Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | GENWORTH FINANCIAL INC | |
Entity Central Index Key | 0001276520 | |
Entity File Number | 001-32195 | |
Entity Tax Identification Number | 80-0873306 | |
Entity Incorporation, State or Country Code | DE | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 6620 West Broad Street | |
Entity Address, State or Province | VA | |
Entity Address, City or Town | Richmond | |
Entity Address, Postal Zip Code | 23230 | |
Entity Interactive Data Current | Yes | |
City Area Code | 804 | |
Local Phone Number | 281-6000 | |
Trading Symbol | GNW | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Class A Common Stock | |
Entity Common Stock, Shares Outstanding | 503,465,078 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Fixed maturity securities available-for-sale, at fair value | $ 63,774 | $ 59,661 |
Equity securities, at fair value | 644 | 655 |
Commercial mortgage loans ($56 and $62 are restricted as of June 30, 2019 and December 31, 2018, respectively, related to a securitization entity) | 7,019 | 6,749 |
Policy loans | 2,076 | 1,861 |
Other invested assets | 1,535 | 1,188 |
Total investments | 75,048 | 70,114 |
Cash, cash equivalents and restricted cash | 1,938 | 2,177 |
Accrued investment income | 626 | 675 |
Deferred acquisition costs | 2,105 | 3,263 |
Intangible assets and goodwill | 244 | 347 |
Reinsurance recoverable | 17,211 | 17,278 |
Other assets | 564 | 474 |
Deferred tax asset | 383 | 736 |
Separate account assets | 6,187 | 5,859 |
Total assets | 104,306 | 100,923 |
Liabilities and equity | ||
Future policy benefits | 39,583 | 37,940 |
Policyholder account balances | 22,673 | 22,968 |
Liability for policy and contract claims | 10,677 | 10,379 |
Unearned premiums | 3,488 | 3,546 |
Other liabilities | 1,723 | 1,682 |
Non-recourse funding obligations | 311 | 311 |
Long-term borrowings | 4,044 | 4,025 |
Deferred tax liability | 28 | 24 |
Separate account liabilities | 6,187 | 5,859 |
Total liabilities | 88,714 | 86,734 |
Commitments and contingencies | ||
Equity: | ||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 592 million and 589 million shares issued as of June 30, 2019 and December 31, 2018, respectively; 504 million and 501 million shares outstanding as of June 30, 2019 and December 31, 2018, respectively | 1 | 1 |
Additional paid-in capital | 11,983 | 11,987 |
Net unrealized investment gains (losses): | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,294 | 585 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 11 | 10 |
Net unrealized investment gains (losses) | 1,305 | 595 |
Derivatives qualifying as hedges | 1,983 | 1,781 |
Foreign currency translation and other adjustments | (275) | (332) |
Total accumulated other comprehensive income (loss) | 3,013 | 2,044 |
Retained earnings | 1,460 | 1,118 |
Treasury stock, at cost (88 million shares as of June 30, 2019 and December 31, 2018) | (2,700) | (2,700) |
Total Genworth Financial, Inc.'s stockholders' equity | 13,757 | 12,450 |
Noncontrolling interests | 1,835 | 1,739 |
Total equity | 15,592 | 14,189 |
Total liabilities and equity | $ 104,306 | $ 100,923 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted commercial mortgage loans related to securitization entities | $ 56 | $ 62 |
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 | 592,000,000 | 589,000,000 |
Class A common stock, shares outstanding | 504,000,000 | 501,000,000 |
Treasury stock, shares | 88,000,000 | 88,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Premiums | $ 1,126 | $ 1,136 | $ 2,240 | $ 2,276 |
Net investment income | 852 | 828 | 1,681 | 1,632 |
Net investment gains (losses) | (45) | (14) | 29 | (45) |
Policy fees and other income | 223 | 209 | 410 | 411 |
Total revenues | 2,156 | 2,159 | 4,360 | 4,274 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,270 | 1,205 | 2,571 | 2,516 |
Interest credited | 146 | 152 | 293 | 308 |
Acquisition and operating expenses, net of deferrals | 247 | 253 | 498 | 493 |
Amortization of deferred acquisition costs and intangibles | 95 | 112 | 186 | 216 |
Interest expense | 73 | 77 | 145 | 153 |
Total benefits and expenses | 1,831 | 1,799 | 3,693 | 3,686 |
Income (loss) before income taxes and equity in income of subsidiaries | 325 | 360 | 667 | 588 |
Provision for income taxes | 107 | 111 | 219 | 174 |
Net income | 218 | 249 | 448 | 414 |
Less: net income attributable to noncontrolling interests | 50 | 59 | 106 | 112 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ 168 | $ 190 | $ 342 | $ 302 |
Net income available to Genworth Financial, Inc.'s common stockholders per share: | ||||
Basic | $ 0.33 | $ 0.38 | $ 0.68 | $ 0.60 |
Diluted | $ 0.33 | $ 0.38 | $ 0.67 | $ 0.60 |
Weighted-average common shares outstanding: | ||||
Basic | 503.4 | 500.6 | 502.3 | 500.1 |
Diluted | 508.7 | 502.6 | 508.7 | 502.6 |
Supplemental disclosures: | ||||
Total other-than-temporary impairments | $ 0 | $ 0 | $ 0 | $ 0 |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net other-than-temporary impairments | 0 | 0 | 0 | 0 |
Other investments gains (losses) | (45) | (14) | 29 | (45) |
Total net investment gains (losses) | $ (45) | $ (14) | $ 29 | $ (45) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 218 | $ 249 | $ 448 | $ 414 |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 376 | (185) | 755 | (526) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (2) | 1 | (2) | |
Derivatives qualifying as hedges | 133 | (64) | 202 | (216) |
Foreign currency translation and other adjustments | 43 | (98) | 97 | (185) |
Total other comprehensive income (loss) | 552 | (349) | 1,055 | (929) |
Total comprehensive income (loss) | 770 | (100) | 1,503 | (515) |
Less: comprehensive income attributable to noncontrolling interests | 81 | 10 | 192 | 14 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 689 | $ (110) | $ 1,311 | $ (529) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED 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, 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 | (49) | (49) | ||||||
Comprehensive income (loss): | ||||||||
Net income | 414 | 302 | 302 | 112 | ||||
Other comprehensive income (loss), net of taxes | (929) | (831) | (831) | (98) | ||||
Total comprehensive income (loss) | (515) | (529) | 14 | |||||
Dividends to noncontrolling interests | (50) | (50) | ||||||
Stock-based compensation expense and exercises and other | 10 | 4 | 4 | 6 | ||||
Balances, ending at Jun. 30, 2018 | 14,741 | 1 | 11,981 | 2,327 | 1,301 | (2,700) | 12,910 | 1,831 |
Balances, beginning at Mar. 31, 2018 | 14,862 | 1 | 11,979 | 2,627 | 1,111 | (2,700) | 13,018 | 1,844 |
Repurchase of subsidiary shares | (13) | (13) | ||||||
Comprehensive income (loss): | ||||||||
Net income | 249 | 190 | 190 | 59 | ||||
Other comprehensive income (loss), net of taxes | (349) | (300) | (300) | (49) | ||||
Total comprehensive income (loss) | (100) | (110) | 10 | |||||
Dividends to noncontrolling interests | (14) | (14) | ||||||
Stock-based compensation expense and exercises and other | 6 | 2 | 2 | 4 | ||||
Balances, ending at Jun. 30, 2018 | 14,741 | 1 | 11,981 | 2,327 | 1,301 | (2,700) | 12,910 | 1,831 |
Balances, beginning at Dec. 31, 2018 | 14,189 | 1 | 11,987 | 2,044 | 1,118 | (2,700) | 12,450 | 1,739 |
Repurchase of subsidiary shares | (44) | (44) | ||||||
Comprehensive income (loss): | ||||||||
Net income | 448 | 342 | 342 | 106 | ||||
Other comprehensive income (loss), net of taxes | 1,055 | 969 | 969 | 86 | ||||
Total comprehensive income (loss) | 1,503 | 1,311 | 192 | |||||
Dividends to noncontrolling interests | (53) | (53) | ||||||
Stock-based compensation expense and exercises and other | (3) | (4) | (4) | 1 | ||||
Balances, ending at Jun. 30, 2019 | 15,592 | 1 | 11,983 | 3,013 | 1,460 | (2,700) | 13,757 | 1,835 |
Balances, beginning at Mar. 31, 2019 | 14,882 | 1 | 11,989 | 2,492 | 1,292 | (2,700) | 13,074 | 1,808 |
Repurchase of subsidiary shares | (32) | (32) | ||||||
Comprehensive income (loss): | ||||||||
Net income | 218 | 168 | 168 | 50 | ||||
Other comprehensive income (loss), net of taxes | 552 | 521 | 521 | 31 | ||||
Total comprehensive income (loss) | 770 | 689 | 81 | |||||
Dividends to noncontrolling interests | (25) | (25) | ||||||
Stock-based compensation expense and exercises and other | (3) | (6) | (6) | 3 | ||||
Balances, ending at Jun. 30, 2019 | $ 15,592 | $ 1 | $ 11,983 | $ 3,013 | $ 1,460 | $ (2,700) | $ 13,757 | $ 1,835 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 448 | $ 414 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Amortization of fixed maturity securities discounts and premiums | (54) | (62) |
Net investment (gains) losses | (29) | 45 |
Charges assessed to policyholders | (364) | (359) |
Acquisition costs deferred | (35) | (40) |
Amortization of deferred acquisition costs and intangibles | 186 | 216 |
Deferred income taxes | 134 | 83 |
Derivative instruments and limited partnerships | 22 | (195) |
Stock-based compensation expense | 12 | 16 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (290) | (89) |
Insurance reserves | 609 | 691 |
Current tax liabilities | 27 | (37) |
Other liabilities, policy and contract claims and other policy-related balances | 129 | (122) |
Net cash from operating activities | 795 | 561 |
Cash flows used by investing activities: | ||
Fixed maturity securities | 1,929 | 1,979 |
Commercial mortgage loans | 285 | 350 |
Restricted commercial mortgage loans related to a securitization entity | 6 | 16 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 2,859 | 1,920 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | (4,681) | (4,082) |
Commercial mortgage loans | (561) | (489) |
Other invested assets, net | (227) | 93 |
Policy loans, net | 39 | 15 |
Net cash used by investing activities | (351) | (198) |
Cash flows used by financing activities: | ||
Deposits to universal life and investment contracts | 444 | 503 |
Withdrawals from universal life and investment contracts | (1,096) | (1,177) |
Proceeds from issuance of long-term debt | 77 | 441 |
Repayment and repurchase of long-term debt | (78) | (597) |
Repayment of borrowings related to a securitization entity | (12) | |
Repurchase of subsidiary shares | (44) | (49) |
Dividends paid to noncontrolling interests | (53) | (50) |
Other, net | 55 | (2) |
Net cash used by financing activities | (695) | (943) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 12 | (52) |
Net change in cash, cash equivalents and restricted cash | (239) | (632) |
Cash, cash equivalents and restricted cash at beginning of period | 2,177 | 2,875 |
Cash, cash equivalents and restricted cash at end of period | $ 1,938 | $ 2,243 |
Formation of Genworth and Basis
Formation of Genworth and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. (“Parent”), a limited liability company incorporated in the People’s Republic of China and a subsidiary of China Oceanwide Holdings Group Co., Ltd., a limited liability company incorporated in the People’s Republic of China (together with its affiliates, “China Oceanwide”), and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and a direct, wholly-owned subsidiary of Asia Pacific Insurance USA Holdings LLC (“Asia Pacific Insurance”), which is a Delaware limited liability company and owned by China Oceanwide, pursuant to which, subject to the terms and conditions set forth therein, Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as a direct, wholly-owned subsidiary of Asia Pacific Insurance. 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 Financial’s stockholders voted on and approved a proposal to adopt the Merger Agreement. The closing of the transaction remains subject to other closing conditions and approvals. 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 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 2018 Annual Report on Form 10-K. |
Accounting Changes
Accounting Changes | 6 Months Ended |
Jun. 30, 2019 | |
Disclosue of Accounting Changes [Abstract] | |
Accounting Changes | (2) Accounting Changes Accounting Pronouncements Recently Adopted On January 1, 2019, we adopted new accounting guidance related to benchmark interest rates used in derivative hedge accounting. The guidance adds an additional permissible U.S. benchmark interest rate, the Secured Overnight Financing Rate, for hedge accounting purposes. We adopted this new accounting guidance using the prospective method, which did not have any impact on our condensed consolidated financial statements and disclosures. On January 1, 2019, we adopted new accounting guidance related to accounting for nonemployee share-based payments. The guidance aligns the measurement and classification of share-based payments to nonemployees issued in exchange for goods or services with the guidance for share-based payments to employees, with certain exceptions. We adopted this new accounting guidance using the modified retrospective method. This guidance is consistent with our previous accounting practices and, accordingly, had no impact on our condensed consolidated financial statements at adoption. On January 1, 2019, we adopted new accounting guidance related to 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. We adopted this new accounting guidance using the modified retrospective method, which did not have a significant impact on our condensed consolidated financial statements at adoption. On January 1, 2019, we adopted new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-of-use right-of-use de-recognized right-of-use right-of-use Our leased assets are predominantly classified as operating leases and consist of office space in 15 locations primarily in the United States, Canada and Australia. Lease payments included in the calculation of our lease liability include fixed amounts contained within each rental agreement and variable lease payments that are based upon an index or rate. We have elected to combine lease and non-lease non-lease Our aggregate annual rental expense for all leases under the previous guidance was approximately $11 million. Annual rental expense and future minimum lease payments are not expected to be materially different under this new accounting guidance. In August 2018, the Financial Accounting Standards Board (“the FASB”) issued new accounting guidance that significantly changes the recognition and measurement of long-duration insurance contracts and expands disclosure requirements, which impacts our life insurance deferred acquisition costs (“DAC”) and liabilities. In accordance with the guidance, the more significant changes include: • assumptions will no longer be locked-in • changes in cash flow assumptions (except the discount rate) will be recorded in net income (loss) using a retrospective approach with a cumulative catch-up • the discount rate used to determine the liability for future policy benefits will be a current upper-medium grade (low credit risk) fixed-income instrument yield, which is generally interpreted to mean a single-A • the provision for adverse deviation and the premium deficiency test will be eliminated; • market risk benefits associated with deposit-type contracts will be measured at fair value with changes recorded in net income (loss); • the amortization method for DAC will generally be on a straight-line basis over the expected contract term; and • disclosures will be greatly expanded to include significant assumptions and product liability rollforwards. The guidance is currently effective for us on January 1, 2021 using the modified retrospective method, with early adoption permitted. We are in process of evaluating the new guidance and the impact it will have on our condensed consolidated financial statements. In August 2018, the FASB issued new accounting guidance related to disclosure requirements for defined benefit plans as part of its disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for defined benefit pension and other postretirement benefit plans. The guidance is currently effective for us on January 1, 2020 using the retrospective method, with early adoption permitted. We do not expect any significant impact from this guidance on our condensed consolidated financial statements and disclosures. In August 2018, the FASB issued new accounting guidance related to fair value disclosure requirements as part of its disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for fair value measurements. The guidance includes new disclosure requirements related to the change in unrealized gains and losses included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is currently effective for us on January 1, 2020 using the prospective method for certain disclosures and the retrospective method for all other disclosures. Early adoption of either the entire standard or only the provisions that eliminate or modify the requirements is permitted. While we are still evaluating the full impact, at this time we do not expect a significant impact from this guidance on our condensed consolidated financial statements and we are in process of evaluating the impact to our disclosures. In June 2016, the FASB issued new accounting 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 recoverables. The new guidance retains most of the existing impairment guidance for available-for-sale debt securities but amends the presentation of credit losses to be presented as an allowance as opposed to a write-down and permits the reversal of credit losses when reassessing changes in the credit losses each reporting period. The FASB also issued an amendment to the guidance allowing entities to irrevocably elect the fair value option on an instrument-by-instrument basis for eligible instruments, which we are in the process of evaluating for certain portfolios. The new guidance is currently effective for us on January 1, 2020, with early adoption permitted beginning January 1, 2019. Upon adoption, the modified retrospective method will be used and a cumulative effect adjustment will be recorded to retained earnings. We have performed a gap analysis, developed a detailed implementation plan, identified model inputs and are in process of establishing policies, systems and controls that will be necessary to implement this new accounting guidance. While we are still in process of evaluating the impact the guidance may have on our condensed consolidated financial statements, the extent of the impact may vary and will depend on, among other things, |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
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 ended Six months ended June 30, June 30, (Amounts in millions, except per share amounts) 2019 2018 2019 2018 Weighted-average shares used in basic earnings per share calculations 503.4 500.6 502.3 500.1 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 5.3 2.0 6.4 2.5 Weighted-average shares used in diluted earnings per share calculations 508.7 502.6 508.7 502.6 Net income: Net income $ 218 $ 249 $ 448 $ 414 Less: net income attributable to noncontrolling interests 50 59 106 112 Net income available to Genworth Financial, Inc.’s common stockholders $ 168 $ 190 $ 342 $ 302 Basic earnings per share: Net income $ 0.44 $ 0.50 $ 0.89 $ 0.83 Less: net income attributable to noncontrolling interests 0.10 0.12 0.21 0.22 Net income available to Genworth Financial, Inc.’s common stockholders (1) $ 0.33 $ 0.38 $ 0.68 $ 0.60 Diluted earnings per share: Net income $ 0.43 $ 0.50 $ 0.88 $ 0.82 Less: net income attributable to noncontrolling interests 0.10 0.12 0.21 0.22 Net income available to Genworth Financial, Inc.’s common stockholders $ 0.33 $ 0.38 $ 0.67 $ 0.60 (1) May not total due to whole number calculation. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments | (a) Net Investment Income Sources of net investment income were as follows for the periods indicated: Three months ended Six months ended (Amounts in millions) 2019 2018 2019 2018 Fixed maturity securities—taxable $ 665 $ 651 $ 1,308 $ 1,286 Fixed maturity securities—non-taxable 2 3 4 6 Equity securities 10 10 19 20 Commercial mortgage loans 84 77 165 159 Restricted commercial mortgage loans related to a securitization entity 1 2 2 4 Policy loans 45 41 91 84 Other invested assets 59 53 118 92 Cash, cash equivalents, restricted cash and short-term investments 11 14 23 26 Gross investment income before expenses and fees 877 851 1,730 1,677 Expenses and fees (25 ) (23 ) (49 ) (45 ) Net investment income $ 852 $ 828 $ 1,681 $ 1,632 (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Six months ended (Amounts in millions) 2019 2018 2019 2018 Available-for-sale Realized gains $ 5 $ 13 $ 86 $ 20 Realized losses (6 ) (21 ) (28 ) (37 ) Net realized gains (losses) on available-for-sale (1 ) (8 ) 58 (17 ) Impairments: Total other-than-temporary impairments — — — — Portion of other-than-temporary impairments included inother comprehensive income (loss) — — — — Net other-than-temporary impairments — — — — Net realized gains (losses) on equity securities sold — 8 3 10 Net unrealized gains (losses) on equity securities still held (12 ) 3 (4 ) (15 ) Limited partnerships (11 ) (2 ) 4 5 Commercial mortgage loans 1 — — — Derivative instruments (1) (22 ) (15 ) (32 ) (28 ) Net investment gains (losses) $ (45 ) $ (14 ) $ 29 $ (45 ) (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 June 30, 2019 and 2018 was $423 million and $640 million, respectively, which was approximately 98% and 97%, respectively, of book value. The aggregate fair value of securities sold at a loss during the six months ended June 30, 2019 and 2018 was $1,185 million and $1,259 million, respectively, which was approximately 97% of book value for both periods. 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 periods indicated: As of or for the As of or for the (Amounts in millions) 2019 2018 2019 2018 Beginning balance $ 23 $ 28 $ 24 $ 32 Reductions: Securities sold, paid down or disposed — (3 ) (1 ) (7 ) Ending balance $ 23 $ 25 $ 23 $ 25 (c) Unrealized Investment Gains and Losses Net unrealized gains and losses on available-for-sale (Amounts in millions) June 30, 2019 December 31, 2018 Net unrealized gains (losses) on fixed maturity securities (1) $ 5,673 $ 1,775 Adjustments to deferred acquisition costs, present value of future profits, salesinducements and benefit reserves (3,879 ) (952 ) Income taxes, net (405 ) (190 ) Net unrealized investment gains (losses) 1,389 633 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 84 38 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,305 $ 595 (1) Excludes foreign exchange. The change in net unrealized gains (losses) on available-for-sale As of or for the (Amounts in millions) 2019 2018 Beginning balance $ 943 $ 917 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on fixed maturity securities 1,957 (905 ) Adjustment to deferred acquisition costs (52 ) 467 Adjustment to present value of future profits (2 ) 20 Adjustment to sales inducements (12 ) 9 Adjustment to benefit reserves (1,412 ) 162 Provision for income taxes (104 ) 54 Change in unrealized gains (losses) on investment securities 375 (193 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $(1) and $(2) 1 6 Change in net unrealized investment gains (losses) 376 (187 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests 14 (6 ) Ending balance $ 1,305 $ 736 As of or for the six months ended (Amounts in millions) 2019 2018 Beginning balance $ 595 $ 1,085 Cumulative effect of changes in accounting: Stranded tax effects — 189 Recognition and measurement of financial assets and liabilities, net of taxes of $— and $18 — (25 ) Total cumulative effect of changes in accounting — 164 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on fixed maturity securities 3,956 (2,586 ) Adjustment to deferred acquisition costs (1,041 ) 909 Adjustment to present value of future profits (55 ) 56 Adjustment to sales inducements (31 ) 29 Adjustment to benefit reserves (1,800 ) 902 Provision for income taxes (227 ) 149 Change in unrealized gains (losses) on investment securities 802 (541 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $12 and $(3) (46 ) 13 Change in net unrealized investment gains (losses) 756 (528 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests 46 (15 ) Ending balance $ 1,305 $ 736 Amounts reclassified out of accumulated other comprehensive income (loss) to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis. (d) Fixed Maturity Securities As of June 30, 2019, 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 Fixed maturity securities: U.S. government, agencies and government- sponsored enterprises $ 4,151 $ 837 $ — $ (1 ) $ — $ 4,987 State and political subdivisions 2,319 317 — — — 2,636 Non-U.S. 2,496 155 — (2 ) — 2,649 U.S. corporate: Utilities 4,327 565 — (13 ) — 4,879 Energy 2,468 255 — (10 ) — 2,713 Finance and insurance 6,974 633 — (10 ) — 7,597 Consumer—non-cyclical 4,954 616 — (18 ) — 5,552 Technology and communications 2,893 269 — (6 ) — 3,156 Industrial 1,242 98 — (4 ) — 1,336 Capital goods 2,323 303 — (6 ) — 2,620 Consumer—cyclical 1,619 127 — (5 ) — 1,741 Transportation 1,263 152 — (4 ) — 1,411 Other 356 40 — — — 396 Total U.S. corporate 28,419 3,058 — (76 ) — 31,401 Non-U.S. Utilities 1,114 54 — (3 ) — 1,165 Energy 1,349 168 — (1 ) — 1,516 Finance and insurance 2,438 191 — (1 ) — 2,628 Consumer—non-cyclical 674 40 — (4 ) — 710 Technology and communications 1,179 94 — — — 1,273 Industrial 936 81 — — — 1,017 Capital goods 663 33 — (1 ) — 695 Consumer—cyclical 542 16 — (1 ) — 557 Transportation 761 82 — (2 ) — 841 Other 2,061 186 — (2 ) — 2,245 Total non-U.S. 11,717 945 — (15 ) — 12,647 Residential mortgage-backed 2,511 215 14 (2 ) — 2,738 Commercial mortgage-backed 2,882 121 — (14 ) — 2,989 Other asset-backed 3,699 38 — (10 ) — 3,727 Total available-for-sale $ 58,194 $ 5,686 $ 14 $ (120 ) $ — $ 63,774 As of December 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- temporarily impaired Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,175 $ 473 $ — $ (17 ) $ — $ 4,631 State and political subdivisions 2,406 168 — (22 ) — 2,552 Non-U.S. 2,345 72 — (24 ) — 2,393 U.S. corporate: Utilities 4,439 331 — (95 ) — 4,675 Energy 2,382 101 — (64 ) — 2,419 Finance and insurance 6,705 249 — (132 ) — 6,822 Consumer—non-cyclical 4,891 294 — (137 ) — 5,048 Technology and communications 2,823 110 — (78 ) — 2,855 Industrial 1,230 41 — (33 ) — 1,238 Capital goods 2,277 165 — (51 ) — 2,391 Consumer—cyclical 1,592 53 — (48 ) — 1,597 Transportation 1,283 78 — (41 ) — 1,320 Other 376 24 — (3 ) — 397 Total U.S. corporate 27,998 1,446 — (682 ) — 28,762 Non-U.S. Utilities 1,056 17 — (32 ) — 1,041 Energy 1,320 72 — (23 ) — 1,369 Finance and insurance 2,391 72 — (40 ) — 2,423 Consumer—non-cyclical 756 8 — (25 ) — 739 Technology and communications 1,168 23 — (26 ) — 1,165 Industrial 926 36 — (17 ) — 945 Capital goods 615 10 — (10 ) — 615 Consumer—cyclical 532 1 — (13 ) — 520 Transportation 689 46 — (15 ) — 720 Other 2,218 105 — (23 ) — 2,300 Total non-U.S. 11,671 390 — (224 ) — 11,837 Residential mortgage-backed 2,888 160 13 (17 ) — 3,044 Commercial mortgage-backed 3,054 43 — (81 ) — 3,016 Other asset-backed 3,444 10 1 (29 ) — 3,426 Total available-for-sale $ 57,981 $ 2,762 $ 14 $ (1,096 ) $ — $ 59,661 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 June 30, 2019: 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, agenciesand government-sponsored enterprises $ — $ — — $ 51 $ (1 ) 9 $ 51 $ (1 ) 9 Non-U.S. government — — — 198 (2 ) 14 198 (2 ) 14 U.S. corporate 372 (15 ) 33 1,907 (61 ) 256 2,279 (76 ) 289 Non-U.S. 34 (2 ) 5 526 (13 ) 82 560 (15 ) 87 Residential mortgage-backed — — — 166 (2 ) 39 166 (2 ) 39 Commercial mortgage-backed — — — 399 (14 ) 53 399 (14 ) 53 Other asset-backed 832 (5 ) 160 425 (5 ) 101 1,257 (10 ) 261 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 % Below cost: <20% Below cost $ 1,238 $ (22 ) 198 $ 3,647 $ (88 ) 549 $ 4,885 $ (110 ) 747 20%-50% — — — 22 (7 ) 3 22 (7 ) 3 >50% Below cost — — — 3 (3 ) 2 3 (3 ) 2 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 Investment grade $ 1,096 $ (11 ) 185 $ 3,463 $ (83 ) 524 $ 4,559 $ (94 ) 709 Below investment grade 142 (11 ) 13 209 (15 ) 30 351 (26 ) 43 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 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 June 30, 2019: 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 $ 46 $ (4 ) 4 $ 326 $ (9 ) 50 $ 372 $ (13 ) 54 Energy 60 (2 ) 11 143 (8 ) 17 203 (10 ) 28 Finance and insurance — — — 343 (10 ) 46 343 (10 ) 46 Consumer—non-cyclical 93 (7 ) 12 383 (11 ) 49 476 (18 ) 61 Technology andcommunications 173 (2 ) 6 198 (4 ) 22 371 (6 ) 28 Industrial — — — 94 (4 ) 14 94 (4 ) 14 Capital goods — — — 128 (6 ) 18 128 (6 ) 18 Consumer—cyclical — — — 175 (5 ) 24 175 (5 ) 24 Transportation — — — 117 (4 ) 16 117 (4 ) 16 Subtotal, U.S. corporate 372 (15 ) 33 1,907 (61 ) 256 2,279 (76 ) 289 Non-U.S. Utilities 21 (1 ) 3 103 (2 ) 13 124 (3 ) 16 Energy 13 (1 ) 2 — — — 13 (1 ) 2 Finance and insurance — — — 113 (1 ) 23 113 (1 ) 23 Consumer—non-cyclical — — — 72 (4 ) 10 72 (4 ) 10 Capital goods — — — 44 (1 ) 5 44 (1 ) 5 Consumer—cyclical — — — 64 (1 ) 10 64 (1 ) 10 Transportation — — — 51 (2 ) 8 51 (2 ) 8 Other — — — 79 (2 ) 13 79 (2 ) 13 Subtotal, non-U.S. 34 (2 ) 5 526 (13 ) 82 560 (15 ) 87 Total for corporate securities in anunrealized loss position $ 406 $ (17 ) 38 $ 2,433 $ (74 ) 338 $ 2,839 $ (91 ) 376 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 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 December 31, 2018: Less than 12 months 12 months or more Total Gross Number Gross Number Gross Number Fair unrealized of Fair unrealized of Fair unrealized of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities Fixed maturity securities: U.S. government, agenciesand government-sponsored $ 545 $ (8 ) 17 $ 161 $ (9 ) 26 $ 706 $ (17 ) 43 State and political subdivisions 371 (10 ) 63 233 (12 ) 57 604 (22 ) 120 Non-U.S. 261 (7 ) 51 508 (17 ) 35 769 (24 ) 86 U.S. corporate 9,975 (472 ) 1,342 2,449 (210 ) 365 12,424 (682 ) 1,707 Non-U.S. 4,172 (150 ) 614 1,274 (74 ) 209 5,446 (224 ) 823 Residential mortgage-backed 363 (6 ) 57 579 (11 ) 96 942 (17 ) 153 Commercial mortgage-backed 758 (19 ) 115 870 (62 ) 130 1,628 (81 ) 245 Other asset-backed 1,597 (23 ) 326 604 (6 ) 137 2,201 (29 ) 463 Total for fixed maturity securities in $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 % Below cost: <20% Below cost $ 18,008 $ (685 ) 2,581 $ 6,624 $ (383 ) 1,045 $ 24,632 $ (1,068 ) 3,626 20%-50% 34 (10 ) 4 54 (18 ) 10 88 (28 ) 14 Total for fixed maturity securities in $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 Investment grade $ 16,726 $ (615 ) 2,393 $ 6,508 $ (379 ) 1,024 $ 23,234 $ (994 ) 3,417 Below investment grade 1,316 (80 ) 192 170 (22 ) 31 1,486 (102 ) 223 Total for fixed maturity securities in $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 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, 2018: Less than 12 months 12 months or more Total Gross Number Gross Number Gross Number Fair unrealized of Fair unrealized of Fair unrealized of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities U.S. corporate: Utilities $ 1,246 $ (61 ) 173 $ 343 $ (34 ) 60 $ 1,589 $ (95 ) 233 Energy 944 (47 ) 135 152 (17 ) 23 1,096 (64 ) 158 Finance and insurance 2,393 (92 ) 326 688 (40 ) 95 3,081 (132 ) 421 Consumer—non-cyclical 1,826 (101 ) 203 389 (36 ) 55 2,215 (137 ) 258 Technology andcommunications 1,135 (51 ) 152 263 (27 ) 34 1,398 (78 ) 186 Industrial 506 (27 ) 63 74 (6 ) 13 580 (33 ) 76 Capital goods 704 (31 ) 103 184 (20 ) 27 888 (51 ) 130 Consumer—cyclical 738 (35 ) 123 162 (13 ) 26 900 (48 ) 149 Transportation 435 (25 ) 60 179 (16 ) 31 614 (41 ) 91 Other 48 (2 ) 4 15 (1 ) 1 63 (3 ) 5 Subtotal, U.S. corporate 9,975 (472 ) 1,342 2,449 (210 ) 365 12,424 (682 ) 1,707 Non-U.S. Utilities 404 (19 ) 58 173 (13 ) 24 577 (32 ) 82 Energy 439 (15 ) 64 136 (8 ) 20 575 (23 ) 84 Finance and insurance 899 (25 ) 151 294 (15 ) 52 1,193 (40 ) 203 Consumer—non-cyclical 377 (16 ) 51 102 (9 ) 14 479 (25 ) 65 Technology andcommunications 611 (24 ) 75 50 (2 ) 12 661 (26 ) 87 Industrial 275 (11 ) 48 72 (6 ) 8 347 (17 ) 56 Capital goods 226 (7 ) 27 69 (3 ) 13 295 (10 ) 40 Consumer—cyclical 268 (11 ) 42 117 (2 ) 19 385 (13 ) 61 Transportation 232 (7 ) 27 67 (8 ) 11 299 (15 ) 38 Other 441 (15 ) 71 194 (8 ) 36 635 (23 ) 107 Subtotal, non-U.S. 4,172 (150 ) 614 1,274 (74 ) 209 5,446 (224 ) 823 Total for corporate securities in anunrealized loss position $ 14,147 $ (622 ) 1,956 $ 3,723 $ (284 ) 574 $ 17,870 $ (906 ) 2,530 The scheduled maturity distribution of fixed maturity securities as of June 30, 2019 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. Amortized cost or Fair (Amounts in millions) cost value Due one year or less $ 1,957 $ 1,973 Due after one year through five years 11,198 11,602 Due after five years through ten years 12,300 13,197 Due after ten years 23,647 27,548 Subtotal 49,102 54,320 Residential mortgage-backed 2,511 2,738 Commercial mortgage-backed 2,882 2,989 Other asset-backed 3,699 3,727 Total $ 58,194 $ 63,774 As of June 30, 2019, securities issued by finance and insurance, consumer—non-cyclical, industry groups represented approximately %, %, 14% and %, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than % of our investment portfolio. As of June 30, 2019, 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 credit 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: June 30, 2019 December 31, 2018 Carrying % of Carrying % of (Amounts in millions) value total value total Property type: Retail $ 2,581 37 % $ 2,463 37 % Industrial 1,699 24 1,659 25 Office 1,656 24 1,548 23 Apartments 525 7 495 7 Mixed use 247 4 254 4 Other 270 4 281 4 Subtotal 6,978 100 % 6,700 100 % Unamortized balance of loan origination fees and costs (4 ) (4 ) Allowance for credit losses (11 ) (9 ) Total $ 6,963 $ 6,687 June 30, 2019 December 31, 2018 Carrying % of Carrying % of (Amounts in millions) value total value total Geographic region: South Atlantic $ 1,747 25 % $ 1,709 26 % Pacific 1,701 24 1,684 25 Middle Atlantic 1,000 14 950 14 Mountain 717 10 667 10 West North Central 490 7 470 7 East North Central 457 7 405 6 West South Central 387 6 364 6 New England 261 4 228 3 East South Central 218 3 223 3 Subtotal 6,978 100 % 6,700 100 % Unamortized balance of loan origination fees and costs (4 ) (4 ) Allowance for credit losses (11 ) (9 ) Total $ 6,963 $ 6,687 The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: June 30, 2019 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due Current Total Property type: Retail $ — $ — $ — $ — $ 2,581 $ 2,581 Industrial — — — — 1,699 1,699 Office — — — — 1,656 1,656 Apartments — — — — 525 525 Mixed use — — — — 247 247 Other — — — — 270 270 Total recorded investment $ — $ — $ — $ — $ 6,978 $ 6,978 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2018 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due Current Total Property type: Retail $ 3 $ — $ — $ 3 $ 2,460 $ 2,463 Industrial — — — — 1,659 1,659 Office — — 3 3 1,545 1,548 Apartments — — — — 495 495 Mixed use — — — — 254 254 Other — — — — 281 281 Total recorded investment $ 3 $ — $ 3 $ 6 $ 6,694 $ 6,700 % of total commercial mortgage loans — % — % — % — % 100 % 100 % As of June 30, 2019 and December 31, 2018, 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 We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of June 30, 2019, none of our commercial mortgage loans were greater than 90 days past due. As of December 31, 2018, our commercial mortgage loans greater than 90 days past due included one impaired loan with a carrying value of $3 million. This loan was modified and the modification was considered to be a troubled debt restructuring. As part of this troubled debt restructuring, we forgave default interest, penalties and fees, and modified the original contractual interest rate but we did not forgive the outstanding principal amount owed by the borrower. During the six months ended June 30, 2019 and the year ended December 31, 2018, we also modified or extended one and two commercial mortgage loans, respectively, with a total carrying value of $11 million and $12 million, respectively. All of these modifications or extensions were based on current market interest rates, did not result in any forgiveness of the outstanding principal amount owed by the borrower and were not considered troubled debt restructurings. 