017 Energy 1,337 158 — (5 ) — 1,490 Finance and insurance 2,567 174 — (6 ) — 2,735 Consumer—non-cyclical 686 30 — (4 ) — 712 Technology and communications 913 71 — (2 ) — 982 Industrial 958 88 — (2 ) — 1,044 Capital goods 614 33 — (2 ) — 645 Consumer—cyclical 532 9 — (1 ) — 540 Transportation 656 68 — (3 ) — 721 Other 2,536 193 — (4 ) — 2,725 Total non-U.S. 11,778 866 — (33 ) — 12,611 Residential mortgage-backed 3,831 223 14 (11 ) — 4,057 Commercial mortgage-backed 3,387 94 2 (37 ) — 3,446 Other asset-backed 3,056 17 1 (6 ) — 3,068 Total fixed maturity securities 57,492 5,216 17 (200 ) — 62,525 Equity securities 756 72 — (8 ) — 820 Total available-for-sale $ 58,248 $ 5,288 $ 17 $ (208 ) $ — $ 63,345 The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of March 31, 2018: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 278 $ (5 ) 30 $ 105 $ (6 ) 9 $ 383 $ (11 ) 39 State and political subdivisions 494 (20 ) 90 191 (13 ) 33 685 (33 ) 123 Non-U.S. 672 (12 ) 54 232 (13 ) 21 904 (25 ) 75 U.S. corporate 7,237 (211 ) 986 1,214 (75 ) 201 8,451 (286 ) 1,187 Non-U.S. 3,288 (74 ) 457 522 (29 ) 79 3,810 (103 ) 536 Residential mortgage-backed 957 (18 ) 129 115 (4 ) 43 1,072 (22 ) 172 Commercial mortgage-backed 998 (25 ) 147 584 (45 ) 87 1,582 (70 ) 234 Other asset-backed 1,420 (12 ) 261 250 (2 ) 55 1,670 (14 ) 316 Total for fixed maturity securities in an unrealized loss position $ 15,344 $ (377 ) 2,154 $ 3,213 $ (187 ) 528 $ 18,557 $ (564 ) 2,682 % Below cost: <20% Below cost $ 15,342 $ (377 ) 2,153 $ 3,195 $ (180 ) 524 $ 18,537 $ (557 ) 2,677 20%-50% 2 — 1 18 (7 ) 4 20 (7 ) 5 Total for fixed maturity securities in an unrealized loss position $ 15,344 $ (377 ) 2,154 $ 3,213 $ (187 ) 528 $ 18,557 $ (564 ) 2,682 Investment grade $ 14,458 $ (349 ) 2,033 $ 3,054 $ (175 ) 495 $ 17,512 $ (524 ) 2,528 Below investment grade 886 (28 ) 121 159 (12 ) 33 1,045 (40 ) 154 Total for fixed maturity securities in an unrealized loss position $ 15,344 $ (377 ) 2,154 $ 3,213 $ (187 ) 528 $ 18,557 $ (564 ) 2,682 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of March 31, 2018: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 805 $ (29 ) 124 $ 191 $ (13 ) 32 $ 996 $ (42 ) 156 Energy 581 (14 ) 85 121 (9 ) 18 702 (23 ) 103 Finance and insurance 2,090 (57 ) 282 240 (10 ) 40 2,330 (67 ) 322 Consumer—non-cyclical 1,254 (35 ) 144 168 (11 ) 28 1,422 (46 ) 172 Technology and communications 774 (20 ) 108 182 (15 ) 29 956 (35 ) 137 Industrial 295 (7 ) 45 53 (3 ) 8 348 (10 ) 53 Capital goods 509 (20 ) 70 74 (4 ) 12 583 (24 ) 82 Consumer—cyclical 544 (15 ) 77 109 (6 ) 19 653 (21 ) 96 Transportation 363 (13 ) 48 76 (4 ) 15 439 (17 ) 63 Other 22 (1 ) 3 — — — 22 (1 ) 3 Subtotal, U.S. corporate securities 7,237 (211 ) 986 1,214 (75 ) 201 8,451 (286 ) 1,187 Non-U.S. Utilities 335 (9 ) 45 64 (5 ) 5 399 (14 ) 50 Energy 333 (8 ) 43 57 (3 ) 11 390 (11 ) 54 Finance and insurance 845 (18 ) 116 116 (5 ) 17 961 (23 ) 133 Consumer—non-cyclical 252 (7 ) 25 53 (4 ) 7 305 (11 ) 32 Technology and communications 280 (7 ) 45 26 (1 ) 7 306 (8 ) 52 Industrial 176 (4 ) 26 40 (3 ) 6 216 (7 ) 32 Capital goods 156 (3 ) 20 46 (2 ) 4 202 (5 ) 24 Consumer—cyclical 226 (4 ) 37 — — — 226 (4 ) 37 Transportation 149 (4 ) 19 40 (3 ) 6 189 (7 ) 25 Other 536 (10 ) 81 80 (3 ) 16 616 (13 ) 97 Subtotal, non-U.S. 3,288 (74 ) 457 522 (29 ) 79 3,810 (103 ) 536 Total for corporate securities in an unrealized loss position $ 10,525 $ (285 ) 1,443 $ 1,736 $ (104 ) 280 $ 12,261 $ (389 ) 1,723 For all securities in an unrealized loss position, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost. The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2017: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 78 $ (1 ) 21 $ 94 $ (2 ) 7 $ 172 $ (3 ) 28 State and political subdivisions 125 (1 ) 35 327 (21 ) 42 452 (22 ) 77 Non-U.S. 583 (7 ) 26 239 (13 ) 20 822 (20 ) 46 U.S. corporate 1,871 (26 ) 296 1,347 (42 ) 190 3,218 (68 ) 486 Non-U.S. 1,323 (12 ) 217 548 (21 ) 77 1,871 (33 ) 294 Residential mortgage-backed 707 (7 ) 81 130 (4 ) 46 837 (11 ) 127 Commercial mortgage-backed 476 (4 ) 69 646 (33 ) 90 1,122 (37 ) 159 Other asset-backed 853 (4 ) 160 230 (2 ) 57 1,083 (6 ) 217 Subtotal, fixed maturity securities 6,016 (62 ) 905 3,561 (138 ) 529 9,577 (200 ) 1,434 Equity securities 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total for securities in an unrealized loss position $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 % Below cost—fixed maturity securities: <20% Below cost $ 6,016 $ (62 ) 905 $ 3,555 $ (136 ) 526 $ 9,571 $ (198 ) 1,431 20%-50% — — — 6 (2 ) 3 6 (2 ) 3 Total fixed maturity securities 6,016 (62 ) 905 3,561 (138 ) 529 9,577 (200 ) 1,434 % Below cost—equity securities: <20% Below cost 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total equity securities 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total for securities in an unrealized loss position $6,090 $(65) 1,039 $3,661 $(143) 587 $9,751 $(208) 1,626 Investment grade $ 5,867 $ (55 ) 898 $ 3,488 $ (135 ) 528 $ 9,355 $ (190 ) 1,426 Below investment grade 223 (10 ) 141 173 (8 ) 59 396 (18 ) 200 Total for securities in an unrealized loss position $6,090 $(65) 1,039 $3,661 $(143) 587 $9,751 $(208) 1,626 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2017: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 181 $ (2 ) 33 $ 219 $ (7 ) 36 $ 400 $ (9 ) 69 Energy 106 (1 ) 22 140 (7 ) 15 246 (8 ) 37 Finance and insurance 626 (6 ) 91 222 (6 ) 30 848 (12 ) 121 Consumer—non-cyclical 299 (7 ) 46 221 (6 ) 31 520 (13 ) 77 Technology and communications 217 (4 ) 32 210 (8 ) 29 427 (12 ) 61 Industrial — — — 62 (1 ) 9 62 (1 ) 9 Capital goods 176 (2 ) 25 81 (3 ) 14 257 (5 ) 39 Consumer—cyclical 137 (2 ) 24 95 (2 ) 13 232 (4 ) 37 Transportation 117 (1 ) 21 97 (2 ) 13 214 (3 ) 34 Other 12 (1 ) 2 — — — 12 (1 ) 2 Subtotal, U.S. corporate securities 1,871 (26 ) 296 1,347 (42 ) 190 3,218 (68 ) 486 Non-U.S. Utilities 113 (1 ) 23 72 (3 ) 8 185 (4 ) 31 Energy 118 (2 ) 19 74 (3 ) 12 192 (5 ) 31 Finance and insurance 347 (3 ) 56 117 (3 ) 19 464 (6 ) 75 Consumer—non-cyclical 69 (1 ) 11 60 (3 ) 6 129 (4 ) 17 Technology and communications 107 (1 ) 18 30 (1 ) 6 137 (2 ) 24 Industrial 52 — 9 38 (2 ) 5 90 (2 ) 14 Capital goods 54 — 11 46 (2 ) 3 100 (2 ) 14 Consumer—cyclical 131 (1 ) 21 — — — 131 (1 ) 21 Transportation 47 (1 ) 7 64 (2 ) 8 111 (3 ) 15 Other 285 (2 ) 42 47 (2 ) 10 332 (4 ) 52 Subtotal, non-U.S. 1,323 (12 ) 217 548 (21 ) 77 1,871 (33 ) 294 Total for corporate securities in an unrealized loss position $ 3,194 $ (38 ) 513 $ 1,895 $ (63 ) 267 $ 5,089 $ (101 ) 780 The scheduled maturity distribution of fixed maturity securities as of March 31, 2018 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in millions) Amortized Fair Due one year or less $ 1,666 $ 1,677 Due after one year through five years 10,943 11,146 Due after five years through ten years 12,618 12,876 Due after ten years 22,399 25,129 Subtotal 47,626 50,828 Residential mortgage-backed 3,664 3,836 Commercial mortgage-backed 3,355 3,342 Other asset-backed 3,077 3,074 Total $ 57,722 $ 61,080 As of March 31, 2018, securities issued by finance and insurance, utilities and consumer—non-cyclical industry groups represented approximately 23%, 15% and 13%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio. As of March 31, 2018, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of stockholders’ equity. (e) Commercial Mortgage Loans Our mortgage loans are collateralized by commercial properties, including multi-family residential buildings. The carrying value of commercial mortgage loans is stated at original cost net of principal payments, amortization and allowance for loan losses. We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,276 36 % $ 2,239 35 % Industrial 1,601 25 1,628 26 Office 1,480 23 1,510 24 Apartments 483 8 478 8 Mixed use 226 4 223 3 Other 282 4 275 4 Subtotal 6,348 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (3 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,336 $ 6,341 March 31, 2018 December 31, 2017 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,653 26 % $ 1,625 26 % Pacific 1,627 26 1,622 26 Middle Atlantic 907 15 927 14 Mountain 576 9 556 9 West North Central 444 7 446 7 East North Central 387 6 394 6 West South Central 342 5 336 5 East South Central 212 3 208 3 New England 200 3 239 4 Subtotal 6,348 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (3 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,336 $ 6,341 The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: March 31, 2018 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,276 $ 2,276 Industrial — — — — 1,601 1,601 Office 7 — 6 13 1,467 1,480 Apartments — — — — 483 483 Mixed use — — — — 226 226 Other — — — — 282 282 Total recorded investment $ 7 $ — $ 6 $ 13 $ 6,335 $ 6,348 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2017 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ 5 $ — $ — $ 5 $ 2,234 $ 2,239 Industrial — — — — 1,628 1,628 Office — — 6 6 1,504 1,510 Apartments — — — — 478 478 Mixed use — — — — 223 223 Other — — — — 275 275 Total recorded investment $ 5 $ — $ 6 $ 11 $ 6,342 $ 6,353 % of total commercial mortgage loans — % — % — % — % 100 % 100 % As of March 31, 2018 and December 31, 2017, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest. We also did not have any commercial mortgage loans that were past due for less than 90 days on non-accrual status as of March 31, 2018 and December 31, 2017. We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of March 31, 2018, our commercial mortgage loans greater than 90 days past due included loans with appraised values in excess of the recorded investment and the current recorded investment of these loans was expected to be recoverable. During the three months ended March 31, 2018 and the year ended December 31, 2017, we modified or extended one and ten commercial mortgage loans, respectively, with a total carrying value of $5 million and $27 million, respectively. All of these modifications or extensions were based on current market interest rates and did not result in any forgiveness in the outstanding principal amount owed by the borrower. The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated: Three months ended (Amounts in millions) 2018 2017 Allowance for credit losses: Beginning balance $ 9 $ 12 Charge-offs — — Recoveries — — Provision — (1 ) Ending balance $ 9 $ 11 Ending allowance for individually impaired loans $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 9 $ 11 Recorded investment: Ending balance $ 6,348 $ 6,121 Ending balance of individually impaired loans $ — $ — Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,348 $ 6,121 As of March 31, 2018 and 2017, we had no individually impaired commercial mortgage loans. As of December 31, 2017, we had one individually impaired loan within the office property type with a recorded investment and unpaid principal balance of $6 million. In evaluating the credit quality of commercial mortgage loans, we assess the performance of the underlying loans using both quantitative and qualitative criteria. Certain risks associated with commercial mortgage loans can be evaluated by reviewing both the loan-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average loan-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was sold. The debt service coverage ratio is based on “normalized” annual income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio should not be used without considering other factors associated with the borrower, such as the borrower’s liquidity or access to other resources that may result in our expectation that the borrower will continue to make the future scheduled payments. The following tables set forth the loan-to-value of commercial mortgage loans by property type as of the dates indicated: March 31, 2018 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 851 $ 496 $ 929 $ — $ — $ 2,276 Industrial 681 355 565 — — 1,601 Office 443 462 560 13 2 1,480 Apartments 205 125 148 5 — 483 Mixed use 101 55 70 — — 226 Other 50 43 189 — — 282 Total recorded investment $ 2,331 $ 1,536 $ 2,461 $ 18 $ 2 $ 6,348 % of total 37 % 24 % 39 % — % — % 100 % Weighted-average debt service coverage ratio 2.41 2.17 1.74 0.58 1.04 2.08 (1) Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. December 31, 2017 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 919 $ 500 $ 820 $ — $ — $ 2,239 Industrial 731 363 532 2 — 1,628 Office 575 386 534 13 2 1,510 Apartments 226 101 146 5 — 478 Mixed use 99 59 65 — — 223 Other 68 28 179 — — 275 Total recorded investment $ 2,618 $ 1,437 $ 2,276 $ 20 $ 2 $ 6,353 % of total 41 % 23 % 36 % — % — % 100 % Weighted-average debt service coverage ratio 2.65 1.85 1.62 0.62 1.04 2.09 (1) Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated: March 31, 2018 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 42 $ 230 $ 302 $ 1,060 $ 642 $ 2,276 Industrial 20 58 194 700 629 1,601 Office 49 61 165 570 635 1,480 Apartments — 18 80 194 191 483 Mixed use 5 4 28 85 104 226 Other 1 138 23 71 49 282 Total recorded investment $ 117 $ 509 $ 792 $ 2,680 $ 2,250 $ 6,348 % of total 2 % 8 % 13 % 42 % 35 % 100 % Weighted-average loan-to-value 55 % 60 % 58 % 58 % 46 % 54 % December 31, 2017 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 43 $ 235 $ 301 $ 1,020 $ 640 $ 2,239 Industrial 23 61 174 700 670 1,628 Office 51 61 157 569 672 1,510 Apartments — 17 77 191 193 478 Mixed use 2 4 26 86 105 223 Other 1 149 14 71 40 275 Total recorded investment $ 120 $ 527 $ 749 $ 2,637 $ 2,320 $ 6,353 % of total 2 % 8 % 12 % 42 % 36 % 100 % Weighted-average loan-to-value 55 % 60 % 58 % 58 % 42 % 52 % As of March 31, 2018 and December 31, 2017, we did not have any floating rate commercial mortgage loans. (f) Restricted Commercial Mortgage Loans Related To Securitization Entities We have a consolidated securitization entity that holds commercial mortgage loans that are recorded as restricted commercial mortgage loans related to securitization entities. (g) Limited Partnerships or Similar Entities Limited partnerships are accounted for at fair value when our partnership interest is considered minor (generally less than 3% ownership in the limited partnerships) and we exercise no influence over operating and financial policies. If our ownership percentage exceeds that threshold, limited partnerships are accounted for using the equity method of accounting. In applying either method, we use financial information provided by the investee generally on a one-to-three month lag. Investments in partnerships or similar entities are generally considered VIEs when the equity group lacks sufficient financial control. Generally, these investments are limited partner or non-managing member equity investments in a widely held fund that is sponsored and managed by a reputable asset manager. We are not the primary beneficiary of any VIE investment in a limited partnership or similar entity. As of March 31, 2018 and December 31, 2017, the total carrying value of these investments was $262 million and $222 million, respectively. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments. We have not contributed, and do not plan to contribute, any additional financial or other support outside of what is contractually obligated. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments | (5) Derivative Instruments Our business activities routinely deal with fluctuations in interest rates, equity prices, currency exchange rates and other asset and liability prices. We use derivative instruments to mitigate or reduce certain of these risks. We have established policies for managing each of these risks, including prohibitions on derivatives market-making and other speculative derivatives activities. These policies require the use of derivative instruments in concert with other techniques to reduce or mitigate these risks. While we use derivatives to mitigate or reduce risks, certain derivatives do not meet the accounting requirements to be designated as hedging instruments and are denoted as “derivatives not designated as hedges” in the following disclosures. For derivatives that meet the accounting requirements to be designated as hedges, the following disclosures for these derivatives are denoted as “derivatives designated as hedges,” which include both cash flow and fair value hedges. The following table sets forth our positions in derivative instruments as of the dates indicated: Derivative assets Derivative liabilities Fair value Fair value (Amounts in millions) Balance sheet March 31, December 31, Balance sheet March 31, December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested $ 54 $ 74 Other liabilities $ 58 $ 25 Foreign currency swaps Other invested 1 1 Other liabilities — — Total cash flow hedges 55 75 58 25 Total derivatives designated as hedges 55 75 58 25 Derivatives not designated as hedges Foreign currency swaps Other invested 5 11 Other liabilities 2 — Equity index options Other invested 60 80 Other liabilities — — Financial futures Other invested — — Other liabilities — — Equity return swaps Other invested 1 — Other liabilities — 2 Other foreign currency contracts Other invested 108 110 Other liabilities 24 20 GMWB embedded derivatives Reinsurance recoverable (1) 13 14 Policyholder account balances (2) 242 250 Fixed index annuity embedded derivatives Other assets — — Policyholder (3) 408 419 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder (4) 13 14 Total derivatives not designated as hedges 187 215 689 705 Total derivatives $ 242 $ 290 $ 747 $ 730 (1) Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities. (2) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (3) Represents the embedded derivatives associated with our fixed index annuity liabilities. (4) Represents the embedded derivatives associated with our indexed universal life liabilities. The fair value of derivative positions presented above was not offset by the respective collateral amounts received or provided under these agreements. The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for GMWB, fixed index annuity embedded derivatives and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies. The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ March 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,155 $ 1,048 $ (1,178 ) $ 11,025 Foreign currency swaps Notional 22 — — 22 Total cash flow hedges 11,177 1,048 (1,178 ) 11,047 Total derivatives designated as hedges 11,177 1,048 (1,178 ) 11,047 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — — 4,679 Foreign currency swaps Notional 349 57 — 406 Credit default swaps Notional 39 — (19 ) 20 Equity index options Notional 2,420 585 (596 ) 2,409 Financial futures Notional 1,283 1,380 (1,389 ) 1,274 Equity return swaps Notional 96 — (77 ) 19 Other foreign currency contracts Notional 3,264 195 (311 ) 3,148 Total derivatives not designated as hedges 12,130 2,217 (2,392 ) 11,955 Total derivatives $ 23,307 $ 3,265 $ (3,570 ) $ 23,002 (Number of policies) Measurement December 31, Additions Maturities/ March 31, Derivatives not designated as hedges GMWB embedded derivatives Policies 30,450 — (693 ) 29,757 Fixed index annuity embedded derivatives Policies 17,067 — (115 ) 16,952 Indexed universal life embedded derivatives Policies 985 — (17 ) 968 Cash Flow Hedges Certain derivative instruments are designated as cash flow hedges. The changes in fair value of these instruments are recorded as a component of OCI. We designate and account for the following as cash flow hedges when they have met the effectiveness requirements: (i) various types of interest rate swaps to convert floating rate investments to fixed rate investments; (ii) various types of interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (iii) receive U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments; (iv) forward starting interest rate swaps to hedge against changes in interest rates associated with future fixed rate bond purchases and/or interest income; (v) forward bond purchase commitments to hedge against the variability in the anticipated cash flows required to purchase future fixed rate bonds; and (vi) other instruments to hedge the cash flows of various forecasted transactions. The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended March 31, 2018: (Amounts in millions) Gain (loss) Gain (loss) into net Classification of gain Interest rate swaps hedging assets $ (173 ) $ 35 Net investment income Interest rate swaps hedging assets — 5 Net investment Interest rate swaps hedging liabilities 17 — Interest expense Foreign currency swaps (1 ) — Net investment income Total $ (157 ) $ 40 The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended March 31, 2017: (Amounts in millions) Gain (loss) Gain (loss) into net income Classification of Gain (loss) in net (1) Classification of gain (loss) Interest rate swaps hedging assets $ (49 ) $ 30 Net investment income $ — Net investment Interest rate swaps hedging assets — 1 Net investment — Net investment Interest rate swaps hedging liabilities 4 — Interest expense — Net investment Total $ (45 ) $ 31 $ — (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated: Three months (Amounts in millions) 2018 2017 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,065 $ 2,085 Cumulative effect of changes in accounting: Stranded tax effects 12 — Changes to the hedge accounting model, net of deferred taxes of $(1) and $— 2 — Total cumulative effect of changes in accounting 14 — Current period increases (decreases) in fair value, net of deferred taxes of $34 and $16 (126 ) (29 ) Reclassification to net (income), net of deferred taxes of $14 and $11 (26 ) (20 ) Derivatives qualifying as effective accounting hedges as of March 31 $ 1,927 $ 2,036 The total of derivatives designated as cash flow hedges of $1,927 million, net of taxes, recorded in stockholders’ equity as of March 31, 2018 is expected to be reclassified to net income in the future, concurrently with and primarily offsetting changes in interest expense and interest income on floating rate instruments and interest income on future fixed rate bond purchases. Of this amount, $100 million, net of taxes, is expected to be reclassified to net income in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2057. During the three months ended March 31, 2018, we reclassified $3 million to net income in connection with forecasted transactions that were no longer considered probable of occurring. Derivatives Not Designated As Hedges We also enter into certain non-qualifying derivative instruments such as: (i) interest rate swaps and financial futures to mitigate interest rate risk as part of managing regulatory capital positions; (ii) credit default swaps to enhance yield and reproduce characteristics of investments with similar terms and credit risk; (iii) equity index options, equity return swaps, interest rate swaps and financial futures to mitigate the risks associated with liabilities that have guaranteed minimum benefits, fixed index annuities and indexed universal life; (iv) interest rate swaps where the hedging relationship does not qualify for hedge accounting; (v) credit default swaps to mitigate loss exposure to certain credit risk; (vi) foreign currency swaps, options and forward contracts to mitigate currency risk associated with non-functional currency investments held by certain foreign subsidiaries and future dividends or other cash flows from certain foreign subsidiaries to our holding company; and (vii) equity index options to mitigate certain macroeconomic risks associated with certain foreign subsidiaries. Additionally, we provide GMWBs on certain variable annuities that are required to be bifurcated as embedded derivatives. We also offer fixed index annuity and indexed universal life products and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives. We also had, prior to the fourth quarter of 2017, derivatives related to securitization entities where we were required to consolidate the related securitization entity as a result of our involvement in the structure. The counterparties for these derivatives typically only had recourse to the securitization entity. The interest rate swaps used for these entities were typically used to effectively convert the interest payments on the assets of the securitization entity to the same basis as the interest rate on the borrowings issued by the securitization entity. Credit default swaps were utilized in certain securitization entities to enhance the yield payable on the borrowings issued by the securitization entity and also included a settlement feature that allows the securitization entity to provide the par value of assets in the securitization entity for the amount of any losses incurred under the credit default swap. The following tables provide the pre-tax gain (loss) recognized in net income for the effects of derivatives not designated as hedges for the periods indicated: Three months ended Classification of gain (loss) in net income (Amounts in millions) 2018 2017 Interest rate swaps $ (1 ) $ 2 Net investment gains (losses) Credit default swaps related to securitization entities — 2 Net investment gains (losses) Equity index options (15 ) 13 Net investment gains (losses) Financial futures (24 ) (17 ) Net investment gains (losses) Equity return swaps (5 ) (8 ) Net investment gains (losses) Other foreign currency contracts 8 (5 ) Net investment gains (losses) Foreign currency swaps (8 ) 3 Net investment gains (losses) GMWB embedded derivatives 14 33 Net investment gains (losses) Fixed index annuity embedded derivatives 8 (20 ) Net investment gains (losses) Indexed universal life embedded derivatives 5 1 Net investment gains (losses) Total derivatives not designated as hedges $ (18 ) $ 4 Derivative Counterparty Credit Risk Most of our derivative arrangements with counterparties require the posting of collateral upon meeting certain net exposure thresholds. For derivatives related to securitization entities, there are no arrangements that require either party to provide collateral and the recourse of the derivative counterparty is typically limited to the assets held by the securitization entity and there is no recourse to any entity other than the securitization entity. The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in millions) Derivatives (1) Derivatives (2) Net Derivatives (1) Derivatives (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 232 $ 84 $ 148 $ 278 $ 47 $ 231 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 232 84 148 278 47 231 Gross amounts not offset in the balance sheet: Financial instruments (3) (29 ) (29 ) — (23 ) (23 ) — Collateral received (151 ) — (151 ) (170 ) — (170 ) Collateral pledged — (414 ) 414 — (288 ) 288 Over collateralization 6 359 (353 ) — 264 (264 ) Net amount $ 58 $ — $ 58 $ 85 $ — $ 85 (1) Included $3 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of March 31, 2018 and December 31, 2017, respectively. (2) Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of March 31, 2018 and December 31, 2017. (3) Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. Except for derivatives related to securitization entities, almost all of our master swap agreements contain credit downgrade provisions that allow either party to assign or terminate derivative transactions if the other party’s long-term unsecured debt rating or financial strength rating is below the limit defined in the applicable agreement. If the downgrade provisions had been triggered as of March 31, 2018 and December 31, 2017, we could have been allowed to claim $58 million and $85 million, respectively. There were no amounts that we would have been required to disburse as of March 31, 2018 and December 31, 2017. The chart above excludes embedded derivatives and derivatives related to securitization entities as those derivatives are not subject to master netting arrangements. We actively responded to the risk in our derivatives portfolio arising from our counterparties’ right to terminate their bilateral over-the-counter derivatives transactions with us following the downgrades of our life insurance subsidiaries by Moody’s Investors Service, Inc. and A.M. Best Company, Inc. in February 2018. As of March 31, 2018, no counterparties exercised their rights to terminate or revise the terms of their transactions with us. Credit Derivatives We sell protection under single name credit default swaps in combination with purchasing a security to replicate characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for single name reference entities follow the Credit Derivatives Physical Settlement Matrix published by the International Swaps and Derivatives Association. Under these terms, credit default triggers are defined as bankruptcy, failure to pay or restructuring, if applicable. Our maximum exposure to credit loss equals the notional value for credit default swaps. In the event of default for credit default swaps, we are typically required to pay the protection holder the full notional value less a recovery rate determined at auction. The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Investment grade Matures in less than one year $ 20 $ — $ — $ 39 $ — $ — Total credit default swaps on single name reference entities $ 20 $ — $ — $ 39 $ — $ — |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Financial Instruments | (6) Fair Value of Financial Instruments Assets and liabilities that are reflected in the accompanying unaudited condensed consolidated financial statements at fair value are not included in the following disclosure of fair value. Such items include cash and cash equivalents, short-term investments, investment securities, separate accounts, securities held as collateral and derivative instruments. Apart from certain of our borrowings and certain marketable securities, few of the instruments are actively traded and their fair values must often be determined using models. The fair value estimates are made at a specific point in time, based upon available market information and judgments about the financial instruments, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets. The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated: March 31, 2018 Notional Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,336 $ 6,407 $ — $ — $ 6,407 Restricted commercial mortgage loans (1) 99 106 — — 106 Other invested assets (1) 113 113 — — 113 Liabilities: Long-term borrowings (1) 4,654 4,093 — 3,936 157 Non-recourse (1) 310 206 — — 206 Borrowings related to securitizationentities (1) 32 33 — 33 — Investment contracts (1) 14,195 14,492 — 5 14,487 Other firm commitments: Commitments to fund limited partnerships 365 — — — — — Commitments to fund bank loan investments 19 — — — — — Ordinary course of business lendingcommitments 106 — — — — — December 31, 2017 Notional Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,341 $ 6,573 $ — $ — $ 6,573 Restricted commercial mortgage loans (1) 107 116 — — 116 Other invested assets (1) 277 299 — — 299 Liabilities: Long-term borrowings (1) 4,224 3,725 — 3,566 159 Non-recourse (1) 310 201 — — 201 Borrowings related to securitizationentities (1) 40 41 — 41 — Investment contracts (1) 14,700 15,123 — 5 15,118 Other firm commitments: Commitments to fund limited partnerships 317 — — — — — Commitments to fund bank loan investments 18 — — — — — Ordinary course of business lendingcommitments 168 — — — — — (1) These financial instruments do not have notional amounts. Recurring Fair Value Measurements We have fixed maturity, short-term investments, equity securities, limited partnerships, derivatives, embedded derivatives, securities held as collateral, separate account assets and certain other financial instruments, which are carried at fair value. Below is a description of the valuation techniques and inputs used to determine fair value by class of instrument. Limited partnerships Limited partnerships are valued based on comparable market transactions, discounted future cash flows, quoted market prices and/or estimates using the most recent data available for the underlying instrument. We utilize the net asset value (“NAV”) of the underlying fund statements as a practical expedient for fair value. Fixed maturity, short-term investments and equity securities The fair value of fixed maturity, short-term investments and equity securities are estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or broker quotes, which use a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. In certain cases where market information is not available for a specific security but is available for similar securities, a security is valued using that market information for similar securities, which is also a market approach. When market information is not available for a specific security or is available but such information is less relevant or reliable, an income approach or a combination of a market and income approach is utilized. For securities with optionality, such as call or prepayment features (including mortgage-backed or asset-backed securities), an income approach may be used. In addition, a combination of the results from market and income approaches may be used to estimate fair value. These valuation techniques may change from period to period, based on the relevance and availability of market data. We utilize certain third-party data providers when determining fair value. We consider information obtained from pricing services as well as broker quotes in our determination of fair value. Additionally, we utilize internal models to determine the valuation of securities using an income approach where the inputs are based on third-party provided market inputs. While we consider the valuations provided by pricing services and broker quotes to be of high quality, management determines the fair value of our investment securities after considering all relevant and available information. We also use various methods to obtain an understanding of the valuation methodologies and procedures used by third-party data providers to ensure sufficient understanding to evaluate the valuation data received, including an understanding of the assumptions and inputs utilized to determine the appropriate fair value. For pricing services, we analyze the prices provided by our primary pricing services to other readily available pricing services and perform a detailed review of the assumptions and inputs from each pricing service to determine the appropriate fair value when pricing differences exceed certain thresholds. We evaluate changes in fair value that are greater than certain pre-defined In general, we first obtain valuations from pricing services. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for identical securities are not readily observable and these securities are not typically valued by pricing services. If prices are unavailable from public pricing services we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For pricing services, we obtain an understanding of the pricing methodologies and procedures for each type of instrument. Additionally, on a monthly basis we review a sample of securities, examining the pricing service’s assumptions to determine if we agree with the service’s derived price. When available, we also evaluate the prices sampled as compared to other public prices. If a variance greater than a pre-defined For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction and value all private fixed maturity securities at par that have less than 12 months to maturity. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. To evaluate the reasonableness of the internal model, we review a sample of private fixed maturity securities each month. In that review we compare the modeled prices to the prices of similar public securities in conjunction with analysis on current market indicators. If a pricing variance greater than a pre-defined pre-defined For broker quotes, we consider the valuation methodology utilized by the third party and analyze a sample each month to assess reasonableness given then-current market conditions. Additionally, for broker quotes on certain structured securities, we validate prices received against other publicly available pricing sources. Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements. For remaining securities priced using internal models, we determine fair value using an income approach. We analyze a sample each month to assess reasonableness given then-current market conditions. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3. A summary of the inputs used for our fixed maturity, short-term investments and equity securities based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar. Level 1 measurements Equity securities. Short-term investments. Separate account assets. Level 2 measurements Fixed maturity securities • Third-party pricing services: The following table presents a summary of the significant inputs used by our third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of March 31, 2018: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 5,398 Price quotes from trading desk, broker feeds Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread State and political subdivisions $ 2,823 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. $ 2,283 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer U.S. corporate $ 24,940 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. $ 10,306 Multi-dimensional attribute-based modeling systems, OAS-based Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer Residential mortgage-backed $ 3,802 OAS-based Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Commercial mortgage-backed $ 3,336 Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports Other asset-backed $ 2,902 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: non-U.S. non-U.S. Equity securities. Securities lending collateral The fair value of securities held as collateral is primarily based on Level 2 inputs from market information for the collateral that is held on our behalf by the custodian. We determine fair value after considering prices obtained by third-party pricing services. Short-term investments The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by third-party pricing services. Level 3 measurements Fixed maturity securities • Internal models: non-U.S. • Broker quotes: non-U.S. Equity securities. Restricted other invested assets related to securitization entities We previously held trading securities related to securitization entities that were classified as restricted other invested assets and were carried at fair value. The trading securities represented asset-backed securities. In 2017, these trading securities were sold as we repositioned these assets in connection with the maturity of the associated liabilities. The valuation for trading securities was determined using a market approach and/or an income approach depending on the availability of information. For certain highly rated asset-backed securities, there was observable market information for transactions of the same or similar instruments, which was provided to us by a third-party pricing service and was classified as Level 2. For certain securities that are not actively traded, we determined fair value after considering third-party broker provided prices or discounted expected cash flows using current yields for similar securities and classified these valuations as Level 3. GMWB embedded derivatives We are required to bifurcate an embedded derivative for certain features associated with annuity products and related reinsurance agreements where we provide a GMWB to the policyholder and are required to record the GMWB embedded derivative at fair value. The valuation of our GMWB embedded derivative is based on an income approach that incorporates inputs such as forward interest rates, equity index volatility, equity index and fund correlation, and policyholder assumptions such as utilization, lapse and mortality. In addition to these inputs, we also consider risk and expense margins when determining the projected cash flows that would be determined by another market participant. While the risk and expense margins are considered in determining fair value, these inputs do not have a significant impact on the valuation. We determine fair value using an internal model based on the various inputs noted above. The resulting fair value measurement from the model is reviewed by the product actuarial, risk and finance professionals each reporting period with changes in fair value also being compared to changes in derivatives and other instruments used to mitigate changes in fair value from certain market risks, such as equity index volatility and interest rates. For GMWB liabilities, non-performance non-performance non-performance To determine the appropriate discount rate to reflect the non-performance non-performance non-performance For equity index volatility, we determine the projected equity market volatility using both historical volatility and projected equity market volatility with more significance being placed on projected near-term volatility and recent historical data. Given the different attributes and market characteristics of GMWB liabilities compared to equity index options in the derivative market, the equity index volatility assumption for GMWB liabilities may be different from the volatility assumption for equity index options, especially for the longer dated points on the curve. Equity index and fund correlations are determined based on historical price observations for the fund and equity index. For policyholder assumptions, we use our expected lapse, mortality and utilization assumptions and update these assumptions for our actual experience, as necessary. For our lapse assumption, we adjust our base lapse assumption by policy based on a combination of the policyholder’s current account value and GMWB benefit. We classify the GMWB valuation as Level 3 based on having significant unobservable inputs, with equity index volatility and non-performance non-performance Fixed index annuity embedded derivatives We have fixed indexed annuity products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance Indexed universal life embedded derivatives We have indexed universal life products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance Borrowings related to securitization entities We record certain borrowings related to securitization entities at fair value. The fair value of these borrowings is determined using either a market approach or income approach, depending on the instrument and availability of market information. Given the unique characteristics of the securitization entities that issued these borrowings as well as the lack of comparable instruments, we determine fair value considering the valuation of the underlying assets held by the securitization entities and any derivatives, as well as any unique characteristics of the borrowings that may impact the valuation. After considering all relevant inputs, we determine fair value of the borrowings using the net valuation of the underlying assets and derivatives that are backing the borrowings. Accordingly, these instruments are classified as Level 3. Increases in the valuation of the underlying assets or decreases in the derivative liabilities will result in an increase in the fair value of these borrowings. Derivatives We consider counterparty collateral arrangements and rights of set-off non-performance non-performance non-performance Interest rate swaps. Interest rate swaps related to securitization entities. Inflation indexed swaps. Foreign currency swaps. Credit default swaps. Credit default swaps related to securitization entities. Equity index options. Financial futures. Equity return swaps. Forward bond purchase commitments. Other foreign currency contracts. The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: March 31, 2018 (Amounts in millions) Total Level 1 Level 2 Level 3 NAV (1) Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsoredenterprises $ 5,398 $ — $ 5,398 $ — $ — State and political subdivisions 2,876 — 2,823 53 — Non-U.S. 2,299 — 2,299 — — U.S. corporate: Utilities 4,874 — 4,321 553 — Energy 2,383 — 2,237 146 — Finance and insurance 6,447 — 5,867 580 — Consumer—non-cyclical 4,670 — 4,591 79 — Technology and communications 2,763 — 2,738 25 — Industrial 1,308 — 1,269 39 — Capital goods 2,385 — 2,282 103 — Consumer—cyclical 1,542 — 1,290 252 — Transportation 1,256 — 1,199 57 — Other 370 — 204 166 — Total U.S. corporate 27,998 — 25,998 2,000 — Non-U.S. Utilities 1,003 — 667 336 — Energy 1,454 — 1,259 195 — Finance and insurance 2,688 — 2,535 153 — Consumer—non-cyclical 678 — 558 120 — Technology and communications 984 — 956 28 — Industrial 1,000 — 892 108 — Capital goods 626 — 440 186 — Consumer—cyclical 500 — 448 52 — Transportation 704 — 538 166 — Other 2,620 — 2,537 83 — Total non-U.S. 12,257 — 10,830 1,427 — Residential mortgage-backed 3,836 — 3,802 34 — Commercial mortgage-backed 3,342 — 3,336 6 — Other asset-backed 3,074 — 2,902 172 — Total fixed maturity securities 61,080 — 57,388 3,692 — Equity securities 799 684 70 45 — Other invested assets: Derivative assets: Interest rate swaps 54 — 54 — — Foreign currency swaps 6 — 6 — — Equity index options 60 — — 60 — Equity return swaps 1 — 1 — — Other foreign currency contracts 108 — 108 — — Total derivative assets 229 — 169 60 — Securities lending collateral 252 — 252 — — Short-term investments 762 10 752 — — Limited partnerships 223 — — — 223 Total other invested assets 1,466 10 1,173 60 223 Reinsurance recoverable (2) 13 — — 13 — Separate account assets 6,902 6,902 — — — Total assets $ 70,260 $ 7,596 $ 58,631 $ 3,810 $ 223 (1) Limited partnerships that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. December 31, 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,548 $ — $ 5,547 $ 1 State and political subdivisions 2,926 — 2,889 37 Non-U.S. 2,233 — 2,233 — U.S. corporate: Utilities 4,998 — 4,424 574 Energy 2,458 — 2,311 147 Finance and insurance 6,528 — 5,902 626 Consumer—non-cyclical 4,831 — 4,750 81 Technology and communications 2,845 — 2,772 73 Industrial 1,346 — 1,307 39 Capital goods 2,355 — 2,234 121 Consumer—cyclical 1,605 — 1,343 262 Transportation 1,291 — 1,231 60 Other 379 — 210 169 Total U.S. corporate 28,636 — 26,484 2,152 Non-U.S. Utilities 1,017 — 674 343 Energy 1,490 — 1,314 176 Finance and insurance 2,735 — 2,574 161 Consumer—non-cyclical 712 — 588 124 Technology and communications 982 — 953 29 Industrial 1,044 — 928 116 Capital goods 645 — 454 191 Consumer—cyclical 540 — 486 54 Transportation 721 — 551 170 Other 2,725 — 2,673 52 Total non-U.S. 12,611 — 11,195 1,416 Residential mortgage-backed 4,057 — 3,980 77 Commercial mortgage-backed 3,446 — 3,416 30 Other asset-backed 3,068 — 2,831 237 Total fixed maturity securities 62,525 — 58,575 3,950 Equity securities 820 696 80 44 Other invested assets: Derivative assets: Interest rate swaps 74 — 74 — Foreign currency swaps 12 — 12 — Equity index options 80 — — 80 Other foreign currency contracts 110 — 110 — Total derivative assets 276 — 196 80 Securities lending collateral 268 — 268 — Short-term investments 902 107 795 — Total other invested assets 1,446 107 1,259 80 Reinsurance recoverable (1) 14 — — 14 Separate account assets 7,230 7,230 — — Total assets $ 72,035 $ 8,033 $ 59,914 $ 4,088 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the types of assets classified as Level 1, which primarily represents mutual fund investments, we typically do not have any transfers between Level 1 and Level 2 measurement categories and did not have any such transfers during any period presented. Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from third-party pricing sources to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3. The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: (Amounts in millions) Beginning Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Total gains in net Included Included Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 1 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ — $ — State and political subdivisions 37 1 (3 ) — — — — 18 — 53 1 U.S. corporate: Utilities 574 — (18 ) 3 — — (2 ) — (4 ) 553 — Energy 147 — (5 ) 22 — — (18 ) — — 146 — Finance and insurance 626 1 (26 ) 26 — — (36 ) — (11 ) 580 1 Consumer—non-cyclical 81 — (2 ) — — — — — — 79 — Technology and communications 73 — (6 ) — — — (42 ) — — 25 — Industrial 39 — — — — — — — — 39 — Capital goods 121 — (8 ) — — — (10 ) — — 103 — Consumer—cyclical 262 — (9 ) 10 — — (11 ) — — 252 — Transportation 60 — (1 ) — — — (2 ) — — 57 — Other 169 — (1 ) — — — (2 ) — — 166 — Total U.S. corporate 2,152 1 (76 ) 61 — — (123 ) — (15 ) 2,000 1 Non-U.S. Utilities 343 — (9 ) 22 — — (20 ) — — 336 — Energy 176 — (4 ) 23 — — — — — 195 — Finance and insurance 161 1 (8 ) — — — (1 ) — — 153 1 Consumer—non-cyclical 124 — (3 ) — — — (1 ) — — 120 — Technology and communications 29 — (1 ) — — — — — — 28 — Industrial 116 — (3 ) — — — (5 ) — — 108 — Capital goods 191 — (5 ) — — — — — — 186 — Consumer—cyclical 54 — (2 ) — — — — — — 52 — Transportation 170 — (4 ) — — — — — — 166 — Other 52 — (2 ) 33 — — — — — 83 — Total non-U.S. 1,416 1 (41 ) 78 — — (27 ) — — 1,427 1 Residential mortgage-backed 77 — (1 ) 12 — — — — (54 ) 34 — Commercial mortgage-backed 30 — (2 ) 7 — — — — (29 ) 6 — Other asset-backed 237 — (2 ) 55 — — (32 ) 3 (89 ) 172 — Total fixed maturity securities 3,950 3 (125 ) 213 — — (183 ) 21 (187 ) 3,692 3 Equity securities 44 — — 4 (3 ) — — — — 45 — Other invested assets: Derivative assets: Equity index options 80 (15 ) — 14 — — (19 ) — — 60 (12 ) Total derivative assets 80 (15 ) — 14 — — (19 ) — — 60 (12 ) Total other invested assets 80 (15 ) — 14 — — (19 ) — — 60 (12 ) Reinsurance recoverable (2) 14 (2 ) — — — 1 — — — 13 (2 ) Total Level 3 assets $ 4,088 $ (14 ) $ (125 ) $ 231 $ (3 ) $ 1 $ (202 ) $ 21 $ (187 ) $ 3,810 $ (11 ) (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Total gains included in (Amounts in millions) Included Included Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 2 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 1 $ — State and political subdivisions 37 1 (1 ) — — — — — — 37 1 U.S. corporate: Utilities 576 — 7 14 — — (2 ) — (17 ) 578 — Energy 210 (1 ) 2 — (10 ) — (23 ) — (16 ) 162 (1 ) Finance and insurance 786 4 12 29 (10 ) — (3 ) — — 818 4 Consumer—non-cyclical 121 — 1 — — — — — — 122 — Technology and communications 54 1 1 10 — — — — (7 ) 59 1 Industrial 48 — (1 ) — — — — — — 47 — Capital goods 152 — 1 — — — — — — 153 — Consumer—cyclical 258 — 5 2 — — (2 ) — — 263 — Transportation 139 1 1 — — — (2 ) — (42 ) 97 — Other 143 — 1 — — — (2 ) — — 142 — Total U.S. corporate 2,487 5 30 55 (20 ) — (34 ) — (82 ) 2,441 4 Non-U.S. corporate: Utilities 386 — 2 30 — — — — (32 ) 386 — Energy 206 — 2 — (1 ) — (1 ) — — 206 — Finance and insurance 182 2 4 — — — (20 ) — — 168 1 Consumer—non-cyclical 139 — 1 — — — (11 ) — — 129 — Technology and communications 67 — — — — — (19 ) — — 48 — Industrial 109 — 1 — — — — — — 110 — Capital goods 169 — 1 — — — — — — 170 — Consumer—cyclical 69 — — — — — (2 ) — — 67 — Transportation 181 — 2 — — — — 10 — 193 — Other 25 — (1 ) — — — — — — 24 — Total non-U.S. corporate 1,533 2 12 30 (1 ) — (53 ) 10 (32 ) 1,501 1 Residential mortgage-backed 43 — — 4 — — (1 ) — — 46 — Commercial mortgage-backed 54 — 4 1 — — — — — 59 — Other asset-backed 145 — — 54 — — (2 ) 5 (27 ) 175 — Total fixed maturity securities 4,301 8 45 144 (21 ) — (91 ) 15 (141 ) 4,260 6 Equity securities 47 — — — — — — — — 47 — Other invested assets: Derivative assets: Equity index options 72 13 — 12 — — (20 ) — — 77 12 Other foreign currency contracts 3 (2 ) — — — — — — — 1 (3 ) Total derivative assets 75 11 — 12 — — (20 ) — — 78 9 Total other invested assets 75 11 — 12 — — (20 ) — — 78 9 Restricted other invested assets related to securitization entities 131 — — — (131 ) — — — — — — Reinsurance recoverable (2) 16 (2 ) — — — 1 — — — 15 (2 ) Total Level 3 assets $ 4,570 $ 17 $ 45 $ 156 $ (152 ) $ 1 $ (111 ) $ 15 $ (141 ) $ 4,400 $ 13 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. The following table presents the gains and losses included in net income from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the three months ended March 31: (Amounts in millions) 2018 2017 Total realized and unrealized gains (losses) included in net income: Net investment income $ 3 $ 9 Net investment gains (losses) (17 ) 8 Total $ (14 ) $ 17 Net gains (losses) included in net income attributable to assets still held: Net investment income $ 3 $ 7 Net investment gains (losses) (14 ) 6 Total $ (11 ) $ 13 The amount presented for unrealized gains (losses) included in net income for available-for-sale The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of March 31, 2018: (Amounts in millions) Valuation Fair value Unobservable Range Weighted- Fixed maturity securities: U.S. corporate: Utilities Internal models $ 535 Credit spreads 72bps - 309bps 122bps Energy Internal models 124 Credit spreads 82bps - 201bps 142bps Finance and insurance Internal models 559 Credit spreads 83bps - 311bps 159bps Consumer—non-cyclical Internal models 79 Credit spreads 94bps - 132bps 111bps Technology and communications Internal models 25 Credit spreads 65bps - 224bps 141bps Industrial Internal models 12 Credit spreads 194bps Not applicable Capital goods Internal models 102 Credit spreads 97bps - 224bps 126bps Consumer—cycli |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 3 Months Ended |
Mar. 31, 2018 | |
Liability for Policy and Contract Claims | (7) Liability for Policy and Contract Claims The following table sets forth changes in our liability for policy and contract claims as of the dates indicated: As of or for the three (Amounts in millions) 2018 2017 Beginning balance $ 9,594 $ 9,256 Less reinsurance recoverables (2,419 ) (2,409 ) Net beginning balance 7,175 6,847 Incurred related to insured events of: Current year 998 937 Prior years (108 ) (106 ) Total incurred 890 831 Paid related to insured events of: Current year (175 ) (178 ) Prior years (692 ) (656 ) Total paid (867 ) (834 ) Interest on liability for policy and contract claims 81 73 Foreign currency translation (5 ) 14 Net ending balance 7,274 6,931 Add reinsurance recoverables 2,377 2,364 Ending balance $ 9,651 $ 9,295 The liability for policy and contract claims represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could possibly be significant, and result in increases in reserves by an amount that could be material to our results of operations and financial condition and liquidity. For the three months ended March 31, 2018 and 2017, the favorable development of $108 million and $106 million, respectively, related to insured events of prior years was primarily attributable to favorable claim terminations in our long-term care insurance business. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Borrowings | (8) Borrowings (a) Long-Term Borrowings The following table sets forth total long-term borrowings as of the dates indicated: (Amounts in millions) March 31, December 31, Genworth Holdings (1) Floating Rate Senior Secured Term Loan Facility, due 2023 $ 448 $ — 6.52% Senior Notes, due 2018 597 597 7.70% Senior Notes, due 2020 397 397 7.20% Senior Notes, due 2021 381 381 7.625% Senior Notes, due 2021 704 704 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 6.15% Fixed-to-Floating 598 598 Subtotal 4,221 3,773 Bond consent fees (31 ) (33 ) Deferred borrowing charges (24 ) (16 ) Total Genworth Holdings 4,166 3,724 Canada (2) 5.68% Senior Notes, due 2020 213 219 4.24% Senior Notes, due 2024 124 128 Subtotal 337 347 Deferred borrowing charges (1 ) (1 ) Total Canada 336 346 Australia (3) Floating Rate Junior Notes, due 2025 154 156 Deferred borrowing charges (2 ) (2 ) Total Australia 152 154 Total $ 4,654 $ 4,224 (1) We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. (2) Senior notes issued by Genworth MI Canada Inc. (“Genworth Canada”), our majority-owned subsidiary. (3) Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited, our indirect wholly-owned subsidiary. Genworth Holdings On March 7, 2018, Genworth Holdings entered into a $450 million senior secured term loan facility (“Term Loan”), which matures in March 2023 and was issued at a 0.5% discount. Principal payments under the agreement are due quarterly, commencing on June 30, 2018, and are payable in equal amounts of 0.25% per quarter of the original principal amount with the remaining balance due at maturity. At our option, the Term Loan will bear interest at either an adjusted London Interbank Offered Rate (“LIBOR”) no lower than 1.0% plus a margin of 4.5% per annum or an alternate base rate plus a margin of 3.5% per annum. The interest rate on the Term Loan as of March 31, 2018 was 6.2%. We incurred $7 million of borrowing costs that were deferred. The Term Loan is unconditionally guaranteed by Genworth Financial, and Genworth Financial International Holdings, LLC (“GFIH”) has provided a limited recourse guarantee to the lenders of Genworth Holdings’ outstanding Term Loan, which is secured by GFIH’s ownership interest in Genworth Canada’s outstanding common shares. GFIH is our indirect wholly-owned subsidiary and owns approximately 40.5% of the outstanding common stock of Genworth Canada. The Term Loan is subject to other terms and conditions, including but not limited to: voluntary prepayments subject to prepayment penalties, mandatory prepayments in the event of certain asset sales or the incurrence of further indebtedness by Genworth Financial and various financial covenants. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes | (9) Income Taxes The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated: Three months ended (Amounts in millions) 2018 2017 Statutory U.S. federal income tax rate 21.0 % 35.0 % Increase (reduction) in rate resulting from: Effect of foreign operations 2.9 — Swaps terminated prior to the TCJA 2.3 — Other, net 1.4 (0.1 ) Effective rate 27.6 % 34.9 % The decrease in the effective tax rate was primarily attributable to the enactment of the TCJA, which includes a change in the U.S. corporate federal income tax rate from 35% to 21%. This decrease was partially offset by the effect of foreign operations, which had an overall increase on the effective tax rate as our primary foreign subsidiaries are now in jurisdictions with higher statutory tax rates than the United States. The decrease was also partially offset by tax expense in our long-term care insurance business related to gains on forward starting swaps settled prior to the enactment of the TCJA, which are tax effected at 35% as they are amortized into net investment income. As of December 31, 2017, as prescribed by the SEC’s Staff Accounting Bulletin (“SAB”) 118, we recorded provisional estimates of the tax impact of certain changes in tax law under the TCJA and recorded no amount on items for which a reasonable estimate could not be made. As of March 31, 2018, we are still in the process of completing the accounting for these provisional estimates and refining our computations, as follows: Deferred tax assets and liabilities We recorded a provisional tax benefit of $154 million in 2017 related to remeasurement of certain deferred tax assets and liabilities as a result of the newly enacted tax rate. The Internal Revenue Service has indicated that additional guidance will be forthcoming with respect to several technical areas within the TCJA, which could affect the measurement of these balances or potentially give rise to new deferred tax amounts. During the three months ended March 31, 2018, there were no changes to the provisional estimates made in 2017 and no additional measurement period adjustments were recorded. Foreign tax effects We recorded a provisional tax expense of $63 million in 2017 related to the one-time Insurance reserve transition adjustment We recorded a provisional reclassification in deferred tax assets and liabilities in the amount of $134 million in 2017 related to the transition adjustment required under the TCJA with respect to life insurance policyholder reserves. We continue to refine our insurance reserve calculations and apply the new reserving rules under the TCJA on a product level basis. During the three months ended March 31, 2018, we updated our provisional estimate and identified a measurement period increase to this reclassification of $19 million. This measurement period adjustment had no impact on net income, and we will continue to refine this estimate throughout the measurement period. As of March 31, 2018, we are still in the process of completing the accounting for the following areas for which a reasonable estimate could not be made. Foreign Tax Effects We are still in the process of analyzing the impact of the Global Intangible Low Taxed Income (“GILTI”) and Base Erosion Anti-Abuse Tax (“BEAT”), including accounting policy elections. During the three months ended March 31, 2018, we have included the current tax effects of GILTI and BEAT taxes in current year earnings, but we have not yet made a policy election with respect to the accounting for the potential deferred tax effects of the GILTI tax and no measurement period adjustment has been recorded. State tax effects We have not analyzed certain areas of state income taxes, including the treatment of the one-time Further regulatory guidance related to the TCJA is expected to be issued in 2018 which may result in changes to our current estimates. Any revisions to the estimated impacts of the TCJA will be recorded quarterly until the computations are complete which is expected no later than the fourth quarter of 2018. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information | (10) Segment Information We have the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S Life Insurance (which includes our long-term care insurance, life insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic On December 22, 2017, the TCJA was signed into law. The TCJA reduced the U.S. corporate federal income tax rate to 21% effective for taxable years beginning on January 1, 2018 and migrated the worldwide tax system to a territorial international tax system. Therefore, beginning on January 1, 2018 we taxed our international businesses at their local statutory tax rates and our domestic businesses at the new enacted tax rate of 21%. We allocate our consolidated provision for income taxes to our operating segments. Our allocation methodology applies a specific tax rate to the pre-tax The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year. We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income available to Genworth Financial, Inc.’s common stockholders as income from continuing operations excluding the after-tax non-operating non-recourse non-operating non-operating While some of these items may be significant components of net income available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income attributable to the ongoing operations of the business. Management also uses adjusted operating income available to Genworth Financial, Inc.’s common stockholders as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies. In the first quarter of 2018, we assumed a tax rate of 21% on certain adjustments to reconcile net income available to Genworth Financial, Inc.’s common stockholders and adjusted operating income available to Genworth Financial, Inc.’s common stockholders (unless otherwise indicated). In the prior year, we assumed a tax rate of 35%, the previous U.S. corporate federal income tax rate prior to the enactment of the TCJA, on certain adjustments to reconcile net income available to Genworth Financial, Inc.’s common stockholders and adjusted operating income available to Genworth Financial, Inc.’s common stockholders. These adjustments are also net of the portion attributable to noncontrolling interests and net investment gains (losses) are adjusted for DAC and other intangible amortization and certain benefit reserves. We recorded a pre-tax The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated: Three months ended (Amounts in millions) 2018 2017 Revenues: U.S. Mortgage Insurance segment $ 200 $ 187 Canada Mortgage Insurance segment 158 169 Australia Mortgage Insurance segment 107 122 U.S. Life Insurance segment: Long-term care insurance 1,020 994 Life insurance 379 417 Fixed annuities 182 205 U.S. Life Insurance segment 1,581 1,616 Runoff segment 68 87 Corporate and Other activities 1 (10 ) Total revenues $ 2,115 $ 2,171 The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated: Three months ended (Amounts in millions) 2018 2017 Net income available to Genworth Financial, Inc.’s common stockholders $ 112 $ 155 Add: net income attributable to noncontrolling interests 53 61 Net income 165 216 Loss from discontinued operations, net of taxes — — Income from continuing operations 165 216 Less: income from continuing operations attributable to noncontrolling interests 53 61 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders 112 155 Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) 17 (20 ) Expenses related to restructuring — 1 Taxes on adjustments (4 ) 7 Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 125 $ 143 (1) For the three months ended March 31, 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million. For the three months ended March 31, 2018 and 2017, net investment (gains) losses were also adjusted for net investment gains (losses) attributable to noncontrolling interests of $(11) million and $14 million, respectively. Three months ended (Amounts in millions) 2018 2017 Adjusted operating income available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 111 $ 73 Canada Mortgage Insurance segment 49 36 Australia Mortgage Insurance segment 19 13 U.S. Life Insurance segment: Long-term care insurance (32 ) 14 Life insurance (1 ) 16 Fixed annuities 28 23 U.S. Life Insurance segment (5 ) 53 Runoff segment 10 14 Corporate and Other activities (59 ) (46 ) Adjusted operating income available to Genworth Financial, $ 125 $ 143 The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) March 31, December 31, Assets: U.S. Mortgage Insurance segment $ 3,316 $ 3,273 Canada Mortgage Insurance segment 5,307 5,534 Australia Mortgage Insurance segment 2,829 2,973 U.S. Life Insurance segment 79,933 81,295 Runoff segment 10,683 10,907 Corporate and Other activities 1,705 1,315 Total assets $ 103,773 $ 105,297 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies | (11) Commitments and Contingencies (a) Litigation and Regulatory Matters We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses, including the risk of class action lawsuits. Our pending legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the industries in which we operate. In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force In January 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by International Union of Operating Engineers Local No. 478 Pension Fund, Richard L. Salberg and David Pinkoski in the Court of Chancery of the State of Delaware. The case was captioned Int’l Union of Operating Engineers Local No. 478 Pension Fund, et al v. McInerney, et al. Cohen v. McInerney, et al Genworth Financial, Inc. Consolidated Derivative Litigation In October 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its current chief financial officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by Esther Chopp in the Court of Chancery of the State of Delaware. The case is captioned Chopp v. McInerney, et al. In January 2017, two putative stockholder class action lawsuits, captioned Rice v. Genworth Financial Incorporated et al James v. Genworth Financial, Inc. et al, Rosenfeld Family Trust v. Genworth Financial, Inc. et al, Chopp v. Genworth Financial, Inc et al, Ratliff v. Genworth Financial, Inc et al, Rice Rice Rosenfeld Family Trust Rosenfeld Family Trust Chopp Rice, James Ratliff 8-K Rosenfeld Family Trust Rosenfeld Family Trust Chopp Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust 8-K Rice James Ratliff Rosenfeld Family Trust Chopp In December 2017, Genworth Holdings and Genworth Financial were named as defendants in an action captioned AXA S.A. v. Genworth Financial International Holdings, Inc., et al., At this time, other than as noted above, we cannot determine or predict the ultimate outcome of any of the pending legal and regulatory matters specifically identified above or the likelihood of potential future legal and regulatory matters against us. Except as disclosed above, we also are not able to provide an estimate or range of reasonably possible losses related to these matters. Therefore, we cannot ensure that the current investigations and proceedings will not have a material adverse effect on our business, financial condition or results of operations. In addition, it is possible that related investigations and proceedings may be commenced in the future, and we could become subject to additional unrelated investigations and lawsuits. Increased regulatory scrutiny and any resulting investigations or proceedings could result in new legal precedents and industry-wide regulations or practices that could adversely affect our business, financial condition and results of operations. (b) Commitments As of March 31, 2018, we were committed to fund $365 million in limited partnership investments, $76 million in U.S. commercial mortgage loan investments and $30 million in private placement investments. As of March 31, 2018, we were committed to fund $19 million of bank loan investments which had not yet been drawn. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Accumulated Other Comprehensive Income | (12) Changes in Accumulated Other Comprehensive Income The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2018 $ 1,085 $ 2,065 $ (123 ) $ 3,027 Cumulative effect of changes in accounting 164 14 (47 ) 131 OCI before reclassifications (348 ) (126 ) (87 ) (561 ) Amounts reclassified from (to) OCI 7 (26 ) — (19 ) Current period OCI (341 ) (152 ) (87 ) (580 ) Balances as of March 31, 2018 before noncontrolling interests 908 1,927 (257 ) 2,578 Less: change in OCI attributable to noncontrolling interests (9 ) — (40 ) (49 ) Balances as of March 31, 2018 $ 917 $ 1,927 $ (217 ) $ 2,627 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2017 $ 1,262 $ 2,085 $ (253 ) $ 3,094 OCI before reclassifications 7 (29 ) 119 97 Amounts reclassified from (to) OCI (18 ) (20 ) — (38 ) Current period OCI (11 ) (49 ) 119 59 Balances as of March 31, 2017 before noncontrolling interests 1,251 2,036 (134 ) 3,153 Less: change in OCI attributable to noncontrolling interests 8 — 49 57 Balances as of March 31, 2017 $ 1,243 $ 2,036 $ (183 ) $ 3,096 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. The foreign currency translation and other adjustments balance included $(14) million and $(11) million, respectively, net of taxes of $5 million related to a net unrecognized postretirement benefit obligation as of March 31, 2018 and 2017. The amount also includes taxes of $(46) million and $31 million, respectively, related to foreign currency translation adjustments as of March 31, 2018 and 2017. These balances include the impact of adopting new accounting guidance related to stranded tax effects. The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from Affected line item income Three months ended (Amounts in millions) 2018 2017 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ 8 $ (28 ) Net investment (gains) losses (Provision) benefit for income taxes (1 ) 10 (Provision) benefit for income taxes Total $ 7 $ (18 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (35 ) $ (30 ) Net investment income Interest rate swaps hedging assets (5 ) (1 ) Net investment (gains) losses Inflation indexed swaps — — Net investment income Benefit for income taxes 14 11 Benefit for income taxes Total $ (26 ) $ (20 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Consolidating Financial Information | (13) Condensed Consolidating Financial Information Genworth Financial provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding senior and subordinated notes and the holders of the senior and subordinated notes, on an unsecured unsubordinated and subordinated basis, respectively, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, each outstanding series of senior notes and outstanding subordinated notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the senior and subordinated notes indentures in respect of such senior and subordinated notes. Genworth Holdings is a direct, 100% owned subsidiary of Genworth Financial. The following condensed consolidating financial information of Genworth Financial and its direct and indirect subsidiaries has been prepared pursuant to rules regarding the preparation of consolidating financial information of Regulation S-X. The condensed consolidating financial information presents the condensed consolidating balance sheet information as of March 31, 2018 and December 31, 2017, the condensed consolidating income statement information, the condensed consolidating comprehensive income statement information and the condensed consolidating cash flow statement information for the three months ended March 31, 2018 and 2017. The condensed consolidating financial information reflects Genworth Financial (“Parent Guarantor”), Genworth Holdings (“Issuer”) and each of Genworth Financial’s other direct and indirect subsidiaries (the “All Other Subsidiaries”) on a combined basis, none of which guarantee the senior notes or subordinated notes, as well as the eliminations necessary to present Genworth Financial’s financial information on a consolidated basis and total consolidated amounts. The accompanying condensed consolidating financial information is presented based on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries and intercompany activity. The following table presents the condensed consolidating balance sheet information as of March 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 61,280 $ (200 ) $ 61,080 Equity securities, at fair value — — 799 — 799 Commercial mortgage loans — — 6,336 — 6,336 Restricted commercial mortgage loans related to securitization entities — — 99 — 99 Policy loans — — 1,789 — 1,789 Other invested assets — 76 1,600 (2 ) 1,674 Investments in subsidiaries 13,172 12,358 — (25,530 ) — Total investments 13,172 12,434 71,903 (25,732 ) 71,777 Cash, cash equivalents and restricted cash — 1,130 1,713 — 2,843 Accrued investment income — — 698 — 698 Deferred acquisition costs — — 2,699 — 2,699 Intangible assets and goodwill — — 339 — 339 Reinsurance recoverable — — 17,482 — 17,482 Other assets (2 ) 53 381 (1 ) 431 Intercompany notes receivable — 211 — (211 ) — Deferred tax assets 18 849 (265 ) — 602 Separate account assets — — 6,902 — 6,902 Total assets $ 13,188 $ 14,677 $ 101,852 $ (25,944 ) $ 103,773 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 37,946 $ — $ 37,946 Policyholder account balances — — 23,751 — 23,751 Liability for policy and contract claims — — 9,651 — 9,651 Unearned premiums — — 3,797 — 3,797 Other liabilities 7 124 1,714 (4 ) 1,841 Intercompany notes payable 163 200 48 (411 ) — Borrowings related to securitization entities — — 32 — 32 Non-recourse — — 310 — 310 Long-term borrowings — 4,166 488 — 4,654 Deferred tax liability — — 27 — 27 Separate account liabilities — — 6,902 — 6,902 Total liabilities 170 4,490 84,666 (415 ) 88,911 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,979 9,096 18,420 (27,516 ) 11,979 Accumulated other comprehensive income (loss) 2,627 2,692 2,641 (5,333 ) 2,627 Retained earnings 1,111 (1,601 ) (6,022 ) 7,623 1,111 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,018 10,187 15,042 (25,229 ) 13,018 Noncontrolling interests — — 2,144 (300 ) 1,844 Total equity 13,018 10,187 17,186 (25,529 ) 14,862 Total liabilities and equity $ 13,188 $ 14,677 $ 101,852 $ (25,944 ) $ 103,773 The following table presents the condensed consolidating balance sheet information as of December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 62,725 $ (200 ) $ 62,525 Equity securities, at fair value — — 820 — 820 Commercial mortgage loans — — 6,341 — 6,341 Restricted commercial mortgage loans related to securitization entities — — 107 — 107 Policy loans — — 1,786 — 1,786 Other invested assets — 75 1,742 (4 ) 1,813 Investments in subsidiaries 13,561 12,867 — (26,428 ) — Total investments 13,561 12,942 73,521 (26,632 ) 73,392 Cash, cash equivalents and restricted cash — 795 2,080 — 2,875 Accrued investment income — — 647 (3 ) 644 Deferred acquisition costs — — 2,329 — 2,329 Intangible assets and goodwill — — 301 — 301 Reinsurance recoverable — — 17,569 — 17,569 Other assets 3 54 397 (1 ) 453 Intercompany notes receivable — 155 59 (214 ) — Deferred tax assets 27 — 477 — 504 Separate account assets — — 7,230 — 7,230 Total assets $ 13,591 $ 13,946 $ 104,610 $ (26,850 ) $ 105,297 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 38,472 $ — $ 38,472 Policyholder account balances — — 24,195 — 24,195 Liability for policy and contract claims — — 9,594 — 9,594 Unearned premiums — — 3,967 — 3,967 Other liabilities 41 119 1,759 (9 ) 1,910 Intercompany notes payable 132 259 23 (414 ) — Borrowings related to securitization entities — — 40 — 40 Non-recourse — — 310 — 310 Long-term borrowings — 3,724 500 — 4,224 Deferred tax liability — (807 ) 834 — 27 Separate account liabilities — — 7,230 — 7,230 Total liabilities 173 3,295 86,924 (423 ) 89,969 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,977 9,096 18,420 (27,516 ) 11,977 Accumulated other comprehensive income (loss) 3,027 3,037 3,051 (6,088 ) 3,027 Retained earnings 1,113 (1,482 ) (5,998 ) 7,480 1,113 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,418 10,651 15,476 (26,127 ) 13,418 Noncontrolling interests — — 2,210 (300 ) 1,910 Total equity 13,418 10,651 17,686 (26,427 ) 15,328 Total liabilities and equity $ 13,591 $ 13,946 $ 104,610 $ (26,850 ) $ 105,297 The following table presents the condensed consolidating income statement information for the three months ended March 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,140 $ — $ 1,140 Net investment income (1 ) 3 805 (3 ) 804 Net investment gains (losses) — 6 (37 ) — (31 ) Policy fees and other income — — 203 (1 ) 202 Total revenues (1 ) 9 2,111 (4 ) 2,115 Benefits and expenses: Benefits and other changes in policy reserves — — 1,311 — 1,311 Interest credited — — 156 — 156 Acquisition and operating expenses, net of deferrals 7 — 233 — 240 Amortization of deferred acquisition costs and intangibles — — 104 — 104 Interest expense — 68 12 (4 ) 76 Total benefits and expenses 7 68 1,816 (4 ) 1,887 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (8 ) (59 ) 295 — 228 Provision (benefit) for income taxes 6 (17 ) 74 — 63 Equity in income of subsidiaries 126 45 — (171 ) — Income from continuing operations 112 3 221 (171 ) 165 Loss from discontinued operations, net of taxes — — — — — Net income 112 3 221 (171 ) 165 Less: net income attributable to noncontrolling interests — — 53 — 53 Net income available to Genworth Financial, Inc.’s common stockholders $ 112 $ 3 $ 168 $ (171 ) $ 112 The following table presents the condensed consolidating income statement information for the three months ended March 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,136 $ — $ 1,136 Net investment income (1 ) 1 794 (4 ) 790 Net investment gains (losses) — (3 ) 37 — 34 Policy fees and other income — — 211 — 211 Total revenues (1 ) (2 ) 2,178 (4 ) 2,171 Benefits and expenses: Benefits and other changes in policy reserves — — 1,246 — 1,246 Interest credited — — 167 — 167 Acquisition and operating expenses, net of deferrals 13 — 257 — 270 Amortization of deferred acquisition costs and intangibles — — 94 — 94 Interest expense — 55 11 (4 ) 62 Total benefits and expenses 13 55 1,775 (4 ) 1,839 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (14 ) (57 ) 403 — 332 Provision (benefit) for income taxes 3 (20 ) 133 — 116 Equity in income of subsidiaries 172 123 — (295 ) — Income from continuing operations 155 86 270 (295 ) 216 Loss from discontinued operations, net of taxes — — — — — Net income 155 86 270 (295 ) 216 Less: net income attributable to noncontrolling interests — — 61 — 61 Net income available to Genworth Financial, Inc.’s common stockholders $ 155 $ 86 $ 209 $ (295 ) $ 155 The following table presents the condensed consolidating comprehensive income statement information for the three months ended March 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 112 $ 3 $ 221 $ (171 ) $ 165 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (332 ) (295 ) (341 ) 627 (341 ) Derivatives qualifying as hedges (152 ) (153 ) (165 ) 318 (152 ) Foreign currency translation and other adjustments (47 ) (36 ) (88 ) 84 (87 ) Total other comprehensive income (loss) (531 ) (484 ) (594 ) 1,029 (580 ) Total comprehensive loss (419 ) (481 ) (373 ) 858 (415 ) Less: comprehensive income attributable to noncontrolling interests — — 4 — 4 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (419 ) $ (481 ) $ (377 ) $ 858 $ (419 ) The following table presents the condensed consolidating comprehensive income statement information for the three months ended March 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 155 $ 86 $ 270 $ (295 ) $ 216 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (20 ) (31 ) (13 ) 52 (12 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 1 (2 ) 1 Derivatives qualifying as hedges (49 ) (49 ) (52 ) 101 (49 ) Foreign currency translation and other adjustments 70 68 119 (138 ) 119 Total other comprehensive income (loss) 2 (11 ) 55 13 59 Total comprehensive income 157 75 325 (282 ) 275 Less: comprehensive income attributable to noncontrolling interests — — 118 — 118 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 157 $ 75 $ 207 $ (282 ) $ 157 The following table presents the condensed consolidating cash flows statement information for the three months ended March 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 112 $ 3 $ 221 $ (171 ) $ 165 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (126 ) (45 ) — 171 — Dividends from subsidiaries — 63 (63 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 1 (26 ) — (25 ) Net investment (gains) losses — (6 ) 37 — 31 Charges assessed to policyholders — — (178 ) — (178 ) Acquisition costs deferred — — (18 ) — (18 ) Amortization of deferred acquisition costs and intangibles — — 104 — 104 Deferred income taxes 9 (47 ) 64 — 26 Trading securities, held-for-sale — 17 (169 ) — (152 ) Stock-based compensation expense 8 — (1 ) — 7 Change in certain assets and liabilities: Accrued investment income and other assets 5 16 (63 ) (3 ) (45 ) Insurance reserves — — 377 — 377 Current tax liabilities (23 ) 26 (42 ) — (39 ) Other liabilities, policy and contract claims and other policy-related balances (13 ) (19 ) (117 ) 5 (144 ) Net cash from (used by) operating activities (28 ) 9 126 2 109 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 934 — 934 Commercial mortgage loans — — 205 — 205 Restricted commercial mortgage loans related to securitization entities — — 8 — 8 Proceeds from sales of investments: Fixed maturity and equity securities — — 792 — 792 Purchases and originations of investments: Fixed maturity and equity securities — — (2,013 ) — (2,013 ) Commercial mortgage loans — — (199 ) — (199 ) Other invested assets, net — — 106 (2 ) 104 Policy loans, net — — 2 — 2 Intercompany notes receivable — (56 ) 59 (3 ) — Net cash used by investing activities — (56 ) (106 ) (5 ) (167 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 255 — 255 Withdrawals from universal life and investment contracts — — (591 ) — (591 ) Proceeds from the issuance of long-term debt — 441 — — 441 Repayment of borrowings related to securitization entities — — (8 ) — (8 ) Repurchase of subsidiary shares — — (36 ) — (36 ) Dividends paid to noncontrolling interests — — (36 ) — (36 ) Intercompany notes payable 31 (59 ) 25 3 — Other, net (3 ) — 25 — 22 Net cash from (used by) financing activities 28 382 (366 ) 3 47 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (21 ) — (21 ) Net change in cash, cash equivalents and restricted cash — 335 (367 ) — (32 ) Cash, cash equivalents and restricted cash at beginning of period — 795 2,080 — 2,875 Cash, cash equivalents and restricted cash at end of period $ — $ 1,130 $ 1,713 $ — $ 2,843 The following table presents the condensed consolidating cash flows statement information for the three months ended March 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 155 $ 86 $ 270 $ (295 ) $ 216 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (172 ) (123 ) — 295 — Dividends from subsidiaries — 52 (52 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 1 (34 ) — (33 ) Net investment (gains) losses — 3 (37 ) — (34 ) Charges assessed to policyholders — — (183 ) — (183 ) Acquisition costs deferred — — (22 ) — (22 ) Amortization of deferred acquisition costs and intangibles — — 94 — 94 Deferred income taxes 9 (14 ) 98 — 93 Trading securities, held-for-sale — — 365 — 365 Stock-based compensation expense 6 — 4 — 10 Change in certain assets and liabilities: Accrued investment income and other assets 4 5 (91 ) 3 (79 ) Insurance reserves — — 377 — 377 Current tax liabilities (6 ) (6 ) (25 ) — (37 ) Other liabilities, policy and contract claims and other policy-related balances (3 ) (24 ) (83 ) (2 ) (112 ) Net cash from (used by) operating activities (7 ) (20 ) 681 1 655 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 1,060 — 1,060 Commercial mortgage loans — — 166 — 166 Restricted commercial mortgage loans related to securitization entities — — 6 — 6 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,173 — 2,173 Purchases and originations of investments: Fixed maturity and equity securities — — (2,710 ) — (2,710 ) Commercial mortgage loans — — (161 ) — (161 ) Other invested assets, net — (49 ) (626 ) (1 ) (676 ) Intercompany notes receivable — (18 ) 62 (44 ) — Net cash used by investing activities — (67 ) (30 ) (45 ) (142 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 218 — 218 Withdrawals from universal life and investment contracts — — (467 ) — (467 ) Repayment of borrowings related to securitization entities — — (7 ) — (7 ) Dividends paid to noncontrolling interests — — (39 ) — (39 ) Intercompany notes payable 15 (62 ) 3 44 — Other, net (1 ) — (8 ) — (9 ) Net cash from (used by) financing activities 14 (62 ) (300 ) 44 (304 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 25 — 25 Net change in cash, cash equivalents and restricted cash 7 (149 ) 376 — 234 Cash, cash equivalents and restricted cash at beginning of period — 998 1,786 — 2,784 Cash, cash equivalents and restricted cash at end of period $ 7 $ 849 $ 2,162 $ — $ 3,018 Our insurance company subsidiaries are restricted by state and foreign laws and regulations as to the amount of dividends they may pay to their parent without regulatory approval in any year, the purpose of which is to protect affected insurance policyholders and contractholders, not stockholders. Any dividends in excess of limits are deemed “extraordinary” and require approval. Based on statutory results as of December 31, 2017, in accordance with applicable dividend restrictions, our subsidiaries could pay dividends of approximately $500 million to us in 2018 without obtaining regulatory approval, and the remaining net assets are considered restricted. While the $500 million is unrestricted, our insurance subsidiaries may not pay dividends to us in 2018 at this level if they need to retain capital for growth and to meet capital requirements and desired thresholds. As of March 31, 2018, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $12.7 billion and $11.9 billion, respectively. |
Accounting Changes (Policies)
Accounting Changes (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted On January 1, 2018, we early adopted new accounting guidance on the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”), or “stranded tax effects.” Under current U.S. GAAP, deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the period that the changes were enacted. This also includes situations in which the related tax effects were originally recognized in other comprehensive income as opposed to income from continuing operations. The following summarizes the components for the cumulative effect adjustment recorded on January 1, 2018 related to the adoption of this new accounting guidance: Accumulated other comprehensive income (Amounts in millions) Net unrealized Derivatives Foreign currency and other Retained Total Deferred taxes: Net unrealized gains on investment securities $ 192 $ — $ — $ (192 ) $ — Net unrealized gains on derivatives — 12 — (12 ) — Investment in foreign subsidiaries (3 ) — (46 ) 49 — Accrued commission and general expenses — — (1 ) 1 — Cumulative effect of changes in accounting $ 189 $ 12 $ (47 ) $ (154 ) $ — The accounting for the temporary differences related to investment in foreign subsidiaries recorded in accumulated other comprehensive income at adoption of the TCJA, were provisional. Therefore, additional reclassification adjustments may be recorded in future periods as tax effects of the TCJA on related temporary differences are finalized. Other than those effects related to the TCJA, our policy is to release stranded tax effects from other comprehensive income using the portfolio approach for items related to investments and derivatives, and upon disposition of a subsidiary for items related to outside basis differences. On January 1, 2018, we early adopted new accounting guidance related to the hedge accounting model. The new guidance amends the hedge accounting model to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting and removed the requirements to separately measure and report hedge ineffectiveness. We adopted this new accounting using the modified retrospective method and recognized a gain of $2 million in accumulated other comprehensive income with a corresponding decrease to retained earnings at adoption. This gain was the cumulative amount of hedge ineffectiveness related to active hedges that was previously included in earnings. On January 1, 2018, we adopted new accounting guidance that clarifies when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification as a liability or equity of the share-based compensation. We adopted this new accounting guidance prospectively and therefore, the guidance did not have any impact at adoption. On January 1, 2018, we adopted new accounting guidance that clarifies the scope and accounting for gains and losses from the derecognition of nonfinancial assets or an in substance nonfinancial asset that is not a business and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control. We adopted this new accounting guidance using the modified retrospective method, which had no impact on our consolidated financial statements at adoption. On January 1, 2018, we early adopted new accounting guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. We adopted this new accounting guidance prospectively and will apply it to our 2018 goodwill impairment test. On January 1, 2018, we adopted new accounting guidance related to the classification and presentation of changes in restricted cash. The new guidance requires that changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents be shown in the statements of cash flows and requires additional disclosures related to restricted cash and restricted cash equivalents. We adopted this new accounting guidance retrospectively and modified the line item descriptions on our consolidated balance sheets and statements of cash flows in our consolidated financial statements. The other impacts from this new accounting guidance did not have a significant impact on our consolidated financial statements or disclosures. On January 1, 2018, we adopted new accounting guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We adopted this new accounting guidance using the modified retrospective method, which did not have any significant impact on our consolidated financial statements or disclosures at adoption. On January 1, 2018, we adopted new accounting guidance related to the classification of certain cash payments and cash receipts on our statement of cash flows. The guidance reduces diversity in practice related to eight specific cash flow issues. We adopted this new accounting guidance retrospectively. We will reclassify a $20 million make-whole premium that was incurred in the first quarter of 2016 previously included in the operating activities section of the statement of cash flows, within the line item “other liabilities, policy and contract claims and other policy-related balances” to the financing activities section within the line item “repayment and repurchase of long-term debt” in our 2018 annual consolidated financial statements filed on Form 10-K. On January 1, 2018, we adopted new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, are measured at fair value with changes in fair value recognized in net income. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale On January 1, 2018, we adopted new accounting guidance related to revenue from contracts with customers. The key principle of the new guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services. Insurance contracts are specifically excluded from this new guidance. The Financial Accounting Standards Board (“the FASB”) has clarified the scope that all of our insurance contracts, including mortgage insurance and investment contracts are excluded from the scope of this new guidance. We adopted this new accounting guidance using the modified retrospective method, which did not have any significant impact on our consolidated financial statements at adoption. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In March 2017, the FASB issued new guidance shortening the amortization period of certain callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019 using the modified retrospective method, with early adoption permitted. We are in process of evaluating the impact the guidance may have on our consolidated financial statements. In June 2016, the FASB issued new guidance related to accounting for credit losses on financial instruments. The guidance requires that entities recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most debt instruments not measured at fair value, which would primarily include our commercial mortgage loans and reinsurance receivables. The new guidance retains most of the existing impairment guidance for available-for-sale In February 2016, the FASB issued new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-to-use |
Accounting Changes (Tables)
Accounting Changes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Components for Cumulative Effect Adjustment | The following summarizes the components for the cumulative effect adjustment recorded on January 1, 2018 related to the adoption of this new accounting guidance: Accumulated other comprehensive income (Amounts in millions) Net unrealized Derivatives Foreign currency and other Retained Total Deferred taxes: Net unrealized gains on investment securities $ 192 $ — $ — $ (192 ) $ — Net unrealized gains on derivatives — 12 — (12 ) — Investment in foreign subsidiaries (3 ) — (46 ) 49 — Accrued commission and general expenses — — (1 ) 1 — Cumulative effect of changes in accounting $ 189 $ 12 $ (47 ) $ (154 ) $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share | Basic and diluted earnings per share are calculated by dividing each income category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated: Three months March 31, (Amounts in millions, except per share amounts) 2018 2017 Weighted-average shares used in basic earnings per share calculations 499.6 498.6 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 3.1 2.4 Weighted-average shares used in diluted earnings per share calculations 502.7 501.0 Income from continuing operations: Income from continuing operations $ 165 $ 216 Less: income from continuing operations attributable to noncontrolling interests 53 61 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 112 $ 155 Basic per share $ 0.22 $ 0.31 Diluted per share $ 0.22 $ 0.31 Loss from discontinued operations: Loss from discontinued operations, net of taxes $ — $ — Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ — $ — Basic per share $ — $ — Diluted per share $ — $ — Net income: Income from continuing operations $ 165 $ 216 Net income 165 216 Less: net income attributable to noncontrolling interests 53 61 Net income available to Genworth Financial, Inc.’s common stockholders $ 112 $ 155 Basic per share $ 0.22 $ 0.31 Diluted per share $ 0.22 $ 0.31 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Net Investment Income | Sources of net investment income were as follows for the periods indicated: Three months (Amounts in millions) 2018 2017 Fixed maturity securities—taxable $ 635 $ 641 Fixed maturity securities—non-taxable 3 3 Equity securities 10 8 Commercial mortgage loans 82 77 Restricted commercial mortgage loans related to securitization entities 2 2 Policy loans 43 42 Other invested assets 39 32 Cash, cash equivalents and short-term investments 12 6 Gross investment income before expenses and fees 826 811 Expenses and fees (22 ) (21 ) Net investment income $ 804 $ 790 |
Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the periods indicated: Three months (Amounts in millions) 2018 2017 Available-for-sale Realized gains $ 7 $ 63 Realized losses (16 ) (34 ) Net realized gains (losses) on available-for-sale (9 ) 29 Impairments: Total other-than-temporary impairments — (1 ) Portion of other-than-temporary impairments included in other comprehensive income — — Net other-than-temporary impairments — (1 ) Net realized gains (losses) on equity securities sold 2 — Net unrealized gains (losses) on equity securities still held (18 ) — Limited partnerships 7 — Commercial mortgage loans — 1 Net gains (losses) related to securitization entities — 2 Derivative instruments (1) (13 ) 3 Net investment gains (losses) $ (31 ) $ 34 (1) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Credit Losses Recognized in Net Income | The following represents the activity for credit losses recognized in net income on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (“OCI”) as of and for the three months ended March 31: (Amounts in millions) 2018 2017 Beginning balance $ 32 $ 42 Reductions: Securities sold, paid down or disposed (4 ) (1 ) Ending balance $ 28 $ 41 |
Unrealized Investment Gains and Losses | Net unrealized gains and losses on available-for-sale (Amounts in millions) March 31, December 31, Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 3,452 $ 5,125 Equity securities — 69 Subtotal (1) 3,452 5,194 Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (2,207 ) (3,451 ) Income taxes, net (282 ) (583 ) Net unrealized investment gains (losses) 963 1,160 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 46 75 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 917 $ 1,085 |
Change in Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities Reported in Accumulated Other Comprehensive Income (Loss) | The change in net unrealized gains (losses) on available-for-sale (Amounts in millions) 2018 2017 Beginning balance $ 1,085 $ 1,262 Cumulative effect of changes in accounting: Stranded tax effects 189 — Recognition and measurement of financial assets and liabilities, net of taxes of $18 and $— (25 ) — Total cumulative effect of changes in accounting 164 — Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (1,681 ) 392 Adjustment to deferred acquisition costs 442 (305 ) Adjustment to present value of future profits 36 (5 ) Adjustment to sales inducements 20 (5 ) Adjustment to benefit reserves 740 (68 ) Provision for income taxes 95 (2 ) Change in unrealized gains (losses) on investment securities (348 ) 7 Reclassification adjustments to net investment (gains) losses, net of taxes of $(1) and $10 7 (18 ) Change in net unrealized investment gains (losses) (341 ) (11 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) 8 Ending balance $ 917 $ 1,243 |
Fixed Maturity and Equity Securities | As of March 31, 2018, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,735 $ 674 $ — $ (11 ) $ — $ 5,398 State and political subdivisions 2,692 217 — (33 ) — 2,876 Non-U.S. 2,239 85 — (25 ) — 2,299 U.S. corporate: Utilities 4,444 472 — (42 ) — 4,874 Energy 2,232 174 — (23 ) — 2,383 Finance and insurance 6,119 395 — (67 ) — 6,447 Consumer—non-cyclical 4,331 385 — (46 ) — 4,670 Technology and communications 2,663 135 — (35 ) — 2,763 Industrial 1,242 76 — (10 ) — 1,308 Capital goods 2,193 216 — (24 ) — 2,385 Consumer—cyclical 1,481 82 — (21 ) — 1,542 Transportation 1,174 99 — (17 ) — 1,256 Other 351 20 — (1 ) — 370 Total U.S. corporate 26,230 2,054 — (286 ) — 27,998 Non-U.S. Utilities 989 28 — (14 ) — 1,003 Energy 1,341 124 — (11 ) — 1,454 Finance and insurance 2,583 128 — (23 ) — 2,688 Consumer—non-cyclical 674 15 — (11 ) — 678 Technology and communications 945 47 — (8 ) — 984 Industrial 946 61 — (7 ) — 1,000 Capital goods 610 21 — (5 ) — 626 Consumer—cyclical 500 4 — (4 ) — 500 Transportation 657 54 — (7 ) — 704 Other 2,485 148 — (13 ) — 2,620 Total non-U.S. 11,730 630 — (103 ) — 12,257 Residential mortgage-backed 3,664 180 14 (22 ) — 3,836 Commercial mortgage-backed 3,355 57 — (70 ) — 3,342 Other asset-backed 3,077 10 1 (14 ) — 3,074 Total available-for-sale $ 57,722 $ 3,907 $ 15 $ (564 ) $ — $ 61,080 As of December 31, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,681 $ 870 $ — $ (3 ) $ — $ 5,548 State and political subdivisions 2,678 270 — (22 ) — 2,926 Non-U.S. 2,147 106 — (20 ) — 2,233 U.S. corporate: Utilities 4,396 611 — (9 ) — 4,998 Energy 2,239 227 — (8 ) — 2,458 Finance and insurance 5,984 556 — (12 ) — 6,528 Consumer—non-cyclical 4,314 530 — (13 ) — 4,831 Technology and communications 2,665 192 — (12 ) — 2,845 Industrial 1,241 106 — (1 ) — 1,346 Capital goods 2,087 273 — (5 ) — 2,355 Consumer—cyclical 1,493 116 — (4 ) — 1,605 Transportation 1,160 134 — (3 ) — 1,291 Other 355 25 — (1 ) — 379 Total U.S. corporate 25,934 2,770 — (68 ) — 28,636 Non-U.S. Utilities 979 42 — (4 ) — 1,017 Energy 1,337 158 — (5 ) — 1,490 Finance and insurance 2,567 174 — (6 ) — 2,735 Consumer—non-cyclical 686 30 — (4 ) — 712 Technology and communications 913 71 — (2 ) — 982 Industrial 958 88 — (2 ) — 1,044 Capital goods 614 33 — (2 ) — 645 Consumer—cyclical 532 9 — (1 ) — 540 Transportation 656 68 — (3 ) — 721 Other 2,536 193 — (4 ) — 2,725 Total non-U.S. 11,778 866 — (33 ) — 12,611 Residential mortgage-backed 3,831 223 14 (11 ) — 4,057 Commercial mortgage-backed 3,387 94 2 (37 ) — 3,446 Other asset-backed 3,056 17 1 (6 ) — 3,068 Total fixed maturity securities 57,492 5,216 17 (200 ) — 62,525 Equity securities 756 72 — (8 ) — 820 Total available-for-sale $ 58,248 $ 5,288 $ 17 $ (208 ) $ — $ 63,345 |
Maturity Distribution of Fixed Maturity Securities | The scheduled maturity distribution of fixed maturity securities as of March 31, 2018 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in millions) Amortized Fair Due one year or less $ 1,666 $ 1,677 Due after one year through five years 10,943 11,146 Due after five years through ten years 12,618 12,876 Due after ten years 22,399 25,129 Subtotal 47,626 50,828 Residential mortgage-backed 3,664 3,836 Commercial mortgage-backed 3,355 3,342 Other asset-backed 3,077 3,074 Total $ 57,722 $ 61,080 |
Aging of Past Due Commercial Mortgage Loans by Property Type | The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: March 31, 2018 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,276 $ 2,276 Industrial — — — — 1,601 1,601 Office 7 — 6 13 1,467 1,480 Apartments — — — — 483 483 Mixed use — — — — 226 226 Other — — — — 282 282 Total recorded investment $ 7 $ — $ 6 $ 13 $ 6,335 $ 6,348 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2017 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ 5 $ — $ — $ 5 $ 2,234 $ 2,239 Industrial — — — — 1,628 1,628 Office — — 6 6 1,504 1,510 Apartments — — — — 478 478 Mixed use — — — — 223 223 Other — — — — 275 275 Total recorded investment $ 5 $ — $ 6 $ 11 $ 6,342 $ 6,353 % of total commercial mortgage loans — % — % — % — % 100 % 100 % |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans | The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated: Three months ended (Amounts in millions) 2018 2017 Allowance for credit losses: Beginning balance $ 9 $ 12 Charge-offs — — Recoveries — — Provision — (1 ) Ending balance $ 9 $ 11 Ending allowance for individually impaired loans $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 9 $ 11 Recorded investment: Ending balance $ 6,348 $ 6,121 Ending balance of individually impaired loans $ — $ — Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,348 $ 6,121 |
Investment Securities | |
Gross Unrealized Losses and Fair Values of Securities in a Continuous Unrealized Loss Position | The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of March 31, 2018: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 278 $ (5 ) 30 $ 105 $ (6 ) 9 $ 383 $ (11 ) 39 State and political subdivisions 494 (20 ) 90 191 (13 ) 33 685 (33 ) 123 Non-U.S. 672 (12 ) 54 232 (13 ) 21 904 (25 ) 75 U.S. corporate 7,237 (211 ) 986 1,214 (75 ) 201 8,451 (286 ) 1,187 Non-U.S. 3,288 (74 ) 457 522 (29 ) 79 3,810 (103 ) 536 Residential mortgage-backed 957 (18 ) 129 115 (4 ) 43 1,072 (22 ) 172 Commercial mortgage-backed 998 (25 ) 147 584 (45 ) 87 1,582 (70 ) 234 Other asset-backed 1,420 (12 ) 261 250 (2 ) 55 1,670 (14 ) 316 Total for fixed maturity securities in an unrealized loss position $ 15,344 $ (377 ) 2,154 $ 3,213 $ (187 ) 528 $ 18,557 $ (564 ) 2,682 % Below cost: <20% Below cost $ 15,342 $ (377 ) 2,153 $ 3,195 $ (180 ) 524 $ 18,537 $ (557 ) 2,677 20%-50% 2 — 1 18 (7 ) 4 20 (7 ) 5 Total for fixed maturity securities in an unrealized loss position $ 15,344 $ (377 ) 2,154 $ 3,213 $ (187 ) 528 $ 18,557 $ (564 ) 2,682 Investment grade $ 14,458 $ (349 ) 2,033 $ 3,054 $ (175 ) 495 $ 17,512 $ (524 ) 2,528 Below investment grade 886 (28 ) 121 159 (12 ) 33 1,045 (40 ) 154 Total for fixed maturity securities in an unrealized loss position $ 15,344 $ (377 ) 2,154 $ 3,213 $ (187 ) 528 $ 18,557 $ (564 ) 2,682 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of March 31, 2018: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 805 $ (29 ) 124 $ 191 $ (13 ) 32 $ 996 $ (42 ) 156 Energy 581 (14 ) 85 121 (9 ) 18 702 (23 ) 103 Finance and insurance 2,090 (57 ) 282 240 (10 ) 40 2,330 (67 ) 322 Consumer—non-cyclical 1,254 (35 ) 144 168 (11 ) 28 1,422 (46 ) 172 Technology and communications 774 (20 ) 108 182 (15 ) 29 956 (35 ) 137 Industrial 295 (7 ) 45 53 (3 ) 8 348 (10 ) 53 Capital goods 509 (20 ) 70 74 (4 ) 12 583 (24 ) 82 Consumer—cyclical 544 (15 ) 77 109 (6 ) 19 653 (21 ) 96 Transportation 363 (13 ) 48 76 (4 ) 15 439 (17 ) 63 Other 22 (1 ) 3 — — — 22 (1 ) 3 Subtotal, U.S. corporate securities 7,237 (211 ) 986 1,214 (75 ) 201 8,451 (286 ) 1,187 Non-U.S. Utilities 335 (9 ) 45 64 (5 ) 5 399 (14 ) 50 Energy 333 (8 ) 43 57 (3 ) 11 390 (11 ) 54 Finance and insurance 845 (18 ) 116 116 (5 ) 17 961 (23 ) 133 Consumer—non-cyclical 252 (7 ) 25 53 (4 ) 7 305 (11 ) 32 Technology and communications 280 (7 ) 45 26 (1 ) 7 306 (8 ) 52 Industrial 176 (4 ) 26 40 (3 ) 6 216 (7 ) 32 Capital goods 156 (3 ) 20 46 (2 ) 4 202 (5 ) 24 Consumer—cyclical 226 (4 ) 37 — — — 226 (4 ) 37 Transportation 149 (4 ) 19 40 (3 ) 6 189 (7 ) 25 Other 536 (10 ) 81 80 (3 ) 16 616 (13 ) 97 Subtotal, non-U.S. 3,288 (74 ) 457 522 (29 ) 79 3,810 (103 ) 536 Total for corporate securities in an unrealized loss position $ 10,525 $ (285 ) 1,443 $ 1,736 $ (104 ) 280 $ 12,261 $ (389 ) 1,723 For all securities in an unrealized loss position, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost. The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2017: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 78 $ (1 ) 21 $ 94 $ (2 ) 7 $ 172 $ (3 ) 28 State and political subdivisions 125 (1 ) 35 327 (21 ) 42 452 (22 ) 77 Non-U.S. 583 (7 ) 26 239 (13 ) 20 822 (20 ) 46 U.S. corporate 1,871 (26 ) 296 1,347 (42 ) 190 3,218 (68 ) 486 Non-U.S. 1,323 (12 ) 217 548 (21 ) 77 1,871 (33 ) 294 Residential mortgage-backed 707 (7 ) 81 130 (4 ) 46 837 (11 ) 127 Commercial mortgage-backed 476 (4 ) 69 646 (33 ) 90 1,122 (37 ) 159 Other asset-backed 853 (4 ) 160 230 (2 ) 57 1,083 (6 ) 217 Subtotal, fixed maturity securities 6,016 (62 ) 905 3,561 (138 ) 529 9,577 (200 ) 1,434 Equity securities 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total for securities in an unrealized loss position $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 % Below cost—fixed maturity securities: <20% Below cost $ 6,016 $ (62 ) 905 $ 3,555 $ (136 ) 526 $ 9,571 $ (198 ) 1,431 20%-50% — — — 6 (2 ) 3 6 (2 ) 3 Total fixed maturity securities 6,016 (62 ) 905 3,561 (138 ) 529 9,577 (200 ) 1,434 % Below cost—equity securities: <20% Below cost 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total equity securities 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total for securities in an unrealized loss position $6,090 $(65) 1,039 $3,661 $(143) 587 $9,751 $(208) 1,626 Investment grade $ 5,867 $ (55 ) 898 $ 3,488 $ (135 ) 528 $ 9,355 $ (190 ) 1,426 Below investment grade 223 (10 ) 141 173 (8 ) 59 396 (18 ) 200 Total for securities in an unrealized loss position $6,090 $(65) 1,039 $3,661 $(143) 587 $9,751 $(208) 1,626 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2017: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 181 $ (2 ) 33 $ 219 $ (7 ) 36 $ 400 $ (9 ) 69 Energy 106 (1 ) 22 140 (7 ) 15 246 (8 ) 37 Finance and insurance 626 (6 ) 91 222 (6 ) 30 848 (12 ) 121 Consumer—non-cyclical 299 (7 ) 46 221 (6 ) 31 520 (13 ) 77 Technology and communications 217 (4 ) 32 210 (8 ) 29 427 (12 ) 61 Industrial — — — 62 (1 ) 9 62 (1 ) 9 Capital goods 176 (2 ) 25 81 (3 ) 14 257 (5 ) 39 Consumer—cyclical 137 (2 ) 24 95 (2 ) 13 232 (4 ) 37 Transportation 117 (1 ) 21 97 (2 ) 13 214 (3 ) 34 Other 12 (1 ) 2 — — — 12 (1 ) 2 Subtotal, U.S. corporate securities 1,871 (26 ) 296 1,347 (42 ) 190 3,218 (68 ) 486 Non-U.S. Utilities 113 (1 ) 23 72 (3 ) 8 185 (4 ) 31 Energy 118 (2 ) 19 74 (3 ) 12 192 (5 ) 31 Finance and insurance 347 (3 ) 56 117 (3 ) 19 464 (6 ) 75 Consumer—non-cyclical 69 (1 ) 11 60 (3 ) 6 129 (4 ) 17 Technology and communications 107 (1 ) 18 30 (1 ) 6 137 (2 ) 24 Industrial 52 — 9 38 (2 ) 5 90 (2 ) 14 Capital goods 54 — 11 46 (2 ) 3 100 (2 ) 14 Consumer—cyclical 131 (1 ) 21 — — — 131 (1 ) 21 Transportation 47 (1 ) 7 64 (2 ) 8 111 (3 ) 15 Other 285 (2 ) 42 47 (2 ) 10 332 (4 ) 52 Subtotal, non-U.S. 1,323 (12 ) 217 548 (21 ) 77 1,871 (33 ) 294 Total for corporate securities in an unrealized loss position $ 3,194 $ (38 ) 513 $ 1,895 $ (63 ) 267 $ 5,089 $ (101 ) 780 |
Loan To Value Ratio | |
Commercial Mortgage Loans by Property Type | The following tables set forth the loan-to-value of commercial mortgage loans by property type as of the dates indicated: March 31, 2018 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 851 $ 496 $ 929 $ — $ — $ 2,276 Industrial 681 355 565 — — 1,601 Office 443 462 560 13 2 1,480 Apartments 205 125 148 5 — 483 Mixed use 101 55 70 — — 226 Other 50 43 189 — — 282 Total recorded investment $ 2,331 $ 1,536 $ 2,461 $ 18 $ 2 $ 6,348 % of total 37 % 24 % 39 % — % — % 100 % Weighted-average debt service coverage ratio 2.41 2.17 1.74 0.58 1.04 2.08 (1) Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. December 31, 2017 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 919 $ 500 $ 820 $ — $ — $ 2,239 Industrial 731 363 532 2 — 1,628 Office 575 386 534 13 2 1,510 Apartments 226 101 146 5 — 478 Mixed use 99 59 65 — — 223 Other 68 28 179 — — 275 Total recorded investment $ 2,618 $ 1,437 $ 2,276 $ 20 $ 2 $ 6,353 % of total 41 % 23 % 36 % — % — % 100 % Weighted-average debt service coverage ratio 2.65 1.85 1.62 0.62 1.04 2.09 (1) Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Debt Service Coverage Ratio | |
Commercial Mortgage Loans by Property Type | The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated: March 31, 2018 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 42 $ 230 $ 302 $ 1,060 $ 642 $ 2,276 Industrial 20 58 194 700 629 1,601 Office 49 61 165 570 635 1,480 Apartments — 18 80 194 191 483 Mixed use 5 4 28 85 104 226 Other 1 138 23 71 49 282 Total recorded investment $ 117 $ 509 $ 792 $ 2,680 $ 2,250 $ 6,348 % of total 2 % 8 % 13 % 42 % 35 % 100 % Weighted-average loan-to-value 55 % 60 % 58 % 58 % 46 % 54 % December 31, 2017 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 43 $ 235 $ 301 $ 1,020 $ 640 $ 2,239 Industrial 23 61 174 700 670 1,628 Office 51 61 157 569 672 1,510 Apartments — 17 77 191 193 478 Mixed use 2 4 26 86 105 223 Other 1 149 14 71 40 275 Total recorded investment $ 120 $ 527 $ 749 $ 2,637 $ 2,320 $ 6,353 % of total 2 % 8 % 12 % 42 % 36 % 100 % Weighted-average loan-to-value 55 % 60 % 58 % 58 % 42 % 52 % |
Other Geographic Area | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,276 36 % $ 2,239 35 % Industrial 1,601 25 1,628 26 Office 1,480 23 1,510 24 Apartments 483 8 478 8 Mixed use 226 4 223 3 Other 282 4 275 4 Subtotal 6,348 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (3 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,336 $ 6,341 March 31, 2018 December 31, 2017 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,653 26 % $ 1,625 26 % Pacific 1,627 26 1,622 26 Middle Atlantic 907 15 927 14 Mountain 576 9 556 9 West North Central 444 7 446 7 East North Central 387 6 394 6 West South Central 342 5 336 5 East South Central 212 3 208 3 New England 200 3 239 4 Subtotal 6,348 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (3 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,336 $ 6,341 |
Real Estate Properties | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,276 36 % $ 2,239 35 % Industrial 1,601 25 1,628 26 Office 1,480 23 1,510 24 Apartments 483 8 478 8 Mixed use 226 4 223 3 Other 282 4 275 4 Subtotal 6,348 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (3 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,336 $ 6,341 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule Of Positions in Derivative Instruments | The following table sets forth our positions in derivative instruments as of the dates indicated: Derivative assets Derivative liabilities Fair value Fair value (Amounts in millions) Balance sheet March 31, December 31, Balance sheet March 31, December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested $ 54 $ 74 Other liabilities $ 58 $ 25 Foreign currency swaps Other invested 1 1 Other liabilities — — Total cash flow hedges 55 75 58 25 Total derivatives designated as hedges 55 75 58 25 Derivatives not designated as hedges Foreign currency swaps Other invested 5 11 Other liabilities 2 — Equity index options Other invested 60 80 Other liabilities — — Financial futures Other invested — — Other liabilities — — Equity return swaps Other invested 1 — Other liabilities — 2 Other foreign currency contracts Other invested 108 110 Other liabilities 24 20 GMWB embedded derivatives Reinsurance recoverable (1) 13 14 Policyholder account balances (2) 242 250 Fixed index annuity embedded derivatives Other assets — — Policyholder (3) 408 419 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder (4) 13 14 Total derivatives not designated as hedges 187 215 689 705 Total derivatives $ 242 $ 290 $ 747 $ 730 (1) Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities. (2) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (3) Represents the embedded derivatives associated with our fixed index annuity liabilities. (4) Represents the embedded derivatives associated with our indexed universal life liabilities. |
Schedule of Notional Amounts Outstanding on Derivative Instruments | The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ March 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,155 $ 1,048 $ (1,178 ) $ 11,025 Foreign currency swaps Notional 22 — — 22 Total cash flow hedges 11,177 1,048 (1,178 ) 11,047 Total derivatives designated as hedges 11,177 1,048 (1,178 ) 11,047 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — — 4,679 Foreign currency swaps Notional 349 57 — 406 Credit default swaps Notional 39 — (19 ) 20 Equity index options Notional 2,420 585 (596 ) 2,409 Financial futures Notional 1,283 1,380 (1,389 ) 1,274 Equity return swaps Notional 96 — (77 ) 19 Other foreign currency contracts Notional 3,264 195 (311 ) 3,148 Total derivatives not designated as hedges 12,130 2,217 (2,392 ) 11,955 Total derivatives $ 23,307 $ 3,265 $ (3,570 ) $ 23,002 (Number of policies) Measurement December 31, Additions Maturities/ March 31, Derivatives not designated as hedges GMWB embedded derivatives Policies 30,450 — (693 ) 29,757 Fixed index annuity embedded derivatives Policies 17,067 — (115 ) 16,952 Indexed universal life embedded derivatives Policies 985 — (17 ) 968 |
Schedule of Pre-Tax Income Effects of Cash Flow Hedges | The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended March 31, 2018: (Amounts in millions) Gain (loss) Gain (loss) into net Classification of gain Interest rate swaps hedging assets $ (173 ) $ 35 Net investment income Interest rate swaps hedging assets — 5 Net investment Interest rate swaps hedging liabilities 17 — Interest expense Foreign currency swaps (1 ) — Net investment income Total $ (157 ) $ 40 The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended March 31, 2017: (Amounts in millions) Gain (loss) Gain (loss) into net income Classification of Gain (loss) in net (1) Classification of gain (loss) Interest rate swaps hedging assets $ (49 ) $ 30 Net investment income $ — Net investment Interest rate swaps hedging assets — 1 Net investment — Net investment Interest rate swaps hedging liabilities 4 — Interest expense — Net investment Total $ (45 ) $ 31 $ — (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. |
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedge | The following table provides a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated: Three months (Amounts in millions) 2018 2017 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,065 $ 2,085 Cumulative effect of changes in accounting: Stranded tax effects 12 — Changes to the hedge accounting model, net of deferred taxes of $(1) and $— 2 — Total cumulative effect of changes in accounting 14 — Current period increases (decreases) in fair value, net of deferred taxes of $34 and $16 (126 ) (29 ) Reclassification to net (income), net of deferred taxes of $14 and $11 (26 ) (20 ) Derivatives qualifying as effective accounting hedges as of March 31 $ 1,927 $ 2,036 |
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income for Effects of Derivatives Not Designated as Hedges | The following tables provide the pre-tax gain (loss) recognized in net income for the effects of derivatives not designated as hedges for the periods indicated: Three months ended Classification of gain (loss) in net income (Amounts in millions) 2018 2017 Interest rate swaps $ (1 ) $ 2 Net investment gains (losses) Credit default swaps related to securitization entities — 2 Net investment gains (losses) Equity index options (15 ) 13 Net investment gains (losses) Financial futures (24 ) (17 ) Net investment gains (losses) Equity return swaps (5 ) (8 ) Net investment gains (losses) Other foreign currency contracts 8 (5 ) Net investment gains (losses) Foreign currency swaps (8 ) 3 Net investment gains (losses) GMWB embedded derivatives 14 33 Net investment gains (losses) Fixed index annuity embedded derivatives 8 (20 ) Net investment gains (losses) Indexed universal life embedded derivatives 5 1 Net investment gains (losses) Total derivatives not designated as hedges $ (18 ) $ 4 |
Derivative Assets and Liabilities Subject to Master Netting Arrangement | The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in millions) Derivatives (1) Derivatives (2) Net Derivatives (1) Derivatives (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 232 $ 84 $ 148 $ 278 $ 47 $ 231 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 232 84 148 278 47 231 Gross amounts not offset in the balance sheet: Financial instruments (3) (29 ) (29 ) — (23 ) (23 ) — Collateral received (151 ) — (151 ) (170 ) — (170 ) Collateral pledged — (414 ) 414 — (288 ) 288 Over collateralization 6 359 (353 ) — 264 (264 ) Net amount $ 58 $ — $ 58 $ 85 $ — $ 85 (1) Included $3 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of March 31, 2018 and December 31, 2017, respectively. (2) Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of March 31, 2018 and December 31, 2017. (3) Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. |
Schedule of Credit Default Swaps Where We Sell Protection on Single Name Reference Entities and Fair Values | The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Investment grade Matures in less than one year $ 20 $ — $ — $ 39 $ — $ — Total credit default swaps on single name reference entities $ 20 $ — $ — $ 39 $ — $ — |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Financial Instruments Not Required to be Carried at Fair Value | The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated: March 31, 2018 Notional Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,336 $ 6,407 $ — $ — $ 6,407 Restricted commercial mortgage loans (1) 99 106 — — 106 Other invested assets (1) 113 113 — — 113 Liabilities: Long-term borrowings (1) 4,654 4,093 — 3,936 157 Non-recourse (1) 310 206 — — 206 Borrowings related to securitizationentities (1) 32 33 — 33 — Investment contracts (1) 14,195 14,492 — 5 14,487 Other firm commitments: Commitments to fund limited partnerships 365 — — — — — Commitments to fund bank loan investments 19 — — — — — Ordinary course of business lendingcommitments 106 — — — — — December 31, 2017 Notional Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,341 $ 6,573 $ — $ — $ 6,573 Restricted commercial mortgage loans (1) 107 116 — — 116 Other invested assets (1) 277 299 — — 299 Liabilities: Long-term borrowings (1) 4,224 3,725 — 3,566 159 Non-recourse (1) 310 201 — — 201 Borrowings related to securitizationentities (1) 40 41 — 41 — Investment contracts (1) 14,700 15,123 — 5 15,118 Other firm commitments: Commitments to fund limited partnerships 317 — — — — — Commitments to fund bank loan investments 18 — — — — — Ordinary course of business lendingcommitments 168 — — — — — (1) These financial instruments do not have notional amounts. |
Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2 | The following table presents a summary of the significant inputs used by our third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of March 31, 2018: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 5,398 Price quotes from trading desk, broker feeds Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread State and political subdivisions $ 2,823 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. $ 2,283 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer U.S. corporate $ 24,940 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. $ 10,306 Multi-dimensional attribute-based modeling systems, OAS-based Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer Residential mortgage-backed $ 3,802 OAS-based Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Commercial mortgage-backed $ 3,336 Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports Other asset-backed $ 2,902 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: non-U.S. non-U.S. |
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis | The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: March 31, 2018 (Amounts in millions) Total Level 1 Level 2 Level 3 NAV (1) Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsoredenterprises $ 5,398 $ — $ 5,398 $ — $ — State and political subdivisions 2,876 — 2,823 53 — Non-U.S. 2,299 — 2,299 — — U.S. corporate: Utilities 4,874 — 4,321 553 — Energy 2,383 — 2,237 146 — Finance and insurance 6,447 — 5,867 580 — Consumer—non-cyclical 4,670 — 4,591 79 — Technology and communications 2,763 — 2,738 25 — Industrial 1,308 — 1,269 39 — Capital goods 2,385 — 2,282 103 — Consumer—cyclical 1,542 — 1,290 252 — Transportation 1,256 — 1,199 57 — Other 370 — 204 166 — Total U.S. corporate 27,998 — 25,998 2,000 — Non-U.S. Utilities 1,003 — 667 336 — Energy 1,454 — 1,259 195 — Finance and insurance 2,688 — 2,535 153 — Consumer—non-cyclical 678 — 558 120 — Technology and communications 984 — 956 28 — Industrial 1,000 — 892 108 — Capital goods 626 — 440 186 — Consumer—cyclical 500 — 448 52 — Transportation 704 — 538 166 — Other 2,620 — 2,537 83 — Total non-U.S. 12,257 — 10,830 1,427 — Residential mortgage-backed 3,836 — 3,802 34 — Commercial mortgage-backed 3,342 — 3,336 6 — Other asset-backed 3,074 — 2,902 172 — Total fixed maturity securities 61,080 — 57,388 3,692 — Equity securities 799 684 70 45 — Other invested assets: Derivative assets: Interest rate swaps 54 — 54 — — Foreign currency swaps 6 — 6 — — Equity index options 60 — — 60 — Equity return swaps 1 — 1 — — Other foreign currency contracts 108 — 108 — — Total derivative assets 229 — 169 60 — Securities lending collateral 252 — 252 — — Short-term investments 762 10 752 — — Limited partnerships 223 — — — 223 Total other invested assets 1,466 10 1,173 60 223 Reinsurance recoverable (2) 13 — — 13 — Separate account assets 6,902 6,902 — — — Total assets $ 70,260 $ 7,596 $ 58,631 $ 3,810 $ 223 (1) Limited partnerships that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. December 31, 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,548 $ — $ 5,547 $ 1 State and political subdivisions 2,926 — 2,889 37 Non-U.S. 2,233 — 2,233 — U.S. corporate: Utilities 4,998 — 4,424 574 Energy 2,458 — 2,311 147 Finance and insurance 6,528 — 5,902 626 Consumer—non-cyclical 4,831 — 4,750 81 Technology and communications 2,845 — 2,772 73 Industrial 1,346 — 1,307 39 Capital goods 2,355 — 2,234 121 Consumer—cyclical 1,605 — 1,343 262 Transportation 1,291 — 1,231 60 Other 379 — 210 169 Total U.S. corporate 28,636 — 26,484 2,152 Non-U.S. Utilities 1,017 — 674 343 Energy 1,490 — 1,314 176 Finance and insurance 2,735 — 2,574 161 Consumer—non-cyclical 712 — 588 124 Technology and communications 982 — 953 29 Industrial 1,044 — 928 116 Capital goods 645 — 454 191 Consumer—cyclical 540 — 486 54 Transportation 721 — 551 170 Other 2,725 — 2,673 52 Total non-U.S. 12,611 — 11,195 1,416 Residential mortgage-backed 4,057 — 3,980 77 Commercial mortgage-backed 3,446 — 3,416 30 Other asset-backed 3,068 — 2,831 237 Total fixed maturity securities 62,525 — 58,575 3,950 Equity securities 820 696 80 44 Other invested assets: Derivative assets: Interest rate swaps 74 — 74 — Foreign currency swaps 12 — 12 — Equity index options 80 — — 80 Other foreign currency contracts 110 — 110 — Total derivative assets 276 — 196 80 Securities lending collateral 268 — 268 — Short-term investments 902 107 795 — Total other invested assets 1,446 107 1,259 80 Reinsurance recoverable (1) 14 — — 14 Separate account assets 7,230 7,230 — — Total assets $ 72,035 $ 8,033 $ 59,914 $ 4,088 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value | The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: (Amounts in millions) Beginning Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Total gains in net Included Included Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 1 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ — $ — State and political subdivisions 37 1 (3 ) — — — — 18 — 53 1 U.S. corporate: Utilities 574 — (18 ) 3 — — (2 ) — (4 ) 553 — Energy 147 — (5 ) 22 — — (18 ) — — 146 — Finance and insurance 626 1 (26 ) 26 — — (36 ) — (11 ) 580 1 Consumer—non-cyclical 81 — (2 ) — — — — — — 79 — Technology and communications 73 — (6 ) — — — (42 ) — — 25 — Industrial 39 — — — — — — — — 39 — Capital goods 121 — (8 ) — — — (10 ) — — 103 — Consumer—cyclical 262 — (9 ) 10 — — (11 ) — — 252 — Transportation 60 — (1 ) — — — (2 ) — — 57 — Other 169 — (1 ) — — — (2 ) — — 166 — Total U.S. corporate 2,152 1 (76 ) 61 — — (123 ) — (15 ) 2,000 1 Non-U.S. Utilities 343 — (9 ) 22 — — (20 ) — — 336 — Energy 176 — (4 ) 23 — — — — — 195 — Finance and insurance 161 1 (8 ) — — — (1 ) — — 153 1 Consumer—non-cyclical 124 — (3 ) — — — (1 ) — — 120 — Technology and communications 29 — (1 ) — — — — — — 28 — Industrial 116 — (3 ) — — — (5 ) — — 108 — Capital goods 191 — (5 ) — — — — — — 186 — Consumer—cyclical 54 — (2 ) — — — — — — 52 — Transportation 170 — (4 ) — — — — — — 166 — Other 52 — (2 ) 33 — — — — — 83 — Total non-U.S. 1,416 1 (41 ) 78 — — (27 ) — — 1,427 1 Residential mortgage-backed 77 — (1 ) 12 — — — — (54 ) 34 — Commercial mortgage-backed 30 — (2 ) 7 — — — — (29 ) 6 — Other asset-backed 237 — (2 ) 55 — — (32 ) 3 (89 ) 172 — Total fixed maturity securities 3,950 3 (125 ) 213 — — (183 ) 21 (187 ) 3,692 3 Equity securities 44 — — 4 (3 ) — — — — 45 — Other invested assets: Derivative assets: Equity index options 80 (15 ) — 14 — — (19 ) — — 60 (12 ) Total derivative assets 80 (15 ) — 14 — — (19 ) — — 60 (12 ) Total other invested assets 80 (15 ) — 14 — — (19 ) — — 60 (12 ) Reinsurance recoverable (2) 14 (2 ) — — — 1 — — — 13 (2 ) Total Level 3 assets $ 4,088 $ (14 ) $ (125 ) $ 231 $ (3 ) $ 1 $ (202 ) $ 21 $ (187 ) $ 3,810 $ (11 ) (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Total gains included in (Amounts in millions) Included Included Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 2 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 1 $ — State and political subdivisions 37 1 (1 ) — — — — — — 37 1 U.S. corporate: Utilities 576 — 7 14 — — (2 ) — (17 ) 578 — Energy 210 (1 ) 2 — (10 ) — (23 ) — (16 ) 162 (1 ) Finance and insurance 786 4 12 29 (10 ) — (3 ) — — 818 4 Consumer—non-cyclical 121 — 1 — — — — — — 122 — Technology and communications 54 1 1 10 — — — — (7 ) 59 1 Industrial 48 — (1 ) — — — — — — 47 — Capital goods 152 — 1 — — — — — — 153 — Consumer—cyclical 258 — 5 2 — — (2 ) — — 263 — Transportation 139 1 1 — — — (2 ) — (42 ) 97 — Other 143 — 1 — — — (2 ) — — 142 — Total U.S. corporate 2,487 5 30 55 (20 ) — (34 ) — (82 ) 2,441 4 Non-U.S. corporate: Utilities 386 — 2 30 — — — — (32 ) 386 — Energy 206 — 2 — (1 ) — (1 ) — — 206 — Finance and insurance 182 2 4 — — — (20 ) — — 168 1 Consumer—non-cyclical 139 — 1 — — — (11 ) — — 129 — Technology and communications 67 — — — — — (19 ) — — 48 — Industrial 109 — 1 — — — — — — 110 — Capital goods 169 — 1 — — — — — — 170 — Consumer—cyclical 69 — — — — — (2 ) — — 67 — Transportation 181 — 2 — — — — 10 — 193 — Other 25 — (1 ) — — — — — — 24 — Total non-U.S. corporate 1,533 2 12 30 (1 ) — (53 ) 10 (32 ) 1,501 1 Residential mortgage-backed 43 — — 4 — — (1 ) — — 46 — Commercial mortgage-backed 54 — 4 1 — — — — — 59 — Other asset-backed 145 — — 54 — — (2 ) 5 (27 ) 175 — Total fixed maturity securities 4,301 8 45 144 (21 ) — (91 ) 15 (141 ) 4,260 6 Equity securities 47 — — — — — — — — 47 — Other invested assets: Derivative assets: Equity index options 72 13 — 12 — — (20 ) — — 77 12 Other foreign currency contracts 3 (2 ) — — — — — — — 1 (3 ) Total derivative assets 75 11 — 12 — — (20 ) — — 78 9 Total other invested assets 75 11 — 12 — — (20 ) — — 78 9 Restricted other invested assets related to securitization entities 131 — — — (131 ) — — — — — — Reinsurance recoverable (2) 16 (2 ) — — — 1 — — — 15 (2 ) Total Level 3 assets $ 4,570 $ 17 $ 45 $ 156 $ (152 ) $ 1 $ (111 ) $ 15 $ (141 ) $ 4,400 $ 13 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value | The following table presents the gains and losses included in net income from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the three months ended March 31: (Amounts in millions) 2018 2017 Total realized and unrealized gains (losses) included in net income: Net investment income $ 3 $ 9 Net investment gains (losses) (17 ) 8 Total $ (14 ) $ 17 Net gains (losses) included in net income attributable to assets still held: Net investment income $ 3 $ 7 Net investment gains (losses) (14 ) 6 Total $ (11 ) $ 13 |
Summary of Significant Unobservable Inputs Used for Certain Asset Fair Value Measurements | The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of March 31, 2018: (Amounts in millions) Valuation Fair value Unobservable Range Weighted- Fixed maturity securities: U.S. corporate: Utilities Internal models $ 535 Credit spreads 72bps - 309bps 122bps Energy Internal models 124 Credit spreads 82bps - 201bps 142bps Finance and insurance Internal models 559 Credit spreads 83bps - 311bps 159bps Consumer—non-cyclical Internal models 79 Credit spreads 94bps - 132bps 111bps Technology and communications Internal models 25 Credit spreads 65bps - 224bps 141bps Industrial Internal models 12 Credit spreads 194bps Not applicable Capital goods Internal models 102 Credit spreads 97bps - 224bps 126bps Consumer—cyclical Internal models 209 Credit spreads 78bps - 180bps 123bps Transportation Internal models 51 Credit spreads 62bps - 110bps 85bps Other Internal models 156 Credit spreads 77bps - 110bps 85bps Total U.S. corporate Internal models $ 1,852 Credit spreads 62bps - 311bps 131bps Non-U.S. Utilities Internal models $ 336 Credit spreads 76bps - 150bps 114bps Energy Internal models 164 Credit spreads 93bps - 180bps 120bps Finance and insurance Internal models 144 Credit spreads 78bps - 232bps 134bps Consumer—non-cyclical Internal models 109 Credit spreads 67bps - 194bps 117bps Technology and communications Internal models 28 Credit spreads 124bps - 231bps 170bps Industrial Internal models 108 Credit spreads 94bps - 175bps 134bps Capital goods Internal models 158 Credit spreads 94bps - 224bps 137bps Consumer—cyclical Internal models 47 Credit spreads 87bps - 159bps 106bps Transportation Internal models 146 Credit spreads 82bps - 194bps 112bps Other Internal models 83 Credit spreads 97bps - 231bps 147bps Total non-U.S. Internal models $ 1,323 Credit spreads 67bps - 232bps 124bps Derivative assets: Equity index options Discounted cash $ 60 Equity index 6% - 42% 21 % |
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis | The following tables set forth our liabilities by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: March 31, 2018 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 242 $ — $ — $ 242 Fixed index annuity embedded derivatives 408 — — 408 Indexed universal life embedded derivatives 13 — — 13 Total policyholder account balances 663 — — 663 Derivative liabilities: Interest rate swaps 58 — 58 — Foreign currency swaps 2 — 2 — Other foreign currency contracts 24 — 24 — Total derivative liabilities 84 — 84 — Total liabilities $ 747 $ — $ 84 $ 663 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. December 31, 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 250 $ — $ — $ 250 Fixed index annuity embedded derivatives 419 — — 419 Indexed universal life embedded derivatives 14 — — 14 Total policyholder account balances 683 — — 683 Derivative liabilities: Interest rate swaps 25 — 25 — Equity return swaps 2 — 2 — Other foreign currency contracts 20 — 20 — Total derivative liabilities 47 — 47 — Total liabilities $ 730 $ — $ 47 $ 683 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value | The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending Total (Amounts in millions) Beginning as of Included Included Policyholder account balances: GMWB embedded derivatives (1) $ 250 $ (16 ) $ — $ — $ — $ 8 $ — $ — $ — $ 242 $ (12 ) Fixed index annuity embedded derivatives 419 (8 ) — — — — (3 ) — — 408 (8 ) Indexed universal life embedded derivatives 14 (5 ) — — — 4 — — — 13 (5 ) Total policyholder account balances 683 (29 ) — — — 12 (3 ) — — 663 (25 ) Total Level 3 liabilities $ 683 $ (29 ) $ — $ — $ — $ 12 $ (3 ) $ — $ — $ 663 $ (25 ) (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending Total (Amounts in millions) Beginning as of Included Included Policyholder account balances: GMWB embedded derivatives (1) $ 303 $ (35 ) $ — $ — $ — $ 7 $ — $ — $ — $ 275 $ (31 ) Fixed index annuity embedded derivatives 344 20 — — — — (3 ) — — 361 20 Indexed universal life embedded derivatives 11 (1 ) — — — 2 — — — 12 (1 ) Total policyholder account balances 658 (16 ) — — — 9 (3 ) — — 648 (12 ) Borrowings related to securitization entities 12 1 — — — — — — — 13 1 Total Level 3 liabilities $ 670 $ (15 ) $ — $ — $ — $ 9 $ (3 ) $ — $ — $ 661 $ (11 ) (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value | The following table presents the gains and losses included in net (income) from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the three months ended March 31: (Amounts in millions) 2018 2017 Total realized and unrealized (gains) losses included in net (income): Net investment income $ — $ — Net investment (gains) losses (29 ) (15 ) Total $ (29 ) $ (15 ) Total (gains) losses included in net (income) attributable to liabilities still held: Net investment income $ — $ — Net investment (gains) losses (25 ) (11 ) Total $ (25 ) $ (11 ) |
Summary of Significant Unobservable Inputs Used for Certain Liability Fair Value Measurements | The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of March 31, 2018: (Amounts in millions) Valuation Fair Unobservable input Range Weighted- Policyholder account balances: Withdrawal 42% - 85% 66% Lapse rate — % - 8% 4% Non-performance 30bps - 83bps 69bps GMWB embedded derivatives (1) Stochastic cash $242 Equity index 15% - 24% 21% Fixed index annuity embeddedderivatives Option budget $408 Expected future — % - 2% 1% Indexed universal life embeddedderivatives Option budget $13 Expected future 3% - 10% 6% (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liability for Policy and Cont27
Liability for Policy and Contract Claims (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Liability for Policy and Contract Claims | The following table sets forth changes in our liability for policy and contract claims as of the dates indicated: As of or for the three (Amounts in millions) 2018 2017 Beginning balance $ 9,594 $ 9,256 Less reinsurance recoverables (2,419 ) (2,409 ) Net beginning balance 7,175 6,847 Incurred related to insured events of: Current year 998 937 Prior years (108 ) (106 ) Total incurred 890 831 Paid related to insured events of: Current year (175 ) (178 ) Prior years (692 ) (656 ) Total paid (867 ) (834 ) Interest on liability for policy and contract claims 81 73 Foreign currency translation (5 ) 14 Net ending balance 7,274 6,931 Add reinsurance recoverables 2,377 2,364 Ending balance $ 9,651 $ 9,295 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Long Term Borrowings | The following table sets forth total long-term borrowings as of the dates indicated: (Amounts in millions) March 31, December 31, Genworth Holdings (1) Floating Rate Senior Secured Term Loan Facility, due 2023 $ 448 $ — 6.52% Senior Notes, due 2018 597 597 7.70% Senior Notes, due 2020 397 397 7.20% Senior Notes, due 2021 381 381 7.625% Senior Notes, due 2021 704 704 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 6.15% Fixed-to-Floating 598 598 Subtotal 4,221 3,773 Bond consent fees (31 ) (33 ) Deferred borrowing charges (24 ) (16 ) Total Genworth Holdings 4,166 3,724 Canada (2) 5.68% Senior Notes, due 2020 213 219 4.24% Senior Notes, due 2024 124 128 Subtotal 337 347 Deferred borrowing charges (1 ) (1 ) Total Canada 336 346 Australia (3) Floating Rate Junior Notes, due 2025 154 156 Deferred borrowing charges (2 ) (2 ) Total Australia 152 154 Total $ 4,654 $ 4,224 (1) We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. (2) Senior notes issued by Genworth MI Canada Inc. (“Genworth Canada”), our majority-owned subsidiary. (3) Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited, our indirect wholly-owned subsidiary. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate | The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated: Three months ended (Amounts in millions) 2018 2017 Statutory U.S. federal income tax rate 21.0 % 35.0 % Increase (reduction) in rate resulting from: Effect of foreign operations 2.9 — Swaps terminated prior to the TCJA 2.3 — Other, net 1.4 (0.1 ) Effective rate 27.6 % 34.9 % |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Revenues of Major Product Groups for Segments and Corporate and Other Activities | The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated: Three months ended (Amounts in millions) 2018 2017 Revenues: U.S. Mortgage Insurance segment $ 200 $ 187 Canada Mortgage Insurance segment 158 169 Australia Mortgage Insurance segment 107 122 U.S. Life Insurance segment: Long-term care insurance 1,020 994 Life insurance 379 417 Fixed annuities 182 205 U.S. Life Insurance segment 1,581 1,616 Runoff segment 68 87 Corporate and Other activities 1 (10 ) Total revenues $ 2,115 $ 2,171 |
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities | The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated: Three months ended (Amounts in millions) 2018 2017 Net income available to Genworth Financial, Inc.’s common stockholders $ 112 $ 155 Add: net income attributable to noncontrolling interests 53 61 Net income 165 216 Loss from discontinued operations, net of taxes — — Income from continuing operations 165 216 Less: income from continuing operations attributable to noncontrolling interests 53 61 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders 112 155 Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) 17 (20 ) Expenses related to restructuring — 1 Taxes on adjustments (4 ) 7 Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 125 $ 143 (1) For the three months ended March 31, 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million. For the three months ended March 31, 2018 and 2017, net investment (gains) losses were also adjusted for net investment gains (losses) attributable to noncontrolling interests of $(11) million and $14 million, respectively. Three months ended (Amounts in millions) 2018 2017 Adjusted operating income available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 111 $ 73 Canada Mortgage Insurance segment 49 36 Australia Mortgage Insurance segment 19 13 U.S. Life Insurance segment: Long-term care insurance (32 ) 14 Life insurance (1 ) 16 Fixed annuities 28 23 U.S. Life Insurance segment (5 ) 53 Runoff segment 10 14 Corporate and Other activities (59 ) (46 ) Adjusted operating income available to Genworth Financial, $ 125 $ 143 |
Summary of Total Assets for Segments and Corporate and Other Activities | The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) March 31, December 31, Assets: U.S. Mortgage Insurance segment $ 3,316 $ 3,273 Canada Mortgage Insurance segment 5,307 5,534 Australia Mortgage Insurance segment 2,829 2,973 U.S. Life Insurance segment 79,933 81,295 Runoff segment 10,683 10,907 Corporate and Other activities 1,705 1,315 Total assets $ 103,773 $ 105,297 |
Changes in Accumulated Other 31
Changes in Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Component of Changes in Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2018 $ 1,085 $ 2,065 $ (123 ) $ 3,027 Cumulative effect of changes in accounting 164 14 (47 ) 131 OCI before reclassifications (348 ) (126 ) (87 ) (561 ) Amounts reclassified from (to) OCI 7 (26 ) — (19 ) Current period OCI (341 ) (152 ) (87 ) (580 ) Balances as of March 31, 2018 before noncontrolling interests 908 1,927 (257 ) 2,578 Less: change in OCI attributable to noncontrolling interests (9 ) — (40 ) (49 ) Balances as of March 31, 2018 $ 917 $ 1,927 $ (217 ) $ 2,627 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2017 $ 1,262 $ 2,085 $ (253 ) $ 3,094 OCI before reclassifications 7 (29 ) 119 97 Amounts reclassified from (to) OCI (18 ) (20 ) — (38 ) Current period OCI (11 ) (49 ) 119 59 Balances as of March 31, 2017 before noncontrolling interests 1,251 2,036 (134 ) 3,153 Less: change in OCI attributable to noncontrolling interests 8 — 49 57 Balances as of March 31, 2017 $ 1,243 $ 2,036 $ (183 ) $ 3,096 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. |
Reclassifications in (out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from Affected line item income Three months ended (Amounts in millions) 2018 2017 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ 8 $ (28 ) Net investment (gains) losses (Provision) benefit for income taxes (1 ) 10 (Provision) benefit for income taxes Total $ 7 $ (18 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (35 ) $ (30 ) Net investment income Interest rate swaps hedging assets (5 ) (1 ) Net investment (gains) losses Inflation indexed swaps — — Net investment income Benefit for income taxes 14 11 Benefit for income taxes Total $ (26 ) $ (20 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Finan32
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Consolidating Balance Sheet | The following table presents the condensed consolidating balance sheet information as of March 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 61,280 $ (200 ) $ 61,080 Equity securities, at fair value — — 799 — 799 Commercial mortgage loans — — 6,336 — 6,336 Restricted commercial mortgage loans related to securitization entities — — 99 — 99 Policy loans — — 1,789 — 1,789 Other invested assets — 76 1,600 (2 ) 1,674 Investments in subsidiaries 13,172 12,358 — (25,530 ) — Total investments 13,172 12,434 71,903 (25,732 ) 71,777 Cash, cash equivalents and restricted cash — 1,130 1,713 — 2,843 Accrued investment income — — 698 — 698 Deferred acquisition costs — — 2,699 — 2,699 Intangible assets and goodwill — — 339 — 339 Reinsurance recoverable — — 17,482 — 17,482 Other assets (2 ) 53 381 (1 ) 431 Intercompany notes receivable — 211 — (211 ) — Deferred tax assets 18 849 (265 ) — 602 Separate account assets — — 6,902 — 6,902 Total assets $ 13,188 $ 14,677 $ 101,852 $ (25,944 ) $ 103,773 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 37,946 $ — $ 37,946 Policyholder account balances — — 23,751 — 23,751 Liability for policy and contract claims — — 9,651 — 9,651 Unearned premiums — — 3,797 — 3,797 Other liabilities 7 124 1,714 (4 ) 1,841 Intercompany notes payable 163 200 48 (411 ) — Borrowings related to securitization entities — — 32 — 32 Non-recourse — — 310 — 310 Long-term borrowings — 4,166 488 — 4,654 Deferred tax liability — — 27 — 27 Separate account liabilities — — 6,902 — 6,902 Total liabilities 170 4,490 84,666 (415 ) 88,911 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,979 9,096 18,420 (27,516 ) 11,979 Accumulated other comprehensive income (loss) 2,627 2,692 2,641 (5,333 ) 2,627 Retained earnings 1,111 (1,601 ) (6,022 ) 7,623 1,111 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,018 10,187 15,042 (25,229 ) 13,018 Noncontrolling interests — — 2,144 (300 ) 1,844 Total equity 13,018 10,187 17,186 (25,529 ) 14,862 Total liabilities and equity $ 13,188 $ 14,677 $ 101,852 $ (25,944 ) $ 103,773 The following table presents the condensed consolidating balance sheet information as of December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 62,725 $ (200 ) $ 62,525 Equity securities, at fair value — — 820 — 820 Commercial mortgage loans — — 6,341 — 6,341 Restricted commercial mortgage loans related to securitization entities — — 107 — 107 Policy loans — — 1,786 — 1,786 Other invested assets — 75 1,742 (4 ) 1,813 Investments in subsidiaries 13,561 12,867 — (26,428 ) — Total investments 13,561 12,942 73,521 (26,632 ) 73,392 Cash, cash equivalents and restricted cash — 795 2,080 — 2,875 Accrued investment income — — 647 (3 ) 644 Deferred acquisition costs — — 2,329 — 2,329 Intangible assets and goodwill — — 301 — 301 Reinsurance recoverable — — 17,569 — 17,569 Other assets 3 54 397 (1 ) 453 Intercompany notes receivable — 155 59 (214 ) — Deferred tax assets 27 — 477 — 504 Separate account assets — — 7,230 — 7,230 Total assets $ 13,591 $ 13,946 $ 104,610 $ (26,850 ) $ 105,297 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 38,472 $ — $ 38,472 Policyholder account balances — — 24,195 — 24,195 Liability for policy and contract claims — — 9,594 — 9,594 Unearned premiums — — 3,967 — 3,967 Other liabilities 41 119 1,759 (9 ) 1,910 Intercompany notes payable 132 259 23 (414 ) — Borrowings related to securitization entities — — 40 — 40 Non-recourse — — 310 — 310 Long-term borrowings — 3,724 500 — 4,224 Deferred tax liability — (807 ) 834 — 27 Separate account liabilities — — 7,230 — 7,230 Total liabilities 173 3,295 86,924 (423 ) 89,969 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,977 9,096 18,420 (27,516 ) 11,977 Accumulated other comprehensive income (loss) 3,027 3,037 3,051 (6,088 ) 3,027 Retained earnings 1,113 (1,482 ) (5,998 ) 7,480 1,113 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,418 10,651 15,476 (26,127 ) 13,418 Noncontrolling interests — — 2,210 (300 ) 1,910 Total equity 13,418 10,651 17,686 (26,427 ) 15,328 Total liabilities and equity $ 13,591 $ 13,946 $ 104,610 $ (26,850 ) $ 105,297 |
Condensed Consolidating Income Statement | The following table presents the condensed consolidating income statement information for the three months ended March 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,140 $ — $ 1,140 Net investment income (1 ) 3 805 (3 ) 804 Net investment gains (losses) — 6 (37 ) — (31 ) Policy fees and other income — — 203 (1 ) 202 Total revenues (1 ) 9 2,111 (4 ) 2,115 Benefits and expenses: Benefits and other changes in policy reserves — — 1,311 — 1,311 Interest credited — — 156 — 156 Acquisition and operating expenses, net of deferrals 7 — 233 — 240 Amortization of deferred acquisition costs and intangibles — — 104 — 104 Interest expense — 68 12 (4 ) 76 Total benefits and expenses 7 68 1,816 (4 ) 1,887 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (8 ) (59 ) 295 — 228 Provision (benefit) for income taxes 6 (17 ) 74 — 63 Equity in income of subsidiaries 126 45 — (171 ) — Income from continuing operations 112 3 221 (171 ) 165 Loss from discontinued operations, net of taxes — — — — — Net income 112 3 221 (171 ) 165 Less: net income attributable to noncontrolling interests — — 53 — 53 Net income available to Genworth Financial, Inc.’s common stockholders $ 112 $ 3 $ 168 $ (171 ) $ 112 The following table presents the condensed consolidating income statement information for the three months ended March 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,136 $ — $ 1,136 Net investment income (1 ) 1 794 (4 ) 790 Net investment gains (losses) — (3 ) 37 — 34 Policy fees and other income — — 211 — 211 Total revenues (1 ) (2 ) 2,178 (4 ) 2,171 Benefits and expenses: Benefits and other changes in policy reserves — — 1,246 — 1,246 Interest credited — — 167 — 167 Acquisition and operating expenses, net of deferrals 13 — 257 — 270 Amortization of deferred acquisition costs and intangibles — — 94 — 94 Interest expense — 55 11 (4 ) 62 Total benefits and expenses 13 55 1,775 (4 ) 1,839 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (14 ) (57 ) 403 — 332 Provision (benefit) for income taxes 3 (20 ) 133 — 116 Equity in income of subsidiaries 172 123 — (295 ) — Income from continuing operations 155 86 270 (295 ) 216 Loss from discontinued operations, net of taxes — — — — — Net income 155 86 270 (295 ) 216 Less: net income attributable to noncontrolling interests — — 61 — 61 Net income available to Genworth Financial, Inc.’s common stockholders $ 155 $ 86 $ 209 $ (295 ) $ 155 |
Condensed Consolidating Statement of Comprehensive Income | The following table presents the condensed consolidating comprehensive income statement information for the three months ended March 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 112 $ 3 $ 221 $ (171 ) $ 165 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (332 ) (295 ) (341 ) 627 (341 ) Derivatives qualifying as hedges (152 ) (153 ) (165 ) 318 (152 ) Foreign currency translation and other adjustments (47 ) (36 ) (88 ) 84 (87 ) Total other comprehensive income (loss) (531 ) (484 ) (594 ) 1,029 (580 ) Total comprehensive loss (419 ) (481 ) (373 ) 858 (415 ) Less: comprehensive income attributable to noncontrolling interests — — 4 — 4 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (419 ) $ (481 ) $ (377 ) $ 858 $ (419 ) The following table presents the condensed consolidating comprehensive income statement information for the three months ended March 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 155 $ 86 $ 270 $ (295 ) $ 216 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (20 ) (31 ) (13 ) 52 (12 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 1 (2 ) 1 Derivatives qualifying as hedges (49 ) (49 ) (52 ) 101 (49 ) Foreign currency translation and other adjustments 70 68 119 (138 ) 119 Total other comprehensive income (loss) 2 (11 ) 55 13 59 Total comprehensive income 157 75 325 (282 ) 275 Less: comprehensive income attributable to noncontrolling interests — — 118 — 118 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 157 $ 75 $ 207 $ (282 ) $ 157 |
Condensed Consolidating Statement of Cash Flows | The following table presents the condensed consolidating cash flows statement information for the three months ended March 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 112 $ 3 $ 221 $ (171 ) $ 165 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (126 ) (45 ) — 171 — Dividends from subsidiaries — 63 (63 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 1 (26 ) — (25 ) Net investment (gains) losses — (6 ) 37 — 31 Charges assessed to policyholders — — (178 ) — (178 ) Acquisition costs deferred — — (18 ) — (18 ) Amortization of deferred acquisition costs and intangibles — — 104 — 104 Deferred income taxes 9 (47 ) 64 — 26 Trading securities, held-for-sale — 17 (169 ) — (152 ) Stock-based compensation expense 8 — (1 ) — 7 Change in certain assets and liabilities: Accrued investment income and other assets 5 16 (63 ) (3 ) (45 ) Insurance reserves — — 377 — 377 Current tax liabilities (23 ) 26 (42 ) — (39 ) Other liabilities, policy and contract claims and other policy-related balances (13 ) (19 ) (117 ) 5 (144 ) Net cash from (used by) operating activities (28 ) 9 126 2 109 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 934 — 934 Commercial mortgage loans — — 205 — 205 Restricted commercial mortgage loans related to securitization entities — — 8 — 8 Proceeds from sales of investments: Fixed maturity and equity securities — — 792 — 792 Purchases and originations of investments: Fixed maturity and equity securities — — (2,013 ) — (2,013 ) Commercial mortgage loans — — (199 ) — (199 ) Other invested assets, net — — 106 (2 ) 104 Policy loans, net — — 2 — 2 Intercompany notes receivable — (56 ) 59 (3 ) — Net cash used by investing activities — (56 ) (106 ) (5 ) (167 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 255 — 255 Withdrawals from universal life and investment contracts — — (591 ) — (591 ) Proceeds from the issuance of long-term debt — 441 — — 441 Repayment of borrowings related to securitization entities — — (8 ) — (8 ) Repurchase of subsidiary shares — — (36 ) — (36 ) Dividends paid to noncontrolling interests — — (36 ) — (36 ) Intercompany notes payable 31 (59 ) 25 3 — Other, net (3 ) — 25 — 22 Net cash from (used by) financing activities 28 382 (366 ) 3 47 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (21 ) — (21 ) Net change in cash, cash equivalents and restricted cash — 335 (367 ) — (32 ) Cash, cash equivalents and restricted cash at beginning of period — 795 2,080 — 2,875 Cash, cash equivalents and restricted cash at end of period $ — $ 1,130 $ 1,713 $ — $ 2,843 The following table presents the condensed consolidating cash flows statement information for the three months ended March 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 155 $ 86 $ 270 $ (295 ) $ 216 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (172 ) (123 ) — 295 — Dividends from subsidiaries — 52 (52 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 1 (34 ) — (33 ) Net investment (gains) losses — 3 (37 ) — (34 ) Charges assessed to policyholders — — (183 ) — (183 ) Acquisition costs deferred — — (22 ) — (22 ) Amortization of deferred acquisition costs and intangibles — — 94 — 94 Deferred income taxes 9 (14 ) 98 — 93 Trading securities, held-for-sale — — 365 — 365 Stock-based compensation expense 6 — 4 — 10 Change in certain assets and liabilities: Accrued investment income and other assets 4 5 (91 ) 3 (79 ) Insurance reserves — — 377 — 377 Current tax liabilities (6 ) (6 ) (25 ) — (37 ) Other liabilities, policy and contract claims and other policy-related balances (3 ) (24 ) (83 ) (2 ) (112 ) Net cash from (used by) operating activities (7 ) (20 ) 681 1 655 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 1,060 — 1,060 Commercial mortgage loans — — 166 — 166 Restricted commercial mortgage loans related to securitization entities — — 6 — 6 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,173 — 2,173 Purchases and originations of investments: Fixed maturity and equity securities — — (2,710 ) — (2,710 ) Commercial mortgage loans — — (161 ) — (161 ) Other invested assets, net — (49 ) (626 ) (1 ) (676 ) Intercompany notes receivable — (18 ) 62 (44 ) — Net cash used by investing activities — (67 ) (30 ) (45 ) (142 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 218 — 218 Withdrawals from universal life and investment contracts — — (467 ) — (467 ) Repayment of borrowings related to securitization entities — — (7 ) — (7 ) Dividends paid to noncontrolling interests — — (39 ) — (39 ) Intercompany notes payable 15 (62 ) 3 44 — Other, net (1 ) — (8 ) — (9 ) Net cash from (used by) financing activities 14 (62 ) (300 ) 44 (304 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 25 — 25 Net change in cash, cash equivalents and restricted cash 7 (149 ) 376 — 234 Cash, cash equivalents and restricted cash at beginning of period — 998 1,786 — 2,784 Cash, cash equivalents and restricted cash at end of period $ 7 $ 849 $ 2,162 $ — $ 3,018 |
Formation of Genworth and Bas33
Formation of Genworth and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Billions | Oct. 21, 2016USD ($)$ / shares | Mar. 31, 2018Segment | Apr. 01, 2013 |
Entity Information [Line Items] | |||
Number of operating segments | Segment | 5 | ||
Genworth Holdings | |||
Entity Information [Line Items] | |||
Percentage of subsidiary equity ownership | 100.00% | ||
China Oceanwide Holdings Group Co., Ltd. | Definitive Acquisition Agreement | |||
Entity Information [Line Items] | |||
Total transaction value to acquire all of our outstanding common stock | $ | $ 2.7 | ||
Per share amount to acquire all of our outstanding common stock | $ / shares | $ 5.43 |
Accounting Changes - Summary of
Accounting Changes - Summary of Components for Cumulative Effect Adjustment (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 |
Deferred taxes: | ||
Cumulative effect of changes in accounting | $ 164 | |
Tax Cuts And Jobs Act of 2017 | ||
Deferred taxes: | ||
Net unrealized gains on investment securities | $ 0 | |
Net unrealized gains on derivatives | 0 | |