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 Six months ended June 30, June 30, (Amounts in millions) 2019 2018 2019 2018 Allowance for credit losses: Beginning balance $ 10 $ 9 $ 9 $ 9 Charge-offs — — — — Recoveries — — — — Provision 1 — 2 — Ending balance $ 11 $ 9 $ 11 $ 9 Ending allowance for individually impaired loans $ — $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 11 $ 9 $ 11 $ 9 Recorded investment: Ending balance $ 6,978 $ 6,492 $ 6,978 $ 6,492 Ending balance of individually impaired loans $ — $ 6 $ — $ 6 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,978 $ 6,486 $ 6,978 $ 6,486 As of June 30, 2019 December 31, 2018, we had one individually impaired loan within the office property type with a recorded investment and unpaid principal balance of $3 million and as of June 30, 2018, this individually impaired loan had 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 loan-to-value loan-to-value one-time non-recurring The following tables set forth the loan-to-value June 30, 2019 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater than 100% (1) Total Property type: Retail $ 882 $ 534 $ 1,152 $ 13 $ — $ 2,581 Industrial 732 284 674 7 2 1,699 Office 587 378 691 — — 1,656 Apartments 200 97 223 5 — 525 Mixed use 102 43 102 — — 247 Other 47 63 160 — — 270 Total recorded investment $ 2,550 $ 1,399 $ 3,002 $ 25 $ 2 $ 6,978 % of total 37 % 20 % 43 % — % — % 100 % Weighted-average debt service coverage ratio 2.39 1.84 1.57 1.34 0.88 1.92 (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 December 31, 2018 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater than 100% (1) Total Property type: Retail $ 866 $ 565 $ 1,017 $ 15 $ — $ 2,463 Industrial 749 279 615 14 2 1,659 Office 585 373 588 2 — 1,548 Apartments 206 95 189 5 — 495 Mixed use 105 36 113 — — 254 Other 43 78 160 — — 281 Total recorded investment $ 2,554 $ 1,426 $ 2,682 $ 36 $ 2 $ 6,700 % of total 38 % 21 % 40 % 1 % — % 100 % Weighted-average debt service coverage ratio 2.42 2.04 1.59 1.38 0.88 2.00 (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 The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated: June 30, 2019 (Amounts in millions) Less than 1.00 1.00 - 1.26 - 1.51 - Greater than 2.00 Total Property type: Retail $ 33 $ 147 $ 604 $ 1,238 $ 559 $ 2,581 Industrial 22 68 254 711 644 1,699 Office 51 47 213 833 512 1,656 Apartments 4 24 107 196 194 525 Mixed use 3 18 52 79 95 247 Other 12 132 52 40 34 270 Total recorded investment $ 125 $ 436 $ 1,282 $ 3,097 $ 2,038 $ 6,978 % of total 2 % 6 % 18 % 45 % 29 % 100 % Weighted-average loan-to-value 55 % 61 % 64 % 59 % 42 % 55 % December 31, 2018 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater than 2.00 Total Property type: Retail $ 43 $ 157 $ 448 $ 1,234 $ 581 $ 2,463 Industrial 22 75 233 653 676 1,659 Office 57 56 156 765 514 1,548 Apartments 4 24 104 168 195 495 Mixed use 3 19 51 80 101 254 Other 13 134 50 50 34 281 Total recorded investment $ 142 $ 465 $ 1,042 $ 2,950 $ 2,101 $ 6,700 % of total 2 % 7 % 16 % 44 % 31 % 100 % Weighted-average loan-to-value 57 % 61 % 62 % 59 % 42 % 54 % (f) Restricted Commercial Mortgage Loans Related To A Securitization Entity We have a consolidated securitization entity that holds commercial mortgage loans that are recorded as restricted commercial mortgage loans related to a securitization entity. Our primary economic interest in this securitization entity represents the excess interest of the commercial mortgage loans. (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 I nvestments in limited 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 June , and December , , the total carrying value of these investments was $ million and $ 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 some 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 cash flow 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 classification June 30, 2019 December 31, 2018 Balance sheet classification June 30, 2019 December 31, 2018 Derivatives designated as Cash flow hedges: Interest rate swaps Other invested assets $ 144 $ 42 Other liabilities $ 10 $ 102 Foreign currency swaps Other invested assets 5 6 Other liabilities 1 — Total cash flow hedges 149 48 11 102 Total derivatives 149 48 11 102 Derivatives not designated as Interest rate swaps in aforeign currency Other invested assets 35 74 Other liabilities — — Interest rate caps and floors Other invested assets 16 7 Other liabilities — — Foreign currency swaps Other invested assets 1 — Other liabilities 7 23 Equity index options Other invested assets 65 39 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets — — Other liabilities — 1 Other foreign currency Other invested assets 14 10 Other liabilities 25 42 GMWB embeddedderivatives Reinsurance recoverable (1) 20 20 Policyholder (2) 325 337 Fixed index annuity embedded Other assets — — Policyholder (3) 438 389 Indexed universal lifeembedded Reinsurance — — Policyholder (4) 15 12 Total derivatives not 151 150 810 804 Total derivatives $ 300 $ 198 $ 821 $ 906 (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. (Notional in millions) Measurement December 31, 201 8 Additions Maturities/ terminations June 30, 2019 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 9,924 $ 469 $ ( 1,338 ) $ 9,055 Foreign currency swaps Notional 80 52 (22 ) 110 Total cash flow hedges 10,004 521 (1,360 ) 9,165 Total derivatives designated as hedges 10,004 521 (1,360 ) 9,165 Derivatives not designated as hedges Interest rate swaps Notional 4,674 — — 4,674 Interest rate swaps in a foreign currency Notional 2,565 187 (77 ) 2,675 Interest rate caps and floors Notional 2,624 160 (66 ) 2,718 Foreign currency swaps Notional 453 — (2 ) 451 Equity index options Notional 2,628 939 (1,035 ) 2,532 Financial futures Notional 1,415 3,029 (3,217 ) 1,227 Equity return swaps Notional 17 2 (2 ) 17 Other foreign currency contracts Notional 1,080 2,925 (2,704 ) 1,301 Total derivatives not designated as hedges 15,456 7,242 (7,103 ) 15,595 Total derivatives $ 25,460 $ 7,763 $ ( 8,463 ) $ 24,760 (Number of policies) Measurement December 31, 2018 Additions Maturities/ terminations June 30, 2019 Derivatives not designated as hedges GMWB embedded derivatives Policies 27,886 — (1,139 ) 26,747 Fixed index annuity embedded derivatives Policies 16,464 — (410 ) 16,054 Indexed universal life embedded derivatives Policies 929 — (21 ) 908 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; and (v) other instruments to hedge the cash flows of various forecasted transactions. The following table provides information about the pre-tax Gain (loss) reclassified into Classification of gain (loss) Gain (loss) Classification of gain (loss) Gain (loss) net income reclassified into recognized in recognized in net (Amounts in millions) recognized in OCI from OCI net income net income income Interest rate swaps hedging $ 216 $ 42 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging — (4 ) Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging (20 ) — Interest expense — Net investment gains (losses) Foreign currency swaps 2 (1 ) Net investment income — Net investment gains (losses) Total $ 198 $ 37 $ — The following table provides information about the pre-tax Gain (loss) reclassified into Classification of gain (loss) Gain (loss) Classification of gain (loss) Gain (loss) net income reclassified into recognized in recognized in net (Amounts in millions) recognized in OCI from OCI net income net income income Interest rate swaps hedging $ (54 ) $ 39 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging 5 — Interest expense — Net investment gains (losses) Foreign currency swaps 1 — Net investment income — Net investment gains (losses) Total $ (48 ) $ 39 $ — The following table provides information about the pre-tax income effects of cash flow hedges for the six months ended June 30, 2019: Gain (loss) reclassified into Classification of gain (loss) Gain (loss) Classification of gain (loss) Gain (loss) net income reclassified into recognized in recognized in (Amounts in millions) recognized in OCI from OCI net income net income net income Interest rate swaps hedging $ 353 $ 80 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging — 2 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging (32 ) — Interest expense — Net investment gains (losses) Foreign currency swaps (1 ) (1 ) Net investment income — Net investment gains (losses) Foreign currency swaps — — Net investment gains (losses) 2 Net investment gains (losses) Total $ 320 $ 81 $ 2 The following table provides information about the pre-tax Gain (loss) reclassified into Classification of gain (loss) Gain (loss) Classification of gain (loss) Gain (loss) net income reclassified into recognized in recognized in (Amounts in millions) recognized in OCI from OCI net income net income net income Interest rate swaps hedging $ (227 ) $ 74 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging — 5 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging 22 — Interest expense — Net investment gains (losses) Total $ (205 ) $ 79 $ — The following tables provide 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 ended (Amounts in millions) 2019 2018 Derivatives qualifying as effective accounting hedges as of April 1 $ 1,850 $ 1,927 Current period increases (decreases) in fair value, net of deferred taxes of $(41) and $9 157 (39 ) Reclassification to net (income), net of deferred taxes of $13 and $14 (24 ) (25 ) Derivatives qualifying as effective accounting hedges as of June 30 $ 1,983 $ 1,863 Six months ended (Amounts in millions) 2019 2018 Derivatives qualifying as effective accounting hedges as of January 1 $ 1,781 $ 2,065 Cumulative effect of changes in accounting: Stranded tax effects — 12 Changes to the hedge accounting model, net of deferred taxes of $— and $(1) — 2 Total cumulative effect of changes in accounting — 14 Current period increases (decreases) in fair value, net of deferred taxes of $(66) and $43 254 (165 ) Reclassification to net (income), net of deferred taxes of $29 and $28 (52 ) (51 ) Derivatives qualifying as effective accounting hedges as of June 30 $ 1,983 $ 1,863 The total of derivatives designated as cash flow hedges of $1,983 million, net of taxes, recorded in stockholders’ equity as of June 30, 2019 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, $112 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 six months ended June 30, 2019 and 2018, we reclassified net gains of $2 million and $5 million, respectively, 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) 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; (iii) interest rate swaps in a foreign currency and interest rate caps and floors where the hedging relationship does not qualify for hedge accounting; (iv) 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 (v) 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 insurance products and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives. The following tables provide the pre-tax Three months ended June 30, Classification of gain (loss) recognized (Amounts in millions) 2019 2018 in net income Interest rate swaps $ (3 ) $ (2 ) Net investment gains (losses) Interest rate swaps in a foreign currency (6 ) — Net investment gains (losses) Interest rate caps and floors 3 — Net investment gains (losses) Foreign currency swaps 6 (10 ) Net investment gains (losses) Equity index options 10 8 Net investment gains (losses) Financial futures 17 (13 ) Net investment gains (losses) Equity return swaps 1 1 Net investment gains (losses) Other foreign currency contracts (3 ) 1 Net investment gains (losses) GMWB embedded derivatives (22 ) 13 Net investment gains (losses) Fixed index annuity embedded derivatives (20 ) (15 ) Net investment gains (losses) Indexed universal life embedded derivatives (1 ) 2 Net investment gains (losses) Total derivatives not designated as hedges $ (18 ) $ (15 ) Six months ended June 30, Classification of gain (loss) recognized (Amounts in millions) 2019 2018 in net income Interest rate swaps $ (4 ) $ (3 ) Net investment gains (losses) Interest rate swaps in a foreign currency (29 ) — Net investment gains (losses) Interest rate caps and floors 9 — Net investment gains (losses) Foreign currency swaps 16 (18 ) Net investment gains (losses) Equity index options 27 (7 ) Net investment gains (losses) Financial futures (27 ) (37 ) Net investment gains (losses) Equity return swaps 1 (4 ) Net investment gains (losses) Other foreign currency contracts 6 9 Net investment gains (losses) GMWB embedded derivatives 23 27 Net investment gains (losses) Fixed index annuity embedded derivatives (58 ) (7 ) Net investment gains (losses) Indexed universal life embedded derivatives — 7 Net investment gains (losses) Total derivatives not designated as hedges $ (36 ) $ (33 ) Derivative Counterparty Credit Risk Most of our derivative arrangements with counterparties require the posting of collateral upon meeting certain net exposure thresholds. The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated: June 30, 2019 December 31, 2018 (Amounts in millions) Derivatives assets (1) Derivatives liabilities (2) Net derivatives Derivatives (1) Derivatives liabilities (2) Net derivatives Amounts presented in the balance sheet: Gross amounts recognized $ 287 $ 44 $ 243 $ 185 $ 169 $ 16 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 287 44 243 185 169 16 Gross amounts not offset in the balance sheet: Financial instruments (3) (35 ) (35 ) — (66 ) (66 ) — Collateral received (77 ) — (77 ) (84 ) — (84 ) Collateral pledged — (327 ) 327 — (536 ) 536 Over collateralization — 318 (318 ) 10 433 (423 ) Net amount $ 175 $ — $ 175 $ 45 $ — $ 45 (1) Included $7 million and $6 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2019 and December 31, 2018, respectively. (2) Included $1 million of accruals on derivatives included in other liabilities as of June 30, 2019 and does not include amounts related to embedded derivatives as of June 30, 2019 and December 31, 2018. (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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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, cash equivalents and restricted cash, 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 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: June 30, 2019 Notional Carrying Fair value (Amounts in millions) amount amount Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans (1 ) $ 6,963 $ 7,241 $ — $ — $ 7,241 Restricted commercial mortgage loans ( 1 ) 56 61 — — 61 Other invested assets: Bank loan investments ( 1 ) 337 336 — — 336 Liabilities: Long-term borrowings ( 1 ) 4,044 3,622 — 3,480 142 Non-recourse ( 1 ) 311 215 — — 215 Investment contracts ( 1 ) 12,364 13,194 — — 13,194 Other firm commitments: Commitments to fund limited partnerships 903 — — — — — Commitments to fund bank loan investments 52 — — — — — Ordinary course of business lending 188 — — — — — December 31, 2018 Notional Carrying Fair value (Amounts in millions) amount amount Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans (1) $ 6,687 $ 6,737 $ — $ — $ 6,737 Restricted commercial mortgage loans (1) 62 66 — — 66 Other invested assets: Bank loan investments (1) 248 248 — — 248 Liabilities: Long-term borrowings (1) 4,025 3,577 — 3,434 143 Non-recourse (1) 311 215 — — 215 Investment contracts (1) 13,105 13,052 — — 13,052 Other firm commitments: Commitments to fund limited partnerships 539 — — — — — Commitments to fund bank loan investments 33 — — — — — Ordinary course of business lending 73 — — — — — (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 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 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: 91 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 June 30, 2019: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 4,987 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 $ 2,575 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. government $ 2,634 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources U.S. corporate $ 28,118 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. corporate $ 10,417 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources Residential mortgage-backed $ 2,697 OAS-based models,single factor binomial models, internally priced Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Commercial mortgage-backed $ 2,897 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 $ 3,492 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers 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: 41 $15 million, $1,056 million and $599 million, respectively, as of June 30, 2019. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants. 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. services. Brokers utilized for valuation of assets are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by broker quotes was $481 million as of June 30, 2019. Equity securities. 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 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 index volatility increases, the fair value of the GMWB liabilities will increase. Any increase in non-performance risk would increase the discount rate and would decrease the fair value of the GMWB liability. Additionally, we consider lapse and utilization assumptions to be significant unobservable inputs. An increase in our lapse assumption would decrease the fair value of the GMWB liability, whereas an increase in our utilization rate would increase the fair value. 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 risk and risk margins. As a result of our assumptions for policyholder behavior and expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As lapses and withdrawals increase, the value of our embedded derivative liability will decrease. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. Indexed universal life embedded derivatives We have indexed universal life insurance 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 risk and risk margins. As a result of our assumptions for policyholder behavior and expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As lapses and withdrawals increase, the value of our embedded derivative liability will decrease. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. Derivatives We consider counterparty collateral arrangements and rights of set-off non-performance non-performance non-performance Interest rate swaps. observable input, and results in the derivative being classified as Level 2. For certain interest rate swaps, the inputs into the valuation also include the total returns of certain bonds that would primarily be considered an observable input and result in the derivative being classified as Level 2. Interest rate swaps in a foreign currency. Interest rate caps and floors. Foreign currency swaps. Equity index options. Financial futures. zero Equity return swaps. 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: June 30, 2019 (Amounts in millions) Total Level 1 Level 2 Level 3 NAV (1) Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored $ 4,987 $ — $ 4,987 $ — $ — State and political subdivisions 2,636 — 2,575 61 — Non-U.S. 2,649 — 2,649 — — U.S. corporate: Utilities 4,879 — 4,090 789 — Energy 2,713 — 2,591 122 — Finance and insurance 7,597 — 6,990 607 — Consumer—non-cyclical 5,552 — 5,463 89 — Technology and communications 3,156 — 3,112 44 — Industrial 1,336 — 1,296 40 — Capital goods 2,620 — 2,522 98 — Consumer—cyclical 1,741 — 1,556 185 — Transportation 1,411 — 1,357 54 — Other 396 — 197 199 — Total U.S. corporate 31,401 — 29,174 2,227 — Non-U.S. Utilities 1,165 — 748 417 — Energy 1,516 — 1,275 241 — Finance and insurance 2,628 — 2,449 179 — Consumer—non-cyclical 710 — 642 68 — Technology and communications 1,273 — 1,246 27 — Industrial 1,017 — 953 64 — Capital goods 695 — 514 181 — Consumer—cyclical 557 — 431 126 — Transportation 841 — 642 199 — Other 2,245 — 2,116 129 — Total non-U.S. 12,647 — 11,016 1,631 — Residential mortgage-backed 2,738 — 2,697 41 — Commercial mortgage-backed 2,989 — 2,897 92 — Other asset-backed 3,727 — 3,492 235 — Total fixed maturity securities 63,774 — 59,487 4,287 — Equity securities 644 519 69 56 — Other invested assets: Derivative assets: Interest rate swaps 144 — 144 — — Interest rate swaps in a foreign currency 35 — 35 — — Interest rate caps and floors 16 — 16 — — Foreign currency swaps 6 — 6 — — Equity index options 65 — — 65 — Other foreign currency contracts 14 — 14 — — Total derivative assets 280 — 215 65 — Securities lending collateral 113 — 113 — — Short-term investments 273 — 273 — — Limited partnerships 401 — — — 401 Total other invested assets 1,067 — 601 65 401 Reinsurance recoverable (2) 20 — — 20 — Separate account assets 6,187 6,187 — — — Total assets $ 71,692 $ 6,706 $ 60,157 $ 4,428 $ 401 (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. 46 December 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-sponsored $ 4,631 $ — $ 4,631 $ — $ — State and political subdivisions 2,552 — 2,501 51 — Non-U.S. 2,393 — 2,393 — — U.S. corporate: Utilities 4,675 — 4,032 643 — Energy 2,419 — 2,298 121 — Finance and insurance 6,822 — 6,288 534 — Consumer—non-cyclical 5,048 — 4,975 73 — Technology and communications 2,855 — 2,805 50 — Industrial 1,238 — 1,199 39 — Capital goods 2,391 — 2,299 92 — Consumer—cyclical 1,597 — 1,386 211 — Transportation 1,320 — 1,263 57 — Other 397 — 219 178 — Total U.S. corporate 28,762 — 26,764 1,998 — Non-U.S. Utilities 1,041 — 637 404 — Energy 1,369 — 1,152 217 — Finance and insurance 2,423 — 2,252 171 — Consumer—non-cyclical 739 — 633 106 — Technology and communications 1,165 — 1,139 26 — Industrial 945 — 884 61 — Capital goods 615 — 442 173 — Consumer—cyclical 520 — 398 122 — Transportation 720 — 549 171 — Other 2,300 — 2,219 81 — Total non-U.S. 11,837 — 10,305 1,532 — Residential mortgage-backed 3,044 — 3,009 35 — Commercial mortgage-backed 3,016 — 2,921 95 — Other asset-backed 3,426 — 3,261 165 — Total fixed maturity securities 59,661 — 55,785 3,876 — Equity securities 655 533 64 58 — Other invested assets: Derivative assets: Interest rate swaps 42 — 42 — — Interest rate swaps in a foreign currency 74 — 74 — — Interest rate caps and floors 7 — 7 — — Foreign currency swaps 6 — 6 — — Equity index options 39 — — 39 — Other foreign currency contracts 10 — 10 — — Total derivative assets 178 — 139 39 — Securities lending collateral 102 — 102 — — Short-term investments 230 — 230 — — Limited partnerships 318 — — — 318 Total other invested assets 828 — 471 39 318 Reinsurance recoverable (2 ) 20 — — 20 — Separate account assets 5,859 5,859 — — — Total assets $ 67,023 $ 6,392 $ 56,320 $ 3,993 $ 318 (1) Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. (2) 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 represent mutual fund and equity 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: Total gains Total realized and (losses) Beginning unrealized gains Ending included in balance (losses) balance net income as of April 1, Included in net Included Transfer into Transfer out of as of June 30, attributable to assets (Amounts in millions) 2019 income in OCI Purchases Sales Issuances Settlements Level 3 (1) Level 3 (1) 2019 still held Fixed maturity securities: State and political subdivisions $ 52 $ 1 $ 8 $ — $ — $ — $ — $ — $ — $ 61 $ — U.S. corporate: Utilities 748 — 20 82 (13 ) — (38 ) — (10 ) 789 — Energy 115 — 3 5 — — (1 ) — — 122 — Finance and insurance 590 — 15 10 — — (8 ) — — 607 — Consumer— 74 — 1 14 — — — — — 89 — Technology and 52 — 3 — — — — — (11 ) 44 — Industrial 40 — — — — — — — — 40 — Capital goods 95 — 3 — — — — — — 98 — Consumer—cyclical 195 — 3 — — — (13 ) — — 185 — Transportation 54 — — — — — — — — 54 — Other 199 — 3 — — — (3 ) — — 199 — Total U.S. corporate 2,162 — 51 111 (13 ) — (63 ) — (21 ) 2,227 — Non-U.S. Utilities 435 — 7 — (7 ) — (17 ) — (1 ) 417 — Energy 221 — 5 15 — — — — — 241 — Finance and insurance 182 1 7 2 — — (13 ) — — 179 1 Consumer— 67 — 1 — — — — — — 68 — Technology and 27 — — — — — — — — 27 — Industrial 63 — 1 — — — — — — 64 — Capital goods 173 — 3 5 — — — — — 181 — Consumer—cyclical 125 — 2 — — — (1 ) — — 126 — Transportation 192 — 3 4 — — — — — 199 — Other 90 — 4 35 — — — — — 129 — Total non-U.S. 1,575 1 33 61 (7 ) — (31 ) — (1 ) 1,631 1 Residential mortgage-backed 35 — 2 5 — — (1 ) — — 41 — Commercial mortgage-backed 98 — 7 1 — — — — (14 ) 92 — Other asset-backed 202 — 1 41 — — (28 ) 27 (8 ) 235 — Total fixed maturity securities 4,124 2 102 219 (20 ) — (123 ) 27 (44 ) 4,287 1 Equity securities 55 — — 2 (1 ) — — — — 56 — Other invested assets: Derivative assets: Equity index options 60 10 — 9 — — (14 ) — — 65 7 Total derivative assets 60 10 — 9 — — (14 ) — — 65 7 Total other invested assets 60 10 — 9 — — (14 ) — — 65 7 Reinsurance recoverable (2) 18 2 — — — — — — — 20 2 Total Level 3 assets $ 4,257 $ 14 $ 102 $ 230 $ (21 ) $ — $ (137 ) $ 27 $ (44 ) $ 4,428 $ 10 (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. Total gains Total realized and (losses) Beginning unrealized gains Ending included in balance (losses) balance net income as of Included Transfer Transfer as of attributable (Amounts in millions) April 1, 2018 in net income Included in OCI Purchases Sales Issuances Settlements into (1) out of (1) June 30, 2018 to assets still held Fixed maturity securities: State and political subdivisions $ 53 $ — $ (1 ) $ — $ — $ — $ — $ — $ — $ 52 $ — U.S. corporate: Utilities 553 (1 ) (7 ) 66 (12 ) — (2 ) 25 — 622 — Energy 146 — — — — — (1 ) — (7 ) 138 — Finance and insurance 580 — (41 ) — — — (74 ) — (7 ) 458 — Consumer— 79 — — — — — — — — 79 — Technology and 25 — 1 4 — — (18 ) — — 12 — Industrial 39 — 1 — — — — — — 40 — Capital goods 103 — (1 ) 24 — — — — (7 ) 119 — Consumer—cyclical 252 — (1 ) 7 (3 ) — (1 ) — — 254 — Transportation 57 — — — — — (1 ) — — 56 — Other 166 — — — (10 ) — (3 ) — — 153 — Total U.S. corporate 2,000 (1 ) (48 ) 101 (25 ) — (100 ) 25 (21 ) 1,931 — Non-U.S. Utilities 336 — (4 ) — — — — 15 (14 ) 333 — Energy 195 — (2 ) — — — (18 ) — — 175 — Finance and insurance 153 1 (3 ) 1 — — (1 ) — (1 ) 150 1 Consumer— 120 — (1 ) — — — (11 ) — — 108 — Technology and 28 — 1 — — — (13 ) — — 16 — Industrial 108 — (1 ) 3 — — (5 ) — — 105 — Capital goods 186 1 — — — — (21 ) — — 166 1 Consumer—cyclical 52 — — — (1 ) — (3 ) — — 48 — Transportation 166 — (2 ) 22 — — — 17 — 203 — Other 83 — (1 ) — — — — — — 82 — Total non-U.S. 1,427 2 (13 ) 26 (1 ) — (72 ) 32 (15 ) 1,386 2 Residential mortgage-backed 34 — 1 17 — — (1 ) — (17 ) 34 — Commercial mortgage-backed 6 — — 28 — — — 13 (3 ) 44 — Other asset-backed 172 — (1 ) 6 — — (24 ) 45 (32 ) 166 — Total fixed maturity securities 3,692 1 (62 ) 178 (26 ) — (197 ) 115 (88 ) 3,613 2 Equity securities 45 — — 1 — — — — — 46 — Other invested assets: Derivative assets: Equity index options 60 8 — 15 — — (13 ) — — 70 8 Total derivative assets 60 8 — 15 — — (13 ) — — 70 8 Total other invested assets 60 8 — 15 — — (13 ) — — 70 8 Reinsurance recoverable (2) 13 (1 ) — — — — — — — 12 (1 ) Total Level 3 assets $ 3,810 $ 8 $ (62 ) $ 194 $ (26 ) $ — $ (210 ) $ 115 $ (88 ) $ 3,741 $ 9 (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 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: Total gains Total realized and (losses) Beginning unrealized gains Ending included in balance (losses) balance net income as of Included Transfer Transfer as of attributable January 1, in net Included into out of June 30, to assets (Amounts in millions) 2019 income in OCI Purchases Sales Issuances Settlements Level 3 (1) Level 3 (1) 2019 still held Fixed maturity securities: State and political subdivisions $ 51 $ 2 $ 8 $ — $ — $ — $ — $ — $ — $ 61 $ 1 U.S. corporate: Utilities 643 — 42 96 (14 ) — (40 ) 72 (10 ) 789 — Energy 121 — 7 5 — — (11 ) — — 122 — Finance and insurance 534 — 38 40 — — (12 ) 7 — 607 — Consumer—non-cyclical 73 — 3 14 — — (10 ) 9 — 89 — Technology and communications 50 — 5 — — — — — (11 ) 44 — Industrial 39 — 1 — — — — — — 40 — Capital goods 92 — 6 — — — — — — 98 — Consumer—cyclical 211 — 10 — (13 ) — (14 ) — (9 ) 185 — Transportation 57 — 1 4 — — (8 ) — — 54 — Other 178 — 6 22 — — (15 ) 8 — 199 — Total U.S. corporate 1,998 — 119 181 (27 ) — (110 ) 96 (30 ) 2,227 — Non-U.S. Utilities 404 — 23 30 (7 ) — (17 ) — (16 ) 417 — Energy 217 — 12 16 — — (4 ) — — 241 — Finance and insurance 171 2 18 7 — — (13 ) — (6 ) 179 2 Consumer—non-cyclical 106 2 4 — — — (44 ) — — 68 — Technology and 26 — 1 — — — — — — 27 — Industrial 61 — 3 — — — — — — 64 — Capital goods 173 — 9 10 — — (11 ) — — 181 — Consumer—cyclical 122 — 8 — — — (4 ) — — 126 — Transportation 171 — 9 19 — — — — — 199 — Other 81 — 8 35 — — (1 ) 6 — 129 — Total non-U.S. 1,532 4 95 117 (7 ) — (94 ) 6 (22 ) 1,631 2 Residential mortgage-backed 35 — 2 5 — — (1 ) — — 41 — Commercial mortgage-backed 95 — 9 2 — — — — (14 ) 92 — Other asset-backed 165 — 2 95 — — (41 ) 28 (14 ) 235 — Total fixed maturity securities 3,876 6 235 400 (34 ) — (246 ) 130 (80 ) 4,287 3 Equity securities 58 — — 2 (4 ) — — — — 56 — Other invested assets: Derivative assets: Equity index options 39 27 — 21 — — (22 ) — — 65 11 Total derivative assets 39 27 — 21 — — (22 ) — — 65 11 Total other invested assets 39 27 — 21 — — (22 ) — — 65 11 Reinsurance recoverable (2) 20 (1 ) — — — 1 — — — 20 (1 ) Total Level 3 assets $ 3,993 $ 32 $ 235 $ 423 $ (38 ) $ 1 $ (268 ) $ 130 $ (80 ) $ 4,428 $ 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. Total gains Total realized and (losses) Beginning unrealized gains Ending included in balance (losses) balance net income a |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 6 Months Ended |
Jun. 30, 2019 | |
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 six months ended June 30, (Amounts in millions) 2019 2018 Beginning balance $ 10,379 $ 9,594 Less reinsurance recoverables (2,379 ) (2,419 ) Net beginning balance 8,000 7,175 Incurred related to insured events of: Current year 2,009 1,946 Prior years (214 ) (244 ) Total incurred 1,795 1,702 Paid related to insured events of: Current year (410 ) (434 ) Prior years (1,287 ) (1,266 ) Total paid (1,697 ) (1,700 ) Interest on liability for policy and contract claims 188 163 Foreign currency translation 3 (16 ) Net ending balance 8,289 7,324 Add reinsurance recoverables 2,388 2,341 Ending balance $ 10,677 $ 9,665 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 six months ended June 30, 2019, the favorable development of $214 million related to insured events of prior years was primarily attributable to our long-term care insurance business from favorable development on prior year incurred but not reported claims and favorable claim terminations, including pending claims that terminate before becoming an active claim. The favorable development for the six months ended June 30, 2019 was also related to our U.S. mortgage insurance business predominantly from an improvement in net cures and aging of existing delinquencies, including a favorable reserve adjustment of $9 million during the second quarter of 2019. For the six months ended June 30, 2018, the favorable development of $244 million related to insured events of prior years was primarily attributable to our long-term care insurance business from favorable claim terminations, including pending claims that terminate before becoming an active claim. The favorable development for the six months ended June 30, 2018 was also impacted by our mortgage insurance businesses, primarily from an improvement in net cures and aging of existing claims, including a favorable reserve adjustment of $ million in our U.S. mortgage insurance business during the second quarter of 2018. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Borrowings | (8) Borrowings (a) Long-Term Borrowings The following table sets forth total long-term borrowings as of the dates indicated: June 30, December 31, (Amounts in millions) 2019 2018 Genworth Holdings (1) Floating Rate Senior Secured Term Loan Facility, due 2023 $ 444 $ 445 7.70% Senior Notes, due 2020 397 397 7.20% Senior Notes, due 2021 381 381 7.625% Senior Notes, due 2021 703 703 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 Floating Rate Junior Subordinated Notes, due 2066 598 598 Subtotal 3,619 3,620 Bond consent fees (29 ) (32 ) Deferred borrowing charges (19 ) (21 ) Total Genworth Holdings 3,571 3,567 Canada (2) 5.68% Senior Notes, due 2020 134 202 4.24% Senior Notes, due 2024 201 117 Subtotal 335 319 Deferred borrowing charges (2 ) (1 ) Total Canada 333 318 Australia (3) Floating Rate Junior Subordinated Notes, due 2025 141 141 Deferred borrowing charges (1 ) (1 ) Total Australia 140 140 Total $ 4,044 $ 4,025 (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 Canada On May 22, 2019, Genworth Canada issued at a premium, CAD$100 million fixed rate senior notes with an interest rate of 4.24% that matures in 2024. The offering represents a re-opening of the 4.24% senior notes originally issued in April 2014. The total amount issued and outstanding associated with these senior notes after this most recent offering is CAD$263 million. The senior notes are redeemable at the option of Genworth Canada, in whole or in part, at any time. In June 2019, Genworth Canada used the proceeds of the offering to early redeem approximately CAD$100 million of the 5.68% senior notes originally scheduled to mature in June 2020 and incurred an early redemption fee of CAD$3 million. As a result of the early redemption of Genworth Canada’s notes, we incurred a pre-tax loss of approximately $1 million, net of the portion attributable to noncontrolling interests. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
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 Six months ended June 30, June 30, 2019 2018 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Increase (reduction) in rate resulting from: Effect of foreign operations 5.0 3.4 5.2 3.2 U.S. shareholder tax on foreign operations 4.4 — 4.6 — Swaps terminated prior to the TCJA 2.1 3.9 2.4 3.2 TCJA, impact from change in tax rate — 5.4 — 3.3 Valuation allowance — (2.0 ) — (1.3 ) Provision to return adjustments — (1.6 ) — (0.7 ) Other, net 0.4 0.7 (0.4 ) 0.9 Effective rate 32.9 % 30.8 % 32.8 % 29.6 % The increase in the effective tax rate for the three and six months ended June 30, 2019 was primarily attributable to a tax expense in the current year related to the Global Intangible Low Taxed Income (“GILTI”) provision of the Tax Cuts and Jobs Act (“TCJA”), which is reported within the line “U.S. shareholder tax on foreign operations” in the table above. GILTI has an unfavorable impact on our current year effective tax rate due to the utilization of net operating loss carryforwards and projected taxable losses in the U.S. life insurance businesses without any offsetting foreign tax credit carryforwards. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
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 products which have not been actively sold). 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. We tax our international businesses at their local jurisdictional tax rates and our domestic businesses at the U.S. corporate federal income tax rate of 21%. Our segment tax methodology applies the respective jurisdictional or domestic tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign withholding taxes and permanent differences between U.S. GAAP and local tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. 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 (loss) available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the after-tax effects of income (loss) attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders if, in our opinion, they are not indicative of overall operating trends. While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) 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 (loss) 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 (loss) available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies. In the first quarter of 2019, we revised how we tax the adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders to align the tax rate used in the reconciliation to each segment’s local jurisdictional tax rate. Beginning in the first quarter of 2019, we used a tax rate of 27% and 30% for our Canada Prior year amounts have not been re-presented In the second quarter of 2019, we recorded a pre-tax loss of $ 1 during the periods presented. The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated: Three months ended Six months ended June 30, June 30, (Amounts in millions) 2019 2018 2019 2018 Revenues: U.S. Mortgage Insurance segment $ 235 $ 208 $ 458 $ 408 Canada Mortgage Insurance segment 161 150 320 308 Australia Mortgage Insurance segment 96 136 206 243 U.S. Life Insurance segment: Long-term care insurance 1,055 1,035 2,169 2,055 Life insurance 382 367 754 746 Fixed annuities 151 176 310 358 U.S. Life Insurance segment 1,588 1,578 3,233 3,159 Runoff segment 78 80 160 148 Corporate and Other activities (2 ) 7 (17 ) 8 Total revenues $ 2,156 $ 2,159 $ 4,360 $ 4,274 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 and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated: Three months ended Six months ended June 30, June 30, (Amounts in millions) 2019 2018 2019 2018 Net income $ 218 $ 249 $ 448 $ 414 Less: net income attributable to noncontrolling interests 50 59 106 112 Net income available to Genworth Financial, Inc.’s common stockholders 168 190 342 302 Adjustments to net income available to Genworth Financial, Inc.’s Net investment (gains) losses, net (1) 43 12 (28 ) 29 (Gains) losses on early extinguishment of debt, net (2) 1 — 1 — Expenses related to restructuring — — 4 — Taxes on adjustments (8 ) (2 ) 6 (6 ) Adjusted operating income available to Genworth Financial, Inc.’s $ 204 $ 200 $ 325 $ 325 (1) For the three months ended June 30, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million and $(1) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $1 million and $(1) million, respectively. For the six months ended June 30, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(5) million and $(4) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $6 million and $(12) million, respectively. (2) For the three and six months ended June 30, 2019, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $ 1 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 mortgage insurance businesses, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of the Real Estate Settlement and Procedures Act of 1974 or related state anti-inducement laws, and mortgage insurance policy rescissions and curtailments, and breaching fiduciary or other duties to customers, including but not limited to breach of customer information. Plaintiffs in class action and other lawsuits against us may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties. We are also subject to litigation arising out of our general business activities such as our contractual and employment relationships, post-closing obligations associated with previous dispositions and securities lawsuits. In addition, we are also subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and international regulators and other authorities. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer significant reputational harm, which could have an adverse effect on our business, financial condition or results of operations. In January 2016, Genworth Financial, 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, 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 December 2017, Genworth Financial International Holdings, LLC and Genworth Financial were named as defendants in an action captioned AXA S.A. v. Genworth Financial International Holdings, LLC et al., In September 2018, Genworth Life and Annuity Insurance Company (“GLAIC”), our indirect wholly-owned subsidiary, was named as a defendant in a putative class action lawsuit pending in the United States District Court for the Eastern District of Virginia captioned TVPX ARX INC., as Securities Intermediary for Consolidated Wealth Management, LTD. on behalf of itself and all others similarly situated v. Genworth Life and Annuity Insurance Company dismissed the case without prejudice, with leave for plaintiff to refile an amended complaint only if a final appellate court decision vacates the injunction and reverses the Middle District of Georgia’s opinion. On May 21, 2019, plaintiff filed its appeal and memorandum in support in the Eleventh Circuit. We filed our response to plaintiff’s appeal memorandum on July 3, 2019. We intend to continue to vigorously defend the dismissal of this action. In September 2018, Genworth Financial, Genworth Holdings, Genworth North America Corporation, Genworth Financial International Holdings, LLC and Genworth Life Insurance Company (“GLIC”) were named as defendants in a putative class action lawsuit pending in the Court of Chancery of the State of Delaware captioned Richard F. Burkhart, William E. Kelly, Richard S. Lavery, Thomas R. Pratt, Gerald Green, individually and on behalf of all other persons similarly situated v. Genworth et al In January 2019, Genworth Financial and GLIC were named as defendants in a putative class action lawsuit pending in the United States District Court for the Eastern District of Virginia captioned Jerome Skochin, Susan Skochin, and Larry Huber, individually and on behalf of all other persons similarly situated v. Genworth Financial, Inc. and Genworth Life Insurance Company $ million. On March 12, 2019, we moved to dismiss plaintiffs’ complaint. On March 26, 2019, plaintiffs filed a memorandum in opposition to our motion to dismiss, which we replied to on April 1, 2019. In July 2019, the court heard oral arguments on our motion to dismiss.We intend to continue to vigorously defend this action . At this time 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 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 June 30, 2019, we were committed to fund $903 million in limited partnership investments, $98 million in U.S. commercial mortgage loan investments and $90 million in private placement investments. As of June 30, 2019, we were also committed to fund $52 million of bank loan investments which had not yet been drawn. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 01, 2019 | |