Investment in foreign subsidiaries | 0 | |
Accrued commission and general expenses | 0 | |
Cumulative effect of changes in accounting | 0 | |
Accumulated other comprehensive income / Net unrealized investment (gains) losses | Tax Cuts And Jobs Act of 2017 | ||
Deferred taxes: | ||
Net unrealized gains on investment securities | 192 | |
Net unrealized gains on derivatives | 0 | |
Investment in foreign subsidiaries | (3) | |
Accrued commission and general expenses | 0 | |
Cumulative effect of changes in accounting | 189 | |
Accumulated other comprehensive income / Derivatives qualifying as hedges | Tax Cuts And Jobs Act of 2017 | ||
Deferred taxes: | ||
Net unrealized gains on investment securities | 0 | |
Net unrealized gains on derivatives | 12 | |
Investment in foreign subsidiaries | 0 | |
Accrued commission and general expenses | 0 | |
Cumulative effect of changes in accounting | 12 | |
Accumulated other comprehensive income / Foreign currency translation and other adjustments | Tax Cuts And Jobs Act of 2017 | ||
Deferred taxes: | ||
Net unrealized gains on investment securities | 0 | |
Net unrealized gains on derivatives | 0 | |
Investment in foreign subsidiaries | (46) | |
Accrued commission and general expenses | (1) | |
Cumulative effect of changes in accounting | (47) | |
Retained earnings | Tax Cuts And Jobs Act of 2017 | ||
Deferred taxes: | ||
Net unrealized gains on investment securities | (192) | |
Net unrealized gains on derivatives | (12) | |
Investment in foreign subsidiaries | 49 | |
Accrued commission and general expenses | 1 | |
Cumulative effect of changes in accounting | $ (154) |
Accounting Changes - Additional
Accounting Changes - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cumulative effect on retained earnings | $ 17 | $ 9 | ||
Accumulated other comprehensive income | 2,627 | $ 3,027 | ||
Net cash from operating activities | 109 | 655 | ||
Net cash from financing activities | $ 47 | $ (304) | ||
Accounting Standards Update 2016-15 | Other Liabilities, Policy and Contract Claims and Other Policy Related Balances | ||||
Accounting Policies [Abstract] | ||||
Net cash from operating activities | $ 20 | |||
Accounting Standards Update 2016-15 | Repayment and Repurchase of Long-Term Debt | ||||
Accounting Policies [Abstract] | ||||
Net cash from financing activities | (20) | |||
Accounting Standards Update 2017-12 | Derivative and Hedging | ||||
Accounting Policies [Abstract] | ||||
Cumulative effect on retained earnings | (2) | |||
Accumulated other comprehensive income | 2 | |||
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Limited Partner | ||||
Accounting Policies [Abstract] | ||||
Cumulative effect on retained earnings | 17 | |||
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Equity Securities | ||||
Accounting Policies [Abstract] | ||||
Cumulative effect on retained earnings | 25 | |||
Accumulated other comprehensive income | $ (25) |
Earning Per Share (Detail)
Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares used in basic earnings per share calculations | 499.6 | 498.6 |
Stock options, restricted stock units and stock appreciation rights | 3.1 | 2.4 |
Weighted-average shares used in diluted earnings per share calculations | 502.7 | 501 |
Income from continuing operations: | ||
Income from continuing operations | $ 165 | $ 216 |
Less: income from continuing operations attributable to noncontrolling interests | 53 | 61 |
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ 112 | $ 155 |
Basic per share | $ 0.22 | $ 0.31 |
Diluted per share | $ 0.22 | $ 0.31 |
Loss from discontinued operations: | ||
Loss from discontinued operations, net of taxes | $ 0 | $ 0 |
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests | 0 | 0 |
Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.'s common stockholders | $ 0 | $ 0 |
Basic per share | $ 0 | $ 0 |
Diluted per share | $ 0 | $ 0 |
Net income: | ||
Income from continuing operations | $ 165 | $ 216 |
Net income | 165 | 216 |
Less: net income attributable to noncontrolling interests | 53 | 61 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ 112 | $ 155 |
Basic per share | $ 0.22 | $ 0.31 |
Diluted per share | $ 0.22 | $ 0.31 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | $ 826 | $ 811 |
Expenses and fees | (22) | (21) |
Net investment income | 804 | 790 |
Fixed maturity securities - taxable | ||
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | 635 | 641 |
Fixed maturity securities - non-taxable | ||
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | 3 | 3 |
Commercial mortgage loans | ||
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | 82 | 77 |
Restricted commercial mortgage loans related to securitization entities | ||
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | 2 | 2 |
Equity Securities | ||
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | 10 | 8 |
Other invested assets | ||
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | 39 | 32 |
Policy Loans | ||
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | 43 | 42 |
Cash, cash equivalents and short-term investments | ||
Net Investment Income [Line Items] | ||
Gross investment income before expenses and fees | $ 12 | $ 6 |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Investments [Abstract] | |||
Realized gains | $ 7 | $ 63 | |
Realized losses | (16) | (34) | |
Net realized gains (losses) on available-for-sale securities | (9) | 29 | |
Total other-than-temporary impairments | 0 | (1) | |
Portion of other-than-temporary impairments included in other comprehensive income | 0 | 0 | |
Net other-than-temporary impairments | 0 | (1) | |
Net realized gains (losses) on equity securities sold | 2 | 0 | |
Net unrealized gains (losses) on equity securities still held | (18) | 0 | |
Limited partnerships | 7 | 0 | |
Commercial mortgage loans | 0 | 1 | |
Net gains (losses) related to securitization entities | 0 | 2 | |
Derivative instruments | [1] | (13) | 3 |
Net investment gains (losses) | $ (31) | $ 34 | |
[1] | See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)Loan | |
Schedule of Investments [Line Items] | |||
Aggregate fair value of securities sold | $ 619 | $ 876 | |
Aggregate fair value of securities sold, percentage of book value | 98.00% | 96.00% | |
Percentage of investment portfolio by which no other industry group exceeded | 10.00% | ||
Percentage of stockholders' equity by which no single issuer of fixed maturity securities exceeded | 10 | ||
Commercial mortgage loans outstanding more than 90 days, interest accruing | $ 0 | $ 0 | |
Commercial mortgage loans on nonaccrual status, past due less than 90 days | $ 0 | $ 0 | |
Commercial mortgage loans modified or extended, number of loans | Loan | 1 | 10 | |
Commercial mortgage loans modified or extended, carrying value | $ 5 | $ 27 | |
Commercial mortgage loans, recorded investment | 6,348 | 6,353 | |
Investments in partnerships or similar entities generally considered VIEs | 262 | 222 | |
Floating rate commercial mortgage loans | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 0 | 0 | |
Limited Partnership Interests | |||
Schedule of Investments [Line Items] | |||
Minimum threshold ownership percentage of limited partnership interest, equity method | 3.00% | ||
Finance and insurance | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 23.00% | ||
Utilities | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 15.00% | ||
Consumer-non-cyclical | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 13.00% | ||
Industrial | |||
Schedule of Investments [Line Items] | |||
Individually impaired commercial mortgage loans | $ 0 | $ 0 | |
Commercial mortgage loans, recorded investment | 1,601 | $ 1,628 | |
Office | |||
Schedule of Investments [Line Items] | |||
Impaired loans, number of loans | Loan | 1 | ||
Impaired loans, unpaid principal balance | $ 6 | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,510 |
Credit Losses Recognized in Net
Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Cumulative credit losses, beginning balance | $ 32 | $ 42 |
Securities sold, paid down or disposed | (4) | (1) |
Cumulative credit losses, ending balance | $ 28 | $ 41 |
Net Unrealized Gains and Losses
Net Unrealized Gains and Losses on Available-for-Sale Investment Securities Reflected as Separate Component of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves | $ (2,207) | $ (3,451) | |||
Income taxes, net | (282) | (583) | |||
Net unrealized investment gains (losses) including noncontrolling interests | 963 | 1,160 | |||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 46 | 75 | |||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | 917 | 1,085 | $ 1,243 | $ 1,262 | |
Net Unrealized Gains (Losses) On Investment Securities | |||||
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Fixed maturity securities | 3,452 | 5,125 | |||
Equity securities | 0 | 69 | |||
Subtotal | [1] | $ 3,452 | $ 5,194 | ||
[1] | Excludes foreign exchange. |
Change in Net Unrealized Gains
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments [Abstract] | ||
Net unrealized investment gains (losses), beginning of period | $ 1,085 | $ 1,262 |
Cumulative effect of changes in accounting | ||
Stranded tax effects | 189 | |
Recognition and measurement of financial assets and liabilities, net of taxes of $18 and $- | (25) | |
Total cumulative effect of changes in accounting | 164 | |
Unrealized gains (losses) on investment securities | (1,681) | 392 |
Adjustment to deferred acquisition costs | 442 | (305) |
Adjustment to present value of future profits | 36 | (5) |
Adjustment to sales inducements | 20 | (5) |
Adjustment to benefit reserves | 740 | (68) |
Provision for income taxes | 95 | (2) |
Change in unrealized gains (losses) on investment securities | (348) | 7 |
Reclassification adjustments to net investment (gains) losses, net of taxes of $(1) and $10 | 7 | (18) |
Change in net unrealized investment gains (losses) | (341) | (11) |
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | (9) | 8 |
Net unrealized investment gains (losses), end of period | $ 917 | $ 1,243 |
Change in Net Unrealized Gain43
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | ||
Recognition and measurement of financial assets and liabilities,tax amount | $ 18 | |
Reclassification adjustments to net investment (gains) losses, taxes | $ (1) | $ 10 |
Amortized Cost or Cost, Gross U
Amortized Cost or Cost, Gross Unrealized Gains (Losses) and Fair Value of Fixed Maturity and Equity Securities Classified as Available-for-Sale (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Amortized cost or cost, total | $ 57,722 | $ 58,248 |
Fair value, total | 61,080 | 63,345 |
Amortized cost or cost, fixed maturity securities | 57,722 | 57,492 |
Fair value, fixed maturity securities | 61,080 | 62,525 |
Amortized cost or cost, equity securities | 756 | |
Fair value, equity securities | 799 | 820 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,735 | 4,681 |
Fair value, fixed maturity securities | 5,398 | 5,548 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,692 | 2,678 |
Fair value, fixed maturity securities | 2,876 | 2,926 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,239 | 2,147 |
Fair value, fixed maturity securities | 2,299 | 2,233 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 26,230 | 25,934 |
Fair value, fixed maturity securities | 27,998 | 28,636 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,444 | 4,396 |
Fair value, fixed maturity securities | 4,874 | 4,998 |
Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,232 | 2,239 |
Fair value, fixed maturity securities | 2,383 | 2,458 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 6,119 | 5,984 |
Fair value, fixed maturity securities | 6,447 | 6,528 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,331 | 4,314 |
Fair value, fixed maturity securities | 4,670 | 4,831 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,663 | 2,665 |
Fair value, fixed maturity securities | 2,763 | 2,845 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,242 | 1,241 |
Fair value, fixed maturity securities | 1,308 | 1,346 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,193 | 2,087 |
Fair value, fixed maturity securities | 2,385 | 2,355 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,481 | 1,493 |
Fair value, fixed maturity securities | 1,542 | 1,605 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,174 | 1,160 |
Fair value, fixed maturity securities | 1,256 | 1,291 |
Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 351 | 355 |
Fair value, fixed maturity securities | 370 | 379 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 11,730 | 11,778 |
Fair value, fixed maturity securities | 12,257 | 12,611 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 989 | 979 |
Fair value, fixed maturity securities | 1,003 | 1,017 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,341 | 1,337 |
Fair value, fixed maturity securities | 1,454 | 1,490 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,583 | 2,567 |
Fair value, fixed maturity securities | 2,688 | 2,735 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 674 | 686 |
Fair value, fixed maturity securities | 678 | 712 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 945 | 913 |
Fair value, fixed maturity securities | 984 | 982 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 946 | 958 |
Fair value, fixed maturity securities | 1,000 | 1,044 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 610 | 614 |
Fair value, fixed maturity securities | 626 | 645 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 500 | 532 |
Fair value, fixed maturity securities | 500 | 540 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 657 | 656 |
Fair value, fixed maturity securities | 704 | 721 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,485 | 2,536 |
Fair value, fixed maturity securities | 2,620 | 2,725 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,664 | 3,831 |
Fair value, fixed maturity securities | 3,836 | 4,057 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,355 | 3,387 |
Fair value, fixed maturity securities | 3,342 | 3,446 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,077 | 3,056 |
Fair value, fixed maturity securities | 3,074 | 3,068 |
Not other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, equity securities | 72 | |
Gross unrealized losses, equity securities | (8) | |
Gross unrealized gains | 3,907 | 5,288 |
Gross unrealized losses | (564) | (208) |
Gross unrealized gains, fixed maturity securities | 3,907 | 5,216 |
Gross unrealized losses, fixed maturity securities | (564) | (200) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 674 | 870 |
Gross unrealized losses, fixed maturity securities | (11) | (3) |
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 217 | 270 |
Gross unrealized losses, fixed maturity securities | (33) | (22) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 85 | 106 |
Gross unrealized losses, fixed maturity securities | (25) | (20) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 2,054 | 2,770 |
Gross unrealized losses, fixed maturity securities | (286) | (68) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 472 | 611 |
Gross unrealized losses, fixed maturity securities | (42) | (9) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 174 | 227 |
Gross unrealized losses, fixed maturity securities | (23) | (8) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 395 | 556 |
Gross unrealized losses, fixed maturity securities | (67) | (12) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 385 | 530 |
Gross unrealized losses, fixed maturity securities | (46) | (13) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 135 | 192 |
Gross unrealized losses, fixed maturity securities | (35) | (12) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 76 | 106 |
Gross unrealized losses, fixed maturity securities | (10) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 216 | 273 |
Gross unrealized losses, fixed maturity securities | (24) | (5) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 82 | 116 |
Gross unrealized losses, fixed maturity securities | (21) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 99 | 134 |
Gross unrealized losses, fixed maturity securities | (17) | (3) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 20 | 25 |
Gross unrealized losses, fixed maturity securities | (1) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 630 | 866 |
Gross unrealized losses, fixed maturity securities | (103) | (33) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 28 | 42 |
Gross unrealized losses, fixed maturity securities | (14) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 124 | 158 |
Gross unrealized losses, fixed maturity securities | (11) | (5) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 128 | 174 |
Gross unrealized losses, fixed maturity securities | (23) | (6) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 15 | 30 |
Gross unrealized losses, fixed maturity securities | (11) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 47 | 71 |
Gross unrealized losses, fixed maturity securities | (8) | (2) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 61 | 88 |
Gross unrealized losses, fixed maturity securities | (7) | (2) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 21 | 33 |
Gross unrealized losses, fixed maturity securities | (5) | (2) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 4 | 9 |
Gross unrealized losses, fixed maturity securities | (4) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 54 | 68 |
Gross unrealized losses, fixed maturity securities | (7) | (3) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 148 | 193 |
Gross unrealized losses, fixed maturity securities | (13) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 180 | 223 |
Gross unrealized losses, fixed maturity securities | (22) | (11) |
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 57 | 94 |
Gross unrealized losses, fixed maturity securities | (70) | (37) |
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 10 | 17 |
Gross unrealized losses, fixed maturity securities | (14) | (6) |
Other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, equity securities | 0 | |
Gross unrealized losses, equity securities | 0 | |
Gross unrealized gains | 15 | 17 |
Gross unrealized losses | 0 | 0 |
Gross unrealized gains, fixed maturity securities | 15 | 17 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 14 | 14 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 2 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 1 | 1 |
Gross unrealized losses, fixed maturity securities | $ 0 | $ 0 |
Gross Unrealized Losses and Fai
Gross Unrealized Losses and Fair Value of Investment Securities (Detail) $ in Millions | Mar. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities |
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 15,344 | $ 6,090 |
Less than 12 months, Gross unrealized losses | $ (377) | $ (65) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,154 | 1,039 |
12 months or more, Fair value | $ 3,213 | $ 3,661 |
12 months or more, Gross unrealized losses | $ (187) | $ (143) |
12 months or more, Number of securities in a continuous loss position | Securities | 528 | 587 |
Fair value | $ 18,557 | $ 9,751 |
Gross unrealized losses | $ (564) | $ (208) |
Number of securities in a continuous loss position | Securities | 2,682 | 1,626 |
Investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 14,458 | $ 5,867 |
Less than 12 months, Gross unrealized losses | $ (349) | $ (55) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,033 | 898 |
12 months or more, Fair value | $ 3,054 | $ 3,488 |
12 months or more, Gross unrealized losses | $ (175) | $ (135) |
12 months or more, Number of securities in a continuous loss position | Securities | 495 | 528 |
Fair value | $ 17,512 | $ 9,355 |
Gross unrealized losses | $ (524) | $ (190) |
Number of securities in a continuous loss position | Securities | 2,528 | 1,426 |
Below investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 886 | $ 223 |
Less than 12 months, Gross unrealized losses | $ (28) | $ (10) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 121 | 141 |
12 months or more, Fair value | $ 159 | $ 173 |
12 months or more, Gross unrealized losses | $ (12) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 33 | 59 |
Fair value | $ 1,045 | $ 396 |
Gross unrealized losses | $ (40) | $ (18) |
Number of securities in a continuous loss position | Securities | 154 | 200 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 15,344 | $ 6,016 |
Less than 12 months, Gross unrealized losses | $ (377) | $ (62) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,154 | 905 |
12 months or more, Fair value | $ 3,213 | $ 3,561 |
12 months or more, Gross unrealized losses | $ (187) | $ (138) |
12 months or more, Number of securities in a continuous loss position | Securities | 528 | 529 |
Fair value | $ 18,557 | $ 9,577 |
Gross unrealized losses | $ (564) | $ (200) |
Number of securities in a continuous loss position | Securities | 2,682 | 1,434 |
Fixed maturity securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 15,342 | $ 6,016 |
Less than 12 months, Gross unrealized losses | $ (377) | $ (62) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,153 | 905 |
12 months or more, Fair value | $ 3,195 | $ 3,555 |
12 months or more, Gross unrealized losses | $ (180) | $ (136) |
12 months or more, Number of securities in a continuous loss position | Securities | 524 | 526 |
Fair value | $ 18,537 | $ 9,571 |
Gross unrealized losses | $ (557) | $ (198) |
Number of securities in a continuous loss position | Securities | 2,677 | 1,431 |
Fixed maturity securities | 20 To 50 percent below cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 2 | $ 0 |
Less than 12 months, Gross unrealized losses | $ 0 | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1 | 0 |
12 months or more, Fair value | $ 18 | $ 6 |
12 months or more, Gross unrealized losses | $ (7) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 3 |
Fair value | $ 20 | $ 6 |
Gross unrealized losses | $ (7) | $ (2) |
Number of securities in a continuous loss position | Securities | 5 | 3 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 278 | $ 78 |
Less than 12 months, Gross unrealized losses | $ (5) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 30 | 21 |
12 months or more, Fair value | $ 105 | $ 94 |
12 months or more, Gross unrealized losses | $ (6) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 9 | 7 |
Fair value | $ 383 | $ 172 |
Gross unrealized losses | $ (11) | $ (3) |
Number of securities in a continuous loss position | Securities | 39 | 28 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 494 | $ 125 |
Less than 12 months, Gross unrealized losses | $ (20) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 90 | 35 |
12 months or more, Fair value | $ 191 | $ 327 |
12 months or more, Gross unrealized losses | $ (13) | $ (21) |
12 months or more, Number of securities in a continuous loss position | Securities | 33 | 42 |
Fair value | $ 685 | $ 452 |
Gross unrealized losses | $ (33) | $ (22) |
Number of securities in a continuous loss position | Securities | 123 | 77 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 672 | $ 583 |
Less than 12 months, Gross unrealized losses | $ (12) | $ (7) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 54 | 26 |
12 months or more, Fair value | $ 232 | $ 239 |
12 months or more, Gross unrealized losses | $ (13) | $ (13) |
12 months or more, Number of securities in a continuous loss position | Securities | 21 | 20 |
Fair value | $ 904 | $ 822 |
Gross unrealized losses | $ (25) | $ (20) |
Number of securities in a continuous loss position | Securities | 75 | 46 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 7,237 | $ 1,871 |
Less than 12 months, Gross unrealized losses | $ (211) | $ (26) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 986 | 296 |
12 months or more, Fair value | $ 1,214 | $ 1,347 |
12 months or more, Gross unrealized losses | $ (75) | $ (42) |
12 months or more, Number of securities in a continuous loss position | Securities | 201 | 190 |
Fair value | $ 8,451 | $ 3,218 |
Gross unrealized losses | $ (286) | $ (68) |
Number of securities in a continuous loss position | Securities | 1,187 | 486 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 3,288 | $ 1,323 |
Less than 12 months, Gross unrealized losses | $ (74) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 457 | 217 |
12 months or more, Fair value | $ 522 | $ 548 |
12 months or more, Gross unrealized losses | $ (29) | $ (21) |
12 months or more, Number of securities in a continuous loss position | Securities | 79 | 77 |
Fair value | $ 3,810 | $ 1,871 |
Gross unrealized losses | $ (103) | $ (33) |
Number of securities in a continuous loss position | Securities | 536 | 294 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 957 | $ 707 |
Less than 12 months, Gross unrealized losses | $ (18) | $ (7) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 129 | 81 |
12 months or more, Fair value | $ 115 | $ 130 |
12 months or more, Gross unrealized losses | $ (4) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 43 | 46 |
Fair value | $ 1,072 | $ 837 |
Gross unrealized losses | $ (22) | $ (11) |
Number of securities in a continuous loss position | Securities | 172 | 127 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 998 | $ 476 |
Less than 12 months, Gross unrealized losses | $ (25) | $ (4) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 147 | 69 |
12 months or more, Fair value | $ 584 | $ 646 |
12 months or more, Gross unrealized losses | $ (45) | $ (33) |
12 months or more, Number of securities in a continuous loss position | Securities | 87 | 90 |
Fair value | $ 1,582 | $ 1,122 |
Gross unrealized losses | $ (70) | $ (37) |
Number of securities in a continuous loss position | Securities | 234 | 159 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,420 | $ 853 |
Less than 12 months, Gross unrealized losses | $ (12) | $ (4) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 261 | 160 |
12 months or more, Fair value | $ 250 | $ 230 |
12 months or more, Gross unrealized losses | $ (2) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 55 | 57 |
Fair value | $ 1,670 | $ 1,083 |
Gross unrealized losses | $ (14) | $ (6) |
Number of securities in a continuous loss position | Securities | 316 | 217 |
Equity Securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 74 | |
Less than 12 months, Gross unrealized losses | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 134 | |
12 months or more, Fair value | $ 100 | |
12 months or more, Gross unrealized losses | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 58 | |
Fair value | $ 174 | |
Gross unrealized losses | $ (8) | |
Number of securities in a continuous loss position | Securities | 192 | |
Equity Securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 74 | |
Less than 12 months, Gross unrealized losses | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 134 | |
12 months or more, Fair value | $ 100 | |
12 months or more, Gross unrealized losses | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 58 | |
Fair value | $ 174 | |
Gross unrealized losses | $ (8) | |
Number of securities in a continuous loss position | Securities | 192 |
Gross Unrealized Losses and F46
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Mar. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 15,344 | $ 6,090 |
Less than 12 months, Gross unrealized losses | $ (377) | $ (65) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,154 | 1,039 |
12 months or more, Fair value | $ 3,213 | $ 3,661 |
12 months or more, Gross unrealized losses | $ (187) | $ (143) |
12 months or more, Number of securities in a continuous loss position | Securities | 528 | 587 |
Fair value | $ 18,557 | $ 9,751 |
Gross unrealized losses | $ (564) | $ (208) |
Number of securities in a continuous loss position | Securities | 2,682 | 1,626 |
Fixed maturity securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 15,344 | $ 6,016 |
Less than 12 months, Gross unrealized losses | $ (377) | $ (62) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,154 | 905 |
12 months or more, Fair value | $ 3,213 | $ 3,561 |
12 months or more, Gross unrealized losses | $ (187) | $ (138) |
12 months or more, Number of securities in a continuous loss position | Securities | 528 | 529 |
Fair value | $ 18,557 | $ 9,577 |
Gross unrealized losses | $ (564) | $ (200) |
Number of securities in a continuous loss position | Securities | 2,682 | 1,434 |
Fixed maturity securities | U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 7,237 | $ 1,871 |
Less than 12 months, Gross unrealized losses | $ (211) | $ (26) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 986 | 296 |
12 months or more, Fair value | $ 1,214 | $ 1,347 |
12 months or more, Gross unrealized losses | $ (75) | $ (42) |
12 months or more, Number of securities in a continuous loss position | Securities | 201 | 190 |
Fair value | $ 8,451 | $ 3,218 |
Gross unrealized losses | $ (286) | $ (68) |
Number of securities in a continuous loss position | Securities | 1,187 | 486 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 805 | $ 181 |
Less than 12 months, Gross unrealized losses | $ (29) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 124 | 33 |
12 months or more, Fair value | $ 191 | $ 219 |
12 months or more, Gross unrealized losses | $ (13) | $ (7) |
12 months or more, Number of securities in a continuous loss position | Securities | 32 | 36 |
Fair value | $ 996 | $ 400 |
Gross unrealized losses | $ (42) | $ (9) |
Number of securities in a continuous loss position | Securities | 156 | 69 |
Fixed maturity securities | U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 581 | $ 106 |
Less than 12 months, Gross unrealized losses | $ (14) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 85 | 22 |
12 months or more, Fair value | $ 121 | $ 140 |
12 months or more, Gross unrealized losses | $ (9) | $ (7) |
12 months or more, Number of securities in a continuous loss position | Securities | 18 | 15 |
Fair value | $ 702 | $ 246 |
Gross unrealized losses | $ (23) | $ (8) |
Number of securities in a continuous loss position | Securities | 103 | 37 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 2,090 | $ 626 |
Less than 12 months, Gross unrealized losses | $ (57) | $ (6) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 282 | 91 |
12 months or more, Fair value | $ 240 | $ 222 |
12 months or more, Gross unrealized losses | $ (10) | $ (6) |
12 months or more, Number of securities in a continuous loss position | Securities | 40 | 30 |
Fair value | $ 2,330 | $ 848 |
Gross unrealized losses | $ (67) | $ (12) |
Number of securities in a continuous loss position | Securities | 322 | 121 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,254 | $ 299 |
Less than 12 months, Gross unrealized losses | $ (35) | $ (7) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 144 | 46 |
12 months or more, Fair value | $ 168 | $ 221 |
12 months or more, Gross unrealized losses | $ (11) | $ (6) |
12 months or more, Number of securities in a continuous loss position | Securities | 28 | 31 |
Fair value | $ 1,422 | $ 520 |
Gross unrealized losses | $ (46) | $ (13) |
Number of securities in a continuous loss position | Securities | 172 | 77 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 774 | $ 217 |
Less than 12 months, Gross unrealized losses | $ (20) | $ (4) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 108 | 32 |
12 months or more, Fair value | $ 182 | $ 210 |
12 months or more, Gross unrealized losses | $ (15) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 29 | 29 |
Fair value | $ 956 | $ 427 |
Gross unrealized losses | $ (35) | $ (12) |
Number of securities in a continuous loss position | Securities | 137 | 61 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 295 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (7) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 45 | 0 |
12 months or more, Fair value | $ 53 | $ 62 |
12 months or more, Gross unrealized losses | $ (3) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 9 |
Fair value | $ 348 | $ 62 |
Gross unrealized losses | $ (10) | $ (1) |
Number of securities in a continuous loss position | Securities | 53 | 9 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 509 | $ 176 |
Less than 12 months, Gross unrealized losses | $ (20) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 70 | 25 |
12 months or more, Fair value | $ 74 | $ 81 |
12 months or more, Gross unrealized losses | $ (4) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 12 | 14 |
Fair value | $ 583 | $ 257 |
Gross unrealized losses | $ (24) | $ (5) |
Number of securities in a continuous loss position | Securities | 82 | 39 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 544 | $ 137 |
Less than 12 months, Gross unrealized losses | $ (15) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 77 | 24 |
12 months or more, Fair value | $ 109 | $ 95 |
12 months or more, Gross unrealized losses | $ (6) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 19 | 13 |
Fair value | $ 653 | $ 232 |
Gross unrealized losses | $ (21) | $ (4) |
Number of securities in a continuous loss position | Securities | 96 | 37 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 363 | $ 117 |
Less than 12 months, Gross unrealized losses | $ (13) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 48 | 21 |
12 months or more, Fair value | $ 76 | $ 97 |
12 months or more, Gross unrealized losses | $ (4) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 15 | 13 |
Fair value | $ 439 | $ 214 |
Gross unrealized losses | $ (17) | $ (3) |
Number of securities in a continuous loss position | Securities | 63 | 34 |
Fixed maturity securities | U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 22 | $ 12 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 3 | 2 |
12 months or more, Fair value | $ 0 | $ 0 |
12 months or more, Gross unrealized losses | $ 0 | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 0 |
Fair value | $ 22 | $ 12 |
Gross unrealized losses | $ (1) | $ (1) |
Number of securities in a continuous loss position | Securities | 3 | 2 |
Fixed maturity securities | Non-U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 3,288 | $ 1,323 |
Less than 12 months, Gross unrealized losses | $ (74) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 457 | 217 |
12 months or more, Fair value | $ 522 | $ 548 |
12 months or more, Gross unrealized losses | $ (29) | $ (21) |
12 months or more, Number of securities in a continuous loss position | Securities | 79 | 77 |
Fair value | $ 3,810 | $ 1,871 |
Gross unrealized losses | $ (103) | $ (33) |
Number of securities in a continuous loss position | Securities | 536 | 294 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 335 | $ 113 |
Less than 12 months, Gross unrealized losses | $ (9) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 45 | 23 |
12 months or more, Fair value | $ 64 | $ 72 |
12 months or more, Gross unrealized losses | $ (5) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 5 | 8 |
Fair value | $ 399 | $ 185 |
Gross unrealized losses | $ (14) | $ (4) |
Number of securities in a continuous loss position | Securities | 50 | 31 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 333 | $ 118 |
Less than 12 months, Gross unrealized losses | $ (8) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 43 | 19 |
12 months or more, Fair value | $ 57 | $ 74 |
12 months or more, Gross unrealized losses | $ (3) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 11 | 12 |
Fair value | $ 390 | $ 192 |
Gross unrealized losses | $ (11) | $ (5) |
Number of securities in a continuous loss position | Securities | 54 | 31 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 845 | $ 347 |
Less than 12 months, Gross unrealized losses | $ (18) | $ (3) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 116 | 56 |
12 months or more, Fair value | $ 116 | $ 117 |
12 months or more, Gross unrealized losses | $ (5) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 17 | 19 |
Fair value | $ 961 | $ 464 |
Gross unrealized losses | $ (23) | $ (6) |
Number of securities in a continuous loss position | Securities | 133 | 75 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 252 | $ 69 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 25 | 11 |
12 months or more, Fair value | $ 53 | $ 60 |
12 months or more, Gross unrealized losses | $ (4) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 7 | 6 |
Fair value | $ 305 | $ 129 |
Gross unrealized losses | $ (11) | $ (4) |
Number of securities in a continuous loss position | Securities | 32 | 17 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 280 | $ 107 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 45 | 18 |
12 months or more, Fair value | $ 26 | $ 30 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 7 | 6 |
Fair value | $ 306 | $ 137 |
Gross unrealized losses | $ (8) | $ (2) |
Number of securities in a continuous loss position | Securities | 52 | 24 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 176 | $ 52 |
Less than 12 months, Gross unrealized losses | $ (4) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 26 | 9 |
12 months or more, Fair value | $ 40 | $ 38 |
12 months or more, Gross unrealized losses | $ (3) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 5 |
Fair value | $ 216 | $ 90 |
Gross unrealized losses | $ (7) | $ (2) |
Number of securities in a continuous loss position | Securities | 32 | 14 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 156 | $ 54 |
Less than 12 months, Gross unrealized losses | $ (3) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 20 | 11 |
12 months or more, Fair value | $ 46 | $ 46 |
12 months or more, Gross unrealized losses | $ (2) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 3 |
Fair value | $ 202 | $ 100 |
Gross unrealized losses | $ (5) | $ (2) |
Number of securities in a continuous loss position | Securities | 24 | 14 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 226 | $ 131 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 37 | 21 |
12 months or more, Fair value | $ 0 | $ 0 |
12 months or more, Gross unrealized losses | $ 0 | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 0 |
Fair value | $ 226 | $ 131 |
Gross unrealized losses | $ (4) | $ (1) |
Number of securities in a continuous loss position | Securities | 37 | 21 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 149 | $ 47 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 19 | 7 |
12 months or more, Fair value | $ 40 | $ 64 |
12 months or more, Gross unrealized losses | $ (3) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 8 |
Fair value | $ 189 | $ 111 |
Gross unrealized losses | $ (7) | $ (3) |
Number of securities in a continuous loss position | Securities | 25 | 15 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 536 | $ 285 |
Less than 12 months, Gross unrealized losses | $ (10) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 81 | 42 |
12 months or more, Fair value | $ 80 | $ 47 |
12 months or more, Gross unrealized losses | $ (3) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 16 | 10 |
Fair value | $ 616 | $ 332 |
Gross unrealized losses | $ (13) | $ (4) |
Number of securities in a continuous loss position | Securities | 97 | 52 |
Fixed maturity securities | Corporate Debt Securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 10,525 | $ 3,194 |
Less than 12 months, Gross unrealized losses | $ (285) | $ (38) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,443 | 513 |
12 months or more, Fair value | $ 1,736 | $ 1,895 |
12 months or more, Gross unrealized losses | $ (104) | $ (63) |
12 months or more, Number of securities in a continuous loss position | Securities | 280 | 267 |
Fair value | $ 12,261 | $ 5,089 |
Gross unrealized losses | $ (389) | $ (101) |
Number of securities in a continuous loss position | Securities | 1,723 | 780 |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized cost or cost | ||
Due one year or less | $ 1,666 | |
Due after one year through five years | 10,943 | |
Due after five years through ten years | 12,618 | |
Due after ten years | 22,399 | |
Subtotal | 47,626 | |
Amortized cost or cost, fixed maturity securities | 57,722 | $ 57,492 |
Fair value | ||
Due one year or less | 1,677 | |
Due after one year through five years | 11,146 | |
Due after five years through ten years | 12,876 | |
Due after ten years | 25,129 | |
Subtotal | 50,828 | |
Fair value, fixed maturity securities | 61,080 | $ 62,525 |
Residential mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,664 | |
Fair value | ||
Fixed maturity securities | 3,836 | |
Commercial mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,355 | |
Fair value | ||
Fixed maturity securities | 3,342 | |
Other asset-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,077 | |
Fair value | ||
Fixed maturity securities | $ 3,074 |
Distribution Across Property Ty
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,348 | $ 6,353 |
Unamortized balance of loan origination fees and costs | (3) | (3) |
Allowance for losses | (9) | (9) |
Total | $ 6,336 | $ 6,341 |
% of total | 100.00% | 100.00% |
Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,348 | $ 6,353 |
Unamortized balance of loan origination fees and costs | (3) | (3) |
Allowance for losses | (9) | (9) |
Total | $ 6,336 | $ 6,341 |
% of total | 100.00% | 100.00% |
South Atlantic | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,653 | $ 1,625 |
% of total | 26.00% | 26.00% |
Pacific | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,627 | $ 1,622 |
% of total | 26.00% | 26.00% |
Middle Atlantic | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 907 | $ 927 |
% of total | 15.00% | 14.00% |
Mountain | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 576 | $ 556 |
% of total | 9.00% | 9.00% |
West North Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 444 | $ 446 |
% of total | 7.00% | 7.00% |
East North Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 387 | $ 394 |
% of total | 6.00% | 6.00% |
West South Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 342 | $ 336 |
% of total | 5.00% | 5.00% |
East South Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 212 | $ 208 |
% of total | 3.00% | 3.00% |
New England | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 200 | $ 239 |
% of total | 3.00% | 4.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,276 | $ 2,239 |
% of total | 36.00% | 35.00% |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,601 | $ 1,628 |
% of total | 25.00% | 26.00% |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,510 |
% of total | 23.00% | 24.00% |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 483 | $ 478 |
% of total | 8.00% | 8.00% |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 226 | $ 223 |
% of total | 4.00% | 3.00% |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 282 | $ 275 |
% of total | 4.00% | 4.00% |
Aging of Past Due Commercial Mo
Aging of Past Due Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,348 | $ 6,353 |
% of total | 100.00% | 100.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,276 | $ 2,239 |
% of total | 36.00% | 35.00% |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,601 | $ 1,628 |
% of total | 25.00% | 26.00% |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,510 |
% of total | 23.00% | 24.00% |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 483 | $ 478 |
% of total | 8.00% | 8.00% |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 226 | $ 223 |
% of total | 4.00% | 3.00% |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 282 | $ 275 |
% of total | 4.00% | 4.00% |
31-60 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 7 | $ 5 |
% of total | 0.00% | 0.00% |
31-60 days past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 5 |
31-60 days past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 7 | 0 |
31-60 days past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
% of total | 0.00% | 0.00% |
61-90 days past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
61-90 days past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6 | $ 6 |
% of total | 0.00% | 0.00% |
Greater than 90 days past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
Greater than 90 days past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 6 | 6 |
Greater than 90 days past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 13 | $ 11 |
% of total | 0.00% | 0.00% |
Total past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 5 |
Total past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 13 | 6 |
Total past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Current | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,335 | $ 6,342 |
% of total | 100.00% | 100.00% |
Current | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,276 | $ 2,234 |
Current | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,601 | 1,628 |
Current | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,467 | 1,504 |
Current | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 483 | 478 |
Current | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 226 | 223 |
Current | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 282 | $ 275 |
Allowance for Credit Losses and
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | $ 9 | ||
Ending balance | 9 | ||
Ending balance | 6,348 | $ 6,353 | |
Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 9 | $ 12 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 0 | (1) | |
Ending balance | 9 | 11 | |
Ending allowance for individually impaired loans | 0 | 0 | |
Ending allowance for loans not individually impaired that were evaluated collectively for impairment | 9 | 11 | |
Commercial Mortgage Loans Recorded Investment | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Ending balance | 6,348 | 6,121 | |
Ending balance of individually impaired loans | 0 | 0 | |
Ending balance of loans not individually impaired that were evaluated collectively for impairment | $ 6,348 | $ 6,121 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 6,348 | $ 6,353 | |
% of total | 100.00% | 100.00% | |
Weighted-average debt service coverage ratio | 2.08 | 2.09 | |
Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 2,276 | $ 2,239 | |
% of total | 36.00% | 35.00% | |
Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 1,601 | $ 1,628 | |
% of total | 25.00% | 26.00% | |
Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,510 | |
% of total | 23.00% | 24.00% | |
Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 483 | $ 478 | |
% of total | 8.00% | 8.00% | |
Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 226 | $ 223 | |
% of total | 4.00% | 3.00% | |
Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 282 | $ 275 | |
% of total | 4.00% | 4.00% | |
0% - 50% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 2,331 | $ 2,618 | |
% of total | 37.00% | 41.00% | |
Weighted-average debt service coverage ratio | 2.41 | 2.65 | |
0% - 50% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 851 | $ 919 | |
0% - 50% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 681 | 731 | |
0% - 50% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 443 | 575 | |
0% - 50% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 205 | 226 | |
0% - 50% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 101 | 99 | |
0% - 50% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 50 | 68 | |
51% - 60% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 1,536 | $ 1,437 | |
% of total | 24.00% | 23.00% | |
Weighted-average debt service coverage ratio | 2.17 | 1.85 | |
51% - 60% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 496 | $ 500 | |
51% - 60% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 355 | 363 | |
51% - 60% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 462 | 386 | |
51% - 60% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 125 | 101 | |
51% - 60% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 55 | 59 | |
51% - 60% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 43 | 28 | |
61% - 75% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 2,461 | $ 2,276 | |
% of total | 39.00% | 36.00% | |
Weighted-average debt service coverage ratio | 1.74 | 1.62 | |
61% - 75% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 929 | $ 820 | |
61% - 75% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 565 | 532 | |
61% - 75% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 560 | 534 | |
61% - 75% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 148 | 146 | |
61% - 75% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 70 | 65 | |
61% - 75% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 189 | 179 | |
76% - 100% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 18 | $ 20 | |
% of total | 0.00% | 0.00% | |
Weighted-average debt service coverage ratio | 0.58 | 0.62 | |
76% - 100% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 | |
76% - 100% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 2 | |
76% - 100% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 13 | 13 | |
76% - 100% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 5 | 5 | |
76% - 100% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 0 | |
76% - 100% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 0 | |
Greater than 100% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | [1] | $ 2 | $ 2 |
% of total | [1] | 0.00% | 0.00% |
Weighted-average debt service coverage ratio | [1] | 1.04 | 1.04 |
Greater than 100% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | [1] | $ 0 | $ 0 |
Greater than 100% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | [1] | 0 | 0 |
Greater than 100% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | [1] | 2 | 2 |
Greater than 100% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | [1] | 0 | 0 |
Greater than 100% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | [1] | 0 | 0 |
Greater than 100% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | [1] | $ 0 | $ 0 |
[1] | Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Loan-to-Value of Commercial M52
Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 6,348 | $ 6,353 | |
Greater than 100% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | [1] | 2 | 2 |
Greater than 100% | Loans in Good Standing | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 2 | $ 2 | |
Weighted-average loan-to-value | 102.00% | 102.00% | |
[1] | Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Debt Service Coverage Ratio for
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,348 | $ 6,353 |
% of total | 100.00% | 100.00% |
Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,348 | $ 6,353 |
% of total | 100.00% | 100.00% |
Weighted-average loan-to-value | 54.00% | 52.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,276 | $ 2,239 |
% of total | 36.00% | 35.00% |
Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,276 | $ 2,239 |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,601 | $ 1,628 |
% of total | 25.00% | 26.00% |
Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,601 | $ 1,628 |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,510 |
% of total | 23.00% | 24.00% |
Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,510 |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 483 | $ 478 |
% of total | 8.00% | 8.00% |
Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 483 | $ 478 |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 226 | $ 223 |
% of total | 4.00% | 3.00% |
Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 226 | $ 223 |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 282 | $ 275 |
% of total | 4.00% | 4.00% |
Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 282 | $ 275 |
Less than 1.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 117 | $ 120 |
% of total | 2.00% | 2.00% |
Weighted-average loan-to-value | 55.00% | 55.00% |
Less than 1.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 42 | $ 43 |
Less than 1.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 20 | 23 |
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 49 | 51 |
Less than 1.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Less than 1.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 5 | 2 |
Less than 1.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1 | 1 |
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 509 | $ 527 |
% of total | 8.00% | 8.00% |
Weighted-average loan-to-value | 60.00% | 60.00% |
1.00 - 1.25 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 230 | $ 235 |
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 58 | 61 |
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 61 | 61 |
1.00 - 1.25 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 18 | 17 |
1.00 - 1.25 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 4 | 4 |
1.00 - 1.25 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 138 | 149 |
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 792 | $ 749 |
% of total | 13.00% | 12.00% |
Weighted-average loan-to-value | 58.00% | 58.00% |
1.26 - 1.50 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 302 | $ 301 |
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 194 | 174 |
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 165 | 157 |
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 80 | 77 |
1.26 - 1.50 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 28 | 26 |
1.26 - 1.50 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 23 | 14 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,680 | $ 2,637 |
% of total | 42.00% | 42.00% |
Weighted-average loan-to-value | 58.00% | 58.00% |
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,060 | $ 1,020 |
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 700 | 700 |
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 570 | 569 |
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 194 | 191 |
1.51 - 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 85 | 86 |
1.51 - 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 71 | 71 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,250 | $ 2,320 |
% of total | 35.00% | 36.00% |
Weighted-average loan-to-value | 46.00% | 42.00% |
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 642 | $ 640 |
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 629 | 670 |
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 635 | 672 |
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 191 | 193 |
Greater than 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 104 | 105 |
Greater than 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 49 | $ 40 |
Schedule of Positions in Deriva
Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative assets, fair value | $ 242 | $ 290 | |
Derivative liabilities, fair value | 747 | 730 | |
Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 663 | 683 | |
Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 84 | 47 | |
Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 229 | 276 | |
Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 58 | 25 | |
Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 54 | 74 | |
Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 2 | ||
Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 6 | 12 | |
Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 60 | 80 | |
Equity return swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 2 | ||
Equity return swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 1 | ||
Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 24 | 20 | |
Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 108 | 110 | |
GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [1] | 242 | 250 |
GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [2] | 13 | 14 |
Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 408 | 419 | |
Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 13 | 14 | |
Designated As Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 55 | 75 | |
Derivative liabilities, fair value | 58 | 25 | |
Designated As Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 55 | 75 | |
Derivative liabilities, fair value | 58 | 25 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 58 | 25 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 54 | 74 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 1 | 1 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 187 | 215 | |
Derivative liabilities, fair value | 689 | 705 | |
Derivatives not designated as hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 2 | 0 | |
Derivatives not designated as hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 5 | 11 | |
Derivatives not designated as hedges | Equity index options | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 60 | 80 | |
Derivatives not designated as hedges | Financial futures | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Financial futures | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Equity return swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 2 | |
Derivatives not designated as hedges | Equity return swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 1 | 0 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 24 | 20 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 108 | 110 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [3] | 242 | 250 |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [4],[5] | 13 | 14 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [5] | 408 | 419 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Other assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [6] | 13 | 14 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | $ 0 | $ 0 | |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | ||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. | ||
[3] | Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | ||
[4] | Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits ("GMWB") liabilities. | ||
[5] | Represents the embedded derivatives associated with our fixed index annuity liabilities. | ||
[6] | Represents the embedded derivatives associated with our indexed universal life liabilities. |
Activity Associated with Deriva
Activity Associated with Derivative Instruments (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)Policies | |
Derivative [Line Items] | |
Notional amount, beginning balance | $ 23,307 |
Additions | 3,265 |
Maturities/ terminations | (3,570) |
Notional amount, ending balance | 23,002 |
Designated As Hedging Instrument | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,177 |
Additions | 1,048 |
Maturities/ terminations | (1,178) |
Notional amount, ending balance | 11,047 |
Designated As Hedging Instrument | Cash Flow Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,177 |
Additions | 1,048 |
Maturities/ terminations | (1,178) |
Notional amount, ending balance | 11,047 |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,155 |
Additions | 1,048 |
Maturities/ terminations | (1,178) |
Notional amount, ending balance | 11,025 |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 22 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 22 |
Derivatives not designated as hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 12,130 |
Additions | 2,217 |
Maturities/ terminations | (2,392) |
Notional amount, ending balance | 11,955 |
Derivatives not designated as hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 4,679 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 4,679 |
Derivatives not designated as hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 349 |
Additions | 57 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 406 |
Derivatives not designated as hedges | Credit default swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 39 |
Additions | 0 |
Maturities/ terminations | (19) |
Notional amount, ending balance | 20 |
Derivatives not designated as hedges | Equity index options | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,420 |
Additions | 585 |
Maturities/ terminations | (596) |
Notional amount, ending balance | 2,409 |
Derivatives not designated as hedges | Financial futures | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,283 |
Additions | 1,380 |
Maturities/ terminations | (1,389) |
Notional amount, ending balance | 1,274 |
Derivatives not designated as hedges | Equity return swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 96 |
Additions | 0 |
Maturities/ terminations | (77) |
Notional amount, ending balance | 19 |
Derivatives not designated as hedges | Other foreign currency contracts | |
Derivative [Line Items] | |
Notional amount, beginning balance | 3,264 |
Additions | 195 |
Maturities/ terminations | (311) |
Notional amount, ending balance | $ 3,148 |
Derivatives not designated as hedges | GMWB embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 30,450 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (693) |
Notional amount, ending balance | Policies | 29,757 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 17,067 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (115) |
Notional amount, ending balance | Policies | 16,952 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 985 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (17) |
Notional amount, ending balance | Policies | 968 |
Schedule of Pre-Tax Income Effe
Schedule of Pre-Tax Income Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | $ (157) | $ (45) | |
Gain (loss) reclassified into net income from OCI | 40 | 31 | |
Gain (loss) recognized in net income | [1] | 0 | |
Interest Rate Swaps Hedging Assets | Net Investment (Gains) Losses | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | 0 | 0 | |
Gain (loss) reclassified into net income from OCI | 5 | 1 | |
Gain (loss) recognized in net income | [1] | 0 | |
Interest Rate Swaps Hedging Assets | Net Investment Income | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | (173) | (49) | |
Gain (loss) reclassified into net income from OCI | 35 | 30 | |
Foreign currency swaps | Net Investment Income | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | (1) | ||
Gain (loss) reclassified into net income from OCI | 0 | ||
Interest Rate Swaps Hedging Liabilities | Net Investment (Gains) Losses | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in net income | [1] | 0 | |
Interest Rate Swaps Hedging Liabilities | Interest Expense | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | 17 | 4 | |
Gain (loss) reclassified into net income from OCI | $ 0 | $ 0 | |
[1] | Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. |
Reconciliation of Current Perio
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments [Abstract] | ||
Derivatives qualifying as effective accounting hedges, beginning of period | $ 2,065 | $ 2,085 |
Cumulative effect of changes in accounting: | ||
Stranded tax effects | 12 | 0 |
Changes to the hedge accounting model, net of deferred taxes | 2 | 0 |
Total cumulative effect of changes in accounting | 14 | 0 |
Current period increases (decreases) in fair value, net of deferred taxes | (126) | (29) |
Reclassification to net (income), net of deferred taxes | (26) | (20) |
Derivatives qualifying as effective accounting hedges, end of period | $ 1,927 | $ 2,036 |
Reconciliation of Current Per58
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Changes to the hedge accounting model, net of deferred taxes | $ (1) | $ 0 |
Current period increases (decreases) in fair value, deferred taxes | 34 | 16 |
Reclassification to net (income), deferred taxes | $ 14 | $ 11 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Derivative [Line Items] | |||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax | $ 1,927 | $ 2,065 | $ 2,036 | $ 2,085 | |
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur | 2,057 | ||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to net income in the next 12 months, net of tax | $ 100 | ||||
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring | 3 | ||||
Derivative assets | Subject to enforceable master netting arrangement | |||||
Derivative [Line Items] | |||||
Amount to claim from counterparties if the downgrade provisions had been triggered | [1] | 58 | 85 | ||
Derivative liabilities | Subject to enforceable master netting arrangement | |||||
Derivative [Line Items] | |||||
Amounts required for disbursement to counterparties if the downgrade provisions had been triggered | [2] | $ 0 | $ 0 | ||
[1] | Included $3 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of March 31, 2018 and December 31, 2017, respectively. | ||||
[2] | Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of March 31, 2018 and December 31, 2017. |
Schedule of Pre-Tax Gain (Loss)
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income for Effects of Derivatives not Designated as Hedges (Detail) - Derivatives not designated as hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | $ (18) | $ 4 |
Interest rate swaps | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | (1) | 2 |
Credit default swaps related to securitization entities | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | 0 | 2 |
Equity index options | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | (15) | 13 |
Financial futures | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | (24) | (17) |
Equity return swaps | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | (5) | (8) |
Other foreign currency contracts | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | 8 | (5) |
Foreign currency swaps | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | (8) | 3 |
GMWB embedded derivatives | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | 14 | 33 |
Fixed index annuity embedded derivatives | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | 8 | (20) |
Indexed universal life embedded derivatives | Net Investment (Gains) Losses | ||
Derivative [Line Items] | ||
Pre-tax gain (loss) recognized in net loss | $ 5 | $ 1 |
Additional Information about De
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | $ 242 | $ 290 | |
Gross amounts recognized, derivatives liabilities | 747 | 730 | |
Subject to enforceable master netting arrangement | |||
Derivative [Line Items] | |||
Gross amounts recognized, net derivatives | 148 | 231 | |
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | |
Net amounts presented in the balance sheet, net derivatives | 148 | 231 | |
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [1] | 0 | 0 |
Collateral received | (151) | (170) | |
Collateral pledged | 414 | 288 | |
Over collateralization, derivatives assets | (353) | (264) | |
Net amount | 58 | 85 | |
Subject to enforceable master netting arrangement | Derivative assets | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | [2] | 232 | 278 |
Gross amounts offset in the balance sheet, derivatives assets | [2] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives assets | [2] | 232 | 278 |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [1],[2] | (29) | (23) |
Collateral received | [2] | (151) | (170) |
Collateral pledged | [2] | 0 | 0 |
Over collateralization, derivatives assets | [2] | 6 | 0 |
Net amount, derivatives assets | [2] | 58 | 85 |
Subject to enforceable master netting arrangement | Derivative liabilities | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives liabilities | [3] | 84 | 47 |
Gross amounts offset in the balance sheet, derivatives liabilities | [3] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives liabilities | [3] | 84 | 47 |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [1],[3] | (29) | (23) |
Collateral pledged | [3] | 0 | 0 |
Collateral pledged | [3] | (414) | (288) |
Over collateralization, derivatives liabilities | [3] | 359 | 264 |
Net amount, derivatives liabilities | [3] | $ 0 | $ 0 |
[1] | Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. | ||
[2] | Included $3 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of March 31, 2018 and December 31, 2017, respectively. | ||
[3] | Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of March 31, 2018 and December 31, 2017. |
Additional Information about 62
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Subject to enforceable master netting arrangement - Derivative assets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | [1] | $ 232 | $ 278 |
Other assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | $ 3 | $ 2 | |
[1] | Included $3 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of March 31, 2018 and December 31, 2017, respectively. |
Derivative Instruments Schedule
Derivative Instruments Schedule of Credit Default Swaps where we Sell Protection on Single Name Reference Entities and Fair Values (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional value | $ 23,002 | $ 23,307 |
Credit default swaps | Single Name Reference Entities | ||
Derivative [Line Items] | ||
Notional value | 20 | 39 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Credit default swaps | Single Name Reference Entities | Investment grade | Matures in less than one year | ||
Derivative [Line Items] | ||
Notional value | 20 | 39 |
Assets | 0 | 0 |
Liabilities | $ 0 | $ 0 |
Fair Value Financial Instrument
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 6,336 | $ 6,341 | |
Restricted commercial mortgage loans | 99 | 107 | |
Other invested assets | 1,674 | 1,813 | |
Long-term borrowings | 4,654 | 4,224 | |
Non-recourse funding obligations | 310 | 310 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 0 | 0 | |
Restricted commercial mortgage loans | 0 | 0 | |
Other invested assets | 0 | 0 | |
Long-term borrowings | 0 | 0 | |
Non-recourse funding obligations | 0 | 0 | |
Borrowings related to securitization entities | 0 | 0 | |
Investment contracts | 0 | 0 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 0 | 0 | |
Restricted commercial mortgage loans | 0 | 0 | |
Other invested assets | 0 | 0 | |
Long-term borrowings | 3,936 | 3,566 | |
Non-recourse funding obligations | 0 | 0 | |
Borrowings related to securitization entities | 33 | 41 | |
Investment contracts | 5 | 5 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,407 | 6,573 | |
Restricted commercial mortgage loans | 106 | 116 | |
Other invested assets | 113 | 299 | |
Long-term borrowings | 157 | 159 | |
Non-recourse funding obligations | 206 | 201 | |
Borrowings related to securitization entities | 0 | 0 | |
Investment contracts | 14,487 | 15,118 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Carrying value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,336 | 6,341 | |
Restricted commercial mortgage loans | 99 | 107 | |
Other invested assets | 113 | 277 | |
Long-term borrowings | 4,654 | 4,224 | |
Non-recourse funding obligations | 310 | 310 | |
Borrowings related to securitization entities | 32 | 40 | |
Investment contracts | 14,195 | 14,700 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,407 | 6,573 | |
Restricted commercial mortgage loans | 106 | 116 | |
Other invested assets | 113 | 299 | |
Long-term borrowings | 4,093 | 3,725 | |
Non-recourse funding obligations | 206 | 201 | |
Borrowings related to securitization entities | 33 | 41 | |
Investment contracts | 14,492 | 15,123 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Notional amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | [1] | 0 | 0 |
Restricted commercial mortgage loans | [1] | 0 | 0 |
Other invested assets | [1] | 0 | 0 |
Long-term borrowings | [1] | 0 | 0 |
Non-recourse funding obligations | [1] | 0 | 0 |
Borrowings related to securitization entities | [1] | 0 | 0 |
Investment contracts | [1] | 0 | 0 |
Commitments to fund limited partnerships | 365 | 317 | |
Commitments to fund bank loan investments | 19 | 18 | |
Ordinary course of business lending commitments | $ 106 | $ 168 | |
[1] | These financial instruments do not have notional amounts. |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 61,080 | $ 62,525 |
GMWB non-performance risk impact | $ 58 | $ 63 |
Period end valuation | 0 | 0 |
Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,299 | $ 2,233 |
Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 27,998 | 28,636 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 12,257 | 12,611 |
Level 2 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 57,388 | 58,575 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,299 | 2,233 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 25,998 | 26,484 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 10,830 | 11,195 |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | ||
Fair Value of Financial Instruments [Line Items] | ||
Percentage of available for sale debt securities | 91.00% | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,283 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 24,940 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 10,306 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 16 | |
Level 2 | Fixed maturity securities | Internal models | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,058 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 524 | |
Level 3 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,692 | 3,950 |
Level 3 | Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Level 3 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,000 | 2,152 |
Level 3 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,427 | $ 1,416 |
Level 3 | Fixed maturity securities | Internal models | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,224 | |
Level 3 | Fixed maturity securities | Broker Quotes | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 468 |
Summary of Significant Inputs U
Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2 (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 61,080 | $ 62,525 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 5,398 | 5,548 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,876 | 2,926 |
Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,299 | 2,233 |
Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 27,998 | 28,636 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 12,257 | 12,611 |
Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,836 | 4,057 |
Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,342 | 3,446 |
Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,074 | 3,068 |
Level 2 | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 57,388 | 58,575 |
Level 2 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 5,398 | 5,547 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,823 | 2,889 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,299 | 2,233 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 25,998 | 26,484 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 10,830 | 11,195 |
Level 2 | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,802 | 3,980 |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,336 | 3,416 |
Level 2 | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,902 | $ 2,831 |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 5,398 | |
Primary methodologies | Price quotes from trading desk, broker feeds | |
Significant inputs | Bid side prices, trade prices, Option Adjusted Spread ("OAS") to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 2,823 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, third-party pricing vendors | |
Significant inputs | Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 2,283 | |
Primary methodologies | Matrix pricing, spread priced to benchmark curves, price quotes from market makers | |
Significant inputs | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 24,940 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models | |
Significant inputs | Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine ("TRACE") reports | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 10,306 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers | |
Significant inputs | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 3,802 | |
Primary methodologies | OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced | |
Significant inputs | Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 3,336 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model | |
Significant inputs | Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 2,902 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models | |
Significant inputs | Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports |
Assets by Class of Instrument t
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 61,080 | $ 62,525 | |
Available-for-sale equity securities | 799 | 820 | |
Derivative assets, fair value | 242 | 290 | |
Limited partnerships | 223 | ||
Total other invested assets | 1,674 | 1,813 | |
Separate account assets | 6,902 | 7,230 | |
Total assets | 70,260 | 72,035 | |
Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Available-for-sale equity securities | [1] | 0 | |
Limited partnerships | [1] | 223 | |
Separate account assets | [1] | 0 | |
Total assets | [1] | 223 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 229 | 276 | |
Securities lending collateral | 252 | 268 | |
Short-term investments | 762 | 902 | |
Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Securities lending collateral | [1] | 0 | |
Short-term investments | [1] | 0 | |
Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 54 | 74 | |
Interest rate swaps | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 6 | 12 | |
Foreign currency swaps | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 60 | 80 | |
Equity index options | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 108 | 110 | |
Other foreign currency contracts | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 13 | 14 |
GMWB embedded derivatives | Reinsurance recoverable | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1],[2] | 0 | |
Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 1 | ||
Equity return swaps | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 113 | 299 | |
Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 1,466 | 1,446 | |
Fair value | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | [1] | 223 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,398 | 5,548 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,876 | 2,926 | |
Fixed maturity securities | State and Political Subdivisions | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,299 | 2,233 | |
Fixed maturity securities | Non-U.S. government | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 27,998 | 28,636 | |
Fixed maturity securities | U.S. corporate | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,874 | 4,998 | |
Fixed maturity securities | U.S. corporate | Utilities | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,383 | 2,458 | |
Fixed maturity securities | U.S. corporate | Energy | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 6,447 | 6,528 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,670 | 4,831 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,763 | 2,845 | |
Fixed maturity securities | U.S. corporate | Technology and communications | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,308 | 1,346 | |
Fixed maturity securities | U.S. corporate | Industrial | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,385 | 2,355 | |