Changes In Accumulated Other Comprehensive Income (Loss) | (12) Changes in Accumulated Other Comprehensive Income (Loss) 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 April 1, 2019 $ 943 $ 1,850 $ (301 ) $ 2,492 OCI before reclassifications 375 157 43 575 Amounts reclassified from (to) OCI 1 (24 ) — (23 ) Current period OCI 376 133 43 552 Balances as of June 30, 2019 before noncontrolling interests 1,319 1,983 (258 ) 3,044 Less: change in OCI attributable to noncontrolling interests 14 — 17 31 Balances as of June 30, 2019 $ 1,305 $ 1,983 $ (275 ) $ 3,013 (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 April 1, 2018 $ 917 $ 1,927 $ (217 ) $ 2,627 OCI before reclassifications (193 ) (39 ) (98 ) (330 ) Amounts reclassified from (to) OCI 6 (25 ) — (19 ) Current period OCI (187 ) (64 ) (98 ) (349 ) Balances as of June 30, 2018 before noncontrolling interests 730 1,863 (315 ) 2,278 Less: change in OCI attributable to noncontrolling interests (6 ) — (43 ) (49 ) Balances as of June 30, 2018 $ 736 $ 1,863 $ (272 ) $ 2,327 (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 (losses) (1) Derivatives hedges (2) Foreign Total Balances as of January 1, 2019 $ 595 $ 1,781 $ (332 ) $ 2,044 OCI before reclassifications 802 254 97 1,153 Amounts reclassified from (to) OCI (46 ) (52 ) — (98 ) Current period OCI 756 202 97 1,055 Balances as of June 30, 2019 before noncontrolling interests 1,351 1,983 (235 ) 3,099 Less: change in OCI attributable to noncontrolling interests 46 — 40 86 Balances as of June 30, 2019 $ 1,305 $ 1,983 $ (275 ) $ 3,013 (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, 2018 $ 1,085 $ 2,065 $ (123 ) $ 3,027 Cumulative effect of changes in accounting 164 14 (47 ) 131 OCI before reclassifications (541 ) (165 ) (185 ) (891 ) Amounts reclassified from (to) OCI 13 (51 ) — (38 ) Current period OCI (528 ) (216 ) (185 ) (929 ) Balances as of June 30, 2018 before noncontrolling interests 721 1,863 (355 ) 2,229 Less: change in OCI attributable to noncontrolling interests (15 ) — (83 ) (98 ) Balances as of June 30, 2018 $ 736 $ 1,863 $ (272 ) $ 2,327 (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 following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from accumulated Affected line item in the consolidated statements of income Three months ended June 30, Six months ended June 30, (Amounts in millions) 2019 2018 2019 2018 Net unrealized investment (gains) losses: Unrealized (gains) losses on (1) $ 2 $ 8 $ (58 ) $ 16 Net investment (gains) losses (Provision) benefit for income taxes (1 ) (2 ) 12 (3 ) Provision for income taxes Total $ 1 $ 6 $ (46 ) $ 13 Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (42 ) $ (39 ) $ (80 ) $ (74 ) Net investment income Interest rate swaps hedging assets 4 — (2 ) (5 ) Net investment (gains) losses Foreign currency swaps 1 — 1 — Net investment income Benefit for income taxes 13 14 29 28 Provision for income taxes Total $ (24 ) $ (25 ) $ (52 ) $ (51 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018, the condensed consolidating income statement information and the condensed consolidating comprehensive income statement information for the three and six months ended June 30, 2019 and 2018 and the condensed consolidating cash flow statement information for the six months ended June 30, 2019 and 2018. 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 June 30, 2019: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 63,974 $ (200 ) $ 63,774 Equity securities, at fair value — — 644 — 644 Commercial mortgage loans ($56 are restricted related to a securitization entity) — — 7,019 — 7,019 Policy loans — — 2,076 — 2,076 Other invested assets — 49 1,493 (7 ) 1,535 Investments in subsidiaries 13,938 12,439 — (26,377 ) — Total investments 13,938 12,488 75,206 (26,584 ) 75,048 Cash, cash equivalents and restricted cash — 358 1,580 — 1,938 Accrued investment income — — 630 (4 ) 626 Deferred acquisition costs — — 2,105 — 2,105 Intangible assets and goodwill — — 244 — 244 Reinsurance recoverable — — 17,211 — 17,211 Other assets 5 55 505 (1 ) 564 Intercompany notes receivable — 273 — (273 ) — Deferred tax assets (35 ) 841 (423 ) — 383 Separate account assets — — 6,187 — 6,187 Total assets $ 13,908 $ 14,015 $ 103,245 $ (26,862 ) $ 104,306 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 39,583 $ — $ 39,583 Policyholder account balances — — 22,673 — 22,673 Liability for policy and contract claims — — 10,677 — 10,677 Unearned premiums — — 3,488 — 3,488 Other liabilities — 47 1,689 (13 ) 1,723 Intercompany notes payable 151 200 122 (473 ) — Non-recourse — — 311 — 311 Long-term borrowings — 3,571 473 — 4,044 Deferred tax liability — — 28 — 28 Separate account liabilities — — 6,187 — 6,187 Total liabilities 151 3,818 85,231 (486 ) 88,714 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,983 9,094 18,428 (27,522 ) 11,983 Accumulated other comprehensive income (loss) 3,013 2,982 3,051 (6,033 ) 3,013 Retained earnings 1,460 (1,879 ) (5,603 ) 7,482 1,460 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,757 10,197 15,879 (26,076 ) 13,757 Noncontrolling interests — — 2,135 (300 ) 1,835 Total equity 13,757 10,197 18,014 (26,376 ) 15,592 Total liabilities and equity $ 13,908 $ 14,015 $ 103,245 $ (26,862 ) $ 104,306 The following table presents the condensed consolidating balance sheet information as of December 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 59,861 $ (200 ) $ 59,661 Equity securities, at fair value — — 655 — 655 Commercial mortgage loans ($62 are restricted related to a securitization entity) — — 6,749 — 6,749 Policy loans — — 1,861 — 1,861 Other invested assets — 86 1,104 (2 ) 1,188 Investments in subsidiaries 12,570 11,462 — (24,032 ) — Total investments 12,570 11,548 70,230 (24,234 ) 70,114 Cash, cash equivalents and restricted cash — 429 1,748 — 2,177 Accrued investment income — — 679 (4 ) 675 Deferred acquisition costs — — 3,263 — 3,263 Intangible assets and goodwill — — 347 — 347 Reinsurance recoverable — — 17,278 — 17,278 Other assets 15 62 397 — 474 Intercompany notes receivable — 180 6 (186 ) — Deferred tax assets 14 907 (185 ) — 736 Separate account assets — — 5,859 — 5,859 Total assets $ 12,599 $ 13,126 $ 99,622 $ (24,424 ) $ 100,923 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 37,940 $ — $ 37,940 Policyholder account balances — — 22,968 — 22,968 Liability for policy and contract claims — — 10,379 — 10,379 Unearned premiums — — 3,546 — 3,546 Other liabilities 27 97 1,565 (7 ) 1,682 Intercompany notes payable 122 207 57 (386 ) — Non-recourse — — 311 — 311 Long-term borrowings — 3,567 458 — 4,025 Deferred tax liability — — 24 — 24 Separate account liabilities — — 5,859 — 5,859 Total liabilities 149 3,871 83,107 (393 ) 86,734 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,987 9,095 18,425 (27,520 ) 11,987 Accumulated other comprehensive income (loss) 2,044 2,144 2,060 (4,204 ) 2,044 Retained earnings 1,118 (1,984 ) (6,012 ) 7,996 1,118 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,450 9,255 14,476 (23,731 ) 12,450 Noncontrolling interests — — 2,039 (300 ) 1,739 Total equity 12,450 9,255 16,515 (24,031 ) 14,189 Total liabilities and equity $ 12,599 $ 13,126 $ 99,622 $ (24,424 ) $ 100,923 The following table presents the condensed consolidating income statement information for the three months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,126 $ — $ 1,126 Net investment income — 1 854 (3 ) 852 Net investment gains (losses) — (9 ) (36 ) — (45 ) Policy fees and other income — 2 223 (2 ) 223 Total revenues — (6 ) 2,167 (5 ) 2,156 Benefits and expenses: Benefits and other changes in policy reserves — — 1,270 — 1,270 Interest credited — — 146 — 146 Acquisition and operating expenses, net of deferrals 3 — 244 — 247 Amortization of deferred acquisition costs and intangibles — — 95 — 95 Interest expense 1 65 12 (5 ) 73 Total benefits and expenses 4 65 1,767 (5 ) 1,831 Income (loss) before income taxes and equity in income of subsidiaries (4 ) (71 ) 400 — 325 Provision (benefit) for income taxes 23 (14 ) 98 — 107 Equity in income of subsidiaries 195 93 — (288 ) — Net income 168 36 302 (288 ) 218 Less: net income attributable to noncontrolling interests — — 50 — 50 Net income available to Genworth Financial, Inc.’s common stockholders $ 168 $ 36 $ 252 $ (288 ) $ 168 The following table presents the condensed consolidating income statement information for the three months ended June 30, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,136 $ — $ 1,136 Net investment income — 4 828 (4 ) 828 Net investment gains (losses) — (8 ) (6 ) — (14 ) Policy fees and other income — 1 209 (1 ) 209 Total revenues — (3 ) 2,167 (5 ) 2,159 Benefits and expenses: Benefits and other changes in policy reserves — — 1,205 — 1,205 Interest credited — — 152 — 152 Acquisition and operating expenses, net of deferrals 7 — 246 — 253 Amortization of deferred acquisition costs and intangibles — — 112 — 112 Interest expense 1 70 11 (5 ) 77 Total benefits and expenses 8 70 1,726 (5 ) 1,799 Income (loss) before income taxes and equity in income of subsidiaries (8 ) (73 ) 441 — 360 Provision (benefit) for income taxes 32 (14 ) 93 — 111 Equity in income of subsidiaries 230 151 — (381 ) — Net income 190 92 348 (381 ) 249 Less: net income attributable to noncontrolling interests — — 59 — 59 Net income available to Genworth Financial, Inc.’s common stockholders $ 190 $ 92 $ 289 $ (381 ) $ 190 The following table presents the condensed consolidating income statement information for the six months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 2,240 $ — $ 2,240 Net investment income (1 ) 4 1,685 (7 ) 1,681 Net investment gains (losses) — (12 ) 41 — 29 Policy fees and other income — 2 411 (3 ) 410 Total revenues (1 ) (6 ) 4,377 (10 ) 4,360 Benefits and expenses: Benefits and other changes in policy reserves — — 2,571 — 2,571 Interest credited — — 293 — 293 Acquisition and operating expenses, net of deferrals 7 (2 ) 493 — 498 Amortization of deferred acquisition costs and intangibles — — 186 — 186 Interest expense 3 130 22 (10 ) 145 Total benefits and expenses 10 128 3,565 (10 ) 3,693 Income (loss) before income taxes and equity in income of subsidiaries (11 ) (134 ) 812 — 667 Provision (benefit) for income taxes 44 (26 ) 201 — 219 Equity in income of subsidiaries 397 213 — (610 ) — Net income 342 105 611 (610 ) 448 Less: net income attributable to noncontrolling interests — — 106 — 106 Net income available to Genworth Financial, Inc.’s common stockholders $ 342 $ 105 $ 505 $ (610 ) $ 342 The following table presents the condensed consolidating income statement information for the six months ended June 30, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 2,276 $ — $ 2,276 Net investment income (1 ) 7 1,633 (7 ) 1,632 Net investment gains (losses) — (2 ) (43 ) — (45 ) Policy fees and other income — 1 412 (2 ) 411 Total revenues (1 ) 6 4,278 (9 ) 4,274 Benefits and expenses: Benefits and other changes in policy reserves — — 2,516 — 2,516 Interest credited — — 308 — 308 Acquisition and operating expenses, net of deferrals 14 — 479 — 493 Amortization of deferred acquisition costs and intangibles — — 216 — 216 Interest expense 1 138 23 (9 ) 153 Total benefits and expenses 15 138 3,542 (9 ) 3,686 Income (loss) before income taxes and equity in income of subsidiaries (16 ) (132 ) 736 — 588 Provision (benefit) for income taxes 38 (31 ) 167 — 174 Equity in income of subsidiaries 356 196 — (552 ) — Net income 302 95 569 (552 ) 414 Less: net income attributable to noncontrolling interests — — 112 — 112 Net income available to Genworth Financial, Inc.’s common stockholders $ 302 $ 95 $ 457 $ (552 ) $ 302 The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income $ 168 $ 36 $ 302 $ (288 ) $ 218 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 362 311 376 (673 ) 376 Derivatives qualifying as hedges 133 133 148 (281 ) 133 Foreign currency translation and other adjustments 26 17 43 (43 ) 43 Total other comprehensive income (loss) 521 461 567 (997 ) 552 Total comprehensive income 689 497 869 (1,285 ) 770 Less: comprehensive income attributable to noncontrolling interests — — 81 — 81 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 689 $ 497 $ 788 $ (1,285 ) $ 689 The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income $ 190 $ 92 $ 348 $ (381 ) $ 249 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (179 ) (167 ) (185 ) 346 (185 ) Net unrealized gains (losses) on other-than-temporarily impaired securities (2 ) (1 ) (2 ) 3 (2 ) Derivatives qualifying as hedges (64 ) (64 ) (68 ) 132 (64 ) Foreign currency translation and other adjustments (55 ) (46 ) (97 ) 100 (98 ) Total other comprehensive income (loss) (300 ) (278 ) (352 ) 581 (349 ) Total comprehensive loss (110 ) (186 ) (4 ) 200 (100 ) Less: comprehensive income attributable to noncontrolling interests — — 10 — 10 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (110 ) $ (186 ) $ (14 ) $ 200 $ (110 ) The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income $ 342 $ 105 $ 611 $ (610 ) $ 448 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than- 709 594 755 (1,303 ) 755 Net unrealized gains (losses) on other-than-temporarily 1 1 1 (2 ) 1 Derivatives qualifying as hedges 202 202 225 (427 ) 202 Foreign currency translation and other adjustments 57 41 96 (97 ) 97 Total other comprehensive income (loss) 969 838 1,077 (1,829 ) 1,055 Total comprehensive income 1,311 943 1,688 (2,439 ) 1,503 Less: comprehensive income attributable to noncontrolling interests — — 192 — 192 Total comprehensive income available to Genworth Financial, Inc.’s $ 1,311 $ 943 $ 1,496 $ (2,439 ) $ 1,311 Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income $ 302 $ 95 $ 569 $ (552 ) $ 414 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (511 ) (462 ) (526 ) 973 (526 ) Net unrealized gains (losses) on other-than-temporarily impaired securities (2 ) (1 ) (2 ) 3 (2 ) Derivatives qualifying as hedges (216 ) (217 ) (233 ) 450 (216 ) Foreign currency translation and other adjustments (102 ) (82 ) (185 ) 184 (185 ) Total other comprehensive income (loss) (831 ) (762 ) (946 ) 1,610 (929 ) Total comprehensive loss (529 ) (667 ) (377 ) 1,058 (515 ) Less: comprehensive income attributable to noncontrolling interests — — 14 — 14 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (529 ) $ (667 ) $ (391 ) $ 1,058 $ (529 ) The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 342 $ 105 $ 611 $ (610 ) $ 448 Adjustments to reconcile net income to net cash from (used by) operating activities: Equity in income from subsidiaries (397 ) (213 ) — 610 — Dividends from subsidiaries — 105 (105 ) — — Amortization of fixed maturity securities discounts and premiums — 3 (57 ) — (54 ) Net investment (gains) losses — 12 (41 ) — (29 ) Charges assessed to policyholders — — (364 ) — (364 ) Acquisition costs deferred — — (35 ) — (35 ) Amortization of deferred acquisition costs and intangibles — — 186 — 186 Deferred income taxes 49 74 11 — 134 Derivative instruments and limited partnerships — (30 ) 52 — 22 Stock-based compensation expense 10 — 2 — 12 Change in certain assets and liabilities: Accrued investment income and other assets (1 ) — (290 ) 1 (290 ) Insurance reserves — — 609 — 609 Current tax liabilities (4 ) (40 ) 71 — 27 Other liabilities, policy and contract claims and other policy-related balances (18 ) (3 ) 156 (6 ) 129 Net cash from (used by) operating activities (19 ) 13 806 (5 ) 795 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 1,929 — 1,929 Commercial mortgage loans — — 285 — 285 Restricted commercial mortgage loans related to a securitization entity — — 6 — 6 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,859 — 2,859 Purchases and originations of investments: Fixed maturity and equity securities — — (4,681 ) — (4,681 ) Commercial mortgage loans — — (561 ) — (561 ) Other invested assets, net — 29 (261 ) 5 (227 ) Policy loans, net — — 39 — 39 Intercompany notes receivable — (93 ) 6 87 — Capital contributions to subsidiaries (3 ) — 3 — — Net cash used by investing activities (3 ) (64 ) (376 ) 92 (351 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 444 — 444 Withdrawals from universal life and investment contracts — — (1,096 ) — (1,096 ) Proceeds from the issuance of long-term debt — — 77 — 77 Repayment and repurchase of long-term debt — (1 ) (77 ) — (78 ) Repurchase of subsidiary shares — — (44 ) — (44 ) Dividends paid to noncontrolling interests — — (53 ) — (53 ) Intercompany notes payable 29 (7 ) 65 (87 ) — Other, net (7 ) (12 ) 74 — 55 Net cash from (used by) financing activities 22 (20 ) (610 ) (87 ) (695 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 12 — 12 Net change in cash, cash equivalents and restricted cash — (71 ) (168 ) — (239 ) Cash, cash equivalents and restricted cash at beginning of period — 429 1,748 — 2,177 Cash, cash equivalents and restricted cash at end of period $ — $ 358 $ 1,580 $ — $ 1,938 The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 302 $ 95 $ 569 $ (552 ) $ 414 Adjustments to reconcile net income to net cash from (used by) operating activities: Equity in income from subsidiaries (356 ) (196 ) — 552 — Dividends from subsidiaries 50 91 (141 ) — — Amortization of fixed maturity securities discounts and premiums — 3 (65 ) — (62 ) Net investment losses — 2 43 — 45 Charges assessed to policyholders — — (359 ) — (359 ) Acquisition costs deferred — — (40 ) — (40 ) Amortization of deferred acquisition costs and intangibles — — 216 — 216 Deferred income taxes 42 (117 ) 158 — 83 Derivative instruments and limited partnerships — 22 (217 ) — (195 ) Stock-based compensation expense 15 — 1 — 16 Change in certain assets and liabilities: Accrued investment income and other assets (1 ) 59 (147 ) — (89 ) Insurance reserves — — 691 — 691 Current tax liabilities (27 ) 87 (97 ) — (37 ) Other liabilities, policy and contract claims and other policy-related balances (15 ) (50 ) (49 ) (8 ) (122 ) Net cash from (used by) operating activities 10 (4 ) 563 (8 ) 561 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 1,979 — 1,979 Commercial mortgage loans — — 350 — 350 Restricted commercial mortgage loans related to a securitization entity — — 16 — 16 Proceeds from sales of investments: Fixed maturity and equity securities — — 1,920 — 1,920 Purchases and originations of investments: Fixed maturity and equity securities — — (4,082 ) — (4,082 ) Commercial mortgage loans — — (489 ) — (489 ) Other invested assets, net — — 85 8 93 Policy loans, net — — 15 — 15 Intercompany notes receivable — (10 ) 58 (48 ) — Capital contributions to subsidiaries (1 ) — 1 — — Net cash used by investing activities (1 ) (10 ) (147 ) (40 ) (198 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 503 — 503 Withdrawals from universal life and investment contracts — — (1,177 ) — (1,177 ) Proceeds from the issuance of long-term debt — 441 — — 441 Repayment and repurchase of long-term debt — (597 ) — — (597 ) Repayment of borrowings related to a securitization entity — — (12 ) — (12 ) Repurchase of subsidiary shares — — (49 ) — (49 ) Dividends paid to noncontrolling interests — — (50 ) — (50 ) Intercompany notes payable (7 ) (59 ) 18 48 — Other, net (2 ) (19 ) 19 — (2 ) Net cash used by financing activities (9 ) (234 ) (748 ) 48 (943 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (52 ) — (52 ) Net change in cash, cash equivalents and restricted cash — (248 ) (384 ) — (632 ) 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 $ — $ 547 $ 1,696 $ — $ 2,243 |
Accounting Changes (Policies)
Accounting Changes (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosue of Accounting Changes [Abstract] | |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted On January 1, 2019, we adopted new accounting guidance related to benchmark interest rates used in derivative hedge accounting. The guidance adds an additional permissible U.S. benchmark interest rate, the Secured Overnight Financing Rate, for hedge accounting purposes. We adopted this new accounting guidance using the prospective method, which did not have any impact on our condensed consolidated financial statements and disclosures. On January 1, 2019, we adopted new accounting guidance related to accounting for nonemployee share-based payments. The guidance aligns the measurement and classification of share-based payments to nonemployees issued in exchange for goods or services with the guidance for share-based payments to employees, with certain exceptions. We adopted this new accounting guidance using the modified retrospective method. This guidance is consistent with our previous accounting practices and, accordingly, had no impact on our condensed consolidated financial statements at adoption. On January 1, 2019, we adopted new accounting guidance related to 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. We adopted this new accounting guidance using the modified retrospective method, which did not have a significant impact on our condensed consolidated financial statements at adoption. On January 1, 2019, we adopted new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-of-use right-of-use de-recognized right-of-use right-of-use Our leased assets are predominantly classified as operating leases and consist of office space in 15 locations primarily in the United States, Canada and Australia. Lease payments included in the calculation of our lease liability include fixed amounts contained within each rental agreement and variable lease payments that are based upon an index or rate. We have elected to combine lease and non-lease non-lease Our aggregate annual rental expense for all leases under the previous guidance was approximately $11 million. Annual rental expense and future minimum lease payments are not expected to be materially different under this new accounting guidance. |
Accounting Pronouncements Not Yet Adopted | In August 2018, the Financial Accounting Standards Board (“the FASB”) issued new accounting guidance that significantly changes the recognition and measurement of long-duration insurance contracts and expands disclosure requirements, which impacts our life insurance deferred acquisition costs (“DAC”) and liabilities. In accordance with the guidance, the more significant changes include: • assumptions will no longer be locked-in • changes in cash flow assumptions (except the discount rate) will be recorded in net income (loss) using a retrospective approach with a cumulative catch-up • the discount rate used to determine the liability for future policy benefits will be a current upper-medium grade (low credit risk) fixed-income instrument yield, which is generally interpreted to mean a single-A • the provision for adverse deviation and the premium deficiency test will be eliminated; • market risk benefits associated with deposit-type contracts will be measured at fair value with changes recorded in net income (loss); • the amortization method for DAC will generally be on a straight-line basis over the expected contract term; and • disclosures will be greatly expanded to include significant assumptions and product liability rollforwards. The guidance is currently effective for us on January 1, 2021 using the modified retrospective method, with early adoption permitted. We are in process of evaluating the new guidance and the impact it will have on our condensed consolidated financial statements. In August 2018, the FASB issued new accounting guidance related to disclosure requirements for defined benefit plans as part of its disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for defined benefit pension and other postretirement benefit plans. The guidance is currently effective for us on January 1, 2020 using the retrospective method, with early adoption permitted. We do not expect any significant impact from this guidance on our condensed consolidated financial statements and disclosures. In August 2018, the FASB issued new accounting guidance related to fair value disclosure requirements as part of its disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for fair value measurements. The guidance includes new disclosure requirements related to the change in unrealized gains and losses included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is currently effective for us on January 1, 2020 using the prospective method for certain disclosures and the retrospective method for all other disclosures. Early adoption of either the entire standard or only the provisions that eliminate or modify the requirements is permitted. While we are still evaluating the full impact, at this time we do not expect a significant impact from this guidance on our condensed consolidated financial statements and we are in process of evaluating the impact to our disclosures. In June 2016, the FASB issued new accounting 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 recoverables. The new guidance retains most of the existing impairment guidance for available-for-sale debt securities but amends the presentation of credit losses to be presented as an allowance as opposed to a write-down and permits the reversal of credit losses when reassessing changes in the credit losses each reporting period. The FASB also issued an amendment to the guidance allowing entities to irrevocably elect the fair value option on an instrument-by-instrument basis for eligible instruments, which we are in the process of evaluating for certain portfolios. The new guidance is currently effective for us on January 1, 2020, with early adoption permitted beginning January 1, 2019. Upon adoption, the modified retrospective method will be used and a cumulative effect adjustment will be recorded to retained earnings. We have performed a gap analysis, developed a detailed implementation plan, identified model inputs and are in process of establishing policies, systems and controls that will be necessary to implement this new accounting guidance. While we are still in process of evaluating the impact the guidance may have on our condensed consolidated financial statements, the extent of the impact may vary and will depend on, among other things, |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 ended Six months ended June 30, June 30, (Amounts in millions, except per share amounts) 2019 2018 2019 2018 Weighted-average shares used in basic earnings per share calculations 503.4 500.6 502.3 500.1 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 5.3 2.0 6.4 2.5 Weighted-average shares used in diluted earnings per share calculations 508.7 502.6 508.7 502.6 Net income: Net income $ 218 $ 249 $ 448 $ 414 Less: net income attributable to noncontrolling interests 50 59 106 112 Net income available to Genworth Financial, Inc.’s common stockholders $ 168 $ 190 $ 342 $ 302 Basic earnings per share: Net income $ 0.44 $ 0.50 $ 0.89 $ 0.83 Less: net income attributable to noncontrolling interests 0.10 0.12 0.21 0.22 Net income available to Genworth Financial, Inc.’s common stockholders (1) $ 0.33 $ 0.38 $ 0.68 $ 0.60 Diluted earnings per share: Net income $ 0.43 $ 0.50 $ 0.88 $ 0.82 Less: net income attributable to noncontrolling interests 0.10 0.12 0.21 0.22 Net income available to Genworth Financial, Inc.’s common stockholders $ 0.33 $ 0.38 $ 0.67 $ 0.60 (1) May not total due to whole number calculation. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Investment Income | Sources of net investment income were as follows for the periods indicated: Three months ended Six months ended (Amounts in millions) 2019 2018 2019 2018 Fixed maturity securities—taxable $ 665 $ 651 $ 1,308 $ 1,286 Fixed maturity securities—non-taxable 2 3 4 6 Equity securities 10 10 19 20 Commercial mortgage loans 84 77 165 159 Restricted commercial mortgage loans related to a securitization entity 1 2 2 4 Policy loans 45 41 91 84 Other invested assets 59 53 118 92 Cash, cash equivalents, restricted cash and short-term investments 11 14 23 26 Gross investment income before expenses and fees 877 851 1,730 1,677 Expenses and fees (25 ) (23 ) (49 ) (45 ) Net investment income $ 852 $ 828 $ 1,681 $ 1,632 |
Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Six months ended (Amounts in millions) 2019 2018 2019 2018 Available-for-sale Realized gains $ 5 $ 13 $ 86 $ 20 Realized losses (6 ) (21 ) (28 ) (37 ) Net realized gains (losses) on available-for-sale (1 ) (8 ) 58 (17 ) Impairments: Total other-than-temporary impairments — — — — Portion of other-than-temporary impairments included inother comprehensive income (loss) — — — — Net other-than-temporary impairments — — — — Net realized gains (losses) on equity securities sold — 8 3 10 Net unrealized gains (losses) on equity securities still held (12 ) 3 (4 ) (15 ) Limited partnerships (11 ) (2 ) 4 5 Commercial mortgage loans 1 — — — Derivative instruments (1) (22 ) (15 ) (32 ) (28 ) Net investment gains (losses) $ (45 ) $ (14 ) $ 29 $ (45 ) (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 (Loss) | 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 periods indicated: As of or for the As of or for the (Amounts in millions) 2019 2018 2019 2018 Beginning balance $ 23 $ 28 $ 24 $ 32 Reductions: Securities sold, paid down or disposed — (3 ) (1 ) (7 ) Ending balance $ 23 $ 25 $ 23 $ 25 |
Unrealized Investment Gains and Losses | Net unrealized gains and losses on available-for-sale (Amounts in millions) June 30, 2019 December 31, 2018 Net unrealized gains (losses) on fixed maturity securities (1) $ 5,673 $ 1,775 Adjustments to deferred acquisition costs, present value of future profits, salesinducements and benefit reserves (3,879 ) (952 ) Income taxes, net (405 ) (190 ) Net unrealized investment gains (losses) 1,389 633 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 84 38 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,305 $ 595 (1) Excludes foreign exchange. |
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 As of or for the (Amounts in millions) 2019 2018 Beginning balance $ 943 $ 917 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on fixed maturity securities 1,957 (905 ) Adjustment to deferred acquisition costs (52 ) 467 Adjustment to present value of future profits (2 ) 20 Adjustment to sales inducements (12 ) 9 Adjustment to benefit reserves (1,412 ) 162 Provision for income taxes (104 ) 54 Change in unrealized gains (losses) on investment securities 375 (193 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $(1) and $(2) 1 6 Change in net unrealized investment gains (losses) 376 (187 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests 14 (6 ) Ending balance $ 1,305 $ 736 As of or for the six months ended (Amounts in millions) 2019 2018 Beginning balance $ 595 $ 1,085 Cumulative effect of changes in accounting: Stranded tax effects — 189 Recognition and measurement of financial assets and liabilities, net of taxes of $— and $18 — (25 ) Total cumulative effect of changes in accounting — 164 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on fixed maturity securities 3,956 (2,586 ) Adjustment to deferred acquisition costs (1,041 ) 909 Adjustment to present value of future profits (55 ) 56 Adjustment to sales inducements (31 ) 29 Adjustment to benefit reserves (1,800 ) 902 Provision for income taxes (227 ) 149 Change in unrealized gains (losses) on investment securities 802 (541 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $12 and $(3) (46 ) 13 Change in net unrealized investment gains (losses) 756 (528 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests 46 (15 ) Ending balance $ 1,305 $ 736 |
Fixed Maturity and Equity Securities | As of June 30, 2019, 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 Fixed maturity securities: U.S. government, agencies and government- sponsored enterprises $ 4,151 $ 837 $ — $ (1 ) $ — $ 4,987 State and political subdivisions 2,319 317 — — — 2,636 Non-U.S. 2,496 155 — (2 ) — 2,649 U.S. corporate: Utilities 4,327 565 — (13 ) — 4,879 Energy 2,468 255 — (10 ) — 2,713 Finance and insurance 6,974 633 — (10 ) — 7,597 Consumer—non-cyclical 4,954 616 — (18 ) — 5,552 Technology and communications 2,893 269 — (6 ) — 3,156 Industrial 1,242 98 — (4 ) — 1,336 Capital goods 2,323 303 — (6 ) — 2,620 Consumer—cyclical 1,619 127 — (5 ) — 1,741 Transportation 1,263 152 — (4 ) — 1,411 Other 356 40 — — — 396 Total U.S. corporate 28,419 3,058 — (76 ) — 31,401 Non-U.S. Utilities 1,114 54 — (3 ) — 1,165 Energy 1,349 168 — (1 ) — 1,516 Finance and insurance 2,438 191 — (1 ) — 2,628 Consumer—non-cyclical 674 40 — (4 ) — 710 Technology and communications 1,179 94 — — — 1,273 Industrial 936 81 — — — 1,017 Capital goods 663 33 — (1 ) — 695 Consumer—cyclical 542 16 — (1 ) — 557 Transportation 761 82 — (2 ) — 841 Other 2,061 186 — (2 ) — 2,245 Total non-U.S. 11,717 945 — (15 ) — 12,647 Residential mortgage-backed 2,511 215 14 (2 ) — 2,738 Commercial mortgage-backed 2,882 121 — (14 ) — 2,989 Other asset-backed 3,699 38 — (10 ) — 3,727 Total available-for-sale $ 58,194 $ 5,686 $ 14 $ (120 ) $ — $ 63,774 As of December 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- temporarily impaired Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,175 $ 473 $ — $ (17 ) $ — $ 4,631 State and political subdivisions 2,406 168 — (22 ) — 2,552 Non-U.S. 2,345 72 — (24 ) — 2,393 U.S. corporate: Utilities 4,439 331 — (95 ) — 4,675 Energy 2,382 101 — (64 ) — 2,419 Finance and insurance 6,705 249 — (132 ) — 6,822 Consumer—non-cyclical 4,891 294 — (137 ) — 5,048 Technology and communications 2,823 110 — (78 ) — 2,855 Industrial 1,230 41 — (33 ) — 1,238 Capital goods 2,277 165 — (51 ) — 2,391 Consumer—cyclical 1,592 53 — (48 ) — 1,597 Transportation 1,283 78 — (41 ) — 1,320 Other 376 24 — (3 ) — 397 Total U.S. corporate 27,998 1,446 — (682 ) — 28,762 Non-U.S. Utilities 1,056 17 — (32 ) — 1,041 Energy 1,320 72 — (23 ) — 1,369 Finance and insurance 2,391 72 — (40 ) — 2,423 Consumer—non-cyclical 756 8 — (25 ) — 739 Technology and communications 1,168 23 — (26 ) — 1,165 Industrial 926 36 — (17 ) — 945 Capital goods 615 10 — (10 ) — 615 Consumer—cyclical 532 1 — (13 ) — 520 Transportation 689 46 — (15 ) — 720 Other 2,218 105 — (23 ) — 2,300 Total non-U.S. 11,671 390 — (224 ) — 11,837 Residential mortgage-backed 2,888 160 13 (17 ) — 3,044 Commercial mortgage-backed 3,054 43 — (81 ) — 3,016 Other asset-backed 3,444 10 1 (29 ) — 3,426 Total available-for-sale $ 57,981 $ 2,762 $ 14 $ (1,096 ) $ — $ 59,661 |
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 June 30, 2019: 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, agenciesand government-sponsored enterprises $ — $ — — $ 51 $ (1 ) 9 $ 51 $ (1 ) 9 Non-U.S. government — — — 198 (2 ) 14 198 (2 ) 14 U.S. corporate 372 (15 ) 33 1,907 (61 ) 256 2,279 (76 ) 289 Non-U.S. 34 (2 ) 5 526 (13 ) 82 560 (15 ) 87 Residential mortgage-backed — — — 166 (2 ) 39 166 (2 ) 39 Commercial mortgage-backed — — — 399 (14 ) 53 399 (14 ) 53 Other asset-backed 832 (5 ) 160 425 (5 ) 101 1,257 (10 ) 261 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 % Below cost: <20% Below cost $ 1,238 $ (22 ) 198 $ 3,647 $ (88 ) 549 $ 4,885 $ (110 ) 747 20%-50% — — — 22 (7 ) 3 22 (7 ) 3 >50% Below cost — — — 3 (3 ) 2 3 (3 ) 2 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 Investment grade $ 1,096 $ (11 ) 185 $ 3,463 $ (83 ) 524 $ 4,559 $ (94 ) 709 Below investment grade 142 (11 ) 13 209 (15 ) 30 351 (26 ) 43 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 |
Maturity Distribution of Fixed Maturity Securities | The scheduled maturity distribution of fixed maturity securities as of June 30, 2019 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. Amortized cost or Fair (Amounts in millions) cost value Due one year or less $ 1,957 $ 1,973 Due after one year through five years 11,198 11,602 Due after five years through ten years 12,300 13,197 Due after ten years 23,647 27,548 Subtotal 49,102 54,320 Residential mortgage-backed 2,511 2,738 Commercial mortgage-backed 2,882 2,989 Other asset-backed 3,699 3,727 Total $ 58,194 $ 63,774 |
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: June 30, 2019 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due Current Total Property type: Retail $ — $ — $ — $ — $ 2,581 $ 2,581 Industrial — — — — 1,699 1,699 Office — — — — 1,656 1,656 Apartments — — — — 525 525 Mixed use — — — — 247 247 Other — — — — 270 270 Total recorded investment $ — $ — $ — $ — $ 6,978 $ 6,978 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2018 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due Current Total Property type: Retail $ 3 $ — $ — $ 3 $ 2,460 $ 2,463 Industrial — — — — 1,659 1,659 Office — — 3 3 1,545 1,548 Apartments — — — — 495 495 Mixed use — — — — 254 254 Other — — — — 281 281 Total recorded investment $ 3 $ — $ 3 $ 6 $ 6,694 $ 6,700 % 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 Six months ended June 30, June 30, (Amounts in millions) 2019 2018 2019 2018 Allowance for credit losses: Beginning balance $ 10 $ 9 $ 9 $ 9 Charge-offs — — — — Recoveries — — — — Provision 1 — 2 — Ending balance $ 11 $ 9 $ 11 $ 9 Ending allowance for individually impaired loans $ — $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 11 $ 9 $ 11 $ 9 Recorded investment: Ending balance $ 6,978 $ 6,492 $ 6,978 $ 6,492 Ending balance of individually impaired loans $ — $ 6 $ — $ 6 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,978 $ 6,486 $ 6,978 $ 6,486 |