Fixed maturity securities | U.S. corporate | Capital goods | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,542 | 1,605 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,256 | 1,291 | |
Fixed maturity securities | U.S. corporate | Transportation | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 370 | 379 | |
Fixed maturity securities | U.S. corporate | Other | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 12,257 | 12,611 | |
Fixed maturity securities | Non-U.S. corporate | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,003 | 1,017 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,454 | 1,490 | |
Fixed maturity securities | Non-U.S. corporate | Energy | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,688 | 2,735 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 678 | 712 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 984 | 982 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,000 | 1,044 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 626 | 645 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 500 | 540 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 704 | 721 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,620 | 2,725 | |
Fixed maturity securities | Non-U.S. corporate | Other | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,836 | 4,057 | |
Fixed maturity securities | Residential mortgage-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,342 | 3,446 | |
Fixed maturity securities | Commercial mortgage-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,074 | 3,068 | |
Fixed maturity securities | Other asset-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Available-for-sale equity securities | 684 | 696 | |
Limited partnerships | 0 | ||
Total other invested assets | 0 | 0 | |
Separate account assets | 6,902 | 7,230 | |
Total assets | 7,596 | 8,033 | |
Level 1 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Securities lending collateral | 0 | 0 | |
Short-term investments | 10 | 107 | |
Level 1 | Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 0 | 0 |
Level 1 | Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
Level 1 | Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 10 | 107 | |
Level 1 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 57,388 | 58,575 | |
Available-for-sale equity securities | 70 | 80 | |
Limited partnerships | 0 | ||
Total other invested assets | 0 | 0 | |
Separate account assets | 0 | 0 | |
Total assets | 58,631 | 59,914 | |
Level 2 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 169 | 196 | |
Securities lending collateral | 252 | 268 | |
Short-term investments | 752 | 795 | |
Level 2 | Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 54 | 74 | |
Level 2 | Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 6 | 12 | |
Level 2 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 2 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 108 | 110 | |
Level 2 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 0 | 0 |
Level 2 | Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 1 | ||
Level 2 | Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 1,173 | 1,259 | |
Level 2 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,398 | 5,547 | |
Level 2 | Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,823 | 2,889 | |
Level 2 | Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,299 | 2,233 | |
Level 2 | Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 25,998 | 26,484 | |
Level 2 | Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,321 | 4,424 | |
Level 2 | Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,237 | 2,311 | |
Level 2 | Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,867 | 5,902 | |
Level 2 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,591 | 4,750 | |
Level 2 | Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,738 | 2,772 | |
Level 2 | Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,269 | 1,307 | |
Level 2 | Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,282 | 2,234 | |
Level 2 | Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,290 | 1,343 | |
Level 2 | Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,199 | 1,231 | |
Level 2 | Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 204 | 210 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 10,830 | 11,195 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 667 | 674 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,259 | 1,314 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,535 | 2,574 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 558 | 588 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 956 | 953 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 892 | 928 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 440 | 454 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 448 | 486 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 538 | 551 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,537 | 2,673 | |
Level 2 | Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,802 | 3,980 | |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,336 | 3,416 | |
Level 2 | Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,902 | 2,831 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,692 | 3,950 | |
Available-for-sale equity securities | 45 | 44 | |
Limited partnerships | 0 | ||
Total other invested assets | 113 | 299 | |
Separate account assets | 0 | 0 | |
Total assets | 3,810 | 4,088 | |
Level 3 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 60 | 80 | |
Securities lending collateral | 0 | 0 | |
Short-term investments | 0 | 0 | |
Level 3 | Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 60 | 80 | |
Level 3 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 13 | 14 |
Level 3 | Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
Level 3 | Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 60 | 80 | |
Level 3 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 1 | |
Level 3 | Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 53 | 37 | |
Level 3 | Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 3 | Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,000 | 2,152 | |
Level 3 | Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 553 | 574 | |
Level 3 | Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 146 | 147 | |
Level 3 | Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 580 | 626 | |
Level 3 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 79 | 81 | |
Level 3 | Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 25 | 73 | |
Level 3 | Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 39 | 39 | |
Level 3 | Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 103 | 121 | |
Level 3 | Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 252 | 262 | |
Level 3 | Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 57 | 60 | |
Level 3 | Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 166 | 169 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,427 | 1,416 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 336 | 343 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 195 | 176 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 153 | 161 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 120 | 124 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 28 | 29 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 108 | 116 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 186 | 191 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 52 | 54 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 166 | 170 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 83 | 52 | |
Level 3 | Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 34 | 77 | |
Level 3 | Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 6 | 30 | |
Level 3 | Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 172 | $ 237 | |
[1] | Limited partnerships that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. | ||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Assets Measured at Fair Value o
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | $ 4,088 | $ 4,570 | |
Total realized and unrealized gains (losses), Included in net income | (14) | 17 | |
Total realized and unrealized gains (losses), Included in OCI | (125) | 45 | |
Purchases | 231 | 156 | |
Sales | (3) | (152) | |
Issuances | 1 | 1 | |
Settlements | (202) | (111) | |
Transfer into Level 3 | [1] | 21 | 15 |
Transfer out of Level 3 | [1] | (187) | (141) |
Ending balance | 3,810 | 4,400 | |
Total gains (losses) included in net income attributable to assets still held | (11) | 13 | |
Other invested assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 80 | 75 | |
Total realized and unrealized gains (losses), Included in net income | (15) | 11 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | |
Purchases | 14 | 12 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (19) | (20) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 60 | 78 | |
Total gains (losses) included in net income attributable to assets still held | (12) | 9 | |
Other invested assets | Derivative assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 80 | 75 | |
Total realized and unrealized gains (losses), Included in net income | (15) | 11 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | |
Purchases | 14 | 12 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (19) | (20) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 60 | 78 | |
Total gains (losses) included in net income attributable to assets still held | (12) | 9 | |
Other invested assets | Derivative assets | Equity index options | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 80 | 72 | |
Total realized and unrealized gains (losses), Included in net income | (15) | 13 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | |
Purchases | 14 | 12 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (19) | (20) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 60 | 77 | |
Total gains (losses) included in net income attributable to assets still held | (12) | 12 | |
Other invested assets | Derivative assets | Other foreign currency contracts | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 3 | ||
Total realized and unrealized gains (losses), Included in net income | (2) | ||
Total realized and unrealized gains (losses), Included in OCI | 0 | ||
Purchases | 0 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Transfer into Level 3 | [1] | 0 | |
Transfer out of Level 3 | [1] | 0 | |
Ending balance | 1 | ||
Total gains (losses) included in net income attributable to assets still held | (3) | ||
Restricted other invested assets related to securitization entities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 131 | ||
Total realized and unrealized gains (losses), Included in net income | 0 | ||
Total realized and unrealized gains (losses), Included in OCI | 0 | ||
Purchases | 0 | ||
Sales | (131) | ||
Issuances | 0 | ||
Settlements | 0 | ||
Transfer into Level 3 | [1] | 0 | |
Transfer out of Level 3 | [1] | 0 | |
Ending balance | 0 | ||
Total gains (losses) included in net income attributable to assets still held | 0 | ||
Reinsurance recoverable | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | [2] | 14 | 16 |
Total realized and unrealized gains (losses), Included in net income | [2] | (2) | (2) |
Total realized and unrealized gains (losses), Included in OCI | [2] | 0 | 0 |
Purchases | [2] | 0 | 0 |
Sales | [2] | 0 | 0 |
Issuances | [2] | 1 | 1 |
Settlements | [2] | 0 | 0 |
Transfer into Level 3 | [1],[2] | 0 | 0 |
Transfer out of Level 3 | [1],[2] | 0 | 0 |
Ending balance | [2] | 13 | 15 |
Total gains (losses) included in net income attributable to assets still held | [2] | (2) | (2) |
Fixed maturity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 3,950 | 4,301 | |
Total realized and unrealized gains (losses), Included in net income | 3 | 8 | |
Total realized and unrealized gains (losses), Included in OCI | (125) | 45 | |
Purchases | 213 | 144 | |
Sales | 0 | (21) | |
Issuances | 0 | 0 | |
Settlements | (183) | (91) | |
Transfer into Level 3 | [1] | 21 | 15 |
Transfer out of Level 3 | [1] | (187) | (141) |
Ending balance | 3,692 | 4,260 | |
Total gains (losses) included in net income attributable to assets still held | 3 | 6 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 1 | 2 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (1) | (1) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 0 | 1 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 37 | 37 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | (3) | (1) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | [1] | 18 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 53 | 37 | |
Total gains (losses) included in net income attributable to assets still held | 1 | 1 | |
Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 2,152 | 2,487 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 5 | |
Total realized and unrealized gains (losses), Included in OCI | (76) | 30 | |
Purchases | 61 | 55 | |
Sales | 0 | (20) | |
Issuances | 0 | 0 | |
Settlements | (123) | (34) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | (15) | (82) |
Ending balance | 2,000 | 2,441 | |
Total gains (losses) included in net income attributable to assets still held | 1 | 4 | |
Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 574 | 576 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (18) | 7 | |
Purchases | 3 | 14 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (2) | (2) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | (4) | (17) |
Ending balance | 553 | 578 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 147 | 210 | |
Total realized and unrealized gains (losses), Included in net income | 0 | (1) | |
Total realized and unrealized gains (losses), Included in OCI | (5) | 2 | |
Purchases | 22 | 0 | |
Sales | 0 | (10) | |
Issuances | 0 | 0 | |
Settlements | (18) | (23) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | (16) |
Ending balance | 146 | 162 | |
Total gains (losses) included in net income attributable to assets still held | 0 | (1) | |
Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 626 | 786 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 4 | |
Total realized and unrealized gains (losses), Included in OCI | (26) | 12 | |
Purchases | 26 | 29 | |
Sales | 0 | (10) | |
Issuances | 0 | 0 | |
Settlements | (36) | (3) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | (11) | 0 |
Ending balance | 580 | 818 | |
Total gains (losses) included in net income attributable to assets still held | 1 | 4 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 81 | 121 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (2) | 1 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 79 | 122 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 73 | 54 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | (6) | 1 | |
Purchases | 0 | 10 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (42) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | (7) |
Ending balance | 25 | 59 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 1 | |
Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 39 | 48 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | (1) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 39 | 47 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 121 | 152 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (8) | 1 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (10) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 103 | 153 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 262 | 258 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (9) | 5 | |
Purchases | 10 | 2 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (11) | (2) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 252 | 263 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 60 | 139 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | (1) | 1 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (2) | (2) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | (42) |
Ending balance | 57 | 97 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 169 | 143 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (1) | 1 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (2) | (2) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 166 | 142 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 1,416 | 1,533 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | (41) | 12 | |
Purchases | 78 | 30 | |
Sales | 0 | (1) | |
Issuances | 0 | 0 | |
Settlements | (27) | (53) | |
Transfer into Level 3 | [1] | 0 | 10 |
Transfer out of Level 3 | [1] | 0 | (32) |
Ending balance | 1,427 | 1,501 | |
Total gains (losses) included in net income attributable to assets still held | 1 | 1 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 343 | 386 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (9) | 2 | |
Purchases | 22 | 30 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (20) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | (32) |
Ending balance | 336 | 386 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 176 | 206 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (4) | 2 | |
Purchases | 23 | 0 | |
Sales | 0 | (1) | |
Issuances | 0 | 0 | |
Settlements | 0 | (1) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 195 | 206 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 161 | 182 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | (8) | 4 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (1) | (20) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 153 | 168 | |
Total gains (losses) included in net income attributable to assets still held | 1 | 1 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 124 | 139 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (3) | 1 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (1) | (11) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 120 | 129 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 29 | 67 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (1) | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | (19) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 28 | 48 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 116 | 109 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (3) | 1 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (5) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 108 | 110 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 191 | 169 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (5) | 1 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 186 | 170 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 54 | 69 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (2) | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | (2) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 52 | 67 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 170 | 181 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (4) | 2 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 10 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 166 | 193 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 52 | 25 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (2) | (1) | |
Purchases | 33 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 83 | 24 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 77 | 43 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (1) | 0 | |
Purchases | 12 | 4 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | (1) | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | (54) | 0 |
Ending balance | 34 | 46 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 30 | 54 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (2) | 4 | |
Purchases | 7 | 1 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | (29) | 0 |
Ending balance | 6 | 59 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 237 | 145 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (2) | 0 | |
Purchases | 55 | 54 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (32) | (2) | |
Transfer into Level 3 | [1] | 3 | 5 |
Transfer out of Level 3 | [1] | (89) | (27) |
Ending balance | 172 | 175 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | |
Equity Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 44 | 47 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | |
Purchases | 4 | 0 | |
Sales | (3) | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | 45 | 47 | |
Total gains (losses) included in net income attributable to assets still held | $ 0 | $ 0 | |
[1] | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. | ||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Gains and Losses Included in Ne
Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair value of financial instruments [Abstract] | ||
Total realized and unrealized gains (losses) included in net income, assets | $ (14) | $ 17 |
Net gains (losses) included in net income attributable to assets still held, assets | (11) | 13 |
Net Investment Income | ||
Fair value of financial instruments [Abstract] | ||
Total realized and unrealized gains (losses) included in net income, assets | 3 | 9 |
Net gains (losses) included in net income attributable to assets still held, assets | 3 | 7 |
Net Investment (Gains) Losses | ||
Fair value of financial instruments [Abstract] | ||
Total realized and unrealized gains (losses) included in net income, assets | (17) | 8 |
Net gains (losses) included in net income attributable to assets still held, assets | $ (14) | $ 6 |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 747 | $ 730 | |
Fixed maturity securities available-for-sale, at fair value | 61,080 | 62,525 | |
Derivative assets, fair value | 242 | 290 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 663 | 683 | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | [1] | 242 | 250 |
Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 408 | 419 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 13 | 14 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fixed maturity securities available-for-sale, at fair value | $ 3,692 | 3,950 | |
Level 3 | Other invested assets | Equity index options | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Discounted cash flows | ||
Derivative assets, fair value | $ 60 | ||
Fair value input, equity index volatility, lower limit | 6.00% | ||
Fair value input, equity index volatility, upper limit | 42.00% | ||
Fair value input, equity index volatility, weighted-average | 21.00% | ||
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 663 | 683 | |
Level 3 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | [1] | $ 242 | 250 |
Valuation technique | [1] | Stochastic cash flow model | |
Fair value, withdrawal utilization rate, lower limit | [1] | 42.00% | |
Fair value, withdrawal utilization rate, upper limit | [1] | 85.00% | |
Fair value, lapse rate, lower limit | [1] | 0.00% | |
Fair value, lapse rate, upper limit | [1] | 8.00% | |
Fair value input, credit spreads, lower limit | [1] | 0.30% | |
Fair value input, credit spreads, upper limit | [1] | 0.83% | |
Fair value input, equity index volatility, lower limit | [1] | 15.00% | |
Fair value input, equity index volatility, upper limit | [1] | 24.00% | |
Fair value, withdrawal utilization rate, weighted-average | [1] | 66.00% | |
Fair value, lapse rate, weighted-average | [1] | 4.00% | |
Fair value input, credit spreads, weighted-average | [1] | 0.69% | |
Fair value input, equity index volatility, weighted-average | [1] | 21.00% | |
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 408 | 419 | |
Valuation technique | Option budget method | ||
Fair value, expected future interest credited, lower limit | 0.00% | ||
Fair value, expected future interest credited, upper limit | 2.00% | ||
Fair value, expected future interest credited, weighted-average | 1.00% | ||
Level 3 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 13 | $ 14 | |
Valuation technique | Option budget method | ||
Fair value, expected future interest credited, lower limit | 3.00% | ||
Fair value, expected future interest credited, upper limit | 10.00% | ||
Fair value, expected future interest credited, weighted-average | 6.00% | ||
Internal Models | Level 3 | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 1,852 | ||
Fair value input, credit spreads, lower limit | 0.62% | ||
Fair value input, credit spreads, upper limit | 3.11% | ||
Fair value input, credit spreads, weighted-average | 1.31% | ||
Internal Models | Level 3 | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 535 | ||
Fair value input, credit spreads, lower limit | 0.72% | ||
Fair value input, credit spreads, upper limit | 3.09% | ||
Fair value input, credit spreads, weighted-average | 1.22% | ||
Internal Models | Level 3 | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 124 | ||
Fair value input, credit spreads, lower limit | 0.82% | ||
Fair value input, credit spreads, upper limit | 2.01% | ||
Fair value input, credit spreads, weighted-average | 1.42% | ||
Internal Models | Level 3 | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 559 | ||
Fair value input, credit spreads, lower limit | 0.83% | ||
Fair value input, credit spreads, upper limit | 3.11% | ||
Fair value input, credit spreads, weighted-average | 1.59% | ||
Internal Models | Level 3 | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 79 | ||
Fair value input, credit spreads, lower limit | 0.94% | ||
Fair value input, credit spreads, upper limit | 1.32% | ||
Fair value input, credit spreads, weighted-average | 1.11% | ||
Internal Models | Level 3 | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 25 | ||
Fair value input, credit spreads, lower limit | 0.65% | ||
Fair value input, credit spreads, upper limit | 2.24% | ||
Fair value input, credit spreads, weighted-average | 1.41% | ||
Internal Models | Level 3 | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 12 | ||
Fair value input, credit spreads, lower limit | 1.94% | ||
Internal Models | Level 3 | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 102 | ||
Fair value input, credit spreads, lower limit | 0.97% | ||
Fair value input, credit spreads, upper limit | 2.24% | ||
Fair value input, credit spreads, weighted-average | 1.26% | ||
Internal Models | Level 3 | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 209 | ||
Fair value input, credit spreads, lower limit | 0.78% | ||
Fair value input, credit spreads, upper limit | 1.80% | ||
Fair value input, credit spreads, weighted-average | 1.23% | ||
Internal Models | Level 3 | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 51 | ||
Fair value input, credit spreads, lower limit | 0.62% | ||
Fair value input, credit spreads, upper limit | 1.10% | ||
Fair value input, credit spreads, weighted-average | 0.85% | ||
Internal Models | Level 3 | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 156 | ||
Fair value input, credit spreads, lower limit | 0.77% | ||
Fair value input, credit spreads, upper limit | 1.10% | ||
Fair value input, credit spreads, weighted-average | 0.85% | ||
Internal Models | Level 3 | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 1,323 | ||
Fair value input, credit spreads, lower limit | 0.67% | ||
Fair value input, credit spreads, upper limit | 2.32% | ||
Fair value input, credit spreads, weighted-average | 1.24% | ||
Internal Models | Level 3 | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 336 | ||
Fair value input, credit spreads, lower limit | 0.76% | ||
Fair value input, credit spreads, upper limit | 1.50% | ||
Fair value input, credit spreads, weighted-average | 1.14% | ||
Internal Models | Level 3 | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 164 | ||
Fair value input, credit spreads, lower limit | 0.93% | ||
Fair value input, credit spreads, upper limit | 1.80% | ||
Fair value input, credit spreads, weighted-average | 1.20% | ||
Internal Models | Level 3 | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 144 | ||
Fair value input, credit spreads, lower limit | 0.78% | ||
Fair value input, credit spreads, upper limit | 2.32% | ||
Fair value input, credit spreads, weighted-average | 1.34% | ||
Internal Models | Level 3 | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 109 | ||
Fair value input, credit spreads, lower limit | 0.67% | ||
Fair value input, credit spreads, upper limit | 1.94% | ||
Fair value input, credit spreads, weighted-average | 1.17% | ||
Internal Models | Level 3 | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 28 | ||
Fair value input, credit spreads, lower limit | 1.24% | ||
Fair value input, credit spreads, upper limit | 2.31% | ||
Fair value input, credit spreads, weighted-average | 1.70% | ||
Internal Models | Level 3 | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 108 | ||
Fair value input, credit spreads, lower limit | 0.94% | ||
Fair value input, credit spreads, upper limit | 1.75% | ||
Fair value input, credit spreads, weighted-average | 1.34% | ||
Internal Models | Level 3 | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 158 | ||
Fair value input, credit spreads, lower limit | 0.94% | ||
Fair value input, credit spreads, upper limit | 2.24% | ||
Fair value input, credit spreads, weighted-average | 1.37% | ||
Internal Models | Level 3 | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 47 | ||
Fair value input, credit spreads, lower limit | 0.87% | ||
Fair value input, credit spreads, upper limit | 1.59% | ||
Fair value input, credit spreads, weighted-average | 1.06% | ||
Internal Models | Level 3 | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 146 | ||
Fair value input, credit spreads, lower limit | 0.82% | ||
Fair value input, credit spreads, upper limit | 1.94% | ||
Fair value input, credit spreads, weighted-average | 1.12% | ||
Internal Models | Level 3 | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 83 | ||
Fair value input, credit spreads, lower limit | 0.97% | ||
Fair value input, credit spreads, upper limit | 2.31% | ||
Fair value input, credit spreads, weighted-average | 1.47% | ||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities by Class of Instrum
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | $ 747 | $ 730 | |
Total liabilities | 747 | 730 | |
Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 84 | 47 | |
Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 58 | 25 | |
Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 2 | ||
Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 2 | ||
Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 24 | 20 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 663 | 683 | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 242 | 250 |
Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 408 | 419 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 13 | 14 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | 0 | 0 | |
Level 1 | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Level 1 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Level 1 | Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 0 | 0 |
Level 1 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | 84 | 47 | |
Level 2 | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 84 | 47 | |
Level 2 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 58 | 25 | |
Level 2 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 2 | ||
Level 2 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 2 | ||
Level 2 | Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 24 | 20 | |
Level 2 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 0 | 0 |
Level 2 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | 663 | 683 | |
Level 3 | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Level 3 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Level 3 | Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 663 | 683 | |
Level 3 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 242 | 250 |
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 408 | 419 | |
Level 3 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | $ 13 | $ 14 | |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities Measured at Fair Va
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | $ 683 | $ 670 | |
Total realized and unrealized (gains) losses included in net (income) | (29) | (15) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 12 | 9 | |
Settlements | (3) | (3) | |
Transfer into Level 3 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | |
Ending balance | 663 | 661 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (25) | (11) | |
Policyholder account balances | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 683 | 658 | |
Total realized and unrealized (gains) losses included in net (income) | (29) | (16) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 12 | 9 | |
Settlements | (3) | (3) | |
Transfer into Level 3 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | |
Ending balance | 663 | 648 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (25) | (12) | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | [1] | 250 | 303 |
Total realized and unrealized (gains) losses included in net (income) | [1] | (16) | (35) |
Total realized and unrealized (gains) losses included in OCI | [1] | 0 | 0 |
Purchases | [1] | 0 | 0 |
Sales | [1] | 0 | 0 |
Issuances | [1] | 8 | 7 |
Settlements | [1] | 0 | 0 |
Transfer into Level 3 | [1] | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 |
Ending balance | [1] | 242 | 275 |
Total (gains) losses included in net (income) attributable to liabilities still held | [1] | (12) | (31) |
Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 419 | 344 | |
Total realized and unrealized (gains) losses included in net (income) | (8) | 20 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (3) | (3) | |
Transfer into Level 3 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | |
Ending balance | 408 | 361 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (8) | 20 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 14 | 11 | |
Total realized and unrealized (gains) losses included in net (income) | (5) | (1) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 4 | 2 | |
Settlements | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | |
Ending balance | 13 | 12 | |
Total (gains) losses included in net (income) attributable to liabilities still held | $ (5) | (1) | |
Borrowings related to securitization entities | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 12 | ||
Total realized and unrealized (gains) losses included in net (income) | 1 | ||
Total realized and unrealized (gains) losses included in OCI | 0 | ||
Purchases | 0 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Transfer into Level 3 | 0 | ||
Transfer out of Level 3 | 0 | ||
Ending balance | 13 | ||
Total (gains) losses included in net (income) attributable to liabilities still held | $ 1 | ||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Gains and Losses Included in 73
Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | $ (29) | $ (15) |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | (25) | (11) |
Net Investment Income | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | 0 | 0 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 0 | 0 |
Net Investment (Gains) Losses | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | (29) | (15) |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | $ (25) | $ (11) |
Changes in Liability for Policy
Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 9,594 | $ 9,256 |
Less reinsurance recoverables | (2,419) | (2,409) |
Net beginning balance | 7,175 | 6,847 |
Current year | 998 | 937 |
Prior years | (108) | (106) |
Total incurred | 890 | 831 |
Current year | (175) | (178) |
Prior years | (692) | (656) |
Total paid | (867) | (834) |
Interest on liability for policy and contract claims | 81 | 73 |
Foreign currency translation | (5) | 14 |
Net ending balance | 7,274 | 6,931 |
Add reinsurance recoverables | 2,377 | 2,364 |
Ending balance | $ 9,651 | $ 9,295 |
Liability for Policy and Cont75
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred related to insured events of prior year | $ (108) | $ (106) |
Long-term Care Insurance | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred related to insured events of prior year | $ 108 | $ 106 |
Borrowings - Long Term Borrowin
Borrowings - Long Term Borrowings (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Total | $ 4,654 | $ 4,224 | |
Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 4,221 | 3,773 | |
Bond consent fees | (31) | (33) | |
Deferred borrowing charges | (24) | (16) | |
Total | [1] | 4,166 | 3,724 |
Genworth Holdings | Floating Rate Senior Secured Term Loan Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 448 | 0 | |
Genworth Holdings | 6.52% Senior Notes, Due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 597 | 597 | |
Genworth Holdings | 7.70% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 397 | 397 | |
Genworth Holdings | 7.20% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 381 | 381 | |
Genworth Holdings | 7.625% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 704 | 704 | |
Genworth Holdings | 4.90% Senior Notes, Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 399 | 399 | |
Genworth Holdings | 4.80% Senior Notes, Due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 400 | 400 | |
Genworth Holdings | 6.50% Senior Notes, Due 2034 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 297 | 297 | |
Genworth Holdings | 6.15% Fixed-to-Floating Rate Junior Subordinated Notes, Due 2066 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 598 | 598 | |
Genworth Canada | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 337 | 347 | |
Deferred borrowing charges | (1) | (1) | |
Total | [2] | 336 | 346 |
Genworth Canada | 5.68% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 213 | 219 | |
Genworth Canada | 4.24% Senior Notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 124 | 128 | |
Genworth Financial Mortgage Insurance Pty Limited | |||
Debt Instrument [Line Items] | |||
Deferred borrowing charges | (2) | (2) | |
Total | [3] | 152 | 154 |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | $ 154 | $ 156 | |
[1] | We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. | ||
[2] | Senior notes issued by Genworth MI Canada Inc. ("Genworth Canada"), our majority-owned subsidiary. | ||
[3] | Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited, our indirect wholly-owned subsidiary. |
Borrowings - Long Term Borrow77
Borrowings - Long Term Borrowings (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Floating Rate Senior Secured Term Loan Facility, Due 2023 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2,023 | 2,023 |
6.52% Senior Notes, Due 2018 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.52% | 6.52% |
Debt instrument, maturity year | 2,018 | 2,018 |
7.70% Senior Notes, Due 2020 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.70% | 7.70% |
Debt instrument, maturity year | 2,020 | 2,020 |
7.20% Senior Notes, Due 2021 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.20% | 7.20% |
Debt instrument, maturity year | 2,021 | 2,021 |
7.625% Senior Notes, Due 2021 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.625% | 7.625% |
Debt instrument, maturity year | 2,021 | 2,021 |
4.90% Senior Notes, Due 2023 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.90% | 4.90% |
Debt instrument, maturity year | 2,023 | 2,023 |
4.80% Senior Notes, Due 2024 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.80% | 4.80% |
Debt instrument, maturity year | 2,024 | 2,024 |
6.50% Senior Notes, Due 2034 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.50% | 6.50% |
Debt instrument, maturity year | 2,034 | 2,034 |
6.15% Fixed-to-Floating Rate Junior Subordinated Notes, Due 2066 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.15% | 6.15% |
Debt instrument, maturity year | 2,066 | 2,066 |