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 June 30, 2019: 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, agenciesand government-sponsored enterprises $ — $ — — $ 51 $ (1 ) 9 $ 51 $ (1 ) 9 Non-U.S. government — — — 198 (2 ) 14 198 (2 ) 14 U.S. corporate 372 (15 ) 33 1,907 (61 ) 256 2,279 (76 ) 289 Non-U.S. 34 (2 ) 5 526 (13 ) 82 560 (15 ) 87 Residential mortgage-backed — — — 166 (2 ) 39 166 (2 ) 39 Commercial mortgage-backed — — — 399 (14 ) 53 399 (14 ) 53 Other asset-backed 832 (5 ) 160 425 (5 ) 101 1,257 (10 ) 261 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 % Below cost: <20% Below cost $ 1,238 $ (22 ) 198 $ 3,647 $ (88 ) 549 $ 4,885 $ (110 ) 747 20%-50% — — — 22 (7 ) 3 22 (7 ) 3 >50% Below cost — — — 3 (3 ) 2 3 (3 ) 2 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 Investment grade $ 1,096 $ (11 ) 185 $ 3,463 $ (83 ) 524 $ 4,559 $ (94 ) 709 Below investment grade 142 (11 ) 13 209 (15 ) 30 351 (26 ) 43 Total for fixed maturity securities inan unrealized loss position $ 1,238 $ (22 ) 198 $ 3,672 $ (98 ) 554 $ 4,910 $ (120 ) 752 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 June 30, 2019: 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 $ 46 $ (4 ) 4 $ 326 $ (9 ) 50 $ 372 $ (13 ) 54 Energy 60 (2 ) 11 143 (8 ) 17 203 (10 ) 28 Finance and insurance — — — 343 (10 ) 46 343 (10 ) 46 Consumer—non-cyclical 93 (7 ) 12 383 (11 ) 49 476 (18 ) 61 Technology andcommunications 173 (2 ) 6 198 (4 ) 22 371 (6 ) 28 Industrial — — — 94 (4 ) 14 94 (4 ) 14 Capital goods — — — 128 (6 ) 18 128 (6 ) 18 Consumer—cyclical — — — 175 (5 ) 24 175 (5 ) 24 Transportation — — — 117 (4 ) 16 117 (4 ) 16 Subtotal, U.S. corporate 372 (15 ) 33 1,907 (61 ) 256 2,279 (76 ) 289 Non-U.S. Utilities 21 (1 ) 3 103 (2 ) 13 124 (3 ) 16 Energy 13 (1 ) 2 — — — 13 (1 ) 2 Finance and insurance — — — 113 (1 ) 23 113 (1 ) 23 Consumer—non-cyclical — — — 72 (4 ) 10 72 (4 ) 10 Capital goods — — — 44 (1 ) 5 44 (1 ) 5 Consumer—cyclical — — — 64 (1 ) 10 64 (1 ) 10 Transportation — — — 51 (2 ) 8 51 (2 ) 8 Other — — — 79 (2 ) 13 79 (2 ) 13 Subtotal, non-U.S. 34 (2 ) 5 526 (13 ) 82 560 (15 ) 87 Total for corporate securities in anunrealized loss position $ 406 $ (17 ) 38 $ 2,433 $ (74 ) 338 $ 2,839 $ (91 ) 376 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 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 December 31, 2018: Less than 12 months 12 months or more Total Gross Number Gross Number Gross Number Fair unrealized of Fair unrealized of Fair unrealized of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities Fixed maturity securities: U.S. government, agenciesand government-sponsored $ 545 $ (8 ) 17 $ 161 $ (9 ) 26 $ 706 $ (17 ) 43 State and political subdivisions 371 (10 ) 63 233 (12 ) 57 604 (22 ) 120 Non-U.S. 261 (7 ) 51 508 (17 ) 35 769 (24 ) 86 U.S. corporate 9,975 (472 ) 1,342 2,449 (210 ) 365 12,424 (682 ) 1,707 Non-U.S. 4,172 (150 ) 614 1,274 (74 ) 209 5,446 (224 ) 823 Residential mortgage-backed 363 (6 ) 57 579 (11 ) 96 942 (17 ) 153 Commercial mortgage-backed 758 (19 ) 115 870 (62 ) 130 1,628 (81 ) 245 Other asset-backed 1,597 (23 ) 326 604 (6 ) 137 2,201 (29 ) 463 Total for fixed maturity securities in $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 % Below cost: <20% Below cost $ 18,008 $ (685 ) 2,581 $ 6,624 $ (383 ) 1,045 $ 24,632 $ (1,068 ) 3,626 20%-50% 34 (10 ) 4 54 (18 ) 10 88 (28 ) 14 Total for fixed maturity securities in $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 Investment grade $ 16,726 $ (615 ) 2,393 $ 6,508 $ (379 ) 1,024 $ 23,234 $ (994 ) 3,417 Below investment grade 1,316 (80 ) 192 170 (22 ) 31 1,486 (102 ) 223 Total for fixed maturity securities in $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 |
Loan To Value Ratio | |
Commercial Mortgage Loans by Property Type | The following tables set forth the loan-to-value June 30, 2019 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater than 100% (1) Total Property type: Retail $ 882 $ 534 $ 1,152 $ 13 $ — $ 2,581 Industrial 732 284 674 7 2 1,699 Office 587 378 691 — — 1,656 Apartments 200 97 223 5 — 525 Mixed use 102 43 102 — — 247 Other 47 63 160 — — 270 Total recorded investment $ 2,550 $ 1,399 $ 3,002 $ 25 $ 2 $ 6,978 % of total 37 % 20 % 43 % — % — % 100 % Weighted-average debt service coverage ratio 2.39 1.84 1.57 1.34 0.88 1.92 (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 December 31, 2018 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater than 100% (1) Total Property type: Retail $ 866 $ 565 $ 1,017 $ 15 $ — $ 2,463 Industrial 749 279 615 14 2 1,659 Office 585 373 588 2 — 1,548 Apartments 206 95 189 5 — 495 Mixed use 105 36 113 — — 254 Other 43 78 160 — — 281 Total recorded investment $ 2,554 $ 1,426 $ 2,682 $ 36 $ 2 $ 6,700 % of total 38 % 21 % 40 % 1 % — % 100 % Weighted-average debt service coverage ratio 2.42 2.04 1.59 1.38 0.88 2.00 (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 |
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: June 30, 2019 (Amounts in millions) Less than 1.00 1.00 - 1.26 - 1.51 - Greater than 2.00 Total Property type: Retail $ 33 $ 147 $ 604 $ 1,238 $ 559 $ 2,581 Industrial 22 68 254 711 644 1,699 Office 51 47 213 833 512 1,656 Apartments 4 24 107 196 194 525 Mixed use 3 18 52 79 95 247 Other 12 132 52 40 34 270 Total recorded investment $ 125 $ 436 $ 1,282 $ 3,097 $ 2,038 $ 6,978 % of total 2 % 6 % 18 % 45 % 29 % 100 % Weighted-average loan-to-value 55 % 61 % 64 % 59 % 42 % 55 % December 31, 2018 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater than 2.00 Total Property type: Retail $ 43 $ 157 $ 448 $ 1,234 $ 581 $ 2,463 Industrial 22 75 233 653 676 1,659 Office 57 56 156 765 514 1,548 Apartments 4 24 104 168 195 495 Mixed use 3 19 51 80 101 254 Other 13 134 50 50 34 281 Total recorded investment $ 142 $ 465 $ 1,042 $ 2,950 $ 2,101 $ 6,700 % of total 2 % 7 % 16 % 44 % 31 % 100 % Weighted-average loan-to-value 57 % 61 % 62 % 59 % 42 % 54 % |
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: June 30, 2019 December 31, 2018 Carrying % of Carrying % of (Amounts in millions) value total value total Property type: Retail $ 2,581 37 % $ 2,463 37 % Industrial 1,699 24 1,659 25 Office 1,656 24 1,548 23 Apartments 525 7 495 7 Mixed use 247 4 254 4 Other 270 4 281 4 Subtotal 6,978 100 % 6,700 100 % Unamortized balance of loan origination fees and costs (4 ) (4 ) Allowance for credit losses (11 ) (9 ) Total $ 6,963 $ 6,687 June 30, 2019 December 31, 2018 Carrying % of Carrying % of (Amounts in millions) value total value total Geographic region: South Atlantic $ 1,747 25 % $ 1,709 26 % Pacific 1,701 24 1,684 25 Middle Atlantic 1,000 14 950 14 Mountain 717 10 667 10 West North Central 490 7 470 7 East North Central 457 7 405 6 West South Central 387 6 364 6 New England 261 4 228 3 East South Central 218 3 223 3 Subtotal 6,978 100 % 6,700 100 % Unamortized balance of loan origination fees and costs (4 ) (4 ) Allowance for credit losses (11 ) (9 ) Total $ 6,963 $ 6,687 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 classification June 30, 2019 December 31, 2018 Balance sheet classification June 30, 2019 December 31, 2018 Derivatives designated as Cash flow hedges: Interest rate swaps Other invested assets $ 144 $ 42 Other liabilities $ 10 $ 102 Foreign currency swaps Other invested assets 5 6 Other liabilities 1 — Total cash flow hedges 149 48 11 102 Total derivatives 149 48 11 102 Derivatives not designated as Interest rate swaps in aforeign currency Other invested assets 35 74 Other liabilities — — Interest rate caps and floors Other invested assets 16 7 Other liabilities — — Foreign currency swaps Other invested assets 1 — Other liabilities 7 23 Equity index options Other invested assets 65 39 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets — — Other liabilities — 1 Other foreign currency Other invested assets 14 10 Other liabilities 25 42 GMWB embeddedderivatives Reinsurance recoverable (1) 20 20 Policyholder (2) 325 337 Fixed index annuity embedded Other assets — — Policyholder (3) 438 389 Indexed universal lifeembedded Reinsurance — — Policyholder (4) 15 12 Total derivatives not 151 150 810 804 Total derivatives $ 300 $ 198 $ 821 $ 906 (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, 201 8 Additions Maturities/ terminations June 30, 2019 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 9,924 $ 469 $ ( 1,338 ) $ 9,055 Foreign currency swaps Notional 80 52 (22 ) 110 Total cash flow hedges 10,004 521 (1,360 ) 9,165 Total derivatives designated as hedges 10,004 521 (1,360 ) 9,165 Derivatives not designated as hedges Interest rate swaps Notional 4,674 — — 4,674 Interest rate swaps in a foreign currency Notional 2,565 187 (77 ) 2,675 Interest rate caps and floors Notional 2,624 160 (66 ) 2,718 Foreign currency swaps Notional 453 — (2 ) 451 Equity index options Notional 2,628 939 (1,035 ) 2,532 Financial futures Notional 1,415 3,029 (3,217 ) 1,227 Equity return swaps Notional 17 2 (2 ) 17 Other foreign currency contracts Notional 1,080 2,925 (2,704 ) 1,301 Total derivatives not designated as hedges 15,456 7,242 (7,103 ) 15,595 Total derivatives $ 25,460 $ 7,763 $ ( 8,463 ) $ 24,760 (Number of policies) Measurement December 31, 2018 Additions Maturities/ terminations June 30, 2019 Derivatives not designated as hedges GMWB embedded derivatives Policies 27,886 — (1,139 ) 26,747 Fixed index annuity embedded derivatives Policies 16,464 — (410 ) 16,054 Indexed universal life embedded derivatives Policies 929 — (21 ) 908 |
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges | The following table provides information about the pre-tax Gain (loss) reclassified into Classification of gain (loss) Gain (loss) Classification of gain (loss) Gain (loss) net income reclassified into recognized in recognized in net (Amounts in millions) recognized in OCI from OCI net income net income income Interest rate swaps hedging $ 216 $ 42 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging — (4 ) Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging (20 ) — Interest expense — Net investment gains (losses) Foreign currency swaps 2 (1 ) Net investment income — Net investment gains (losses) Total $ 198 $ 37 $ — The following table provides information about the pre-tax Gain (loss) reclassified into Classification of gain (loss) Gain (loss) Classification of gain (loss) Gain (loss) net income reclassified into recognized in recognized in net (Amounts in millions) recognized in OCI from OCI net income net income income Interest rate swaps hedging $ (54 ) $ 39 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging 5 — Interest expense — Net investment gains (losses) Foreign currency swaps 1 — Net investment income — Net investment gains (losses) Total $ (48 ) $ 39 $ — |
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedge | The following tables provide 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 ended (Amounts in millions) 2019 2018 Derivatives qualifying as effective accounting hedges as of April 1 $ 1,850 $ 1,927 Current period increases (decreases) in fair value, net of deferred taxes of $(41) and $9 157 (39 ) Reclassification to net (income), net of deferred taxes of $13 and $14 (24 ) (25 ) Derivatives qualifying as effective accounting hedges as of June 30 $ 1,983 $ 1,863 |
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (loss) for Effects of Derivatives Not Designated as Hedges | The following tables provide the pre-tax Three months ended June 30, Classification of gain (loss) recognized (Amounts in millions) 2019 2018 in net income Interest rate swaps $ (3 ) $ (2 ) Net investment gains (losses) Interest rate swaps in a foreign currency (6 ) — Net investment gains (losses) Interest rate caps and floors 3 — Net investment gains (losses) Foreign currency swaps 6 (10 ) Net investment gains (losses) Equity index options 10 8 Net investment gains (losses) Financial futures 17 (13 ) Net investment gains (losses) Equity return swaps 1 1 Net investment gains (losses) Other foreign currency contracts (3 ) 1 Net investment gains (losses) GMWB embedded derivatives (22 ) 13 Net investment gains (losses) Fixed index annuity embedded derivatives (20 ) (15 ) Net investment gains (losses) Indexed universal life embedded derivatives (1 ) 2 Net investment gains (losses) Total derivatives not designated as hedges $ (18 ) $ (15 ) Six months ended June 30, Classification of gain (loss) recognized (Amounts in millions) 2019 2018 in net income Interest rate swaps $ (4 ) $ (3 ) Net investment gains (losses) Interest rate swaps in a foreign currency (29 ) — Net investment gains (losses) Interest rate caps and floors 9 — Net investment gains (losses) Foreign currency swaps 16 (18 ) Net investment gains (losses) Equity index options 27 (7 ) Net investment gains (losses) Financial futures (27 ) (37 ) Net investment gains (losses) Equity return swaps 1 (4 ) Net investment gains (losses) Other foreign currency contracts 6 9 Net investment gains (losses) GMWB embedded derivatives 23 27 Net investment gains (losses) Fixed index annuity embedded derivatives (58 ) (7 ) Net investment gains (losses) Indexed universal life embedded derivatives — 7 Net investment gains (losses) Total derivatives not designated as hedges $ (36 ) $ (33 ) |
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: June 30, 2019 December 31, 2018 (Amounts in millions) Derivatives assets (1) Derivatives liabilities (2) Net derivatives Derivatives (1) Derivatives liabilities (2) Net derivatives Amounts presented in the balance sheet: Gross amounts recognized $ 287 $ 44 $ 243 $ 185 $ 169 $ 16 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 287 44 243 185 169 16 Gross amounts not offset in the balance sheet: Financial instruments (3) (35 ) (35 ) — (66 ) (66 ) — Collateral received (77 ) — (77 ) (84 ) — (84 ) Collateral pledged — (327 ) 327 — (536 ) 536 Over collateralization — 318 (318 ) 10 433 (423 ) Net amount $ 175 $ — $ 175 $ 45 $ — $ 45 (1) Included $7 million and $6 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2019 and December 31, 2018, respectively. (2) Included $1 million of accruals on derivatives included in other liabilities as of June 30, 2019 and does not include amounts related to embedded derivatives as of June 30, 2019 and December 31, 2018. (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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 Notional Carrying Fair value (Amounts in millions) amount amount Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans (1 ) $ 6,963 $ 7,241 $ — $ — $ 7,241 Restricted commercial mortgage loans ( 1 ) 56 61 — — 61 Other invested assets: Bank loan investments ( 1 ) 337 336 — — 336 Liabilities: Long-term borrowings ( 1 ) 4,044 3,622 — 3,480 142 Non-recourse ( 1 ) 311 215 — — 215 Investment contracts ( 1 ) 12,364 13,194 — — 13,194 Other firm commitments: Commitments to fund limited partnerships 903 — — — — — Commitments to fund bank loan investments 52 — — — — — Ordinary course of business lending 188 — — — — — December 31, 2018 Notional Carrying Fair value (Amounts in millions) amount amount Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans (1) $ 6,687 $ 6,737 $ — $ — $ 6,737 Restricted commercial mortgage loans (1) 62 66 — — 66 Other invested assets: Bank loan investments (1) 248 248 — — 248 Liabilities: Long-term borrowings (1) 4,025 3,577 — 3,434 143 Non-recourse (1) 311 215 — — 215 Investment contracts (1) 13,105 13,052 — — 13,052 Other firm commitments: Commitments to fund limited partnerships 539 — — — — — Commitments to fund bank loan investments 33 — — — — — Ordinary course of business lending 73 — — — — — (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 June 30, 2019: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 4,987 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 $ 2,575 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. government $ 2,634 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources U.S. corporate $ 28,118 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. corporate $ 10,417 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources Residential mortgage-backed $ 2,697 OAS-based models,single factor binomial models, internally priced Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Commercial mortgage-backed $ 2,897 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 $ 3,492 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers 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 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: June 30, 2019 (Amounts in millions) Total Level 1 Level 2 Level 3 NAV (1) Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored $ 4,987 $ — $ 4,987 $ — $ — State and political subdivisions 2,636 — 2,575 61 — Non-U.S. 2,649 — 2,649 — — U.S. corporate: Utilities 4,879 — 4,090 789 — Energy 2,713 — 2,591 122 — Finance and insurance 7,597 — 6,990 607 — Consumer—non-cyclical 5,552 — 5,463 89 — Technology and communications 3,156 — 3,112 44 — Industrial 1,336 — 1,296 40 — Capital goods 2,620 — 2,522 98 — Consumer—cyclical 1,741 — 1,556 185 — Transportation 1,411 — 1,357 54 — Other 396 — 197 199 — Total U.S. corporate 31,401 — 29,174 2,227 — Non-U.S. Utilities 1,165 — 748 417 — Energy 1,516 — 1,275 241 — Finance and insurance 2,628 — 2,449 179 — Consumer—non-cyclical 710 — 642 68 — Technology and communications 1,273 — 1,246 27 — Industrial 1,017 — 953 64 — Capital goods 695 — 514 181 — Consumer—cyclical 557 — 431 126 — Transportation 841 — 642 199 — Other 2,245 — 2,116 129 — Total non-U.S. 12,647 — 11,016 1,631 — Residential mortgage-backed 2,738 — 2,697 41 — Commercial mortgage-backed 2,989 — 2,897 92 — Other asset-backed 3,727 — 3,492 235 — Total fixed maturity securities 63,774 — 59,487 4,287 — Equity securities 644 519 69 56 — Other invested assets: Derivative assets: Interest rate swaps 144 — 144 — — Interest rate swaps in a foreign currency 35 — 35 — — Interest rate caps and floors 16 — 16 — — Foreign currency swaps 6 — 6 — — Equity index options 65 — — 65 — Other foreign currency contracts 14 — 14 — — Total derivative assets 280 — 215 65 — Securities lending collateral 113 — 113 — — Short-term investments 273 — 273 — — Limited partnerships 401 — — — 401 Total other invested assets 1,067 — 601 65 401 Reinsurance recoverable (2) 20 — — 20 — Separate account assets 6,187 6,187 — — — Total assets $ 71,692 $ 6,706 $ 60,157 $ 4,428 $ 401 (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. 46 December 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-sponsored $ 4,631 $ — $ 4,631 $ — $ — State and political subdivisions 2,552 — 2,501 51 — Non-U.S. 2,393 — 2,393 — — U.S. corporate: Utilities 4,675 — 4,032 643 — Energy 2,419 — 2,298 121 — Finance and insurance 6,822 — 6,288 534 — Consumer—non-cyclical 5,048 — 4,975 73 — Technology and communications 2,855 — 2,805 50 — Industrial 1,238 — 1,199 39 — Capital goods 2,391 — 2,299 92 — Consumer—cyclical 1,597 — 1,386 211 — Transportation 1,320 — 1,263 57 — Other 397 — 219 178 — Total U.S. corporate 28,762 — 26,764 1,998 — Non-U.S. Utilities 1,041 — 637 404 — Energy 1,369 — 1,152 217 — Finance and insurance 2,423 — 2,252 171 — Consumer—non-cyclical 739 — 633 106 — Technology and communications 1,165 — 1,139 26 — Industrial 945 — 884 61 — Capital goods 615 — 442 173 — Consumer—cyclical 520 — 398 122 — Transportation 720 — 549 171 — Other 2,300 — 2,219 81 — Total non-U.S. 11,837 — 10,305 1,532 — Residential mortgage-backed 3,044 — 3,009 35 — Commercial mortgage-backed 3,016 — 2,921 95 — Other asset-backed 3,426 — 3,261 165 — Total fixed maturity securities 59,661 — 55,785 3,876 — Equity securities 655 533 64 58 — Other invested assets: Derivative assets: Interest rate swaps 42 — 42 — — Interest rate swaps in a foreign currency 74 — 74 — — Interest rate caps and floors 7 — 7 — — Foreign currency swaps 6 — 6 — — Equity index options 39 — — 39 — Other foreign currency contracts 10 — 10 — — Total derivative assets 178 — 139 39 — Securities lending collateral 102 — 102 — — Short-term investments 230 — 230 — — Limited partnerships 318 — — — 318 Total other invested assets 828 — 471 39 318 Reinsurance recoverable (2 ) 20 — — 20 — Separate account assets 5,859 5,859 — — — Total assets $ 67,023 $ 6,392 $ 56,320 $ 3,993 $ 318 (1) Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. 4 |
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: Total gains Total realized and (losses) Beginning unrealized gains Ending included in balance (losses) balance net income as of April 1, Included in net Included Transfer into Transfer out of as of June 30, attributable to assets (Amounts in millions) 2019 income in OCI Purchases Sales Issuances Settlements Level 3 (1) Level 3 (1) 2019 still held Fixed maturity securities: State and political subdivisions $ 52 $ 1 $ 8 $ — $ — $ — $ — $ — $ — $ 61 $ — U.S. corporate: Utilities 748 — 20 82 (13 ) — (38 ) — (10 ) 789 — Energy 115 — 3 5 — — (1 ) — — 122 — Finance and insurance 590 — 15 10 — — (8 ) — — 607 — Consumer— 74 — 1 14 — — — — — 89 — Technology and 52 — 3 — — — — — (11 ) 44 — Industrial 40 — — — — — — — — 40 — Capital goods 95 — 3 — — — — — — 98 — Consumer—cyclical 195 — 3 — — — (13 ) — — 185 — Transportation 54 — — — — — — — — 54 — Other 199 — 3 — — — (3 ) — — 199 — Total U.S. corporate 2,162 — 51 111 (13 ) — (63 ) — (21 ) 2,227 — Non-U.S. Utilities 435 — 7 — (7 ) — (17 ) — (1 ) 417 — Energy 221 — 5 15 — — — — — 241 — Finance and insurance 182 1 7 2 — — (13 ) — — 179 1 Consumer— 67 — 1 — — — — — — 68 — Technology and 27 — — — — — — — — 27 — Industrial 63 — 1 — — — — — — 64 — Capital goods 173 — 3 5 — — — — — 181 — Consumer—cyclical 125 — 2 — — — (1 ) — — 126 — Transportation 192 — 3 4 — — — — — 199 — Other 90 — 4 35 — — — — — 129 — Total non-U.S. 1,575 1 33 61 (7 ) — (31 ) — (1 ) 1,631 1 Residential mortgage-backed 35 — 2 5 — — (1 ) — — 41 — Commercial mortgage-backed 98 — 7 1 — — — — (14 ) 92 — Other asset-backed 202 — 1 41 — — (28 ) 27 (8 ) 235 — Total fixed maturity securities 4,124 2 102 219 (20 ) — (123 ) 27 (44 ) 4,287 1 Equity securities 55 — — 2 (1 ) — — — — 56 — Other invested assets: Derivative assets: Equity index options 60 10 — 9 — — (14 ) — — 65 7 Total derivative assets 60 10 — 9 — — (14 ) — — 65 7 Total other invested assets 60 10 — 9 — — (14 ) — — 65 7 Reinsurance recoverable (2) 18 2 — — — — — — — 20 2 Total Level 3 assets $ 4,257 $ 14 $ 102 $ 230 $ (21 ) $ — $ (137 ) $ 27 $ (44 ) $ 4,428 $ 10 (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. 4 Total gains Total realized and (losses) Beginning unrealized gains Ending included in balance (losses) balance net income as of Included Transfer Transfer as of attributable (Amounts in millions) April 1, 2018 in net income Included in OCI Purchases Sales Issuances Settlements into (1) out of (1) June 30, 2018 to assets still held Fixed maturity securities: State and political subdivisions $ 53 $ — $ (1 ) $ — $ — $ — $ — $ — $ — $ 52 $ — U.S. corporate: Utilities 553 (1 ) (7 ) 66 (12 ) — (2 ) 25 — 622 — Energy 146 — — — — — (1 ) — (7 ) 138 — Finance and insurance 580 — (41 ) — — — (74 ) — (7 ) 458 — Consumer— 79 — — — — — — — — 79 — Technology and 25 — 1 4 — — (18 ) — — 12 — Industrial 39 — 1 — — — — — — 40 — Capital goods 103 — (1 ) 24 — — — — (7 ) 119 — Consumer—cyclical 252 — (1 ) 7 (3 ) — (1 ) — — 254 — Transportation 57 — — — — — (1 ) — — 56 — Other 166 — — — (10 ) — (3 ) — — 153 — Total U.S. corporate 2,000 (1 ) (48 ) 101 (25 ) — (100 ) 25 (21 ) 1,931 — Non-U.S. Utilities 336 — (4 ) — — — — 15 (14 ) 333 — Energy 195 — (2 ) — — — (18 ) — — 175 — Finance and insurance 153 1 (3 ) 1 — — (1 ) — (1 ) 150 1 Consumer— 120 — (1 ) — — — (11 ) — — 108 — Technology and 28 — 1 — — — (13 ) — — 16 — Industrial 108 — (1 ) 3 — — (5 ) — — 105 — Capital goods 186 1 — — — — (21 ) — — 166 1 Consumer—cyclical 52 — — — (1 ) — (3 ) — — 48 — Transportation 166 — (2 ) 22 — — — 17 — 203 — Other 83 — (1 ) — — — — — — 82 — Total non-U.S. 1,427 2 (13 ) 26 (1 ) — (72 ) 32 (15 ) 1,386 2 Residential mortgage-backed 34 — 1 17 — — (1 ) — (17 ) 34 — Commercial mortgage-backed 6 — — 28 — — — 13 (3 ) 44 — Other asset-backed 172 — (1 ) 6 — — (24 ) 45 (32 ) 166 — Total fixed maturity securities 3,692 1 (62 ) 178 (26 ) — (197 ) 115 (88 ) 3,613 2 Equity securities 45 — — 1 — — — — — 46 — Other invested assets: Derivative assets: Equity index options 60 8 — 15 — — (13 ) — — 70 8 Total derivative assets 60 8 — 15 — — (13 ) — — 70 8 Total other invested assets 60 8 — 15 — — (13 ) — — 70 8 Reinsurance recoverable (2) 13 (1 ) — — — — — — — 12 (1 ) Total Level 3 assets $ 3,810 $ 8 $ (62 ) $ 194 $ (26 ) $ — $ (210 ) $ 115 $ (88 ) $ 3,741 $ 9 (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 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: Total gains Total realized and (losses) Beginning unrealized gains Ending included in balance (losses) balance net income as of Included Transfer Transfer as of attributable January 1, in net Included into out of June 30, to assets (Amounts in millions) 2019 income in OCI Purchases Sales Issuances Settlements Level 3 (1) Level 3 (1) 2019 still held Fixed maturity securities: State and political subdivisions $ 51 $ 2 $ 8 $ — $ — $ — $ — $ — $ — $ 61 $ 1 U.S. corporate: Utilities 643 — 42 96 (14 ) — (40 ) 72 (10 ) 789 — Energy 121 — 7 5 — — (11 ) — — 122 — Finance and insurance 534 — 38 40 — — (12 ) 7 — 607 — Consumer—non-cyclical 73 — 3 14 — — (10 ) 9 — 89 — Technology and communications 50 — 5 — — — — — (11 ) 44 — Industrial 39 — 1 — — — — — — 40 — Capital goods 92 — 6 — — — — — — 98 — Consumer—cyclical 211 — 10 — (13 ) — (14 ) — (9 ) 185 — Transportation 57 — 1 4 — — (8 ) — — 54 — Other 178 — 6 22 — — (15 ) 8 — 199 — Total U.S. corporate 1,998 — 119 181 (27 ) — (110 ) 96 (30 ) 2,227 — Non-U.S. Utilities 404 — 23 30 (7 ) — (17 ) — (16 ) 417 — Energy 217 — 12 16 — — (4 ) — — 241 — Finance and insurance 171 2 18 7 — — (13 ) — (6 ) 179 2 Consumer—non-cyclical 106 2 4 — — — (44 ) — — 68 — Technology and 26 — 1 — — — — — — 27 — Industrial 61 — 3 — — — — — — 64 — Capital goods 173 — 9 10 — — (11 ) — — 181 — Consumer—cyclical 122 — 8 — — — (4 ) — — 126 — Transportation 171 — 9 19 — — — — — 199 — Other 81 — 8 35 — — (1 ) 6 — 129 — Total non-U.S. 1,532 4 95 117 (7 ) — (94 ) 6 (22 ) 1,631 2 Residential mortgage-backed 35 — 2 5 — — (1 ) — — 41 — Commercial mortgage-backed 95 — 9 2 — — — — (14 ) 92 — Other asset-backed 165 — 2 95 — — (41 ) 28 (14 ) 235 — Total fixed maturity securities 3,876 6 235 400 (34 ) — (246 ) 130 (80 ) 4,287 3 Equity securities 58 — — 2 (4 ) — — — — 56 — Other invested assets: Derivative assets: Equity index options 39 27 — 21 — — (22 ) — — 65 11 Total derivative assets 39 27 — 21 — — (22 ) — — 65 11 Total other invested assets 39 27 — 21 — — (22 ) — — 65 11 Reinsurance recoverable (2) 20 (1 ) — — — 1 — — — 20 (1 ) Total Level 3 assets $ 3,993 $ 32 $ 235 $ 423 $ (38 ) $ 1 $ (268 ) $ 130 $ (80 ) $ 4,428 $ 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. Total gains Total realized and (losses) Beginning unrealized gains Ending included in balance (losses) balance net income as of Included Transfer Transfer as of attributable January 1, in net Included into out of June 30, to assets (Amounts in millions) 2018 income in OCI Purchases Sales Issuances Settlements Level 3 (1) Level 3 (1) 2018 still held Fixed maturity securities: U.S. government, agencies and government-sponsored $ 1 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ — $ — State and political subdivisions 37 1 (4 ) — — — — 18 — 52 1 U.S. corporate: Utilities 574 (1 ) (25 ) 69 (12 ) — (4 ) 25 (4 ) 622 — Energy 147 — (5 ) 22 — — (19 ) — (7 ) 138 — Finance and insurance 626 1 (67 ) 26 — — (110 ) — (18 ) 458 1 Consumer—non-cyclical 81 — (2 ) — — — — — — 79 — Technology and 73 — (5 ) 4 — — (60 ) — — 12 — Industrial 39 — 1 — — — — — — 40 — Capital goods 121 — (9 ) 24 — — (10 ) — (7 ) 119 — Consumer—cyclical 262 — (10 ) 17 (3 ) — (12 ) — — 254 — Transportation 60 — (1 ) — — — (3 ) — — 56 — Other 169 — (1 ) — (10 ) — (5 ) — — 153 — Total U.S. corporate 2,152 — (124 ) 162 (25 ) — (223 ) 25 (36 ) 1,931 1 Non-U.S. Utilities 343 — (13 ) 22 — — (20 ) 15 (14 ) 333 — Energy 176 — (6 ) 23 — — (18 ) — — 175 — Finance and insurance 161 2 (11 ) 1 — — (2 ) — (1 ) 150 2 Consumer—non-cyclical 124 — (4 ) — — — (12 ) — — 108 — Technology and 29 — — — — — (13 ) — — 16 — Industrial 116 — (4 ) 3 — — (10 ) — — 105 — Capital goods 191 1 (5 ) — — — (21 ) — — 166 1 Consumer—cyclical 54 — (2 ) — (1 ) — (3 ) — — 48 — Transportation 170 — (6 ) 22 — — — 17 — 203 — Other 52 — (3 ) 33 — — — — — 82 — Total non-U.S. 1,416 3 (54 ) 104 (1 ) — (99 ) 32 (15 ) 1,386 3 Residential mortgage-backed 77 — — 29 — — (1 ) — (71 ) 34 — Commercial mortgage-backed 30 — (2 ) 35 — — — 13 (32 ) 44 — Other asset-backed 237 — (3 ) 61 — — (56 ) 48 (121 ) 166 — Total fixed maturity securities 3,950 4 (187 ) 391 (26 ) — (380 ) 136 (275 ) 3,613 5 Equity securities 44 — — 5 (3 ) — — — — 46 — Other invested assets: Derivative assets: Equity index options 80 (7 ) — 29 — — (32 ) — — 70 (4 ) Total derivative assets 80 (7 ) — 29 — — (32 ) — — 70 (4 ) Total other invested assets 80 (7 ) — 29 — — (32 ) — — 70 (4 ) Reinsurance recoverable (2) 14 (3 ) — — — 1 — — — 12 (3 ) Total Level 3 assets $ 4,088 $ (6 ) $ (187 ) $ 425 $ (29 ) $ 1 $ (412 ) $ 136 $ (275 ) $ 3,741 $ (2 ) (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 periods indicated: Three months ended Six months ended June 30, June 30, (Amounts in millions) 2019 2018 2019 2018 Total realized and unrealized gains (losses) included in net income: Net investment income $ 2 $ 2 $ 6 $ 5 Net investment gains (losses) 12 6 26 (11 ) Total $ 14 $ 8 $ 32 $ (6 ) Total gains (losses) included in net income attributable to assets still held: Net investment income $ 1 $ 2 $ 3 $ 5 Net investment gains (losses) 9 7 10 (7 ) Total $ 10 $ 9 $ 13 $ (2 ) |
Summary of Significant Unobservable Inputs Used for Certain Asset and Liability 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 June 30, 2019: (Amounts in millions) Valuation technique Fair value Unobservable input Range Weighted-average Fixed maturity securities: U.S. corporate: Utilities Internal models $ 719 Credit spreads 66 326 146 Energy Internal models 99 Credit spreads 82 311 167 Finance and insurance Internal models 595 Credit spreads 68 246 158 Consumer—non-cyclical Internal models 89 Credit spreads 93 311 159 Technology and Internal models 44 Credit spreads 137 311 217 Industrial Internal models 40 Credit spreads 118 212 155 Capital goods Internal models 98 Credit spreads 103 277 157 Consumer—cyclical Internal models 170 Credit spreads 70 218 144 Transportation Internal models 54 Credit spreads 63 215 109 Other Internal models 168 Credit spreads 68 131 85 Total U.S. corporate Internal models $ 2,076 Credit spreads 63 326 147 Non-U.S. Utilities Internal models $ 417 Credit spreads 84 215 140 Energy Internal models 221 Credit spreads 103 277 162 Finance and insurance Internal models 179 Credit spreads 70 189 128 Consumer—non-cyclical Internal models 68 Credit spreads 70 170 135 Technology and Internal models 27 Credit spreads 124 150 141 Industrial Internal models 64 Credit spreads 99 157 113 Capital goods Internal models 181 Credit spreads 93 277 169 Consumer—cyclical Internal models 123 Credit spreads 81 277 193 Transportation Internal models 198 Credit spreads 70 218 134 Other Internal models 125 Credit spreads 109 218 162 Total non-U.S. Internal models $ 1,603 Credit spreads 70 277 149 Derivative assets: Discounted ca Equity index Equity index options flows $ 65 volatility 6 29 17% |
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: June 30, 2019 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 325 $ — $ — $ 325 Fixed index annuity embedded derivatives 438 — — 438 Indexed universal life embedded derivatives 15 — — 15 Total policyholder account balances 778 — — 778 Derivative liabilities: Interest rate swaps 10 — 10 — Foreign currency swaps 8 — 8 — Other foreign currency contracts 25 — 25 — Total derivative liabilities 43 — 43 — Total liabilities $ 821 $ — $ 43 $ 778 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. December 31, 2018 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 337 $ — $ — $ 337 Fixed index annuity embedded derivatives 389 — — 389 Indexed universal life embedded derivatives 12 — — 12 Total policyholder account balances 738 — — 738 Derivative liabilities: Interest rate swaps 102 — 102 — Foreign currency swaps 23 — 23 — Equity return swaps 1 — 1 — Other foreign currency contracts 42 — 42 — Total derivative liabilities 168 — 168 — Total liabilities $ 906 $ — $ 168 $ 738 (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 (gains) Total realized and losses Beginning unrealized (gains) Ending included in balance losses balance net (income) as of Transfer Transfer as of attributable April 1, Included in Included into out of June 30, to liabilities (Amounts in millions) 2019 net (income) in OCI Purchases Sales Issuances Settlements Level 3 Level 3 2019 still held Policyholder account balances: GMWB embedded (1) $ 295 $ 24 $ — $ — $ — $ 6 $ — $ — $ — $ 325 $ 24 Fixed index annuity 423 20 — — — — (5 ) — — 438 20 Indexed universal life 13 1 — — — 1 — — — 15 1 Total policyholder account 731 45 — — — 7 (5 ) — — 778 45 Total Level 3 liabilities $ 731 $ 45 $ — $ — $ — $ 7 $ (5 ) $ — $ — $ 778 $ 45 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Total (gains) Total realized and losses Beginning unrealized (gains) Ending included in balance losses balance net (income) as of Transfer Transfer as of attributable April 1, Included in Included into out of June 30, to liabilities (Amounts in millions) 2018 net (income) in OCI Purchases Sales Issuances Settlements Level 3 Level 3 2018 still held Policyholder account balances: GMWB embedded (1) $ 242 $ (14 ) $ — $ — $ — $ 7 $ — $ — $ — $ 235 $ (14 ) Fixed index annuity 408 15 — — — — (3 ) — — 420 15 Indexed universal life 13 (2 ) — — — 2 — — — 13 (2 ) Total policyholder account 663 (1 ) — — — 9 (3 ) — — 668 (1 ) Total Level 3 liabilities $ 663 $ (1 ) $ — $ — $ — $ 9 $ (3 ) $ — $ — $ 668 $ (1 ) (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. 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 (gains) Total realized and losses Beginning unrealized (gains) Ending included in balance losses balance net (income) as of Included in Transfer Transfer as of attributable January 1, net Included into out of June 30, to liabilities (Amounts in millions) 2019 (income) in OCI Purchases Sales Issuances Settlements Level 3 Level 3 2019 still held Policyholder account balances: GMWB embedded (1) $ 337 $ (24 ) $ — $ — $ — $ 12 $ — $ — $ — $ 325 $ (20 ) Fixed index annuity embedded derivatives 389 58 — — — — (9 ) — — 438 58 Indexed universal life 12 — — — — 3 — — — 15 — Total policyholder account 738 34 — — — 15 (9 ) — — 778 38 Total Level 3 liabilities $ 738 $ 34 $ — $ — $ — $ 15 $ (9 ) $ — $ — $ 778 $ 38 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Total (gains) Total realized and losses Beginning unrealized (gains) Ending included in balance losses balance net (income) as of Included in Transfer Transfer as of attributable January 1, net Included into out of June 30, to liabilities (Amounts in millions) 2018 (income) in OCI Purchases Sales Issuances Settlements Level 3 Level 3 2018 still held Policyholder account balances: GMWB embedded (1) $ 250 $ (30 ) $ — $ — $ — $ 15 $ — $ — $ — $ 235 $ (26 ) Fixed index annuity 419 7 — — — — (6 ) — — 420 7 Indexed universal life 14 (7 ) — — — 6 — — — 13 (7 ) Total policyholder account 683 (30 ) — — — 21 (6 ) — — 668 (26 ) Total Level 3 liabilities $ 683 $ (30 ) $ — $ — $ — $ 21 $ (6 ) $ — $ — $ 668 $ (26 ) (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 | 57 |
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 June 30, 2019: (Amounts in millions) Valuation technique Fair value Unobservable input Range Weighted-average Policyholder account balances: Withdrawal utilization rate 45 88 70 % Lapse rate 2 9 3 % Non-performance (credit spreads) 18 - 83 66 GMWB embedded (1) Stochastic cash flow model $ 325 Equity index volatility 13 23 20 % Fixed index annuity embedded Option budget method $ 438 Expected future interest credited – 3 1 % Indexed universal life embedded Option budget method $ 15 Expected future interest credited 3 8 % 5 % (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liability for Policy and Cont_2
Liability for Policy and Contract Claims (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 six months ended June 30, (Amounts in millions) 2019 2018 Beginning balance $ 10,379 $ 9,594 Less reinsurance recoverables (2,379 ) (2,419 ) Net beginning balance 8,000 7,175 Incurred related to insured events of: Current year 2,009 1,946 Prior years (214 ) (244 ) Total incurred 1,795 1,702 Paid related to insured events of: Current year (410 ) (434 ) Prior years (1,287 ) (1,266 ) Total paid (1,697 ) (1,700 ) Interest on liability for policy and contract claims 188 163 Foreign currency translation 3 (16 ) Net ending balance 8,289 7,324 Add reinsurance recoverables 2,388 2,341 Ending balance $ 10,677 $ 9,665 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Long Term Borrowings | The following table sets forth total long-term borrowings as of the dates indicated: June 30, December 31, (Amounts in millions) 2019 2018 Genworth Holdings (1) Floating Rate Senior Secured Term Loan Facility, due 2023 $ 444 $ 445 7.70% Senior Notes, due 2020 397 397 7.20% Senior Notes, due 2021 381 381 7.625% Senior Notes, due 2021 703 703 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 Floating Rate Junior Subordinated Notes, due 2066 598 598 Subtotal 3,619 3,620 Bond consent fees (29 ) (32 ) Deferred borrowing charges (19 ) (21 ) Total Genworth Holdings 3,571 3,567 Canada (2) 5.68% Senior Notes, due 2020 134 202 4.24% Senior Notes, due 2024 201 117 Subtotal 335 319 Deferred borrowing charges (2 ) (1 ) Total Canada 333 318 Australia (3) Floating Rate Junior Subordinated Notes, due 2025 141 141 Deferred borrowing charges (1 ) (1 ) Total Australia 140 140 Total $ 4,044 $ 4,025 (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) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six months ended June 30, June 30, 2019 2018 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Increase (reduction) in rate resulting from: Effect of foreign operations 5.0 3.4 5.2 3.2 U.S. shareholder tax on foreign operations 4.4 — 4.6 — Swaps terminated prior to the TCJA 2.1 3.9 2.4 3.2 TCJA, impact from change in tax rate — 5.4 — 3.3 Valuation allowance — (2.0 ) — (1.3 ) Provision to return adjustments — (1.6 ) — (0.7 ) Other, net 0.4 0.7 (0.4 ) 0.9 Effective rate 32.9 % 30.8 % 32.8 % 29.6 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six months ended June 30, June 30, (Amounts in millions) 2019 2018 2019 2018 Revenues: U.S. Mortgage Insurance segment $ 235 $ 208 $ 458 $ 408 Canada Mortgage Insurance segment 161 150 320 308 Australia Mortgage Insurance segment 96 136 206 243 U.S. Life Insurance segment: Long-term care insurance 1,055 1,035 2,169 2,055 Life insurance 382 367 754 746 Fixed annuities 151 176 310 358 U.S. Life Insurance segment 1,588 1,578 3,233 3,159 Runoff segment 78 80 160 148 Corporate and Other activities (2 ) 7 (17 ) 8 Total revenues $ 2,156 $ 2,159 $ 4,360 $ 4,274 |
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 and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated: Three months ended Six months ended June 30, June 30, (Amounts in millions) 2019 2018 2019 2018 Net income $ 218 $ 249 $ 448 $ 414 Less: net income attributable to noncontrolling interests 50 59 106 112 Net income available to Genworth Financial, Inc.’s common stockholders 168 190 342 302 Adjustments to net income available to Genworth Financial, Inc.’s Net investment (gains) losses, net (1) 43 12 (28 ) 29 (Gains) losses on early extinguishment of debt, net (2) 1 — 1 — Expenses related to restructuring — — 4 — Taxes on adjustments (8 ) (2 ) 6 (6 ) Adjusted operating income available to Genworth Financial, Inc.’s $ 204 $ 200 $ 325 $ 325 (1) For the three months ended June 30, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million and $(1) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $1 million and $(1) million, respectively. For the six months ended June 30, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(5) million and $(4) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $6 million and $(12) million, respectively. (2) For the three and six months ended June 30, 2019, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $ 1 |
Summary of Segments and Corporate and Other Activities | (Amounts in millions) June 30, December 31, Assets: U.S. Mortgage Insurance segment $ 3,977 $ 3,583 Canada Mortgage Insurance segment 5,272 5,038 Australia Mortgage Insurance segment 2,524 2,534 U.S. Life Insurance segment 81,002 79,799 Runoff segment 10,018 9,963 Corporate and Other activities 1,513 6 Total assets $ 104,306 $ 100,923 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 accumulated Affected line item in the consolidated statements of income Three months ended June 30, Six months ended June 30, (Amounts in millions) 2019 2018 2019 2018 Net unrealized investment (gains) losses: Unrealized (gains) losses on (1) $ 2 $ 8 $ (58 ) $ 16 Net investment (gains) losses (Provision) benefit for income taxes (1 ) (2 ) 12 (3 ) Provision for income taxes Total $ 1 $ 6 $ (46 ) $ 13 Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (42 ) $ (39 ) $ (80 ) $ (74 ) Net investment income Interest rate swaps hedging assets 4 — (2 ) (5 ) Net investment (gains) losses Foreign currency swaps 1 — 1 — Net investment income Benefit for income taxes 13 14 29 28 Provision for income taxes Total $ (24 ) $ (25 ) $ (52 ) $ (51 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Consolidating Balance Sheet | The following table presents the condensed consolidating balance sheet information as of June 30, 2019: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 63,974 $ (200 ) $ 63,774 Equity securities, at fair value — — 644 — 644 Commercial mortgage loans ($56 are restricted related to a securitization entity) — — 7,019 — 7,019 Policy loans — — 2,076 — 2,076 Other invested assets — 49 1,493 (7 ) 1,535 Investments in subsidiaries 13,938 12,439 — (26,377 ) — Total investments 13,938 12,488 75,206 (26,584 ) 75,048 Cash, cash equivalents and restricted cash — 358 1,580 — 1,938 Accrued investment income — — 630 (4 ) 626 Deferred acquisition costs — — 2,105 — 2,105 Intangible assets and goodwill — — 244 — 244 Reinsurance recoverable — — 17,211 — 17,211 Other assets 5 55 505 (1 ) 564 Intercompany notes receivable — 273 — (273 ) — Deferred tax assets (35 ) 841 (423 ) — 383 Separate account assets — — 6,187 — 6,187 Total assets $ 13,908 $ 14,015 $ 103,245 $ (26,862 ) $ 104,306 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 39,583 $ — $ 39,583 Policyholder account balances — — 22,673 — 22,673 Liability for policy and contract claims — — 10,677 — 10,677 Unearned premiums — — 3,488 — 3,488 Other liabilities — 47 1,689 (13 ) 1,723 Intercompany notes payable 151 200 122 (473 ) — Non-recourse — — 311 — 311 Long-term borrowings — 3,571 473 — 4,044 Deferred tax liability — — 28 — 28 Separate account liabilities — — 6,187 — 6,187 Total liabilities 151 3,818 85,231 (486 ) 88,714 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,983 9,094 18,428 (27,522 ) 11,983 Accumulated other comprehensive income (loss) 3,013 2,982 3,051 (6,033 ) 3,013 Retained earnings 1,460 (1,879 ) (5,603 ) 7,482 1,460 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,757 10,197 15,879 (26,076 ) 13,757 Noncontrolling interests — — 2,135 (300 ) 1,835 Total equity 13,757 10,197 18,014 (26,376 ) 15,592 Total liabilities and equity $ 13,908 $ 14,015 $ 103,245 $ (26,862 ) $ 104,306 The following table presents the condensed consolidating balance sheet information as of December 31, 2018: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 59,861 $ (200 ) $ 59,661 Equity securities, at fair value — — 655 — 655 Commercial mortgage loans ($62 are restricted related to a securitization entity) — — 6,749 — 6,749 Policy loans — — 1,861 — 1,861 Other invested assets — 86 1,104 (2 ) 1,188 Investments in subsidiaries 12,570 11,462 — (24,032 ) — Total investments 12,570 11,548 70,230 (24,234 ) 70,114 Cash, cash equivalents and restricted cash — 429 1,748 — 2,177 Accrued investment income — — 679 (4 ) 675 Deferred acquisition costs — — 3,263 — 3,263 Intangible assets and goodwill — — 347 — 347 Reinsurance recoverable — — 17,278 — 17,278 Other assets 15 62 397 — 474 Intercompany notes receivable — 180 6 (186 ) — Deferred tax assets 14 907 (185 ) — 736 Separate account assets — — 5,859 — 5,859 Total assets $ 12,599 $ 13,126 $ 99,622 $ (24,424 ) $ 100,923 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 37,940 $ — $ 37,940 Policyholder account balances — — 22,968 — 22,968 Liability for policy and contract claims — — 10,379 — 10,379 Unearned premiums — — 3,546 — 3,546 Other liabilities 27 97 1,565 (7 ) 1,682 Intercompany notes payable 122 207 57 (386 ) — Non-recourse — — 311 — 311 Long-term borrowings — 3,567 458 — 4,025 Deferred tax liability — — 24 — 24 Separate account liabilities — — 5,859 — 5,859 Total liabilities 149 3,871 83,107 (393 ) 86,734 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,987 9,095 18,425 (27,520 ) 11,987 Accumulated other comprehensive income (loss) 2,044 2,144 2,060 (4,204 ) 2,044 Retained earnings 1,118 (1,984 ) (6,012 ) 7,996 1,118 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,450 9,255 14,476 (23,731 ) 12,450 Noncontrolling interests — — 2,039 (300 ) 1,739 Total equity 12,450 9,255 16,515 (24,031 ) 14,189 Total liabilities and equity $ 12,599 $ 13,126 $ 99,622 $ (24,424 ) $ 100,923 |
Condensed Consolidating Income Statement | The following table presents the condensed consolidating income statement information for the three months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,126 $ — $ 1,126 Net investment income — 1 854 (3 ) 852 Net investment gains (losses) — (9 ) (36 ) — (45 ) Policy fees and other income — 2 223 (2 ) 223 Total revenues — (6 ) 2,167 (5 ) 2,156 Benefits and expenses: Benefits and other changes in policy reserves — — 1,270 — 1,270 Interest credited — — 146 — 146 Acquisition and operating expenses, net of deferrals 3 — 244 — 247 Amortization of deferred acquisition costs and intangibles — — 95 — 95 Interest expense 1 65 12 (5 ) 73 Total benefits and expenses 4 65 1,767 (5 ) 1,831 Income (loss) before income taxes and equity in income of subsidiaries (4 ) (71 ) 400 — 325 Provision (benefit) for income taxes 23 (14 ) 98 — 107 Equity in income of subsidiaries 195 93 — (288 ) — Net income 168 36 302 (288 ) 218 Less: net income attributable to noncontrolling interests — — 50 — 50 Net income available to Genworth Financial, Inc.’s common stockholders $ 168 $ 36 $ 252 $ (288 ) $ 168 The following table presents the condensed consolidating income statement information for the three months ended June 30, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,136 $ — $ 1,136 Net investment income — 4 828 (4 ) 828 Net investment gains (losses) — (8 ) (6 ) — (14 ) Policy fees and other income — 1 209 (1 ) 209 Total revenues — (3 ) 2,167 (5 ) 2,159 Benefits and expenses: Benefits and other changes in policy reserves — — 1,205 — 1,205 Interest credited — — 152 — 152 Acquisition and operating expenses, net of deferrals 7 — 246 — 253 Amortization of deferred acquisition costs and intangibles — — 112 — 112 Interest expense 1 70 11 (5 ) 77 Total benefits and expenses 8 70 1,726 (5 ) 1,799 Income (loss) before income taxes and equity in income of subsidiaries (8 ) (73 ) 441 — 360 Provision (benefit) for income taxes 32 (14 ) 93 — 111 Equity in income of subsidiaries 230 151 — (381 ) — Net income 190 92 348 (381 ) 249 Less: net income attributable to noncontrolling interests — — 59 — 59 Net income available to Genworth Financial, Inc.’s common stockholders $ 190 $ 92 $ 289 $ (381 ) $ 190 The following table presents the condensed consolidating income statement information for the six months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 2,240 $ — $ 2,240 Net investment income (1 ) 4 1,685 (7 ) 1,681 Net investment gains (losses) — (12 ) 41 — 29 Policy fees and other income — 2 411 (3 ) 410 Total revenues (1 ) (6 ) 4,377 (10 ) 4,360 Benefits and expenses: Benefits and other changes in policy reserves — — 2,571 — 2,571 Interest credited — — 293 — 293 Acquisition and operating expenses, net of deferrals 7 (2 ) 493 — 498 Amortization of deferred acquisition costs and intangibles — — 186 — 186 Interest expense 3 130 22 (10 ) 145 Total benefits and expenses 10 128 3,565 (10 ) 3,693 Income (loss) before income taxes and equity in income of subsidiaries (11 ) (134 ) 812 — 667 Provision (benefit) for income taxes 44 (26 ) 201 — 219 Equity in income of subsidiaries 397 213 — (610 ) — Net income 342 105 611 (610 ) 448 Less: net income attributable to noncontrolling interests — — 106 — 106 Net income available to Genworth Financial, Inc.’s common stockholders $ 342 $ 105 $ 505 $ (610 ) $ 342 The following table presents the condensed consolidating income statement information for the six months ended June 30, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 2,276 $ — $ 2,276 Net investment income (1 ) 7 1,633 (7 ) 1,632 Net investment gains (losses) — (2 ) (43 ) — (45 ) Policy fees and other income — 1 412 (2 ) 411 Total revenues (1 ) 6 4,278 (9 ) 4,274 Benefits and expenses: Benefits and other changes in policy reserves — — 2,516 — 2,516 Interest credited — — 308 — 308 Acquisition and operating expenses, net of deferrals 14 — 479 — 493 Amortization of deferred acquisition costs and intangibles — — 216 — 216 Interest expense 1 138 23 (9 ) 153 Total benefits and expenses 15 138 3,542 (9 ) 3,686 Income (loss) before income taxes and equity in income of subsidiaries (16 ) (132 ) 736 — 588 Provision (benefit) for income taxes 38 (31 ) 167 — 174 Equity in income of subsidiaries 356 196 — (552 ) — Net income 302 95 569 (552 ) 414 Less: net income attributable to noncontrolling interests — — 112 — 112 Net income available to Genworth Financial, Inc.’s common stockholders $ 302 $ 95 $ 457 $ (552 ) $ 302 |
Condensed Consolidating Statement of Comprehensive Income | The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income $ 168 $ 36 $ 302 $ (288 ) $ 218 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 362 311 376 (673 ) 376 Derivatives qualifying as hedges 133 133 148 (281 ) 133 Foreign currency translation and other adjustments 26 17 43 (43 ) 43 Total other comprehensive income (loss) 521 461 567 (997 ) 552 Total comprehensive income 689 497 869 (1,285 ) 770 Less: comprehensive income attributable to noncontrolling interests — — 81 — 81 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 689 $ 497 $ 788 $ (1,285 ) $ 689 The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income $ 190 $ 92 $ 348 $ (381 ) $ 249 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (179 ) (167 ) (185 ) 346 (185 ) Net unrealized gains (losses) on other-than-temporarily impaired securities (2 ) (1 ) (2 ) 3 (2 ) Derivatives qualifying as hedges (64 ) (64 ) (68 ) 132 (64 ) Foreign currency translation and other adjustments (55 ) (46 ) (97 ) 100 (98 ) Total other comprehensive income (loss) (300 ) (278 ) (352 ) 581 (349 ) Total comprehensive loss (110 ) (186 ) (4 ) 200 (100 ) Less: comprehensive income attributable to noncontrolling interests — — 10 — 10 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (110 ) $ (186 ) $ (14 ) $ 200 $ (110 ) The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income $ 342 $ 105 $ 611 $ (610 ) $ 448 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than- 709 594 755 (1,303 ) 755 Net unrealized gains (losses) on other-than-temporarily 1 1 1 (2 ) 1 Derivatives qualifying as hedges 202 202 225 (427 ) 202 Foreign currency translation and other adjustments 57 41 96 (97 ) 97 Total other comprehensive income (loss) 969 838 1,077 (1,829 ) 1,055 Total comprehensive income 1,311 943 1,688 (2,439 ) 1,503 Less: comprehensive income attributable to noncontrolling interests — — 192 — 192 Total comprehensive income available to Genworth Financial, Inc.’s $ 1,311 $ 943 $ 1,496 $ (2,439 ) $ 1,311 Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income $ 302 $ 95 $ 569 $ (552 ) $ 414 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (511 ) (462 ) (526 ) 973 (526 ) Net unrealized gains (losses) on other-than-temporarily impaired securities (2 ) (1 ) (2 ) 3 (2 ) Derivatives qualifying as hedges (216 ) (217 ) (233 ) 450 (216 ) Foreign currency translation and other adjustments (102 ) (82 ) (185 ) 184 (185 ) Total other comprehensive income (loss) (831 ) (762 ) (946 ) 1,610 (929 ) Total comprehensive loss (529 ) (667 ) (377 ) 1,058 (515 ) Less: comprehensive income attributable to noncontrolling interests — — 14 — 14 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (529 ) $ (667 ) $ (391 ) $ 1,058 $ (529 ) The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 342 $ 105 $ 611 $ (610 ) $ 448 Adjustments to reconcile net income to net cash from (used by) operating activities: Equity in income from subsidiaries (397 ) (213 ) — 610 — Dividends from subsidiaries — 105 (105 ) — — Amortization of fixed maturity securities discounts and premiums — 3 (57 ) — (54 ) Net investment (gains) losses — 12 (41 ) — (29 ) Charges assessed to policyholders — — (364 ) — (364 ) Acquisition costs deferred — — (35 ) — (35 ) Amortization of deferred acquisition costs and intangibles — — 186 — 186 Deferred income taxes 49 74 11 — 134 Derivative instruments and limited partnerships — (30 ) 52 — 22 Stock-based compensation expense 10 — 2 — 12 Change in certain assets and liabilities: Accrued investment income and other assets (1 ) — (290 ) 1 (290 ) Insurance reserves — — 609 — 609 Current tax liabilities (4 ) (40 ) 71 — 27 Other liabilities, policy and contract claims and other policy-related balances (18 ) (3 ) 156 (6 ) 129 Net cash from (used by) operating activities (19 ) 13 806 (5 ) 795 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 1,929 — 1,929 Commercial mortgage loans — — 285 — 285 Restricted commercial mortgage loans related to a securitization entity — — 6 — 6 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,859 — 2,859 Purchases and originations of investments: Fixed maturity and equity securities — — (4,681 ) — (4,681 ) Commercial mortgage loans — — (561 ) — (561 ) Other invested assets, net — 29 (261 ) 5 (227 ) Policy loans, net — — 39 — 39 Intercompany notes receivable — (93 ) 6 87 — Capital contributions to subsidiaries (3 ) — 3 — — Net cash used by investing activities (3 ) (64 ) (376 ) 92 (351 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 444 — 444 Withdrawals from universal life and investment contracts — — (1,096 ) — (1,096 ) Proceeds from the issuance of long-term debt — — 77 — 77 Repayment and repurchase of long-term debt — (1 ) (77 ) — (78 ) Repurchase of subsidiary shares — — (44 ) — (44 ) Dividends paid to noncontrolling interests — — (53 ) — (53 ) Intercompany notes payable 29 (7 ) 65 (87 ) — Other, net (7 ) (12 ) 74 — 55 Net cash from (used by) financing activities 22 (20 ) (610 ) (87 ) (695 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 12 — 12 Net change in cash, cash equivalents and restricted cash — (71 ) (168 ) — (239 ) Cash, cash equivalents and restricted cash at beginning of period — 429 1,748 — 2,177 Cash, cash equivalents and restricted cash at end of period $ — $ 358 $ 1,580 $ — $ 1,938 |
Condensed Consolidating Statement of Cash Flows | The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2019: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 342 $ 105 $ 611 $ (610 ) $ 448 Adjustments to reconcile net income to net cash from (used by) operating activities: Equity in income from subsidiaries (397 ) (213 ) — 610 — Dividends from subsidiaries — 105 (105 ) — — Amortization of fixed maturity securities discounts and premiums — 3 (57 ) — (54 ) Net investment (gains) losses — 12 (41 ) — (29 ) Charges assessed to policyholders — — (364 ) — (364 ) Acquisition costs deferred — — (35 ) — (35 ) Amortization of deferred acquisition costs and intangibles — — 186 — 186 Deferred income taxes 49 74 11 — 134 Derivative instruments and limited partnerships — (30 ) 52 — 22 Stock-based compensation expense 10 — 2 — 12 Change in certain assets and liabilities: Accrued investment income and other assets (1 ) — (290 ) 1 (290 ) Insurance reserves — — 609 — 609 Current tax liabilities (4 ) (40 ) 71 — 27 Other liabilities, policy and contract claims and other policy-related balances (18 ) (3 ) 156 (6 ) 129 Net cash from (used by) operating activities (19 ) 13 806 (5 ) 795 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 1,929 — 1,929 Commercial mortgage loans — — 285 — 285 Restricted commercial mortgage loans related to a securitization entity — — 6 — 6 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,859 — 2,859 Purchases and originations of investments: Fixed maturity and equity securities — — (4,681 ) — (4,681 ) Commercial mortgage loans — — (561 ) — (561 ) Other invested assets, net — 29 (261 ) 5 (227 ) Policy loans, net — — 39 — 39 Intercompany notes receivable — (93 ) 6 87 — Capital contributions to subsidiaries (3 ) — 3 — — Net cash used by investing activities (3 ) (64 ) (376 ) 92 (351 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 444 — 444 Withdrawals from universal life and investment contracts — — (1,096 ) — (1,096 ) Proceeds from the issuance of long-term debt — — 77 — 77 Repayment and repurchase of long-term debt — (1 ) (77 ) — (78 ) Repurchase of subsidiary shares — — (44 ) — (44 ) Dividends paid to noncontrolling interests — — (53 ) — (53 ) Intercompany notes payable 29 (7 ) 65 (87 ) — Other, net (7 ) (12 ) 74 — 55 Net cash from (used by) financing activities 22 (20 ) (610 ) (87 ) (695 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 12 — 12 Net change in cash, cash equivalents and restricted cash — (71 ) (168 ) — (239 ) Cash, cash equivalents and restricted cash at beginning of period — 429 1,748 — 2,177 Cash, cash equivalents and restricted cash at end of period $ — $ 358 $ 1,580 $ — $ 1,938 The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 302 $ 95 $ 569 $ (552 ) $ 414 Adjustments to reconcile net income to net cash from (used by) operating activities: Equity in income from subsidiaries (356 ) (196 ) — 552 — Dividends from subsidiaries 50 91 (141 ) — — Amortization of fixed maturity securities discounts and premiums — 3 (65 ) — (62 ) Net investment losses — 2 43 — 45 Charges assessed to policyholders — — (359 ) — (359 ) Acquisition costs deferred — — (40 ) — (40 ) Amortization of deferred acquisition costs and intangibles — — 216 — 216 Deferred income taxes 42 (117 ) 158 — 83 Derivative instruments and limited partnerships — 22 (217 ) — (195 ) Stock-based compensation expense 15 — 1 — 16 Change in certain assets and liabilities: Accrued investment income and other assets (1 ) 59 (147 ) — (89 ) Insurance reserves — — 691 — 691 Current tax liabilities (27 ) 87 (97 ) — (37 ) Other liabilities, policy and contract claims and other policy-related balances (15 ) (50 ) (49 ) (8 ) (122 ) Net cash from (used by) operating activities 10 (4 ) 563 (8 ) 561 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 1,979 — 1,979 Commercial mortgage loans — — 350 — 350 Restricted commercial mortgage loans related to a securitization entity — — 16 — 16 Proceeds from sales of investments: Fixed maturity and equity securities — — 1,920 — 1,920 Purchases and originations of investments: Fixed maturity and equity securities — — (4,082 ) — (4,082 ) Commercial mortgage loans — — (489 ) — (489 ) Other invested assets, net — — 85 8 93 Policy loans, net — — 15 — 15 Intercompany notes receivable — (10 ) 58 (48 ) — Capital contributions to subsidiaries (1 ) — 1 — — Net cash used by investing activities (1 ) (10 ) (147 ) (40 ) (198 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 503 — 503 Withdrawals from universal life and investment contracts — — (1,177 ) — (1,177 ) Proceeds from the issuance of long-term debt — 441 — — 441 Repayment and repurchase of long-term debt — (597 ) — — (597 ) Repayment of borrowings related to a securitization entity — — (12 ) — (12 ) Repurchase of subsidiary shares — — (49 ) — (49 ) Dividends paid to noncontrolling interests — — (50 ) — (50 ) Intercompany notes payable (7 ) (59 ) 18 48 — Other, net (2 ) (19 ) 19 — (2 ) Net cash used by financing activities (9 ) (234 ) (748 ) 48 (943 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (52 ) — (52 ) Net change in cash, cash equivalents and restricted cash — (248 ) (384 ) — (632 ) 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 $ — $ 547 $ 1,696 $ — $ 2,243 |
Formation of Genworth and Bas_2
Formation of Genworth and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Billions | Oct. 21, 2016USD ($)$ / shares | Jun. 30, 2019Segment | Apr. 01, 2013 |
Number of operating segments | Segment | 5 | ||
Genworth Holdings | |||
Percentage of subsidiary equity ownership | 100.00% | ||
China Oceanwide Holdings Group Co., Ltd. | Definitive Acquisition Agreement | |||
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 - Additional
Accounting Changes - Additional Information (Detail) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019Location | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Disclosue of Accounting Changes [Line Items] | |||
Number of office space lease locations | Location | 15 | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 3 months 18 days | ||
Operating lease weighted average discount rate | 6.23% | ||
Lease rental expense | $ 11 | ||
Maximum [Member] | |||
Disclosue of Accounting Changes [Line Items] | |||
Operating lease term | 13 years | ||
Minimum [Member] | |||
Disclosue of Accounting Changes [Line Items] | |||
Operating lease term | 1 year | ||
Accounting Standards Update 2016-02 [Member] | |||
Disclosue of Accounting Changes [Line Items] | |||
Right of use asset related to operating leases included in other assets | $ 60 | ||
Operating Lease, Liability | 63 | ||
Accrued rent expense, derecognized | $ 3 |
Earning Per Share (Detail)
Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares used in basic earnings per share calculations | 503.4 | 500.6 | 502.3 | 500.1 |
Stock options, restricted stock units and stock appreciation rights | 5.3 | 2 | 6.4 | 2.5 |
Weighted-average shares used in diluted earnings per share calculations | 508.7 | 502.6 | 508.7 | 502.6 |
Net income: | ||||
Net income | $ 218 | $ 249 | $ 448 | $ 414 |
Less: net income attributable to noncontrolling interests | 50 | 59 | 106 | 112 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ 168 | $ 190 | $ 342 | $ 302 |
Basic earnings per share: | ||||
Net income | $ 0.44 | $ 0.50 | $ 0.89 | $ 0.83 |
Less: net income attributable to noncontrolling interests | 0.10 | 0.12 | 0.21 | 0.22 |
Net income available to Genworth Financial, Inc.'s common stockholders | 0.33 | 0.38 | 0.68 | 0.60 |
Diluted earnings per share: | ||||
Net income | 0.43 | 0.50 | 0.88 | 0.82 |
Less: net income attributable to noncontrolling interests | 0.10 | 0.12 | 0.21 | 0.22 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ 0.33 | $ 0.38 | $ 0.67 | $ 0.60 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 877 | $ 851 | $ 1,730 | $ 1,677 |
Expenses and fees | (25) | (23) | (49) | (45) |
Net investment income | 852 | 828 | 1,681 | 1,632 |
Fixed maturity securities—taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 665 | 651 | 1,308 | 1,286 |
Fixed maturity securities—non-taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 2 | 3 | 4 | 6 |
Equity Securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 10 | 10 | 19 | 20 |
Commercial mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 84 | 77 | 165 | 159 |
Restricted commercial mortgage loans related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 1 | 2 | 2 | 4 |
Policy Loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 45 | 41 | 91 | 84 |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 59 | 53 | 118 | 92 |
Cash, cash equivalents, restricted cash and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 11 | $ 14 | $ 23 | $ 26 |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Investments [Abstract] | |||||
Realized gains | $ 5 | $ 13 | $ 86 | $ 20 | |
Realized losses | (6) | (21) | (28) | (37) | |
Net realized gains (losses) on available-for-sale fixed maturity securities | (1) | (8) | 58 | (17) | |
Total other-than-temporary impairments | 0 | 0 | 0 | 0 | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Net other-than-temporary impairments | 0 | 0 | 0 | 0 | |
Net realized gains (losses) on equity securities sold | 0 | 8 | 3 | 10 | |
Net unrealized gains (losses) on equity securities still held | (12) | 3 | (4) | (15) | |
Limited partnerships | (11) | (2) | 4 | 5 | |
Commercial mortgage loans | 1 | 0 | 0 | 0 | |
Derivative instruments | [1] | (22) | (15) | (32) | (28) |
Total net investment gains (losses) | $ (45) | $ (14) | $ 29 | $ (45) | |
[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) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)Loan | |
Schedule of Investments [Line Items] | |||||
Aggregate fair value of securities sold | $ 423,000,000 | $ 640,000,000 | $ 1,185,000,000 | $ 1,259,000,000 | |
Aggregate fair value of securities sold, percentage of book value | 98.00% | 97.00% | 97.00% | 97.00% | |
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 | $ 0 | ||
Commercial mortgage loans on nonaccrual status, past due less than 90 days | $ 0 | $ 0 | $ 0 | ||
Commercial mortgage loans modified or extended, number of loans | Loan | 1 | 1 | 2 | ||
Commercial mortgage loans modified or extended, carrying value | $ 11,000,000 | $ 11,000,000 | $ 12,000,000 | ||
Investments in partnerships or similar entities generally considered VIEs | 489,000,000 | 489,000,000 | 394,000,000 | ||
Commercial mortgage loans greater than 90 days past due | |||||
Schedule of Investments [Line Items] | |||||
Impaired loans, unpaid principal balance | $ 3,000,000 | $ 3,000,000 | 3,000,000 | ||
Limited Partnership Interests | |||||
Schedule of Investments [Line Items] | |||||
Minimum threshold ownership percentage of limited partnership interest, equity method | 3.00% | 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% | 14.00% | ||||
Consumer-non-cyclical | Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
Percent of investment portfolio, greater than 10% | 14.00% | ||||
Technology and Communications [Member] | Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
Percent of investment portfolio, greater than 10% | 10.00% | ||||
Office | |||||
Schedule of Investments [Line Items] | |||||
Individually impaired loan, recorded investment and unpaid principal balance | $ 0 | $ 6,000,000 | $ 0 | $ 6,000,000 | $ 3,000,000 |
Credit Losses Recognized in Net
Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Cumulative credit losses, beginning balance | $ 23 | $ 28 | $ 24 | $ 32 |
Securities sold, paid down or disposed | 0 | (3) | (1) | (7) |
Cumulative credit losses, ending balance | $ 23 | $ 25 | $ 23 | $ 25 |
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 | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | ||
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 | $ (3,879) | $ (952) | |||||
Income taxes, net | (405) | (190) | |||||
Net unrealized investment gains (losses) including noncontrolling interests | 1,389 | 633 | |||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 84 | 38 | |||||
Net unrealized investment gains (losses) | 1,305 | 595 | $ 943 | $ 736 | $ 917 | $ 1,085 | |
Net Unrealized Gains (Losses) On Investment Securities | |||||||
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Net unrealized gains (losses) on fixed maturity securities | [1] | $ 5,673 | $ 1,775 | ||||
[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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments [Abstract] | ||||
Net unrealized investment gains (losses), beginning of period | $ 943 | $ 917 | $ 595 | $ 1,085 |
Cumulative effect of changes in accounting: | ||||
Stranded tax effects | 0 | 189 | ||
Recognition and measurement of financial assets and liabilities, net of taxes of $— and $18 | 0 | (25) | ||
Total cumulative effect of changes in accounting | 0 | 164 | ||
Unrealized gains (losses) on fixed maturity securities | 1,957 | (905) | 3,956 | (2,586) |
Adjustment to deferred acquisition costs | (52) | 467 | (1,041) | 909 |
Adjustment to present value of future profits | (2) | 20 | (55) | 56 |
Adjustment to sales inducements | (12) | 9 | (31) | 29 |
Adjustment to benefit reserves | (1,412) | 162 | (1,800) | 902 |
Provision for income taxes | (104) | 54 | (227) | 149 |
Change in unrealized gains (losses) on investment securities | 375 | (193) | 802 | (541) |
Reclassification adjustments to net investment (gains) losses | 1 | 6 | (46) | 13 |
Change in net unrealized investment gains (losses) | 376 | (187) | 756 | (528) |
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | 14 | (6) | 46 | (15) |
Net unrealized investment gains (losses), end of period | $ 1,305 | $ 736 | $ 1,305 | $ 736 |
Change in Net Unrealized Gain_2
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
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 | $ 0 | $ 18 | ||
Reclassification adjustments to net investment (gains) losses, taxes | $ (1) | $ (2) | $ 12 | $ (3) |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Amortized cost or cost, total | $ 58,194 | |
Fair value, total | 63,774 | $ 59,661 |
Fair value, fixed maturity securities | 63,774 | 59,661 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, total | 57,981 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,151 | 4,175 |
Fair value, fixed maturity securities | 4,987 | 4,631 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,319 | 2,406 |
Fair value, fixed maturity securities | 2,636 | 2,552 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,496 | 2,345 |
Fair value, fixed maturity securities | 2,649 | 2,393 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 28,419 | 27,998 |
Fair value, fixed maturity securities | 31,401 | 28,762 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,327 | 4,439 |
Fair value, fixed maturity securities | 4,879 | 4,675 |
Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,468 | 2,382 |
Fair value, fixed maturity securities | 2,713 | 2,419 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 6,974 | 6,705 |
Fair value, fixed maturity securities | 7,597 | 6,822 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,954 | 4,891 |
Fair value, fixed maturity securities | 5,552 | 5,048 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,893 | 2,823 |
Fair value, fixed maturity securities | 3,156 | 2,855 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,242 | 1,230 |
Fair value, fixed maturity securities | 1,336 | 1,238 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,323 | 2,277 |
Fair value, fixed maturity securities | 2,620 | 2,391 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,619 | 1,592 |
Fair value, fixed maturity securities | 1,741 | 1,597 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,263 | 1,283 |
Fair value, fixed maturity securities | 1,411 | 1,320 |
Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 356 | 376 |
Fair value, fixed maturity securities | 396 | 397 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 11,717 | 11,671 |
Fair value, fixed maturity securities | 12,647 | 11,837 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,114 | 1,056 |
Fair value, fixed maturity securities | 1,165 | 1,041 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,349 | 1,320 |
Fair value, fixed maturity securities | 1,516 | 1,369 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,438 | 2,391 |
Fair value, fixed maturity securities | 2,628 | 2,423 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 674 | 756 |
Fair value, fixed maturity securities | 710 | 739 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,179 | 1,168 |
Fair value, fixed maturity securities | 1,273 | 1,165 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 936 | 926 |
Fair value, fixed maturity securities | 1,017 | 945 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 663 | 615 |
Fair value, fixed maturity securities | 695 | 615 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 542 | 532 |
Fair value, fixed maturity securities | 557 | 520 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 761 | 689 |
Fair value, fixed maturity securities | 841 | 720 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,061 | 2,218 |
Fair value, fixed maturity securities | 2,245 | 2,300 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,511 | 2,888 |
Fair value, fixed maturity securities | 2,738 | 3,044 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,882 | 3,054 |
Fair value, fixed maturity securities | 2,989 | 3,016 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,699 | 3,444 |
Fair value, fixed maturity securities | 3,727 | 3,426 |
Not other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains | 5,686 | 2,762 |
Gross unrealized losses | (120) | (1,096) |
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 | 837 | 473 |
Gross unrealized losses, fixed maturity securities | (1) | (17) |
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 317 | 168 |
Gross unrealized losses, fixed maturity securities | (22) | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 155 | 72 |
Gross unrealized losses, fixed maturity securities | (2) | (24) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 3,058 | 1,446 |
Gross unrealized losses, fixed maturity securities | (76) | (682) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 565 | 331 |
Gross unrealized losses, fixed maturity securities | (13) | (95) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 255 | 101 |
Gross unrealized losses, fixed maturity securities | (10) | (64) |
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 | 633 | 249 |
Gross unrealized losses, fixed maturity securities | (10) | (132) |
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 | 616 | 294 |
Gross unrealized losses, fixed maturity securities | (18) | (137) |
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 | 269 | 110 |
Gross unrealized losses, fixed maturity securities | (6) | (78) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 98 | 41 |
Gross unrealized losses, fixed maturity securities | (4) | (33) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 303 | 165 |
Gross unrealized losses, fixed maturity securities | (6) | (51) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 127 | 53 |
Gross unrealized losses, fixed maturity securities | (5) | (48) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 152 | 78 |
Gross unrealized losses, fixed maturity securities | (4) | (41) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 40 | 24 |
Gross unrealized losses, fixed maturity securities | (3) | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 945 | 390 |
Gross unrealized losses, fixed maturity securities | (15) | (224) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 54 | 17 |
Gross unrealized losses, fixed maturity securities | (3) | (32) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 168 | 72 |
Gross unrealized losses, fixed maturity securities | (1) | (23) |
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 | 191 | 72 |
Gross unrealized losses, fixed maturity securities | (1) | (40) |
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 | 40 | 8 |
Gross unrealized losses, fixed maturity securities | (4) | (25) |
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 | 94 | 23 |
Gross unrealized losses, fixed maturity securities | (26) | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 81 | 36 |
Gross unrealized losses, fixed maturity securities | (17) | |
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 | 33 | 10 |
Gross unrealized losses, fixed maturity securities | (1) | (10) |
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 | 16 | 1 |
Gross unrealized losses, fixed maturity securities | (1) | (13) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 82 | 46 |
Gross unrealized losses, fixed maturity securities | (2) | (15) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 186 | 105 |
Gross unrealized losses, fixed maturity securities | (2) | (23) |
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 215 | 160 |
Gross unrealized losses, fixed maturity securities | (2) | (17) |
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 121 | 43 |
Gross unrealized losses, fixed maturity securities | (14) | (81) |
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 38 | 10 |
Gross unrealized losses, fixed maturity securities | (10) | (29) |
Other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains | 14 | 14 |
Other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | $ 14 | 13 |
Other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | $ 1 |
Gross Unrealized Losses and Fai
Gross Unrealized Losses and Fair Value of Investment Securities (Detail) $ in Millions | Jun. 30, 2019USD ($)Securities | Dec. 31, 2018USD ($)Securities |
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,238 | $ 18,042 |
Less than 12 months, Gross unrealized losses | $ (22) | $ (695) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 198 | 2,585 |
12 months or more, Fair value | $ 3,672 | $ 6,678 |
12 months or more, Gross unrealized losses | $ (98) | $ (401) |
12 months or more, Number of securities in a continuous loss position | Securities | 554 | 1,055 |
Fair value | $ 4,910 | $ 24,720 |
Gross unrealized losses | $ (120) | $ (1,096) |
Number of securities in a continuous loss position | Securities | 752 | 3,640 |
Investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,096 | $ 16,726 |
Less than 12 months, Gross unrealized losses | $ (11) | $ (615) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 185 | 2,393 |
12 months or more, Fair value | $ 3,463 | $ 6,508 |
12 months or more, Gross unrealized losses | $ (83) | $ (379) |
12 months or more, Number of securities in a continuous loss position | Securities | 524 | 1,024 |
Fair value | $ 4,559 | $ 23,234 |
Gross unrealized losses | $ (94) | $ (994) |
Number of securities in a continuous loss position | Securities | 709 | 3,417 |
Below investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 142 | $ 1,316 |
Less than 12 months, Gross unrealized losses | $ (11) | $ (80) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 13 | 192 |
12 months or more, Fair value | $ 209 | $ 170 |
12 months or more, Gross unrealized losses | $ (15) | $ (22) |
12 months or more, Number of securities in a continuous loss position | Securities | 30 | 31 |
Fair value | $ 351 | $ 1,486 |
Gross unrealized losses | $ (26) | $ (102) |
Number of securities in a continuous loss position | Securities | 43 | 223 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,238 | $ 18,042 |
Less than 12 months, Gross unrealized losses | $ (22) | $ (695) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 198 | 2,585 |
12 months or more, Fair value | $ 3,672 | $ 6,678 |
12 months or more, Gross unrealized losses | $ (98) | $ (401) |
12 months or more, Number of securities in a continuous loss position | Securities | 554 | 1,055 |
Fair value | $ 4,910 | $ 24,720 |
Gross unrealized losses | $ (120) | $ (1,096) |
Number of securities in a continuous loss position | Securities | 752 | 3,640 |
Fixed maturity securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,238 | $ 18,008 |
Less than 12 months, Gross unrealized losses | $ (22) | $ (685) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 198 | 2,581 |
12 months or more, Fair value | $ 3,647 | $ 6,624 |
12 months or more, Gross unrealized losses | $ (88) | $ (383) |
12 months or more, Number of securities in a continuous loss position | Securities | 549 | 1,045 |