5.68% Senior Notes, Due 2020 | Genworth Canada | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.68% | 5.68% |
Debt instrument, maturity year | 2,020 | 2,020 |
4.24% Senior Notes, due 2024 | Genworth Canada | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.24% | 4.24% |
Debt instrument, maturity year | 2,024 | 2,024 |
Floating Rate Junior Notes, Due 2025 | Genworth Financial Mortgage Insurance Pty Limited | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2,025 | 2,025 |
Fixed Rate Senior Notes | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption description | We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. | |
Fixed Rate Senior Notes | Genworth Holdings | Minimum | ||
Debt Instrument [Line Items] | ||
Senior notes redemption option | 100.00% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Mar. 07, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Borrowing costs that were deferred | $ 24,000,000 | $ 16,000,000 | |
Genworth Holdings | Senior Secured Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Facility, maximum borrowing capacity | $ 450,000,000 | ||
Line of credit maturity date | Mar. 7, 2023 | ||
Discount rate | 0.50% | ||
Payments under agreement, due date | Jun. 30, 2018 | ||
Quarterly equal payable of original principal, percentage | 0.25% | ||
Term loan variable interest rate, description | The Term Loan will bear interest at either an adjusted London Interbank Offered Rate ("LIBOR") no lower than 1.0% plus a margin of 4.5% per annum or an alternate base rate plus a margin of 3.5% per annum. | ||
Interest rate on the Term Loan | 6.20% | ||
Borrowing costs that were deferred | $ 7,000,000 | ||
Genworth Holdings | LIBOR | Senior Secured Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Adjusted London Interbank Offered Rate ("LIBOR") | 1.00% | ||
Term loan variable interest rate | 4.50% | ||
Genworth Holdings | Base Rate [Member] | Senior Secured Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Term loan variable interest rate | 3.50% | ||
Genworth Financial International Holdings | Genworth Canada | |||
Debt Instrument [Line Items] | |||
Ownership percentage | 40.50% |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
Statutory U.S. federal income tax rate | 21.00% | 35.00% | 35.00% |
Effect of foreign operations | 2.90% | 0.00% | |
Swaps terminated prior to the TCJA | 2.30% | 0.00% | |
Other, net | 1.40% | (0.10%) | |
Effective rate | 27.60% | 34.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
U.S. corporate federal tax rate | 21.00% | 35.00% | 35.00% |
SAB 118 Disclosures | |||
Income Taxes [Line Items] | |||
TCJA, impact from change in tax rate | $ 154 | ||
2017 Tax Act, income tax provision due to one-time transition tax related to foreign earnings | 63 | ||
2017 Tax Act, income tax provision due to one-time transition tax related to insurance policyholders reserves | $ 19 | $ 134 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 5 | ||
Corporate federal income tax rate | 21.00% | 35.00% | 35.00% |
Assumed tax rate on adjustments to net operating income | 21.00% | 35.00% | |
Expenses related to restructuring | $ | $ 0 | $ 1 |
Summary of Revenues for Segment
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,115 | $ 2,171 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 200 | 187 |
Segment, Continuing Operations | Canada Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 158 | 169 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 107 | 122 |
Segment, Continuing Operations | Long-term Care Insurance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,020 | 994 |
Segment, Continuing Operations | Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 379 | 417 |
Segment, Continuing Operations | Fixed Annuities | ||
Segment Reporting Information [Line Items] | ||
Revenues | 182 | 205 |
Segment, Continuing Operations | U.S. Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,581 | 1,616 |
Segment, Continuing Operations | Runoff | ||
Segment Reporting Information [Line Items] | ||
Revenues | 68 | 87 |
Segment, Continuing Operations | Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 1 | $ (10) |
Summary of Net Operating Income
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Net income available to Genworth Financial, Inc.'s common stockholders | $ 112 | $ 155 | |
Add: net income attributable to noncontrolling interests | 53 | 61 | |
Net income | 165 | 216 | |
Loss from discontinued operations, net of taxes | 0 | 0 | |
Income from continuing operations | 165 | 216 | |
Less: income from continuing operations attributable to noncontrolling interests | 53 | 61 | |
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders | 112 | 155 | |
Net investment (gains) losses, net | [1] | 17 | (20) |
Expenses related to restructuring | 0 | 1 | |
Taxes on adjustments | (4) | 7 | |
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 125 | 143 | |
Segment, Continuing Operations | U.S. Mortgage Insurance | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 111 | 73 | |
Segment, Continuing Operations | Canada Mortgage Insurance | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 49 | 36 | |
Segment, Continuing Operations | Australia Mortgage Insurance | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 19 | 13 | |
Segment, Continuing Operations | Long-term Care Insurance | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (32) | 14 | |
Segment, Continuing Operations | Life Insurance | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (1) | 16 | |
Segment, Continuing Operations | Fixed Annuities | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 28 | 23 | |
Segment, Continuing Operations | U.S. Life Insurance | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (5) | 53 | |
Segment, Continuing Operations | Runoff | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 10 | 14 | |
Segment, Continuing Operations | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (59) | $ (46) | |
[1] | For the three months ended March 31, 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million. For the three months ended March 31, 2018 and 2017, net investment (gains) losses were also adjusted for net investment gains (losses) attributable to noncontrolling interests of $(11) million and $14 million, respectively. |
Summary of Net Operating Inco84
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - Net Investment (Gains) Losses - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Adjustment for DAC and other intangibles and certain benefit reserves | $ (3) | |
Adjustment for portion attributable to noncontrolling interests | $ (11) | $ 14 |
Summary of Total Assets for Seg
Summary of Total Assets for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 103,773 | $ 105,297 |
Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 103,773 | 105,297 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,316 | 3,273 |
Segment, Continuing Operations | Canada Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,307 | 5,534 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,829 | 2,973 |
Segment, Continuing Operations | U.S. Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 79,933 | 81,295 |
Segment, Continuing Operations | Runoff | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,683 | 10,907 |
Segment, Continuing Operations | Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,705 | $ 1,315 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) £ in Millions, $ in Millions | 1 Months Ended | ||
Dec. 31, 2017GBP (£)Company | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | |||
Indemnity limit | £ | £ 28 | ||
Number of insurance company sold | Company | 2 | ||
Commitment to fund limited partnership investments | $ 365 | ||
Commitment to fund U.S. commercial mortgage loan investments | 76 | ||
Commitment to fund private placement investments | 30 | ||
Notional amount | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Commitment to fund bank loan investments | $ 19 | $ 18 |
Component of Changes in Accumul
Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 3,027 | ||
Cumulative effect of changes in accounting | 131 | ||
OCI before reclassifications | (561) | $ 97 | |
Amounts reclassified from (to) OCI | (19) | (38) | |
Total other comprehensive income (loss) | (580) | 59 | |
Balances before nonnontrolling interests | 2,578 | 3,153 | |
Less: change in OCI attributable to noncontrolling interests | (49) | 57 | |
Ending balance | 2,627 | ||
Net unrealized investment (gains) losses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | [1] | 1,085 | 1,262 |
Cumulative effect of changes in accounting | [1] | 164 | |
OCI before reclassifications | [1] | (348) | 7 |
Amounts reclassified from (to) OCI | [1] | 7 | (18) |
Total other comprehensive income (loss) | [1] | (341) | (11) |
Balances before nonnontrolling interests | [1] | 908 | 1,251 |
Less: change in OCI attributable to noncontrolling interests | [1] | (9) | 8 |
Ending balance | [1] | 917 | 1,243 |
Derivatives qualifying as hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | [2] | 2,065 | 2,085 |
Cumulative effect of changes in accounting | [2] | 14 | |
OCI before reclassifications | [2] | (126) | (29) |
Amounts reclassified from (to) OCI | [2] | (26) | (20) |
Total other comprehensive income (loss) | [2] | (152) | (49) |
Balances before nonnontrolling interests | [2] | 1,927 | 2,036 |
Less: change in OCI attributable to noncontrolling interests | [2] | 0 | 0 |
Ending balance | [2] | 1,927 | 2,036 |
Foreign currency translation and other adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (123) | (253) | |
Cumulative effect of changes in accounting | (47) | ||
OCI before reclassifications | (87) | 119 | |
Amounts reclassified from (to) OCI | 0 | 0 | |
Total other comprehensive income (loss) | (87) | 119 | |
Balances before nonnontrolling interests | (257) | (134) | |
Less: change in OCI attributable to noncontrolling interests | (40) | 49 | |
Ending balance | (217) | (183) | |
Accumulated other comprehensive income (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 3,027 | 3,094 | |
Total other comprehensive income (loss) | (531) | 2 | |
Ending balance | $ 2,627 | $ 3,096 | |
[1] | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. | ||
[2] | See note 5 for additional information. |
Changes In Accumulated Other 88
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | ||
Unrecognized postretirement benefit obligation, current period OCI | $ (14) | $ (11) |
Unrecognized postretirement benefit obligation, current period OCI, tax | 5 | 5 |
Foreign currency translation and other adjustments, current period OCI, tax | $ (46) | $ 31 |
Reclassifications In (Out) of A
Reclassifications In (Out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment income | $ (804) | $ (790) | |
Net investment (gains) losses | 31 | (34) | |
(Provision) benefit for income taxes | (63) | (116) | |
(Income) loss from continuing operations | (165) | (216) | |
Amount reclassified from accumulated other comprehensive income (loss) | Net unrealized investment (gains) losses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment (gains) losses | [1] | 8 | (28) |
(Provision) benefit for income taxes | (1) | 10 | |
(Income) loss from continuing operations | 7 | (18) | |
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
(Provision) benefit for income taxes | 14 | 11 | |
(Income) loss from continuing operations | (26) | (20) | |
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Interest rate swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment income | (35) | (30) | |
Net investment (gains) losses | (5) | (1) | |
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Inflation indexed swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment income | $ 0 | $ 0 | |
[1] | Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | $ 61,080 | $ 62,525 | ||
Equity securities, at fair value | 799 | 820 | ||
Commercial mortgage loans | 6,336 | 6,341 | ||
Restricted commercial mortgage loans related to securitization entities | 99 | 107 | ||
Policy loans | 1,789 | 1,786 | ||
Other invested assets | 1,674 | 1,813 | ||
Investments in subsidiaries | 0 | 0 | ||
Total investments | 71,777 | 73,392 | ||
Cash, cash equivalents and restricted cash | 2,843 | 2,875 | $ 3,018 | $ 2,784 |
Accrued investment income | 698 | 644 | ||
Deferred acquisition costs | 2,699 | 2,329 | ||
Intangible assets and goodwill | 339 | 301 | ||
Reinsurance recoverable | 17,482 | 17,569 | ||
Other assets | 431 | 453 | ||
Intercompany notes receivable | 0 | |||
Deferred tax assets | 602 | 504 | ||
Separate account assets | 6,902 | 7,230 | ||
Total assets | 103,773 | 105,297 | ||
Liabilities and equity | ||||
Future policy benefits | 37,946 | 38,472 | ||
Policyholder account balances | 23,751 | 24,195 | ||
Liability for policy and contract claims | 9,651 | 9,594 | 9,295 | 9,256 |
Unearned premiums | 3,797 | 3,967 | ||
Other liabilities | 1,841 | 1,910 | ||
Intercompany notes payable | 0 | 0 | ||
Borrowings related to securitization entities | 32 | 40 | ||
Non-recourse funding obligations | 310 | 310 | ||
Long-term borrowings | 4,654 | 4,224 | ||
Deferred tax liability | 27 | 27 | ||
Separate account liabilities | 6,902 | 7,230 | ||
Total liabilities | 88,911 | 89,969 | ||
Equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-incapital | 11,979 | 11,977 | ||
Accumulated other comprehensive income (loss) | 2,627 | 3,027 | ||
Retained earnings | 1,111 | 1,113 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 13,018 | 13,418 | ||
Noncontrolling interests | 1,844 | 1,910 | ||
Total equity | 14,862 | 15,328 | 14,716 | 14,467 |
Total liabilities and equity | 103,773 | 105,297 | ||
Reportable Legal Entities | Parent Guarantor | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | 0 | 0 | ||
Equity securities, at fair value | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Investments in subsidiaries | 13,172 | 13,561 | ||
Total investments | 13,172 | 13,561 | ||
Cash, cash equivalents and restricted cash | 0 | 0 | 7 | 0 |
Accrued investment income | 0 | 0 | ||
Deferred acquisition costs | 0 | 0 | ||
Intangible assets and goodwill | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Other assets | (2) | 3 | ||
Intercompany notes receivable | 0 | 0 | ||
Deferred tax assets | 18 | 27 | ||
Separate account assets | 0 | 0 | ||
Total assets | 13,188 | 13,591 | ||
Liabilities and equity | ||||
Future policy benefits | 0 | 0 | ||
Policyholder account balances | 0 | 0 | ||
Liability for policy and contract claims | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Other liabilities | 7 | 41 | ||
Intercompany notes payable | 163 | 132 | ||
Borrowings related to securitization entities | 0 | 0 | ||
Non-recourse funding obligations | 0 | 0 | ||
Long-term borrowings | 0 | 0 | ||
Deferred tax liability | 0 | 0 | ||
Separate account liabilities | 0 | 0 | ||
Total liabilities | 170 | 173 | ||
Equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-incapital | 11,979 | 11,977 | ||
Accumulated other comprehensive income (loss) | 2,627 | 3,027 | ||
Retained earnings | 1,111 | 1,113 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 13,018 | 13,418 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 13,018 | 13,418 | ||
Total liabilities and equity | 13,188 | 13,591 | ||
Reportable Legal Entities | Issuer | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | 0 | 0 | ||
Equity securities, at fair value | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Other invested assets | 76 | 75 | ||
Investments in subsidiaries | 12,358 | 12,867 | ||
Total investments | 12,434 | 12,942 | ||
Cash, cash equivalents and restricted cash | 1,130 | 795 | 849 | 998 |
Accrued investment income | 0 | 0 | ||
Deferred acquisition costs | 0 | 0 | ||
Intangible assets and goodwill | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Other assets | 53 | 54 | ||
Intercompany notes receivable | 211 | 155 | ||
Deferred tax assets | 849 | 0 | ||
Separate account assets | 0 | 0 | ||
Total assets | 14,677 | 13,946 | ||
Liabilities and equity | ||||
Future policy benefits | 0 | 0 | ||
Policyholder account balances | 0 | 0 | ||
Liability for policy and contract claims | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Other liabilities | 124 | 119 | ||
Intercompany notes payable | 200 | 259 | ||
Borrowings related to securitization entities | 0 | 0 | ||
Non-recourse funding obligations | 0 | 0 | ||
Long-term borrowings | 4,166 | 3,724 | ||
Deferred tax liability | 0 | (807) | ||
Separate account liabilities | 0 | 0 | ||
Total liabilities | 4,490 | 3,295 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-incapital | 9,096 | 9,096 | ||
Accumulated other comprehensive income (loss) | 2,692 | 3,037 | ||
Retained earnings | (1,601) | (1,482) | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | 10,187 | 10,651 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 10,187 | 10,651 | ||
Total liabilities and equity | 14,677 | 13,946 | ||
Reportable Legal Entities | All Other Subsidiaries | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | 61,280 | 62,725 | ||
Equity securities, at fair value | 799 | 820 | ||
Commercial mortgage loans | 6,336 | 6,341 | ||
Restricted commercial mortgage loans related to securitization entities | 99 | 107 | ||
Policy loans | 1,789 | 1,786 | ||
Other invested assets | 1,600 | 1,742 | ||
Investments in subsidiaries | 0 | 0 | ||
Total investments | 71,903 | 73,521 | ||
Cash, cash equivalents and restricted cash | 1,713 | 2,080 | 2,162 | 1,786 |
Accrued investment income | 698 | 647 | ||
Deferred acquisition costs | 2,699 | 2,329 | ||
Intangible assets and goodwill | 339 | 301 | ||
Reinsurance recoverable | 17,482 | 17,569 | ||
Other assets | 381 | 397 | ||
Intercompany notes receivable | 0 | 59 | ||
Deferred tax assets | (265) | 477 | ||
Separate account assets | 6,902 | 7,230 | ||
Total assets | 101,852 | 104,610 | ||
Liabilities and equity | ||||
Future policy benefits | 37,946 | 38,472 | ||
Policyholder account balances | 23,751 | 24,195 | ||
Liability for policy and contract claims | 9,651 | 9,594 | ||
Unearned premiums | 3,797 | 3,967 | ||
Other liabilities | 1,714 | 1,759 | ||
Intercompany notes payable | 48 | 23 | ||
Borrowings related to securitization entities | 32 | 40 | ||
Non-recourse funding obligations | 310 | 310 | ||
Long-term borrowings | 488 | 500 | ||
Deferred tax liability | 27 | 834 | ||
Separate account liabilities | 6,902 | 7,230 | ||
Total liabilities | 84,666 | 86,924 | ||
Equity: | ||||
Common stock | 3 | 3 | ||
Additional paid-incapital | 18,420 | 18,420 | ||
Accumulated other comprehensive income (loss) | 2,641 | 3,051 | ||
Retained earnings | (6,022) | (5,998) | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | 15,042 | 15,476 | ||
Noncontrolling interests | 2,144 | 2,210 | ||
Total equity | 17,186 | 17,686 | ||
Total liabilities and equity | 101,852 | 104,610 | ||
Eliminations | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | (200) | (200) | ||
Equity securities, at fair value | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Other invested assets | (2) | (4) | ||
Investments in subsidiaries | (25,530) | (26,428) | ||
Total investments | (25,732) | (26,632) | ||
Cash, cash equivalents and restricted cash | 0 | 0 | $ 0 | $ 0 |
Accrued investment income | 0 | (3) | ||
Deferred acquisition costs | 0 | 0 | ||
Intangible assets and goodwill | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Other assets | (1) | (1) | ||
Intercompany notes receivable | (211) | (214) | ||
Deferred tax assets | 0 | 0 | ||
Separate account assets | 0 | 0 | ||
Total assets | (25,944) | (26,850) | ||
Liabilities and equity | ||||
Future policy benefits | 0 | 0 | ||
Policyholder account balances | 0 | 0 | ||
Liability for policy and contract claims | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Other liabilities | (4) | (9) | ||
Intercompany notes payable | (411) | (414) | ||
Borrowings related to securitization entities | 0 | 0 | ||
Non-recourse funding obligations | 0 | 0 | ||
Long-term borrowings | 0 | 0 | ||
Deferred tax liability | 0 | 0 | ||
Separate account liabilities | 0 | 0 | ||
Total liabilities | (415) | (423) | ||
Equity: | ||||
Common stock | (3) | (3) | ||
Additional paid-incapital | (27,516) | (27,516) | ||
Accumulated other comprehensive income (loss) | (5,333) | (6,088) | ||
Retained earnings | 7,623 | 7,480 | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | (25,229) | (26,127) | ||
Noncontrolling interests | (300) | (300) | ||
Total equity | (25,529) | (26,427) | ||
Total liabilities and equity | $ (25,944) | $ (26,850) |
Condensed Consolidating Income
Condensed Consolidating Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Premiums | $ 1,140 | $ 1,136 |
Net investment income | 804 | 790 |
Net investment gains (losses) | (31) | 34 |
Policy fees and other income | 202 | 211 |
Total revenues | 2,115 | 2,171 |
Benefits and expenses: | ||
Benefits and other changes in policy reserves | 1,311 | 1,246 |
Interest credited | 156 | 167 |
Acquisition and operating expenses, net of deferrals | 240 | 270 |
Amortization of deferred acquisition costs and intangibles | 104 | 94 |
Interest expense | 76 | 62 |
Total benefits and expenses | 1,887 | 1,839 |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | 228 | 332 |
Provision (benefit) for income taxes | 63 | 116 |
Equity in income of subsidiaries | 0 | 0 |
Income from continuing operations | 165 | 216 |
Loss from discontinued operations, net of taxes | 0 | 0 |
Net income | 165 | 216 |
Less: net income attributable to noncontrolling interests | 53 | 61 |
Net income available to Genworth Financial, Inc.'s common stockholders | 112 | 155 |
Reportable Legal Entities | Parent Guarantor | ||
Revenues: | ||
Premiums | 0 | 0 |
Net investment income | (1) | (1) |
Net investment gains (losses) | 0 | 0 |
Policy fees and other income | 0 | 0 |
Total revenues | (1) | (1) |
Benefits and expenses: | ||
Benefits and other changes in policy reserves | 0 | 0 |
Interest credited | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 7 | 13 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 |
Interest expense | 0 | |
Total benefits and expenses | 7 | 13 |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | (8) | (14) |
Provision (benefit) for income taxes | 6 | 3 |
Equity in income of subsidiaries | 126 | 172 |
Income from continuing operations | 112 | 155 |
Loss from discontinued operations, net of taxes | 0 | 0 |
Net income | 112 | 155 |
Less: net income attributable to noncontrolling interests | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | 112 | 155 |
Reportable Legal Entities | Issuer | ||
Revenues: | ||
Premiums | 0 | 0 |
Net investment income | 3 | 1 |
Net investment gains (losses) | 6 | (3) |
Policy fees and other income | 0 | 0 |
Total revenues | 9 | (2) |
Benefits and expenses: | ||
Benefits and other changes in policy reserves | 0 | 0 |
Interest credited | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 0 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 |
Interest expense | 68 | 55 |
Total benefits and expenses | 68 | 55 |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | (59) | (57) |
Provision (benefit) for income taxes | (17) | (20) |
Equity in income of subsidiaries | 45 | 123 |
Income from continuing operations | 3 | 86 |
Loss from discontinued operations, net of taxes | 0 | 0 |
Net income | 3 | 86 |
Less: net income attributable to noncontrolling interests | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | 3 | 86 |
Reportable Legal Entities | All Other Subsidiaries | ||
Revenues: | ||
Premiums | 1,140 | 1,136 |
Net investment income | 805 | 794 |
Net investment gains (losses) | (37) | 37 |
Policy fees and other income | 203 | 211 |
Total revenues | 2,111 | 2,178 |
Benefits and expenses: | ||
Benefits and other changes in policy reserves | 1,311 | 1,246 |
Interest credited | 156 | 167 |
Acquisition and operating expenses, net of deferrals | 233 | 257 |
Amortization of deferred acquisition costs and intangibles | 104 | 94 |
Interest expense | 12 | 11 |
Total benefits and expenses | 1,816 | 1,775 |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | 295 | 403 |
Provision (benefit) for income taxes | 74 | 133 |
Equity in income of subsidiaries | 0 | 0 |
Income from continuing operations | 221 | 270 |
Loss from discontinued operations, net of taxes | 0 | 0 |
Net income | 221 | 270 |
Less: net income attributable to noncontrolling interests | 53 | 61 |
Net income available to Genworth Financial, Inc.'s common stockholders | 168 | 209 |
Eliminations | ||
Revenues: | ||
Premiums | 0 | 0 |
Net investment income | (3) | (4) |
Net investment gains (losses) | 0 | 0 |
Policy fees and other income | (1) | 0 |
Total revenues | (4) | (4) |
Benefits and expenses: | ||
Benefits and other changes in policy reserves | 0 | 0 |
Interest credited | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 0 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 |
Interest expense | (4) | (4) |
Total benefits and expenses | (4) | (4) |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | 0 | 0 |
Provision (benefit) for income taxes | 0 | 0 |
Equity in income of subsidiaries | (171) | (295) |
Income from continuing operations | (171) | (295) |
Loss from discontinued operations, net of taxes | 0 | 0 |
Net income | (171) | (295) |
Less: net income attributable to noncontrolling interests | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ (171) | $ (295) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net income | $ 165 | $ 216 |
Other comprehensive income (loss), net of taxes: | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (341) | (12) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 1 |
Derivatives qualifying as hedges | (152) | (49) |
Foreign currency translation and other adjustments | (87) | 119 |
Total other comprehensive income (loss) | (580) | 59 |
Total comprehensive income (loss) | (415) | 275 |
Less: comprehensive income attributable to noncontrolling interests | 4 | 118 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (419) | 157 |
Reportable Legal Entities | Parent Guarantor | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 112 | 155 |
Other comprehensive income (loss), net of taxes: | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (332) | (20) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | |
Derivatives qualifying as hedges | (152) | (49) |
Foreign currency translation and other adjustments | (47) | 70 |
Total other comprehensive income (loss) | (531) | 2 |
Total comprehensive income (loss) | (419) | 157 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (419) | 157 |
Reportable Legal Entities | Issuer | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 3 | 86 |
Other comprehensive income (loss), net of taxes: | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (295) | (31) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | |
Derivatives qualifying as hedges | (153) | (49) |
Foreign currency translation and other adjustments | (36) | 68 |
Total other comprehensive income (loss) | (484) | (11) |
Total comprehensive income (loss) | (481) | 75 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (481) | 75 |
Reportable Legal Entities | All Other Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 221 | 270 |
Other comprehensive income (loss), net of taxes: | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (341) | (13) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | |
Derivatives qualifying as hedges | (165) | (52) |
Foreign currency translation and other adjustments | (88) | 119 |
Total other comprehensive income (loss) | (594) | 55 |
Total comprehensive income (loss) | (373) | 325 |
Less: comprehensive income attributable to noncontrolling interests | 4 | 118 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (377) | 207 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | (171) | (295) |
Other comprehensive income (loss), net of taxes: | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 627 | 52 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (2) | |
Derivatives qualifying as hedges | 318 | 101 |
Foreign currency translation and other adjustments | 84 | (138) |
Total other comprehensive income (loss) | 1,029 | 13 |
Total comprehensive income (loss) | 858 | (282) |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 858 | $ (282) |
Condensed Consolidating State93
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from (used by) operating activities: | ||
Net income | $ 165 | $ 216 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Equity in (income) loss from subsidiaries | 0 | 0 |
Dividends from subsidiaries | 0 | 0 |
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (25) | (33) |
Net investment (gains) losses | 31 | (34) |
Charges assessed to policyholders | (178) | (183) |
Acquisition costs deferred | (18) | (22) |
Amortization of deferred acquisition costs and intangibles | 104 | 94 |
Deferred income taxes | 26 | 93 |
Trading securities, held-for-sale investments and derivative instruments | (152) | 365 |
Stock-based compensation expense | 7 | 10 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (45) | (79) |
Insurance reserves | 377 | 377 |
Current tax liabilities | (39) | (37) |
Other liabilities, policy and contract claims and other policy-related balances | (144) | (112) |
Net cash from (used by) operating activities | 109 | 655 |
Cash flows used by investing activities: | ||
Fixed maturity securities | 934 | 1,060 |
Commercial mortgage loans | 205 | 166 |
Restricted commercial mortgage loans related to securitization entities | 8 | 6 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 792 | 2,173 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | (2,013) | (2,710) |
Commercial mortgage loans | (199) | (161) |
Other invested assets, net | 104 | (676) |
Policy loans, net | 2 | |
Intercompany notes receivable | 0 | 0 |
Net cash used by investing activities | (167) | (142) |
Cash flows from (used by) financing activities: | ||
Deposits to universal life and investment contracts | 255 | 218 |
Withdrawals from universal life and investment contracts | (591) | (467) |
Proceeds from the issuance of long-term debt | 441 | |
Repayment of borrowings related to securitization entities | (8) | (7) |
Repurchase of subsidiary shares | (36) | |
Dividends paid to noncontrolling interests | (36) | (39) |
Intercompany notes payable | 0 | 0 |
Other, net | 22 | (9) |
Net cash from (used by) financing activities | 47 | (304) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21) | 25 |
Net change in cash, cash equivalents and restricted cash | (32) | 234 |
Cash, cash equivalents and restricted cash at beginning of period | 2,875 | 2,784 |
Cash, cash equivalents and restricted cash at end of period | 2,843 | 3,018 |
Reportable Legal Entities | Parent Guarantor | ||
Cash flows from (used by) operating activities: | ||
Net income | 112 | 155 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Equity in (income) loss from subsidiaries | (126) | (172) |
Dividends from subsidiaries | 0 | 0 |
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 |
Net investment (gains) losses | 0 | 0 |
Charges assessed to policyholders | 0 | 0 |
Acquisition costs deferred | 0 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 |
Deferred income taxes | 9 | 9 |
Trading securities, held-for-sale investments and derivative instruments | 0 | 0 |
Stock-based compensation expense | 8 | 6 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | 5 | 4 |
Insurance reserves | 0 | 0 |
Current tax liabilities | (23) | (6) |
Other liabilities, policy and contract claims and other policy-related balances | (13) | (3) |
Net cash from (used by) operating activities | (28) | (7) |
Cash flows used by investing activities: | ||
Fixed maturity securities | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Restricted commercial mortgage loans related to securitization entities | 0 | 0 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 0 | 0 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Other invested assets, net | 0 | 0 |
Policy loans, net | 0 | |
Intercompany notes receivable | 0 | 0 |
Net cash used by investing activities | 0 | 0 |
Cash flows from (used by) financing activities: | ||
Deposits to universal life and investment contracts | 0 | 0 |
Withdrawals from universal life and investment contracts | 0 | 0 |
Proceeds from the issuance of long-term debt | 0 | |
Repayment of borrowings related to securitization entities | 0 | 0 |
Repurchase of subsidiary shares | 0 | |
Dividends paid to noncontrolling interests | 0 | 0 |
Intercompany notes payable | 31 | 15 |
Other, net | (3) | (1) |
Net cash from (used by) financing activities | 28 | 14 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | 0 | 7 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 7 |
Reportable Legal Entities | Issuer | ||
Cash flows from (used by) operating activities: | ||
Net income | 3 | 86 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Equity in (income) loss from subsidiaries | (45) | (123) |
Dividends from subsidiaries | 63 | 52 |
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 1 | 1 |
Net investment (gains) losses | (6) | 3 |
Charges assessed to policyholders | 0 | 0 |
Acquisition costs deferred | 0 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 |
Deferred income taxes | (47) | (14) |
Trading securities, held-for-sale investments and derivative instruments | 17 | 0 |
Stock-based compensation expense | 0 | 0 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | 16 | 5 |
Insurance reserves | 0 | 0 |
Current tax liabilities | 26 | (6) |
Other liabilities, policy and contract claims and other policy-related balances | (19) | (24) |
Net cash from (used by) operating activities | 9 | (20) |
Cash flows used by investing activities: | ||
Fixed maturity securities | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Restricted commercial mortgage loans related to securitization entities | 0 | 0 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 0 | 0 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Other invested assets, net | 0 | (49) |
Policy loans, net | 0 | |
Intercompany notes receivable | (56) | (18) |
Net cash used by investing activities | (56) | (67) |
Cash flows from (used by) financing activities: | ||
Deposits to universal life and investment contracts | 0 | 0 |
Withdrawals from universal life and investment contracts | 0 | 0 |
Proceeds from the issuance of long-term debt | 441 | |
Repayment of borrowings related to securitization entities | 0 | 0 |
Repurchase of subsidiary shares | 0 | |
Dividends paid to noncontrolling interests | 0 | 0 |
Intercompany notes payable | (59) | (62) |
Other, net | 0 | 0 |
Net cash from (used by) financing activities | 382 | (62) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | 335 | (149) |
Cash, cash equivalents and restricted cash at beginning of period | 795 | 998 |
Cash, cash equivalents and restricted cash at end of period | 1,130 | 849 |
Reportable Legal Entities | All Other Subsidiaries | ||
Cash flows from (used by) operating activities: | ||
Net income | 221 | 270 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Equity in (income) loss from subsidiaries | 0 | 0 |
Dividends from subsidiaries | (63) | (52) |
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (26) | (34) |
Net investment (gains) losses | 37 | (37) |
Charges assessed to policyholders | (178) | (183) |
Acquisition costs deferred | (18) | (22) |
Amortization of deferred acquisition costs and intangibles | 104 | 94 |
Deferred income taxes | 64 | 98 |
Trading securities, held-for-sale investments and derivative instruments | (169) | 365 |
Stock-based compensation expense | (1) | 4 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (63) | (91) |
Insurance reserves | 377 | 377 |
Current tax liabilities | (42) | (25) |
Other liabilities, policy and contract claims and other policy-related balances | (117) | (83) |
Net cash from (used by) operating activities | 126 | 681 |
Cash flows used by investing activities: | ||
Fixed maturity securities | 934 | 1,060 |
Commercial mortgage loans | 205 | 166 |
Restricted commercial mortgage loans related to securitization entities | 8 | 6 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 792 | 2,173 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | (2,013) | (2,710) |
Commercial mortgage loans | (199) | (161) |
Other invested assets, net | 106 | (626) |
Policy loans, net | 2 | |
Intercompany notes receivable | 59 | 62 |
Net cash used by investing activities | (106) | (30) |
Cash flows from (used by) financing activities: | ||
Deposits to universal life and investment contracts | 255 | 218 |
Withdrawals from universal life and investment contracts | (591) | (467) |
Proceeds from the issuance of long-term debt | 0 | |
Repayment of borrowings related to securitization entities | (8) | (7) |
Repurchase of subsidiary shares | (36) | |
Dividends paid to noncontrolling interests | (36) | (39) |
Intercompany notes payable | 25 | 3 |
Other, net | 25 | (8) |
Net cash from (used by) financing activities | (366) | (300) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21) | 25 |
Net change in cash, cash equivalents and restricted cash | (367) | 376 |
Cash, cash equivalents and restricted cash at beginning of period | 2,080 | 1,786 |
Cash, cash equivalents and restricted cash at end of period | 1,713 | 2,162 |
Eliminations | ||
Cash flows from (used by) operating activities: | ||
Net income | (171) | (295) |
Adjustments to reconcile net income to net cash from operating activities: | ||
Equity in (income) loss from subsidiaries | 171 | 295 |
Dividends from subsidiaries | 0 | 0 |
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 |
Net investment (gains) losses | 0 | 0 |
Charges assessed to policyholders | 0 | 0 |
Acquisition costs deferred | 0 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 |
Deferred income taxes | 0 | 0 |
Trading securities, held-for-sale investments and derivative instruments | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (3) | 3 |
Insurance reserves | 0 | 0 |
Current tax liabilities | 0 | 0 |
Other liabilities, policy and contract claims and other policy-related balances | 5 | (2) |
Net cash from (used by) operating activities | 2 | 1 |
Cash flows used by investing activities: | ||
Fixed maturity securities | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Restricted commercial mortgage loans related to securitization entities | 0 | 0 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 0 | 0 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Other invested assets, net | (2) | (1) |
Policy loans, net | 0 | |
Intercompany notes receivable | (3) | (44) |
Net cash used by investing activities | (5) | (45) |
Cash flows from (used by) financing activities: | ||
Deposits to universal life and investment contracts | 0 | 0 |
Withdrawals from universal life and investment contracts | 0 | 0 |
Proceeds from the issuance of long-term debt | 0 | |
Repayment of borrowings related to securitization entities | 0 | 0 |
Repurchase of subsidiary shares | 0 | |
Dividends paid to noncontrolling interests | 0 | 0 |
Intercompany notes payable | 3 | 44 |
Other, net | 0 | 0 |
Net cash from (used by) financing activities | 3 | 44 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 |
Condensed Consolidating Finan94
Condensed Consolidating Financial Information - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||
Amount of dividend our subsidiaries could pay in 2018 without obtaining regulatory approval | $ 500 | |
Genworth Financial's Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Restricted net assets | $ 12,700 | |
Genworth Holdings' Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Restricted net assets | $ 11,900 |