Fair value | $ 4,885 | $ 24,632 |
Gross unrealized losses | $ (110) | $ (1,068) |
Number of securities in a continuous loss position | Securities | 747 | 3,626 |
Fixed maturity securities | 20 To 50 percent below cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 34 | |
Less than 12 months, Gross unrealized losses | $ (10) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 4 | |
12 months or more, Fair value | $ 22 | $ 54 |
12 months or more, Gross unrealized losses | $ (7) | $ (18) |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 10 |
Fair value | $ 22 | $ 88 |
Gross unrealized losses | $ (7) | $ (28) |
Number of securities in a continuous loss position | Securities | 3 | 14 |
Fixed maturity securities | Greater Than 50 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
12 months or more, Fair value | $ 3 | |
12 months or more, Gross unrealized losses | $ (3) | |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | |
Fair value | $ 3 | |
Gross unrealized losses | $ (3) | |
Number of securities in a continuous loss position | Securities | 2 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 545 | |
Less than 12 months, Gross unrealized losses | $ (8) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 17 | |
12 months or more, Fair value | $ 51 | $ 161 |
12 months or more, Gross unrealized losses | $ (1) | $ (9) |
12 months or more, Number of securities in a continuous loss position | Securities | 9 | 26 |
Fair value | $ 51 | $ 706 |
Gross unrealized losses | $ (1) | $ (17) |
Number of securities in a continuous loss position | Securities | 9 | 43 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 371 | |
Less than 12 months, Gross unrealized losses | $ (10) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 63 | |
12 months or more, Fair value | $ 233 | |
12 months or more, Gross unrealized losses | $ (12) | |
12 months or more, Number of securities in a continuous loss position | Securities | 57 | |
Fair value | $ 604 | |
Gross unrealized losses | $ (22) | |
Number of securities in a continuous loss position | Securities | 120 | |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 261 | |
Less than 12 months, Gross unrealized losses | $ (7) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 51 | |
12 months or more, Fair value | $ 198 | $ 508 |
12 months or more, Gross unrealized losses | $ (2) | $ (17) |
12 months or more, Number of securities in a continuous loss position | Securities | 14 | 35 |
Fair value | $ 198 | $ 769 |
Gross unrealized losses | $ (2) | $ (24) |
Number of securities in a continuous loss position | Securities | 14 | 86 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 372 | $ 9,975 |
Less than 12 months, Gross unrealized losses | $ (15) | $ (472) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 33 | 1,342 |
12 months or more, Fair value | $ 1,907 | $ 2,449 |
12 months or more, Gross unrealized losses | $ (61) | $ (210) |
12 months or more, Number of securities in a continuous loss position | Securities | 256 | 365 |
Fair value | $ 2,279 | $ 12,424 |
Gross unrealized losses | $ (76) | $ (682) |
Number of securities in a continuous loss position | Securities | 289 | 1,707 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 34 | $ 4,172 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (150) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 5 | 614 |
12 months or more, Fair value | $ 526 | $ 1,274 |
12 months or more, Gross unrealized losses | $ (13) | $ (74) |
12 months or more, Number of securities in a continuous loss position | Securities | 82 | 209 |
Fair value | $ 560 | $ 5,446 |
Gross unrealized losses | $ (15) | $ (224) |
Number of securities in a continuous loss position | Securities | 87 | 823 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 363 | |
Less than 12 months, Gross unrealized losses | $ (6) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 57 | |
12 months or more, Fair value | $ 166 | $ 579 |
12 months or more, Gross unrealized losses | $ (2) | $ (11) |
12 months or more, Number of securities in a continuous loss position | Securities | 39 | 96 |
Fair value | $ 166 | $ 942 |
Gross unrealized losses | $ (2) | $ (17) |
Number of securities in a continuous loss position | Securities | 39 | 153 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 758 | |
Less than 12 months, Gross unrealized losses | $ (19) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 115 | |
12 months or more, Fair value | $ 399 | $ 870 |
12 months or more, Gross unrealized losses | $ (14) | $ (62) |
12 months or more, Number of securities in a continuous loss position | Securities | 53 | 130 |
Fair value | $ 399 | $ 1,628 |
Gross unrealized losses | $ (14) | $ (81) |
Number of securities in a continuous loss position | Securities | 53 | 245 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 832 | $ 1,597 |
Less than 12 months, Gross unrealized losses | $ (5) | $ (23) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 160 | 326 |
12 months or more, Fair value | $ 425 | $ 604 |
12 months or more, Gross unrealized losses | $ (5) | $ (6) |
12 months or more, Number of securities in a continuous loss position | Securities | 101 | 137 |
Fair value | $ 1,257 | $ 2,201 |
Gross unrealized losses | $ (10) | $ (29) |
Number of securities in a continuous loss position | Securities | 261 | 463 |
Gross Unrealized Losses and F_2
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Jun. 30, 2019USD ($)Securities | Dec. 31, 2018USD ($)Securities |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,238 | $ 18,042 |
Less than 12 months, Gross unrealized losses | $ (22) | $ (695) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 198 | 2,585 |
12 months or more, Fair value | $ 3,672 | $ 6,678 |
12 months or more, Gross unrealized losses | $ (98) | $ (401) |
12 months or more, Number of securities in a continuous loss position | Securities | 554 | 1,055 |
Fair value | $ 4,910 | $ 24,720 |
Gross unrealized losses | $ (120) | $ (1,096) |
Number of securities in a continuous loss position | Securities | 752 | 3,640 |
Fixed maturity securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,238 | $ 18,042 |
Less than 12 months, Gross unrealized losses | $ (22) | $ (695) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 198 | 2,585 |
12 months or more, Fair value | $ 3,672 | $ 6,678 |
12 months or more, Gross unrealized losses | $ (98) | $ (401) |
12 months or more, Number of securities in a continuous loss position | Securities | 554 | 1,055 |
Fair value | $ 4,910 | $ 24,720 |
Gross unrealized losses | $ (120) | $ (1,096) |
Number of securities in a continuous loss position | Securities | 752 | 3,640 |
Fixed maturity securities | U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 372 | $ 9,975 |
Less than 12 months, Gross unrealized losses | $ (15) | $ (472) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 33 | 1,342 |
12 months or more, Fair value | $ 1,907 | $ 2,449 |
12 months or more, Gross unrealized losses | $ (61) | $ (210) |
12 months or more, Number of securities in a continuous loss position | Securities | 256 | 365 |
Fair value | $ 2,279 | $ 12,424 |
Gross unrealized losses | $ (76) | $ (682) |
Number of securities in a continuous loss position | Securities | 289 | 1,707 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 46 | $ 1,246 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (61) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 4 | 173 |
12 months or more, Fair value | $ 326 | $ 343 |
12 months or more, Gross unrealized losses | $ (9) | $ (34) |
12 months or more, Number of securities in a continuous loss position | Securities | 50 | 60 |
Fair value | $ 372 | $ 1,589 |
Gross unrealized losses | $ (13) | $ (95) |
Number of securities in a continuous loss position | Securities | 54 | 233 |
Fixed maturity securities | U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 60 | $ 944 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (47) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 11 | 135 |
12 months or more, Fair value | $ 143 | $ 152 |
12 months or more, Gross unrealized losses | $ (8) | $ (17) |
12 months or more, Number of securities in a continuous loss position | Securities | 17 | 23 |
Fair value | $ 203 | $ 1,096 |
Gross unrealized losses | $ (10) | $ (64) |
Number of securities in a continuous loss position | Securities | 28 | 158 |
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 | $ 2,393 | |
Less than 12 months, Gross unrealized losses | $ (92) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 326 | |
12 months or more, Fair value | $ 343 | $ 688 |
12 months or more, Gross unrealized losses | $ (10) | $ (40) |
12 months or more, Number of securities in a continuous loss position | Securities | 46 | 95 |
Fair value | $ 343 | $ 3,081 |
Gross unrealized losses | $ (10) | $ (132) |
Number of securities in a continuous loss position | Securities | 46 | 421 |
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 | $ 93 | $ 1,826 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (101) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 12 | 203 |
12 months or more, Fair value | $ 383 | $ 389 |
12 months or more, Gross unrealized losses | $ (11) | $ (36) |
12 months or more, Number of securities in a continuous loss position | Securities | 49 | 55 |
Fair value | $ 476 | $ 2,215 |
Gross unrealized losses | $ (18) | $ (137) |
Number of securities in a continuous loss position | Securities | 61 | 258 |
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 | $ 173 | $ 1,135 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (51) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 6 | 152 |
12 months or more, Fair value | $ 198 | $ 263 |
12 months or more, Gross unrealized losses | $ (4) | $ (27) |
12 months or more, Number of securities in a continuous loss position | Securities | 22 | 34 |
Fair value | $ 371 | $ 1,398 |
Gross unrealized losses | $ (6) | $ (78) |
Number of securities in a continuous loss position | Securities | 28 | 186 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 506 | |
Less than 12 months, Gross unrealized losses | $ (27) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 63 | |
12 months or more, Fair value | $ 94 | $ 74 |
12 months or more, Gross unrealized losses | $ (4) | $ (6) |
12 months or more, Number of securities in a continuous loss position | Securities | 14 | 13 |
Fair value | $ 94 | $ 580 |
Gross unrealized losses | $ (4) | $ (33) |
Number of securities in a continuous loss position | Securities | 14 | 76 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 704 | |
Less than 12 months, Gross unrealized losses | $ (31) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 103 | |
12 months or more, Fair value | $ 128 | $ 184 |
12 months or more, Gross unrealized losses | $ (6) | $ (20) |
12 months or more, Number of securities in a continuous loss position | Securities | 18 | 27 |
Fair value | $ 128 | $ 888 |
Gross unrealized losses | $ (6) | $ (51) |
Number of securities in a continuous loss position | Securities | 18 | 130 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 738 | |
Less than 12 months, Gross unrealized losses | $ (35) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 123 | |
12 months or more, Fair value | $ 175 | $ 162 |
12 months or more, Gross unrealized losses | $ (5) | $ (13) |
12 months or more, Number of securities in a continuous loss position | Securities | 24 | 26 |
Fair value | $ 175 | $ 900 |
Gross unrealized losses | $ (5) | $ (48) |
Number of securities in a continuous loss position | Securities | 24 | 149 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 435 | |
Less than 12 months, Gross unrealized losses | $ (25) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 60 | |
12 months or more, Fair value | $ 117 | $ 179 |
12 months or more, Gross unrealized losses | $ (4) | $ (16) |
12 months or more, Number of securities in a continuous loss position | Securities | 16 | 31 |
Fair value | $ 117 | $ 614 |
Gross unrealized losses | $ (4) | $ (41) |
Number of securities in a continuous loss position | Securities | 16 | 91 |
Fixed maturity securities | U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 48 | |
Less than 12 months, Gross unrealized losses | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 4 | |
12 months or more, Fair value | $ 15 | |
12 months or more, Gross unrealized losses | $ (1) | |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | |
Fair value | $ 63 | |
Gross unrealized losses | $ (3) | |
Number of securities in a continuous loss position | Securities | 5 | |
Fixed maturity securities | Non-U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 34 | $ 4,172 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (150) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 5 | 614 |
12 months or more, Fair value | $ 526 | $ 1,274 |
12 months or more, Gross unrealized losses | $ (13) | $ (74) |
12 months or more, Number of securities in a continuous loss position | Securities | 82 | 209 |
Fair value | $ 560 | $ 5,446 |
Gross unrealized losses | $ (15) | $ (224) |
Number of securities in a continuous loss position | Securities | 87 | 823 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 21 | $ 404 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (19) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 3 | 58 |
12 months or more, Fair value | $ 103 | $ 173 |
12 months or more, Gross unrealized losses | $ (2) | $ (13) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 24 |
Fair value | $ 124 | $ 577 |
Gross unrealized losses | $ (3) | $ (32) |
Number of securities in a continuous loss position | Securities | 16 | 82 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 13 | $ 439 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (15) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2 | 64 |
12 months or more, Fair value | $ 136 | |
12 months or more, Gross unrealized losses | $ (8) | |
12 months or more, Number of securities in a continuous loss position | Securities | 20 | |
Fair value | $ 13 | $ 575 |
Gross unrealized losses | $ (1) | $ (23) |
Number of securities in a continuous loss position | Securities | 2 | 84 |
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 | $ 899 | |
Less than 12 months, Gross unrealized losses | $ (25) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 151 | |
12 months or more, Fair value | $ 113 | $ 294 |
12 months or more, Gross unrealized losses | $ (1) | $ (15) |
12 months or more, Number of securities in a continuous loss position | Securities | 23 | 52 |
Fair value | $ 113 | $ 1,193 |
Gross unrealized losses | $ (1) | $ (40) |
Number of securities in a continuous loss position | Securities | 23 | 203 |
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 | $ 377 | |
Less than 12 months, Gross unrealized losses | $ (16) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 51 | |
12 months or more, Fair value | $ 72 | $ 102 |
12 months or more, Gross unrealized losses | $ (4) | $ (9) |
12 months or more, Number of securities in a continuous loss position | Securities | 10 | 14 |
Fair value | $ 72 | $ 479 |
Gross unrealized losses | $ (4) | $ (25) |
Number of securities in a continuous loss position | Securities | 10 | 65 |
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 | $ 611 | |
Less than 12 months, Gross unrealized losses | $ (24) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 75 | |
12 months or more, Fair value | $ 50 | |
12 months or more, Gross unrealized losses | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 12 | |
Fair value | $ 661 | |
Gross unrealized losses | $ (26) | |
Number of securities in a continuous loss position | Securities | 87 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 275 | |
Less than 12 months, Gross unrealized losses | $ (11) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 48 | |
12 months or more, Fair value | $ 72 | |
12 months or more, Gross unrealized losses | $ (6) | |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | |
Fair value | $ 347 | |
Gross unrealized losses | $ (17) | |
Number of securities in a continuous loss position | Securities | 56 | |
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 | $ 226 | |
Less than 12 months, Gross unrealized losses | $ (7) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 27 | |
12 months or more, Fair value | $ 44 | $ 69 |
12 months or more, Gross unrealized losses | $ (1) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 5 | 13 |
Fair value | $ 44 | $ 295 |
Gross unrealized losses | $ (1) | $ (10) |
Number of securities in a continuous loss position | Securities | 5 | 40 |
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 | $ 268 | |
Less than 12 months, Gross unrealized losses | $ (11) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 42 | |
12 months or more, Fair value | $ 64 | $ 117 |
12 months or more, Gross unrealized losses | $ (1) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 10 | 19 |
Fair value | $ 64 | $ 385 |
Gross unrealized losses | $ (1) | $ (13) |
Number of securities in a continuous loss position | Securities | 10 | 61 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 232 | |
Less than 12 months, Gross unrealized losses | $ (7) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 27 | |
12 months or more, Fair value | $ 51 | $ 67 |
12 months or more, Gross unrealized losses | $ (2) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 11 |
Fair value | $ 51 | $ 299 |
Gross unrealized losses | $ (2) | $ (15) |
Number of securities in a continuous loss position | Securities | 8 | 38 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 441 | |
Less than 12 months, Gross unrealized losses | $ (15) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 71 | |
12 months or more, Fair value | $ 79 | $ 194 |
12 months or more, Gross unrealized losses | $ (2) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 36 |
Fair value | $ 79 | $ 635 |
Gross unrealized losses | $ (2) | $ (23) |
Number of securities in a continuous loss position | Securities | 13 | 107 |
Fixed maturity securities | Corporate Debt Securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 406 | $ 14,147 |
Less than 12 months, Gross unrealized losses | $ (17) | $ (622) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 38 | 1,956 |
12 months or more, Fair value | $ 2,433 | $ 3,723 |
12 months or more, Gross unrealized losses | $ (74) | $ (284) |
12 months or more, Number of securities in a continuous loss position | Securities | 338 | 574 |
Fair value | $ 2,839 | $ 17,870 |
Gross unrealized losses | $ (91) | $ (906) |
Number of securities in a continuous loss position | Securities | 376 | 2,530 |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Amortized cost or cost | |
Due one year or less | $ 1,957 |
Due after one year through five years | 11,198 |
Due after five years through ten years | 12,300 |
Due after ten years | 23,647 |
Subtotal | 49,102 |
Fair value | |
Due one year or less | 1,973 |
Due after one year through five years | 11,602 |
Due after five years through ten years | 13,197 |
Due after ten years | 27,548 |
Subtotal | 54,320 |
Residential mortgage-backed | |
Amortized cost or cost | |
Fixed maturity securities | 2,511 |
Fair value | |
Fixed maturity securities | 2,738 |
Commercial mortgage-backed | |
Amortized cost or cost | |
Fixed maturity securities | 2,882 |
Fair value | |
Fixed maturity securities | 2,989 |
Other asset-backed | |
Amortized cost or cost | |
Fixed maturity securities | 3,699 |
Fair value | |
Fixed maturity securities | $ 3,727 |
Distribution Across Property Ty
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,978 | $ 6,700 |
Unamortized balance of loan origination fees and costs | $ (4) | $ (4) |
% of total | 100.00% | 100.00% |
Allowance for credit losses | $ (11) | $ (9) |
Total | 7,019 | 6,749 |
Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 6,978 | 6,700 |
Unamortized balance of loan origination fees and costs | $ (4) | $ (4) |
% of total | 100.00% | 100.00% |
Allowance for credit losses | $ (11) | $ (9) |
Total | 6,963 | 6,687 |
South Atlantic | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,747 | $ 1,709 |
% of total | 25.00% | 26.00% |
Pacific | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,701 | $ 1,684 |
% of total | 24.00% | 25.00% |
Middle Atlantic | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,000 | $ 950 |
% of total | 14.00% | 14.00% |
Mountain | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 717 | $ 667 |
% of total | 10.00% | 10.00% |
West North Central | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 490 | $ 470 |
% of total | 7.00% | 7.00% |
East North Central | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 457 | $ 405 |
% of total | 7.00% | 6.00% |
West South Central | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 387 | $ 364 |
% of total | 6.00% | 6.00% |
New England | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 261 | $ 228 |
% of total | 4.00% | 3.00% |
East South Central | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 218 | $ 223 |
% of total | 3.00% | 3.00% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,581 | $ 2,463 |
% of total | 37.00% | 37.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,699 | $ 1,659 |
% of total | 24.00% | 25.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,656 | $ 1,548 |
% of total | 24.00% | 23.00% |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 525 | $ 495 |
% of total | 7.00% | 7.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 247 | $ 254 |
% of total | 4.00% | 4.00% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 270 | $ 281 |
% 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 | Jun. 30, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,978 | $ 6,700 |
% of total | 100.00% | 100.00% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,581 | $ 2,463 |
% of total | 37.00% | 37.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,699 | $ 1,659 |
% of total | 24.00% | 25.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,656 | $ 1,548 |
% of total | 24.00% | 23.00% |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 525 | $ 495 |
% of total | 7.00% | 7.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 247 | $ 254 |
% of total | 4.00% | 4.00% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 270 | $ 281 |
% of total | 4.00% | 4.00% |
31-60 days past due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 3 | |
31-60 days past due | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | |
Greater than 90 days past due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | |
Greater than 90 days past due | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | |
Total past due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 6 | |
Total past due | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | |
Total past due | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | |
Current | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,978 | $ 6,694 |
% of total | 100.00% | 100.00% |
Current | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,581 | $ 2,460 |
Current | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,699 | 1,659 |
Current | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,656 | 1,545 |
Current | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 525 | 495 |
Current | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 247 | 254 |
Current | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 270 | $ 281 |
Allowance for Credit Losses and
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | $ 9 | ||||
Provision | $ 0 | $ 0 | |||
Ending balance | $ 11 | 11 | |||
Ending balance | 6,978 | 6,978 | $ 6,700 | ||
Allowance for Credit Losses | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 10 | 9 | 9 | 9 | |
Provision | 1 | 2 | |||
Ending balance | 11 | 9 | 11 | 9 | |
Ending allowance for loans not individually impaired that were evaluated collectively for impairment | 11 | 9 | 11 | 9 | |
Commercial Mortgage Loans Recorded Investment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending balance | 6,978 | 6,492 | 6,978 | 6,492 | |
Ending balance of individually impaired loans | 6 | 6 | |||
Ending balance of loans not individually impaired that were evaluated collectively for impairment | $ 6,978 | $ 6,486 | $ 6,978 | $ 6,486 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,978 | $ 6,700 | ||
% of total | 100.00% | 100.00% | ||
Weighted-average debt service coverage ratio | 1.92 | 2 | ||
Retail | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,581 | $ 2,463 | ||
% of total | 37.00% | 37.00% | ||
Industrial | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,699 | $ 1,659 | ||
% of total | 24.00% | 25.00% | ||
Office | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,656 | $ 1,548 | ||
% of total | 24.00% | 23.00% | ||
Apartments | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 525 | $ 495 | ||
% of total | 7.00% | 7.00% | ||
Mixed Use | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 247 | $ 254 | ||
% of total | 4.00% | 4.00% | ||
Other | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 270 | $ 281 | ||
% of total | 4.00% | 4.00% | ||
0% - 50% | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,550 | $ 2,554 | ||
% of total | 37.00% | 38.00% | ||
Weighted-average debt service coverage ratio | 2.39 | 2.42 | ||
0% - 50% | Retail | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 882 | $ 866 | ||
0% - 50% | Industrial | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 732 | 749 | ||
0% - 50% | Office | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 587 | 585 | ||
0% - 50% | Apartments | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 200 | 206 | ||
0% - 50% | Mixed Use | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 102 | 105 | ||
0% - 50% | Other | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 47 | 43 | ||
51% - 60% | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,399 | $ 1,426 | ||
% of total | 20.00% | 21.00% | ||
Weighted-average debt service coverage ratio | 1.84 | 2.04 | ||
51% - 60% | Retail | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 534 | $ 565 | ||
51% - 60% | Industrial | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 284 | 279 | ||
51% - 60% | Office | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 378 | 373 | ||
51% - 60% | Apartments | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 97 | 95 | ||
51% - 60% | Mixed Use | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 43 | 36 | ||
51% - 60% | Other | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 63 | 78 | ||
61% - 75% | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 3,002 | $ 2,682 | ||
% of total | 43.00% | 40.00% | ||
Weighted-average debt service coverage ratio | 1.57 | 1.59 | ||
61% - 75% | Retail | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,152 | $ 1,017 | ||
61% - 75% | Industrial | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 674 | 615 | ||
61% - 75% | Office | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 691 | 588 | ||
61% - 75% | Apartments | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 223 | 189 | ||
61% - 75% | Mixed Use | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 102 | 113 | ||
61% - 75% | Other | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 160 | 160 | ||
76% - 100% | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 25 | $ 36 | ||
% of total | 1.00% | |||
Weighted-average debt service coverage ratio | 1.34 | 1.38 | ||
76% - 100% | Retail | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 13 | $ 15 | ||
76% - 100% | Industrial | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 7 | 14 | ||
76% - 100% | Office | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 2 | |||
76% - 100% | Apartments | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 5 | 5 | ||
Greater than 100% | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2 | [1] | $ 2 | [2] |
Weighted-average debt service coverage ratio | 0.88 | [1] | 0.88 | [2] |
Greater than 100% | Industrial | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2 | [1] | $ 2 | [2] |
[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 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. | |||
[2] | Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Loan-to-Value of Commercial M_2
Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,978 | $ 6,700 | ||
Greater than 100% | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 2 | [1] | 2 | [2] |
Greater than 100% | Loans in Good Standing | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2 | $ 2 | ||
Weighted-average loan-to-value | 103.00% | 105.00% | ||
[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 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. | |||
[2] | Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Debt Service Coverage Ratio for
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,978 | $ 6,700 |
% of total | 100.00% | 100.00% |
Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,978 | $ 6,700 |
% of total | 100.00% | 100.00% |
Weighted-average loan-to-value | 55.00% | 54.00% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,581 | $ 2,463 |
% of total | 37.00% | 37.00% |
Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,581 | $ 2,463 |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,699 | $ 1,659 |
% of total | 24.00% | 25.00% |
Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,699 | $ 1,659 |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,656 | $ 1,548 |
% of total | 24.00% | 23.00% |
Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,656 | $ 1,548 |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 525 | $ 495 |
% of total | 7.00% | 7.00% |
Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 525 | $ 495 |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 247 | $ 254 |
% of total | 4.00% | 4.00% |
Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 247 | $ 254 |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 270 | $ 281 |
% of total | 4.00% | 4.00% |
Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 270 | $ 281 |
Less than 1.00 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 125 | $ 142 |
% of total | 2.00% | 2.00% |
Weighted-average loan-to-value | 55.00% | 57.00% |
Less than 1.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 33 | $ 43 |
Less than 1.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 22 | 22 |
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 51 | 57 |
Less than 1.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 4 | 4 |
Less than 1.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | 3 |
Less than 1.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 12 | 13 |
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 436 | $ 465 |
% of total | 6.00% | 7.00% |
Weighted-average loan-to-value | 61.00% | 61.00% |
1.00 - 1.25 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 147 | $ 157 |
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 68 | 75 |
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 47 | 56 |
1.00 - 1.25 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 24 | 24 |
1.00 - 1.25 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 18 | 19 |
1.00 - 1.25 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 132 | 134 |
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,282 | $ 1,042 |
% of total | 18.00% | 16.00% |
Weighted-average loan-to-value | 64.00% | 62.00% |
1.26 - 1.50 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 604 | $ 448 |
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 254 | 233 |
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 213 | 156 |
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 107 | 104 |
1.26 - 1.50 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 52 | 51 |
1.26 - 1.50 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 52 | 50 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 3,097 | $ 2,950 |
% of total | 45.00% | 44.00% |
Weighted-average loan-to-value | 59.00% | 59.00% |
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,238 | $ 1,234 |
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 711 | 653 |
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 833 | 765 |
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 196 | 168 |
1.51 - 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 79 | 80 |
1.51 - 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 40 | 50 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,038 | $ 2,101 |
% of total | 29.00% | 31.00% |
Weighted-average loan-to-value | 42.00% | 42.00% |
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 559 | $ 581 |
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 644 | 676 |
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 512 | 514 |
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 194 | 195 |
Greater than 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 95 | 101 |
Greater than 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 34 | $ 34 |
Schedule of Positions in Deriva
Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Derivative assets, fair value | $ 300 | $ 198 | |
Derivative liabilities, fair value | 821 | 906 | |
Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 778 | 738 | |
Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 43 | 168 | |
Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 280 | 178 | |
Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 10 | 102 | |
Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 144 | 42 | |
Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 8 | 23 | |
Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 6 | 6 | |
Interest rate swaps in a foreign currency | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 35 | 74 | |
Interest rate caps and floors | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 16 | 7 | |
Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 65 | 39 | |
Equity return swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 1 | ||
Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 25 | 42 | |
Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 14 | 10 | |
GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [1] | 325 | 337 |
GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [2] | 20 | 20 |
Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 438 | 389 | |
Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 15 | 12 | |
Designated As Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 149 | 48 | |
Derivative liabilities, fair value | 11 | 102 | |
Designated As Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 149 | 48 | |
Derivative liabilities, fair value | 11 | 102 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 10 | 102 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 144 | 42 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 1 | 0 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 5 | 6 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 151 | 150 | |
Derivative liabilities, fair value | 810 | 804 | |
Derivatives not designated as hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 7 | 23 | |
Derivatives not designated as hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 1 | 0 | |
Derivatives not designated as hedges | Interest rate swaps in a foreign currency | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Interest rate swaps in a foreign currency | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 35 | 74 | |
Derivatives not designated as hedges | Interest rate caps and floors | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Interest rate caps and floors | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 16 | 7 | |
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 | 65 | 39 | |
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 | 1 | |
Derivatives not designated as hedges | Equity return swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 25 | 42 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 14 | 10 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [3] | 325 | 337 |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [4] | 20 | 20 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [5] | 438 | 389 |
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] | 15 | 12 |
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 | 6 Months Ended |
Jun. 30, 2019USD ($)Policies | |
Derivative [Line Items] | |
Notional amount, beginning balance | $ 25,460 |
Additions | 7,763 |
Maturities/ terminations | (8,463) |
Notional amount, ending balance | 24,760 |
Designated As Hedging Instrument | |
Derivative [Line Items] | |
Notional amount, beginning balance | 10,004 |
Additions | 521 |
Maturities/ terminations | (1,360) |
Notional amount, ending balance | 9,165 |
Designated As Hedging Instrument | Cash Flow Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 10,004 |
Additions | 521 |
Maturities/ terminations | (1,360) |
Notional amount, ending balance | 9,165 |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 9,924 |
Additions | 469 |
Maturities/ terminations | (1,338) |
Notional amount, ending balance | 9,055 |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 80 |
Additions | 52 |
Maturities/ terminations | (22) |
Notional amount, ending balance | 110 |
Derivatives not designated as hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 15,456 |
Additions | 7,242 |
Maturities/ terminations | (7,103) |
Notional amount, ending balance | 15,595 |
Derivatives not designated as hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 4,674 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 4,674 |
Derivatives not designated as hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 453 |
Additions | 0 |
Maturities/ terminations | (2) |
Notional amount, ending balance | 451 |
Derivatives not designated as hedges | Interest rate swaps in a foreign currency | Other invested assets | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,565 |
Additions | 187 |
Maturities/ terminations | (77) |
Notional amount, ending balance | 2,675 |
Derivatives not designated as hedges | Interest rate caps and floors | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,624 |
Additions | 160 |
Maturities/ terminations | (66) |
Notional amount, ending balance | 2,718 |
Derivatives not designated as hedges | Equity index options | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,628 |
Additions | 939 |
Maturities/ terminations | (1,035) |
Notional amount, ending balance | 2,532 |
Derivatives not designated as hedges | Financial futures | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,415 |
Additions | 3,029 |
Maturities/ terminations | (3,217) |
Notional amount, ending balance | 1,227 |
Derivatives not designated as hedges | Equity return swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 17 |
Additions | 2 |
Maturities/ terminations | (2) |
Notional amount, ending balance | 17 |
Derivatives not designated as hedges | Other foreign currency contracts | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,080 |
Additions | 2,925 |
Maturities/ terminations | (2,704) |
Notional amount, ending balance | $ 1,301 |
Derivatives not designated as hedges | GMWB embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 27,886 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (1,139) |
Notional amount, ending balance | Policies | 26,747 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 16,464 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (410) |
Notional amount, ending balance | Policies | 16,054 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 929 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (21) |
Notional amount, ending balance | Policies | 908 |
Schedule of Pre-Tax Income (Los
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in OCI | $ 198 | $ (48) | $ 320 | $ (205) |
Gain (loss) reclassified into net income from OCI | 37 | 39 | 81 | 79 |
Gain (loss) recognized in net income (loss) | 0 | 0 | 2 | 0 |
Interest Rate Swaps Hedging Assets | Net Investment Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in OCI | 216 | (54) | 353 | (227) |
Gain (loss) reclassified into net income from OCI | 42 | 39 | 80 | 74 |
Gain (loss) recognized in net income (loss) | 0 | 0 | 0 | 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 | 0 | |
Gain (loss) reclassified into net income from OCI | (4) | 2 | 5 | |
Gain (loss) recognized in net income (loss) | 0 | 0 | 0 | 0 |
Interest Rate Swaps Hedging Liabilities | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in OCI | (20) | 5 | (32) | 22 |
Gain (loss) reclassified into net income from OCI | 0 | 0 | 0 | 0 |
Interest Rate Swaps Hedging Liabilities | Net Investment (Gains) Losses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in net income (loss) | 0 | 0 | $ 0 | |
Foreign currency swaps | Net Investment Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in OCI | 2 | 1 | (1) | |
Gain (loss) reclassified into net income from OCI | (1) | 0 | (1) | |
Gain (loss) recognized in net income (loss) | 0 | |||
Foreign currency swaps | Net Investment (Gains) Losses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in OCI | 0 | |||
Gain (loss) reclassified into net income from OCI | 0 | |||
Gain (loss) recognized in net income (loss) | $ 0 | $ 0 | $ 2 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments [Abstract] | ||||
Derivatives qualifying as effective accounting hedges, beginning of period | $ 1,850 | $ 1,927 | $ 1,781 | $ 2,065 |
Cumulative effect of changes in accounting: | ||||
Stranded tax effects | 0 | 12 | ||
Changes to the hedge accounting model, net of deferred taxes | 0 | 2 | ||
Total cumulative effect of changes in accounting | 0 | 14 | ||
Current period increases (decreases) in fair value, net of deferred taxes | 157 | (39) | 254 | (165) |
Reclassification to net (income), net of deferred taxes | (24) | (25) | (52) | (51) |
Derivatives qualifying as effective accounting hedges, end of period | $ 1,983 | $ 1,863 | $ 1,983 | $ 1,863 |
Reconciliation of Current Per_2
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Changes to the hedge accounting model, deferred taxes | $ 0 | $ (1) | ||
Current period increases (decreases) in fair value, deferred taxes | $ (41) | $ 9 | (66) | 43 |
Reclassification to net (income), deferred taxes | $ 13 | $ 14 | $ 29 | $ 28 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax | $ 1,983 | $ 1,863 | $ 1,850 | $ 1,781 | $ 1,927 | $ 2,065 |
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur | 2057 | |||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to net income in the next 12 months, net of tax | $ 112 | |||||
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring | $ 2 | $ 5 |
Schedule of Pre-Tax Gain (Loss)
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives not Designated as Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ (18) | $ (15) | $ (36) | $ (33) |
Interest rate swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (3) | (2) | (4) | (3) |
Interest rate swaps in a foreign currency | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (6) | 0 | (29) | 0 |
Interest rate caps and floors | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 3 | 0 | 9 | 0 |
Foreign currency swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 6 | (10) | 16 | (18) |
Equity index options | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 10 | 8 | 27 | (7) |
Financial futures | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 17 | (13) | (27) | (37) |
Equity return swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 1 | 1 | 1 | (4) |
Other foreign currency contracts | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (3) | 1 | 6 | 9 |
GMWB embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (22) | 13 | 23 | 27 |
Fixed index annuity embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (20) | (15) | (58) | (7) |
Indexed universal life embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ (1) | $ 2 | $ 0 | $ 7 |
Additional Information about De
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | $ 300 | $ 198 | |
Gross amounts recognized, derivatives liabilities | 821 | 906 | |
Subject to enforceable master netting arrangement | |||
Derivative [Line Items] | |||
Gross amounts recognized, net derivatives | 243 | 16 | |
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | |
Net amounts presented in the balance sheet, net derivatives | 243 | 16 | |
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [1],[2] | 0 | 0 |
Collateral received | (77) | (84) | |
Collateral pledged | 327 | 536 | |
Over collateralization, net derivatives | (318) | (423) | |
Net amount | 175 | 45 | |
Subject to enforceable master netting arrangement | Derivative assets | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | [3] | 287 | 185 |
Gross amounts offset in the balance sheet, derivatives assets | [3] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives assets | [3] | 287 | 185 |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [3] | (35) | (66) |
Collateral received | [3] | (77) | (84) |
Collateral pledged | [3] | 0 | 0 |
Over collateralization, derivatives assets | [3] | 0 | 10 |
Net amount, derivatives assets | [3] | 175 | 45 |
Subject to enforceable master netting arrangement | Derivative liabilities | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives liabilities | [2] | 44 | 169 |
Gross amounts offset in the balance sheet, derivatives liabilities | [2] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives liabilities | [2] | 44 | 169 |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [2] | (35) | (66) |
Collateral received | [2] | 0 | 0 |
Collateral pledged | [2] | (327) | (536) |
Over collateralization, derivatives liabilities | [2] | 318 | 433 |
Net amount, derivatives liabilities | [2] | $ 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 $1 million of accruals on derivatives included in other liabilities as of June 30, 2019 and does not include amounts related to embedded derivatives as of June 30, 2019 and December 31, 2018. | ||
[3] | Included $7 million and $6 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2019 and December 31, 2018, respectively. |
Additional Information about _2
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Subject to enforceable master netting arrangement - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | [1] | $ 44 | $ 169 |
Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | [2] | 287 | 185 |
Other assets | Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | 7 | $ 6 | |
Other liabilities | Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | $ 1 | ||
[1] | Included $1 million of accruals on derivatives included in other liabilities as of June 30, 2019 and does not include amounts related to embedded derivatives as of June 30, 2019 and December 31, 2018. | ||
[2] | Included $7 million and $6 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2019 and December 31, 2018, respectively. |
Gains and Losses Included in Ne
Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income, assets | $ 14 | $ 8 | $ 32 | $ (6) |
Net gains (losses) included in net income attributable to assets still held, assets | 10 | 9 | 13 | (2) |
Net Investment Income | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income, assets | 2 | 2 | 6 | 5 |
Net gains (losses) included in net income attributable to assets still held, assets | 1 | 2 | 3 | 5 |
Net Investment (Gains) Losses | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income, assets | 12 | 6 | 26 | (11) |
Net gains (losses) included in net income attributable to assets still held, assets | $ 9 | $ 7 | $ 10 | $ (7) |
Gains and Losses Included in _2
Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | $ 45 | $ (1) | $ 34 | $ (30) |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 45 | (1) | 38 | (26) |
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 | 0 | 0 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 0 | 0 | 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 | 45 | (1) | 34 | (30) |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | $ 45 | $ (1) | $ 38 | $ (26) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 63,774 | $ 59,661 |
GMWB non-performance risk impact | $ 64 | $ 64 |
Period end valuation | 0 | 0 |
Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,649 | $ 2,393 |
Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 31,401 | 28,762 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 12,647 | 11,837 |
Level 2 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 59,487 | 55,785 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,649 | 2,393 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 29,174 | 26,764 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 11,016 | 10,305 |
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 | $ 2,634 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 28,118 | |
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 | 10,417 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 15 | |
Level 2 | Fixed maturity securities | Internal models | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,056 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 599 | |
Level 3 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 4,287 | 3,876 |
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 | 2,227 | 1,998 |
Level 3 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,631 | $ 1,532 |
Level 3 | Fixed maturity securities | Internal models | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,806 | |
Level 3 | Fixed maturity securities | Broker Quotes | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 481 |
Fair Value Financial Instrument
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 7,019 | $ 6,749 | |
Restricted commercial mortgage loans | 56 | 62 | |
Liabilities: | |||
Long-term borrowings | 4,044 | 4,025 | |
Non-recourse funding obligations | 311 | 311 | |
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: | |||
Bank loan investments | 0 | 0 | |
Liabilities: | |||
Long-term borrowings | 0 | 0 | |
Non-recourse funding obligations | 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: | |||
Bank loan investments | 0 | 0 | |
Liabilities: | |||
Long-term borrowings | 3,480 | 3,434 | |
Non-recourse funding obligations | 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 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 7,241 | 6,737 | |
Restricted commercial mortgage loans | 61 | 66 | |
Other invested assets: | |||
Bank loan investments | 336 | 248 | |
Liabilities: | |||
Long-term borrowings | 142 | 143 | |
Non-recourse funding obligations | 215 | 215 | |
Investment contracts | 13,194 | 13,052 | |
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 | 6,963 | 6,687 | |
Restricted commercial mortgage loans | 56 | 62 | |
Other invested assets: | |||
Bank loan investments | 337 | 248 | |
Liabilities: | |||
Long-term borrowings | 4,044 | 4,025 | |
Non-recourse funding obligations | 311 | 311 | |
Investment contracts | 12,364 | 13,105 | |
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 | 7,241 | 6,737 | |
Restricted commercial mortgage loans | 61 | 66 | |
Other invested assets: | |||
Bank loan investments | 336 | 248 | |
Liabilities: | |||
Long-term borrowings | 3,622 | 3,577 | |
Non-recourse funding obligations | 215 | 215 | |
Investment contracts | 13,194 | 13,052 | |
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] | ||
Restricted commercial mortgage loans | [1] | ||
Other invested assets: | |||
Bank loan investments | [1] | ||
Liabilities: | |||
Long-term borrowings | [1] | ||
Non-recourse funding obligations | [1] | ||
Investment contracts | [1] | ||
Commitments to fund limited partnerships | 903 | 539 | |
Commitments to fund bank loan investments | 52 | 33 | |
Ordinary course of business lending commitments | $ 188 | $ 73 | |
[1] | These financial instruments do not have notional amounts. |
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 | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 63,774 | $ 59,661 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,987 | 4,631 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,636 | 2,552 |
Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,649 | 2,393 |
Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 31,401 | 28,762 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 12,647 | 11,837 |
Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,738 | 3,044 |
Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,989 | 3,016 |
Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,727 | 3,426 |
Level 2 | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 59,487 | 55,785 |
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 | 4,987 | 4,631 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,575 | 2,501 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,649 | 2,393 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 29,174 | 26,764 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 11,016 | 10,305 |
Level 2 | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,697 | 3,009 |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,897 | 2,921 |
Level 2 | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,492 | $ 3,261 |
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 | $ 4,987 | |
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 | $ 2,575 | |
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 | $ 2,634 | |
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 | $ 28,118 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, 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 | $ 10,417 | |
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 | $ 2,697 | |
Primary methodologies | OAS-based 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 | $ 2,897 | |
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 | $ 3,492 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers | |
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 | Jun. 30, 2019 | Dec. 31, 2018 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale debt securities | $ 63,774 | $ 59,661 | |||
Available-for-sale equity securities | 644 | 655 | |||
Derivative assets, fair value | 300 | 198 | |||
Total other invested assets | 1,535 | 1,188 | |||
Separate account assets | 6,187 | 5,859 | |||
Total assets | 71,692 | 67,023 | |||
Net Asset Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale debt securities | 0 | [1] | 0 | [2] | |
Available-for-sale equity securities | 0 | [1] | 0 | [2] | |
Separate account assets | 0 | [1] | 0 | [2] | |
Total assets | 401 | [1] | 318 | [2] | |
Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 280 | 178 | |||
Securities lending collateral | 113 | 102 | |||
Short-term investments | 273 | 230 | |||
Limited partnerships | 401 | 318 | |||
Other invested assets | Net Asset Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 0 | [1] | 0 | [2] | |
Securities lending collateral | 0 | [1] | 0 | [2] | |
Short-term investments | 0 | [1] | 0 | [2] | |
Limited partnerships | 401 | [1] | 318 | [2] | |
Fair value | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total other invested assets | 1,067 | 828 | |||
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 | 401 | [1] | 318 | [2] | |
Interest rate swaps | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 144 | 42 | |||
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 | 0 | [1] | 0 | [2] | |
Interest rate swaps in a foreign currency | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 35 | 74 | |||
Interest rate swaps in a foreign currency | Other invested assets | Net Asset Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 0 | [1] | 0 | [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 | 6 | |||
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 | 0 | [1] | 0 | [2] | |
Equity index options | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 65 | 39 | |||
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 | 0 | [1] | 0 | [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 | 14 | 10 | |||
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 | 0 | [1] | 0 | [2] | |
GMWB embedded derivatives | Reinsurance recoverable | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | [3] | 20 | 20 | ||
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 | [2],[3] | 0 | |||
Interest rate caps and floors | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 16 | 7 | |||
Interest rate caps and floors | Other invested assets | Net Asset Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 0 | [1] | 0 | [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 | 4,987 | 4,631 | |||
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 | 0 | [1] | 0 | [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 | 2,636 | 2,552 | |||
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 | 0 | [1] | 0 | [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 | 2,649 | 2,393 | |||
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 | 0 | [1] | 0 | [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 | 31,401 | 28,762 | |||
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 | 0 | [1] | 0 | [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 | 4,879 | 4,675 | |||
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 | 0 | [1] | 0 | [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 | 2,713 | 2,419 | |||
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 | 0 | [1] | 0 | [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 | 7,597 | 6,822 | |||
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 | 0 | [1] | 0 | [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 | 5,552 | 5,048 | |||
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 | 0 | [1] | 0 | [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 | 3,156 | 2,855 | |||
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 | 0 | [1] | 0 | [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 | 1,336 | 1,238 | |||
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 | 0 | [1] | 0 | [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 | 2,620 | 2,391 | |||
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 | 0 | [1] | 0 | [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 | 1,741 | 1,597 | |||
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 | 0 | [1] | 0 | [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 | 1,411 | 1,320 | |||
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 | 0 | [1] | 0 | [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 | 396 | 397 | |||
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 | 0 | [1] | 0 | [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 | 12,647 | 11,837 | |||
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 | 0 | [1] | 0 | [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 | 1,165 | 1,041 | |||
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 | 0 | [1] | 0 | [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 | 1,516 | 1,369 | |||
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 | 0 | [1] | 0 | [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 | 2,628 | 2,423 | |||
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 | 0 | [1] | 0 | [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 | 710 | 739 | |||
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 | 0 | [1] | 0 | [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 | 1,273 | 1,165 | |||
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 | 0 | [1] | 0 | [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 | 1,017 | 945 | |||
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 | 0 | [1] | 0 | [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 | 695 | 615 | |||
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 | 0 | [1] | 0 | [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 | 557 | 520 | |||
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 | 0 | [1] | 0 | [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 | 841 | 720 | |||
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 | 0 | [1] | 0 | [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 | 2,245 | 2,300 | |||
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 | 0 | [1] | 0 | [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 | 2,738 | 3,044 | |||
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 | 0 | [1] | 0 | [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 | 2,989 | 3,016 | |||
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 | 0 | [1] | 0 | [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 | 3,727 | 3,426 | |||
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 | 0 | [1] | 0 | [2] | |
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 | 519 | 533 | |||
Separate account assets | 6,187 | 5,859 | |||
Total assets | 6,706 | 6,392 | |||
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 | 0 | 0 | |||
Limited partnerships | 0 | 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 | 0 | 0 | |||
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 | Interest rate swaps in a foreign currency | 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 | [3] | 0 | 0 | ||
Level 1 | Interest rate caps and floors | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 0 | 0 | |||
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 | 59,487 | 55,785 | |||
Available-for-sale equity securities | 69 | 64 | |||
Separate account assets | 0 | 0 | |||
Total assets | 60,157 | 56,320 | |||
Level 2 | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 215 | 139 | |||
Securities lending collateral | 113 | 102 | |||
Short-term investments | 273 | 230 | |||
Limited partnerships | 0 | 0 | |||
Level 2 | Fair value | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total other invested assets | 601 | 471 | |||
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 | 144 | 42 | |||
Level 2 | Interest rate swaps in a foreign currency | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 35 | 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 | 6 | |||
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 | 14 | 10 | |||
Level 2 | GMWB embedded derivatives | Reinsurance recoverable | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | [3] | 0 | 0 | ||
Level 2 | Interest rate caps and floors | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 16 | 7 | |||
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 | 4,987 | 4,631 | |||
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 | 2,575 | 2,501 | |||
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 | 2,649 | 2,393 | |||
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 | 29,174 | 26,764 | |||
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 | 4,090 | 4,032 | |||
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 | 2,591 | 2,298 | |||
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 | 6,990 | 6,288 | |||
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 | 5,463 | 4,975 | |||
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 | 3,112 | 2,805 | |||
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 | 1,296 | 1,199 | |||
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 | 2,522 | 2,299 | |||
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 | 1,556 | 1,386 | |||
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 | 1,357 | 1,263 | |||
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 | 197 | 219 | |||
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 | 11,016 | 10,305 | |||
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 | 748 | 637 | |||
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 | 1,275 | 1,152 | |||
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 | 2,449 | 2,252 | |||
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 | 642 | 633 | |||
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 | 1,246 | 1,139 | |||
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 | 953 | 884 | |||
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 | 514 | 442 | |||
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 | 431 | 398 | |||
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 | 642 | 549 | |||
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 | 2,116 | 2,219 | |||
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 | 2,697 | 3,009 | |||
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 | 2,897 | 2,921 | |||
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 | 3,492 | 3,261 | |||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale debt securities | 4,287 | 3,876 | |||
Available-for-sale equity securities | 56 | 58 | |||
Separate account assets | 0 | 0 | |||
Total assets | 4,428 | 3,993 | |||
Level 3 | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 65 | 39 | |||
Securities lending collateral | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Limited partnerships | 0 | 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 | 65 | 39 | |||
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 | Interest rate swaps in a foreign currency | 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 | 65 | 39 | |||
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 | [3] | 20 | 20 | ||
Level 3 | Interest rate caps and floors | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, fair value | 0 | 0 | |||
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 | 0 | |||
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 | 61 | 51 | |||
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 | 2,227 | 1,998 | |||
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 | 789 | 643 | |||
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 | 122 | 121 | |||
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 | 607 | 534 | |||
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 | 89 | 73 | |||
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 | 44 | 50 | |||
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 | 40 | 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 | 98 | 92 | |||
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 | 185 | 211 | |||
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 | 54 | 57 | |||
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 | 199 | 178 | |||
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 | 1,631 | 1,532 | |||
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 | 417 | 404 | |||
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 | 241 | 217 | |||
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 | 179 | 171 | |||
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 | 68 | 106 | |||
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 | 27 | 26 | |||
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 | 64 | 61 | |||
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 | 181 | 173 | |||
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 | 126 | 122 | |||
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 | 199 | 171 | |||
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 | 129 | 81 | |||
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 | 41 | 35 | |||
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 | 92 | 95 | |||
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 | $ 235 | $ 165 | |||
[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] | Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. | ||||
[3] | 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 | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | $ 4,257 | $ 3,810 | $ 3,993 | $ 4,088 | |||||
Total realized and unrealized gains (losses), Included in net income | 14 | 8 | 32 | (6) | |||||
Total realized and unrealized gains (losses), Included in OCI | 102 | (62) | 235 | (187) | |||||
Purchases | 230 | 194 | 423 | 425 | |||||
Sales | (21) | (26) | (38) | (29) | |||||
Issuances | 0 | 0 | 1 | 1 | |||||
Settlements | (137) | (210) | (268) | (412) | |||||
Transfer into Level 3 | [1] | 27 | 115 | 130 | 136 | ||||
Transfer out of Level 3 | [1] | (44) | (88) | (80) | (275) | ||||
Ending balance | 4,428 | 3,741 | 4,428 | 3,741 | |||||
Total gains (losses) included in net income attributable to assets still held | 10 | 9 | 13 | (2) | |||||
Other invested assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 60 | 60 | 39 | 80 | |||||
Total realized and unrealized gains (losses), Included in net income | 10 | 8 | 27 | (7) | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 9 | 15 | 21 | 29 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (14) | (13) | (22) | (32) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 65 | 70 | 65 | 70 | |||||
Total gains (losses) included in net income attributable to assets still held | 7 | 8 | 11 | (4) | |||||
Other invested assets | Derivative assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 60 | 60 | 39 | 80 | |||||
Total realized and unrealized gains (losses), Included in net income | 10 | 8 | 27 | (7) | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 9 | 15 | 21 | 29 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (14) | (13) | (22) | (32) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 65 | 70 | 65 | 70 | |||||
Total gains (losses) included in net income attributable to assets still held | 7 | 8 | 11 | (4) | |||||
Other invested assets | Derivative assets | Equity index options | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 60 | 60 | 39 | 80 | |||||
Total realized and unrealized gains (losses), Included in net income | 10 | 8 | 27 | (7) | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 9 | 15 | 21 | 29 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (14) | (13) | (22) | (32) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 65 | 70 | 65 | 70 | |||||
Total gains (losses) included in net income attributable to assets still held | 7 | 8 | 11 | (4) | |||||
Reinsurance recoverable | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 18 | 13 | [2] | 20 | [2] | 14 | [2] | ||
Total realized and unrealized gains (losses), Included in net income | 2 | (1) | [2] | (1) | [2] | (3) | [2] | ||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | [2] | 0 | [2] | 0 | [2] | ||
Purchases | 0 | 0 | [2] | 0 | [2] | 0 | [2] | ||
Sales | 0 | 0 | [2] | 0 | [2] | 0 | [2] | ||
Issuances | 0 | 0 | [2] | 1 | [2] | 1 | [2] | ||
Settlements | 0 | 0 | [2] | 0 | [2] | 0 | [2] | ||
Transfer into Level 3 | [1] | 0 | 0 | [2] | 0 | [2] | 0 | [2] | |
Transfer out of Level 3 | [1] | 0 | 0 | [2] | 0 | [2] | 0 | [2] | |
Ending balance | [2] | 20 | 12 | 20 | 12 | ||||
Total gains (losses) included in net income attributable to assets still held | 2 | [2] | (1) | [2] | (1) | (3) | [2] | ||
Fixed maturity securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 4,124 | 3,692 | 3,876 | 3,950 | |||||
Total realized and unrealized gains (losses), Included in net income | 2 | 1 | 6 | 4 | |||||
Total realized and unrealized gains (losses), Included in OCI | 102 | (62) | 235 | (187) | |||||
Purchases | 219 | 178 | 400 | 391 | |||||
Sales | (20) | (26) | (34) | (26) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (123) | (197) | (246) | (380) | |||||
Transfer into Level 3 | [1] | 27 | 115 | 130 | 136 | ||||
Transfer out of Level 3 | [1] | (44) | (88) | (80) | (275) | ||||
Ending balance | 4,287 | 3,613 | 4,287 | 3,613 | |||||
Total gains (losses) included in net income attributable to assets still held | 1 | 2 | 3 | 5 | |||||
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 | ||||||||
Total realized and unrealized gains (losses), Included in net income | 0 | ||||||||
Total realized and unrealized gains (losses), Included in OCI | 0 | ||||||||
Purchases | 0 | ||||||||
Sales | 0 | ||||||||
Issuances | 0 | ||||||||
Settlements | (1) | ||||||||
Transfer into Level 3 | [1] | 0 | |||||||
Transfer out of Level 3 | [1] | 0 | |||||||
Ending balance | 0 | 0 | |||||||
Total gains (losses) included in net income attributable to assets still held | 0 | ||||||||
Fixed maturity securities | State and Political Subdivisions | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 52 | 53 | 51 | 37 | |||||
Total realized and unrealized gains (losses), Included in net income | 1 | 0 | 2 | 1 | |||||
Total realized and unrealized gains (losses), Included in OCI | 8 | (1) | 8 | (4) | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 18 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 61 | 52 | 61 | 52 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 1 | 1 | |||||
Fixed maturity securities | U.S. corporate | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 2,162 | 2,000 | 1,998 | 2,152 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | (1) | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 51 | (48) | 119 | (124) | |||||
Purchases | 111 | 101 | 181 | 162 | |||||
Sales | (13) | (25) | (27) | (25) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (63) | (100) | (110) | (223) | |||||
Transfer into Level 3 | [1] | 0 | 25 | 96 | 25 | ||||
Transfer out of Level 3 | [1] | (21) | (21) | (30) | (36) | ||||
Ending balance | 2,227 | 1,931 | 2,227 | 1,931 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 1 | |||||
Fixed maturity securities | U.S. corporate | Utilities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 748 | 553 | 643 | 574 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | (1) | 0 | (1) | |||||
Total realized and unrealized gains (losses), Included in OCI | 20 | (7) | 42 | (25) | |||||
Purchases | 82 | 66 | 96 | 69 | |||||
Sales | (13) | (12) | (14) | (12) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (38) | (2) | (40) | (4) | |||||
Transfer into Level 3 | [1] | 0 | 25 | 72 | 25 | ||||
Transfer out of Level 3 | [1] | (10) | 0 | (10) | (4) | ||||
Ending balance | 789 | 622 | 789 | 622 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Energy | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 115 | 146 | 121 | 147 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 3 | 0 | 7 | (5) | |||||
Purchases | 5 | 0 | 5 | 22 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (1) | (1) | (11) | (19) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | (7) | 0 | (7) | ||||
Ending balance | 122 | 138 | 122 | 138 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Finance and insurance | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 590 | 580 | 534 | 626 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 1 | |||||
Total realized and unrealized gains (losses), Included in OCI | 15 | (41) | 38 | (67) | |||||
Purchases | 10 | 0 | 40 | 26 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (8) | (74) | (12) | (110) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 7 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | (7) | 0 | (18) | ||||
Ending balance | 607 | 458 | 607 | 458 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 1 | |||||
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 74 | 79 | 73 | 81 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 1 | 0 | 3 | (2) | |||||
Purchases | 14 | 0 | 14 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | (10) | 0 | |||||
Transfer into Level 3 | [1] | 0 | 0 | 9 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 89 | 79 | 89 | 79 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 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 | 52 | 25 | 50 | 73 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 3 | 1 | 5 | (5) | |||||
Purchases | 0 | 4 | 0 | 4 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (18) | 0 | (60) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | (11) | 0 | (11) | 0 | ||||
Ending balance | 44 | 12 | 44 | 12 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Industrial | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 40 | 39 | 39 | 39 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 1 | 1 | 1 | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 40 | 40 | 40 | 40 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Capital goods | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 95 | 103 | 92 | 121 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 3 | (1) | 6 | (9) | |||||
Purchases | 0 | 24 | 0 | 24 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | (10) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | (7) | 0 | (7) | ||||
Ending balance | 98 | 119 | 98 | 119 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 195 | 252 | 211 | 262 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 3 | (1) | 10 | (10) | |||||
Purchases | 0 | 7 | 0 | 17 | |||||
Sales | 0 | (3) | (13) | (3) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (13) | (1) | (14) | (12) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | (9) | 0 | ||||
Ending balance | 185 | 254 | 185 | 254 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Transportation | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 54 | 57 | 57 | 60 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 1 | (1) | |||||
Purchases | 0 | 0 | 4 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (1) | (8) | (3) | ||||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 54 | 56 | 54 | 56 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Other | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 199 | 166 | 178 | 169 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 3 | 0 | 6 | (1) | |||||
Purchases | 0 | 0 | 22 | 0 | |||||
Sales | 0 | (10) | 0 | (10) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (3) | (3) | (15) | (5) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 8 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 199 | 153 | 199 | 153 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 1,575 | 1,427 | 1,532 | 1,416 | |||||
Total realized and unrealized gains (losses), Included in net income | 1 | 2 | 4 | 3 | |||||
Total realized and unrealized gains (losses), Included in OCI | 33 | (13) | 95 | (54) | |||||
Purchases | 61 | 26 | 117 | 104 | |||||
Sales | (7) | (1) | (7) | (1) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (31) | (72) | (94) | (99) | |||||
Transfer into Level 3 | [1] | 0 | 32 | 6 | 32 | ||||
Transfer out of Level 3 | [1] | (1) | (15) | (22) | (15) | ||||
Ending balance | 1,631 | 1,386 | 1,631 | 1,386 | |||||
Total gains (losses) included in net income attributable to assets still held | 1 | 2 | 2 | 3 | |||||
Fixed maturity securities | Non-U.S. corporate | Utilities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 435 | 336 | 404 | 343 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 7 | (4) | 23 | (13) | |||||
Purchases | 0 | 0 | 30 | 22 | |||||
Sales | (7) | 0 | (7) | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (17) | 0 | (17) | (20) | |||||
Transfer into Level 3 | [1] | 0 | 15 | 0 | 15 | ||||
Transfer out of Level 3 | [1] | (1) | (14) | (16) | (14) | ||||
Ending balance | 417 | 333 | 417 | 333 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Energy | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 221 | 195 | 217 | 176 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 5 | (2) | 12 | (6) | |||||
Purchases | 15 | 0 | 16 | 23 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (18) | (4) | (18) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 241 | 175 | 241 | 175 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 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 | 182 | 153 | 171 | 161 | |||||
Total realized and unrealized gains (losses), Included in net income | 1 | 1 | 2 | 2 | |||||
Total realized and unrealized gains (losses), Included in OCI | 7 | (3) | 18 | (11) | |||||
Purchases | 2 | 1 | 7 | 1 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (13) | (1) | (13) | (2) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | (1) | (6) | (1) | ||||
Ending balance | 179 | 150 | 179 | 150 | |||||
Total gains (losses) included in net income attributable to assets still held | 1 | 1 | 2 | 2 | |||||
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 67 | 120 | 106 | 124 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 2 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 1 | (1) | 4 | (4) | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (11) | (44) | (12) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 68 | 108 | 68 | 108 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 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 | 27 | 28 | 26 | 29 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 1 | 1 | 0 | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (13) | 0 | (13) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 27 | 16 | 27 | 16 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Industrial | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 63 | 108 | 61 | 116 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 1 | (1) | 3 | (4) | |||||
Purchases | 0 | 3 | 0 | 3 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (5) | 0 | (10) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 64 | 105 | 64 | 105 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 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 | 173 | 186 | 173 | 191 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 1 | 0 | 1 | |||||
Total realized and unrealized gains (losses), Included in OCI | 3 | 0 | 9 | (5) | |||||
Purchases | 5 | 0 | 10 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (21) | (11) | (21) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 181 | 166 | 181 | 166 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 1 | 0 | 1 | |||||
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 125 | 52 | 122 | 54 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 2 | 0 | 8 | (2) | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | (1) | 0 | (1) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (1) | (3) | (4) | (3) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 126 | 48 | 126 | 48 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Transportation | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 192 | 166 | 171 | 170 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 3 | (2) | 9 | (6) | |||||
Purchases | 4 | 22 | 19 | 22 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | [1] | 0 | 17 | 0 | 17 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 199 | 203 | 199 | 203 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Other | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 90 | 83 | 81 | 52 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 4 | (1) | 8 | (3) | |||||
Purchases | 35 | 0 | 35 | 33 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | (1) | 0 | |||||
Transfer into Level 3 | [1] | 0 | 0 | 6 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 129 | 82 | 129 | 82 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Residential mortgage-backed | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 35 | 34 | 35 | 77 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 2 | 1 | 2 | 0 | |||||
Purchases | 5 | 17 | 5 | 29 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (1) | (1) | (1) | (1) | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | (17) | 0 | (71) | ||||
Ending balance | 41 | 34 | 41 | 34 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Commercial mortgage-backed | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 98 | 6 | 95 | 30 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 7 | 0 | 9 | (2) | |||||
Purchases | 1 | 28 | 2 | 35 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | [1] | 0 | 13 | 0 | 13 | ||||
Transfer out of Level 3 | [1] | (14) | (3) | (14) | (32) | ||||
Ending balance | 92 | 44 | 92 | 44 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Other asset-backed | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 202 | 172 | 165 | 237 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 1 | (1) | 2 | (3) | |||||
Purchases | 41 | 6 | 95 | 61 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (28) | (24) | (41) | (56) | |||||
Transfer into Level 3 | [1] | 27 | 45 | 28 | 48 | ||||
Transfer out of Level 3 | [1] | (8) | (32) | (14) | (121) | ||||
Ending balance | 235 | 166 | 235 | 166 | |||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Equity Securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 55 | 45 | 58 | 44 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 2 | 1 | 2 | 5 | |||||
Sales | (1) | 0 | (4) | (3) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 | ||||
Ending balance | 56 | 46 | 56 | 46 | |||||
Total gains (losses) included in net income attributable to assets still held | $ 0 | $ 0 | $ 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. |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 821 | $ 906 | |
Fixed maturity securities available-for-sale, at fair value | 63,774 | 59,661 | |
Derivative assets, fair value | 300 | 198 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 778 | 738 | |
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] | 325 | 337 |
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 | 438 | 389 | |
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 | 15 | 12 | |
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 | $ 4,287 | 3,876 | |
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 | $ 65 | ||
Fair value input, equity index volatility, lower limit | 6.00% | ||
Fair value input, equity index volatility, upper limit | 29.00% | ||
Fair value input, equity index volatility, weighted-average | 17.00% | ||
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 778 | 738 | |
Level 3 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | [1] | Stochastic cash flow model | |
Derivative liabilities, fair value | [1] | $ 325 | 337 |
Fair value, withdrawal utilization rate, lower limit | 45.00% | ||
Fair value, withdrawal utilization rate, upper limit | 88.00% | ||
Fair value, lapse rate, lower limit | 2.00% | ||
Fair value, lapse rate, upper limit | 9.00% | ||
Fair value input, credit spreads, lower limit | 0.18% | ||
Fair value input, credit spreads, upper limit | 0.83% | ||
Fair value input, credit spreads, weighted-average | 0.66% | ||
Fair value input, equity index volatility, lower limit | [1] | 13.00% | |
Fair value input, equity index volatility, upper limit | [1] | 23.00% | |
Fair value, withdrawal utilization rate, weighted-average | 70.00% | ||
Fair value, lapse rate, weighted-average | 3.00% | ||
Fair value input, equity index volatility, weighted-average | 20.00% | ||
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Option budget method | ||
Derivative liabilities, fair value | $ 438 | 389 | |
Fair value, expected future interest credited, lower limit | [1] | 0.00% | |
Fair value, expected future interest credited, upper limit | [1] | 3.00% | |
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] | |||
Valuation technique | Option budget method | ||
Derivative liabilities, fair value | $ 15 | $ 12 | |
Fair value, expected future interest credited, lower limit | [1] | 3.00% | |
Fair value, expected future interest credited, upper limit | [1] | 8.00% | |
Fair value, expected future interest credited, weighted-average | 5.00% | ||
Internal Models | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
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 | $ 2,076 | ||
Fair value input, credit spreads, lower limit | 0.63% | ||
Fair value input, credit spreads, upper limit | 3.26% | ||
Fair value input, credit spreads, weighted-average | 1.47% | ||
Internal Models | Level 3 | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fixed maturity securities available-for-sale, at fair value | $ 719 | ||
Fair value input, credit spreads, lower limit | 0.66% | ||
Fair value input, credit spreads, upper limit | 3.26% | ||
Fair value input, credit spreads, weighted-average | 1.46% | ||
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 | $ 99 | ||
Fair value input, credit spreads, lower limit | 0.82% | ||
Fair value input, credit spreads, upper limit | 3.11% | ||
Fair value input, credit spreads, weighted-average | 1.67% | ||
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 | $ 595 | ||
Fair value input, credit spreads, lower limit | 0.68% | ||
Fair value input, credit spreads, upper limit | 2.46% | ||
Fair value input, credit spreads, weighted-average | 1.58% | ||
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 | $ 89 | ||
Fair value input, credit spreads, lower limit | 0.93% | ||
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 | 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 | $ 44 | ||
Fair value input, credit spreads, lower limit | 1.37% | ||
Fair value input, credit spreads, upper limit | 3.11% | ||
Fair value input, credit spreads, weighted-average | 2.17% | ||
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 | $ 40 | ||
Fair value input, credit spreads, lower limit | 1.18% | ||
Fair value input, credit spreads, upper limit | 2.12% | ||
Fair value input, credit spreads, weighted-average | 1.55% | ||
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 | $ 98 | ||
Fair value input, credit spreads, lower limit | 1.03% | ||
Fair value input, credit spreads, upper limit | 2.77% | ||
Fair value input, credit spreads, weighted-average | 1.57% | ||
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 | $ 170 | ||
Fair value input, credit spreads, lower limit | 0.70% | ||
Fair value input, credit spreads, upper limit | 2.18% | ||
Fair value input, credit spreads, weighted-average | 1.44% | ||
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 | $ 54 | ||
Fair value input, credit spreads, lower limit | 0.63% | ||
Fair value input, credit spreads, upper limit | 2.15% | ||
Fair value input, credit spreads, weighted-average | 1.09% | ||
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 | $ 168 | ||
Fair value input, credit spreads, lower limit | 0.68% | ||
Fair value input, credit spreads, upper limit | 1.31% | ||
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 | $ 1,603 | ||
Fair value input, credit spreads, lower limit | 0.70% | ||
Fair value input, credit spreads, upper limit | 2.77% | ||
Fair value input, credit spreads, weighted-average | 1.49% | ||
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 | $ 417 | ||
Fair value input, credit spreads, lower limit | 0.84% | ||
Fair value input, credit spreads, upper limit | 2.15% | ||
Fair value input, credit spreads, weighted-average | 1.40% | ||
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 | $ 221 | ||
Fair value input, credit spreads, lower limit | 1.03% | ||
Fair value input, credit spreads, upper limit | 2.77% | ||
Fair value input, credit spreads, weighted-average | 1.62% | ||
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 | $ 179 | ||
Fair value input, credit spreads, lower limit | 0.70% | ||
Fair value input, credit spreads, upper limit | 1.89% | ||
Fair value input, credit spreads, weighted-average | 1.28% | ||
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 | $ 68 | ||
Fair value input, credit spreads, lower limit | 0.70% | ||
Fair value input, credit spreads, upper limit | 1.70% | ||
Fair value input, credit spreads, weighted-average | 1.35% | ||
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 | $ 27 | ||
Fair value input, credit spreads, lower limit | 1.24% | ||
Fair value input, credit spreads, upper limit | 1.50% | ||
Fair value input, credit spreads, weighted-average | 1.41% | ||
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 | $ 64 | ||
Fair value input, credit spreads, lower limit | 0.99% | ||
Fair value input, credit spreads, upper limit | 1.57% | ||
Fair value input, credit spreads, weighted-average | 1.13% | ||
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 | $ 181 | ||
Fair value input, credit spreads, lower limit | 0.93% | ||
Fair value input, credit spreads, upper limit | 2.77% | ||
Fair value input, credit spreads, weighted-average | 1.69% | ||
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 | $ 123 | ||
Fair value input, credit spreads, lower limit | 0.81% | ||
Fair value input, credit spreads, upper limit | 2.77% | ||
Fair value input, credit spreads, weighted-average | 1.93% | ||
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 | $ 198 | ||
Fair value input, credit spreads, lower limit | 0.70% | ||
Fair value input, credit spreads, upper limit | 2.18% | ||
Fair value input, credit spreads, weighted-average | 1.34% | ||
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 | $ 125 | ||
Fair value input, credit spreads, lower limit | 1.09% | ||
Fair value input, credit spreads, upper limit | 2.18% | ||
Fair value input, credit spreads, weighted-average | 1.62% | ||
[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 | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | $ 821 | $ 906 | |
Total liabilities | 821 | 906 | |
Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 43 | 168 | |
Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 10 | 102 | |
Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 8 | 23 | |
Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 25 | 42 | |
Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 1 | ||
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 778 | 738 | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 325 | 337 |
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 | 438 | 389 | |
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 | 15 | 12 | |
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 | 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 | 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 | 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 | 43 | 168 | |
Level 2 | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 43 | 168 | |
Level 2 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 10 | 102 | |
Level 2 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 8 | 23 | |
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 | 25 | 42 | |
Level 2 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 1 | ||
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 | 778 | 738 | |
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 | 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 | 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 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 778 | 738 | |
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] | 325 | 337 |
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 | 438 | 389 | |
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 | $ 15 | $ 12 | |
[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 | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 731 | $ 663 | $ 738 | $ 683 | |
Total realized and unrealized (gains) losses included in net (income) | 45 | (1) | 34 | (30) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 7 | 9 | 15 | 21 | |
Settlements | (5) | (3) | (9) | (6) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 778 | 668 | 778 | 668 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 45 | (1) | 38 | (26) | |
Policyholder account balances | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 731 | 663 | 738 | 683 | |
Total realized and unrealized (gains) losses included in net (income) | 45 | (1) | 34 | (30) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 7 | 9 | 15 | 21 | |
Settlements | (5) | (3) | (9) | (6) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 778 | 668 | 778 | 668 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 45 | (1) | 38 | (26) | |
Policyholder account balances | GMWB embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | [1] | 295 | 242 | 337 | 250 |
Total realized and unrealized (gains) losses included in net (income) | [1] | 24 | (14) | (24) | (30) |
Total realized and unrealized (gains) losses included in OCI | [1] | 0 | 0 | 0 | 0 |
Purchases | [1] | 0 | 0 | 0 | 0 |
Sales | [1] | 0 | 0 | 0 | 0 |
Issuances | [1] | 6 | 7 | 12 | 15 |
Settlements | [1] | 0 | 0 | 0 | 0 |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | [1] | 325 | 235 | 325 | 235 |
Total (gains) losses included in net (income) attributable to liabilities still held | [1] | 24 | (14) | (20) | (26) |
Policyholder account balances | Fixed index annuity embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 423 | 408 | 389 | 419 | |
Total realized and unrealized (gains) losses included in net (income) | 20 | 15 | 58 | 7 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (5) | (3) | (9) | (6) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 438 | 420 | 438 | 420 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 20 | 15 | 58 | 7 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 13 | 13 | 12 | 14 | |
Total realized and unrealized (gains) losses included in net (income) | 1 | (2) | 0 | (7) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 1 | 2 | 3 | 6 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 15 | 13 | 15 | 13 | |
Total (gains) losses included in net (income) attributable to liabilities still held | $ 1 | $ (2) | $ 0 | $ (7) | |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Changes in Liability for Policy
Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 10,379 | $ 9,594 |
Less reinsurance recoverables | (2,379) | (2,419) |
Net beginning balance | 8,000 | 7,175 |
Current year | 2,009 | 1,946 |
Prior years | (214) | (244) |
Total incurred | 1,795 | 1,702 |
Current year | (410) | (434) |
Prior years | (1,287) | (1,266) |
Total paid | (1,697) | (1,700) |
Interest on liability for policy and contract claims | 188 | 163 |
Foreign currency translation | 3 | (16) |
Net ending balance | 8,289 | 7,324 |
Add reinsurance recoverables | 2,388 | 2,341 |
Ending balance | $ 10,677 | $ 9,665 |
Liability for Policy and Cont_3
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred related to insured events of prior year | $ (214) | $ (244) |
Us Mortgage Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable reserve adjustment | $ 9 | $ 26 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) $ in Millions, $ in Millions | May 22, 2019CAD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019CAD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018 | |
Nonrecourse Funding Obligations [Line Items] | |||||||||
Pre-tax gain (loss) on repurchase of senior notes | [1] | $ (1) | $ 0 | $ (1) | $ 0 | ||||
4.24% Senior Notes, Due 2024 | Genworth Canada | |||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||
Issued notes, aggregate principal amount | $ 100 | $ 263 | |||||||
Genworth Canada | 5.68% Senior Notes, Due 2020 | |||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||
Interest rate | 5.68% | 5.68% | |||||||
Pre-tax gain (loss) on repurchase of senior notes | $ (1) | ||||||||
Debt instrument, maturity year | 2020 | 2020 | |||||||
Debt Instrument, Repurchased Face Amount | $ 100 | ||||||||
Early redemption fee | $ 3 | ||||||||
Genworth Canada | 4.24% Senior Notes, Due 2024 | |||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||
Interest rate | 4.24% | ||||||||
Debt instrument, maturity year | 2024 | ||||||||
Genworth Holdings | |||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||
Senior notes option to redeem | 100.00% | ||||||||
[1] | For the three and six months ended June 30, 2019, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million. |
Borrowings - Long Term Borrowin
Borrowings - Long Term Borrowings (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Total | $ 4,044 | $ 4,025 | |
Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 3,619 | 3,620 |
Bond consent fees | [1] | (29) | (32) |
Deferred borrowing charges | [1] | (19) | (21) |
Total | [1] | 3,571 | 3,567 |
Genworth Holdings | Floating Rate Senior Secured Term Loan Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 444 | 445 |
Genworth Holdings | 7.70% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 397 | 397 |
Genworth Holdings | 7.20% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 381 | 381 |
Genworth Holdings | 7.625% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 703 | 703 |
Genworth Holdings | 4.90% Senior Notes, Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 399 | 399 |
Genworth Holdings | 4.80% Senior Notes, Due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 400 | 400 |
Genworth Holdings | 6.50% Senior Notes, Due 2034 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 297 | 297 |
Genworth Holdings | Floating Rate Junior Subordinated Notes, due 2066 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 598 | 598 |
Genworth Canada | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 335 | 319 |
Deferred borrowing charges | [2] | (2) | (1) |
Total | [2] | 333 | 318 |
Genworth Canada | 5.68% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 134 | 202 |
Genworth Canada | 4.24% Senior Notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 201 | 117 |
Genworth Financial Mortgage Insurance Pty Limited | |||
Debt Instrument [Line Items] | |||
Deferred borrowing charges | [3] | (1) | (1) |
Total | [3] | 140 | 140 |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes, due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [3] | $ 141 | $ 141 |
[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 Borrow_2
Borrowings - Long Term Borrowings (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Floating Rate Senior Secured Term Loan Facility, Due 2023 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2023 | 2023 |
7.70% Senior Notes, Due 2020 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.70% | 7.70% |
Debt instrument, maturity year | 2020 | 2020 |
7.20% Senior Notes, Due 2021 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.20% | 7.20% |
Debt instrument, maturity year | 2021 | 2021 |
7.625% Senior Notes, Due 2021 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.625% | 7.625% |
Debt instrument, maturity year | 2021 | 2021 |
4.90% Senior Notes, Due 2023 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.90% | 4.90% |
Debt instrument, maturity year | 2023 | 2023 |
4.80% Senior Notes, Due 2024 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.80% | 4.80% |
Debt instrument, maturity year | 2024 | 2024 |
6.50% Senior Notes, Due 2034 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.50% | 6.50% |
Debt instrument, maturity year | 2034 | 2034 |
Floating Rate Junior Subordinated Notes, due 2066 [Member] | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2066 | 2066 |
5.68% Senior Notes, Due 2020 | Genworth Canada | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.68% | 5.68% |
Debt instrument, maturity year | 2020 | 2020 |
4.24% Senior Notes, due 2024 | Genworth Canada | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.24% | 4.24% |
Debt instrument, maturity year | 2024 | 2024 |
Floating Rate Junior Subordinated Notes Due 2025 [Member] | Genworth Financial Mortgage Insurance Pty Limited | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2025 | 2025 |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Examination [Line Items] | ||||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Effect of foreign operations | 5.00% | 3.40% | 5.20% | 3.20% |
U.S. shareholder tax on foreign operations | 4.40% | 0.00% | 4.60% | 0.00% |
Swaps terminated prior to the TCJA | 2.10% | 3.90% | 2.40% | 3.20% |
TCJA, impact from change in tax rate | 0.00% | 5.40% | 0.00% | 3.30% |
Valuation allowance | 0.00% | (2.00%) | 0.00% | (1.30%) |
Provision to return adjustments | 0.00% | (1.60%) | 0.00% | (0.70%) |
Other, net | 0.40% | 0.70% | (0.40%) | 0.90% |
Effective rate | 32.90% | 30.80% | 32.80% | 29.60% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019CAD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Segment | Jun. 30, 2018USD ($) | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||
Number of operating segments | Segment | 5 | ||||||
Assumed tax rate on adjustments to adjusted operating income | 21.00% | 21.00% | |||||
Expenses related to restructuring | $ 0 | $ 4 | $ 0 | $ 4 | $ 0 | ||
Net Income Loss Before Taxes Net Of Non Controlling Interest | $ 1 | ||||||
Senior Notes [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Early Redemption Of Debt Instrument | $ 100 | ||||||
Segment, Continuing Operations | Canada Mortgage Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed tax rate on adjustments to adjusted operating income | 27.00% | ||||||
Segment, Continuing Operations | Australia Mortgage Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed tax rate on adjustments to adjusted operating income | 30.00% |
Summary of Revenues for Segment
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,156 | $ 2,159 | $ 4,360 | $ 4,274 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 235 | 208 | 458 | 408 |
Segment, Continuing Operations | Canada Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 161 | 150 | 320 | 308 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 96 | 136 | 206 | 243 |
Segment, Continuing Operations | Long-term Care Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,055 | 1,035 | 2,169 | 2,055 |
Segment, Continuing Operations | Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 382 | 367 | 754 | 746 |
Segment, Continuing Operations | Fixed Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 151 | 176 | 310 | 358 |
Segment, Continuing Operations | U.S. Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,588 | 1,578 | 3,233 | 3,159 |
Segment, Continuing Operations | Runoff | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 78 | 80 | 160 | 148 |
Segment, Continuing Operations | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (2) | $ 7 | $ (17) | $ 8 |
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 | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting Information [Line Items] | ||||||
Net income | $ 218 | $ 249 | $ 448 | $ 414 | ||
Less: net income attributable to noncontrolling interests | 50 | 59 | 106 | 112 | ||
Net income available to Genworth Financial, Inc.'s common stockholders | 168 | 190 | 342 | 302 | ||
Net investment (gains) losses, net | [1] | 43 | 12 | (28) | 29 | |
(Gains) losses on early extinguishment of debt, net | [2] | 1 | 0 | 1 | 0 | |
Expenses related to restructuring | 0 | $ 4 | 0 | 4 | 0 | |
Taxes on adjustments | (8) | (2) | 6 | (6) | ||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 204 | 200 | 325 | 325 | ||
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 147 | 137 | 271 | 248 | ||
Segment, Continuing Operations | Canada Mortgage Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 41 | 46 | 82 | 95 | ||
Segment, Continuing Operations | Australia Mortgage Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 13 | 22 | 27 | 41 | ||
Segment, Continuing Operations | Long-term Care Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 37 | 22 | 17 | (10) | ||
Segment, Continuing Operations | Life Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 10 | 4 | 8 | 3 | ||
Segment, Continuing Operations | Fixed Annuities | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 19 | 31 | 36 | 59 | ||
Segment, Continuing Operations | U.S. Life Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 66 | 57 | 61 | 52 | ||
Segment, Continuing Operations | Runoff | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 9 | 13 | 29 | 23 | ||
Segment, Continuing Operations | Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | $ (72) | $ (75) | $ (145) | $ (134) | ||
[1] | For the three months ended June 30, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million and $(1) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $1 million and $(1) million, respectively. For the six months ended June 30, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(5) million and $(4) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $6 million and $(12) million, respectively. | |||||
[2] | For the three and six months ended June 30, 2019, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million. |
Summary of Net Operating Inco_2
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Gain losses on early extinguishment of debt | $ 1 | $ 1 | ||
Net Investment (Gains) Losses | ||||
Segment Reporting Information [Line Items] | ||||
Adjustment for DAC and other intangibles and certain benefit reserves | (3) | $ (1) | (5) | $ (4) |
Adjustment for portion attributable to noncontrolling interests | $ 1 | $ (1) | $ 6 | $ (12) |
Summary of Segments and Corpora
Summary of Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 104,306 | $ 100,923 |
Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 104,306 | 100,923 |
U.S. Mortgage Insurance | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,977 | 3,583 |
Canada Mortgage Insurance | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,272 | 5,038 |
Australia Mortgage Insurance | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,524 | 2,534 |
U.S. Life Insurance | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 81,002 | 79,799 |
Runoff | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,018 | 9,963 |
Corporate and Other | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,513 | $ 6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) £ in Millions, $ in Millions | Feb. 25, 2019GBP (£) | Nov. 15, 2018GBP (£) | Jan. 31, 2019USD ($) | Dec. 31, 2017GBP (£)Company | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Indemnity limit | £ | £ 28 | |||||
Number of insurance company sold | Company | 2 | |||||
Commitment to fund limited partnership investments | $ 903 | |||||
Commitment to fund U.S. commercial mortgage loan investments | 98 | |||||
Commitment to fund private placement investments | 90 | |||||
Updated Indemnity Limit | £ | £ 265 | £ 237 | ||||
Loss Contingency, Damages Sought | $ 5 | |||||
Notional amount | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Commitment to fund bank loan investments | $ 52 | $ 33 |
Component of Changes in Accumul
Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ 2,492 | $ 2,627 | $ 2,044 | $ 3,027 | |
Cumulative effect of changes in accounting | 131 | ||||
OCI before reclassifications | 575 | (330) | 1,153 | (891) | |
Amounts reclassified from (to) OCI | (23) | (19) | (98) | (38) | |
Total other comprehensive income (loss) | 552 | (349) | 1,055 | (929) | |
Balances before nonnontrolling interests | 3,044 | 2,278 | 3,099 | 2,229 | |
Less: change in OCI attributable to noncontrolling interests | 31 | (49) | 86 | (98) | |
Ending balance | 3,013 | 2,327 | 3,013 | 2,327 | |
Net unrealized investment (gains) losses | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | 943 | 917 | 595 | 1,085 |
Cumulative effect of changes in accounting | [1] | 164 | |||
OCI before reclassifications | [1] | 375 | (193) | 802 | (541) |
Amounts reclassified from (to) OCI | [1] | 1 | 6 | (46) | 13 |
Total other comprehensive income (loss) | [1] | 376 | (187) | 756 | (528) |
Balances before nonnontrolling interests | [1] | 1,319 | 730 | 1,351 | 721 |
Less: change in OCI attributable to noncontrolling interests | [1] | 14 | (6) | 46 | (15) |
Ending balance | [1] | 1,305 | 736 | 1,305 | 736 |
Derivatives qualifying as hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [2] | 1,850 | 1,927 | 1,781 | 2,065 |
Cumulative effect of changes in accounting | [2] | 14 | |||
OCI before reclassifications | [2] | 157 | (39) | 254 | (165) |
Amounts reclassified from (to) OCI | [2] | (24) | (25) | (52) | (51) |
Total other comprehensive income (loss) | [2] | 133 | (64) | 202 | (216) |
Balances before nonnontrolling interests | [2] | 1,983 | 1,863 | 1,983 | 1,863 |
Less: change in OCI attributable to noncontrolling interests | [2] | 0 | 0 | 0 | 0 |
Ending balance | [2] | 1,983 | 1,863 | 1,983 | 1,863 |
Foreign currency translation and other adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (301) | (217) | (332) | (123) | |
Cumulative effect of changes in accounting | (47) | ||||
OCI before reclassifications | 43 | (98) | 97 | (185) | |
Amounts reclassified from (to) OCI | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss) | 43 | (98) | 97 | (185) | |
Balances before nonnontrolling interests | (258) | (315) | (235) | (355) | |
Less: change in OCI attributable to noncontrolling interests | 17 | (43) | 40 | (83) | |
Ending balance | (275) | (272) | (275) | (272) | |
Accumulated other comprehensive income (loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total other comprehensive income (loss) | $ 521 | (300) | $ 969 | (831) | |
Ending balance | $ 2,327 | $ 2,327 | |||
[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 _3
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrecognized postretirement benefit obligation, current period OCI | $ (2) | $ (14) |
Unrecognized postretirement benefit obligation, current period OCI, tax | 1 | 5 |
Foreign currency translation and other adjustments, current period OCI, tax | $ (45) | $ (46) |
Reclassifications In (Out) of A
Reclassifications In (Out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net investment income | $ (852) | $ (828) | $ (1,681) | $ (1,632) | |
Net investment (gains) losses | 45 | 14 | (29) | 45 | |
Provision for income taxes | 107 | 111 | 219 | 174 | |
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] | 2 | 8 | (58) | 16 |
Provision for income taxes | (1) | (2) | 12 | (3) | |
(Income) loss from continuing operations | 1 | 6 | (46) | 13 | |
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Provision for income taxes | 13 | 14 | 29 | 28 | |
(Income) loss from continuing operations | (24) | (25) | (52) | (51) | |
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 | (42) | (39) | (80) | (74) | |
Net investment (gains) losses | 4 | 0 | (2) | (5) | |
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Foreign currency swaps | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net investment income | $ 1 | $ 0 | $ 1 | $ 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 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | $ 63,774 | $ 59,661 | ||||
Equity securities, at fair value | 644 | 655 | ||||
Commercial mortgage loans | 7,019 | 6,749 | ||||
Policy loans | 2,076 | 1,861 | ||||
Other invested assets | 1,535 | 1,188 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Total investments | 75,048 | 70,114 | ||||
Cash, cash equivalents and restricted cash | 1,938 | 2,177 | $ 2,243 | $ 2,875 | ||
Accrued investment income | 626 | 675 | ||||
Deferred acquisition costs | 2,105 | 3,263 | ||||
Intangible assets and goodwill | 244 | 347 | ||||
Reinsurance recoverable | 17,211 | 17,278 | ||||
Other assets | 564 | 474 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Deferred tax assets | 383 | 736 | ||||
Separate account assets | 6,187 | 5,859 | ||||
Total assets | 104,306 | 100,923 | ||||
Liabilities and equity | ||||||
Future policy benefits | 39,583 | 37,940 | ||||
Policyholder account balances | 22,673 | 22,968 | ||||
Liability for policy and contract claims | 10,677 | 10,379 | 9,665 | 9,594 | ||
Unearned premiums | 3,488 | 3,546 | ||||
Other liabilities | 1,723 | 1,682 | ||||
Intercompany notes payable | 0 | 0 | ||||
Non-recourse funding obligations | 311 | 311 | ||||
Long-term borrowings | 4,044 | 4,025 | ||||
Deferred tax liability | 28 | 24 | ||||
Separate account liabilities | 6,187 | 5,859 | ||||
Total liabilities | 88,714 | 86,734 | ||||
Equity: | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 11,983 | 11,987 | ||||
Accumulated other comprehensive income (loss) | 3,013 | $ 2,492 | 2,044 | 2,327 | $ 2,627 | 3,027 |
Retained earnings | 1,460 | 1,118 | ||||
Treasury stock, at cost | (2,700) | (2,700) | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 13,757 | 12,450 | ||||
Noncontrolling interests | 1,835 | 1,739 | ||||
Total equity | 15,592 | $ 14,882 | 14,189 | 14,741 | $ 14,862 | 15,328 |
Total liabilities and equity | 104,306 | 100,923 | ||||
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 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Investments in subsidiaries | 13,938 | 12,570 | ||||
Total investments | 13,938 | 12,570 | ||||
Cash, cash equivalents and restricted cash | 0 | 0 | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets and goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | 5 | 15 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Deferred tax assets | (35) | 14 | ||||
Separate account assets | 0 | 0 | ||||
Total assets | 13,908 | 12,599 | ||||
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 | 0 | 27 | ||||
Intercompany notes payable | 151 | 122 | ||||
Non-recourse funding obligations | 0 | 0 | ||||
Long-term borrowings | 0 | 0 | ||||
Deferred tax liability | 0 | 0 | ||||
Separate account liabilities | 0 | 0 | ||||
Total liabilities | 151 | 149 | ||||
Equity: | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 11,983 | 11,987 | ||||
Accumulated other comprehensive income (loss) | 3,013 | 2,044 | ||||
Retained earnings | 1,460 | 1,118 | ||||
Treasury stock, at cost | (2,700) | (2,700) | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 13,757 | 12,450 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 13,757 | 12,450 | ||||
Total liabilities and equity | 13,908 | 12,599 | ||||
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 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 49 | 86 | ||||
Investments in subsidiaries | 12,439 | 11,462 | ||||
Total investments | 12,488 | 11,548 | ||||
Cash, cash equivalents and restricted cash | 358 | 429 | 547 | 795 | ||
Accrued investment income | 0 | 0 | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets and goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | 55 | 62 | ||||
Intercompany notes receivable | 273 | 180 | ||||
Deferred tax assets | 841 | 907 | ||||
Separate account assets | 0 | 0 | ||||
Total assets | 14,015 | 13,126 | ||||
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 | 47 | 97 | ||||
Intercompany notes payable | 200 | 207 | ||||
Non-recourse funding obligations | 0 | 0 | ||||
Long-term borrowings | 3,571 | 3,567 | ||||
Deferred tax liability | 0 | 0 | ||||
Separate account liabilities | 0 | 0 | ||||
Total liabilities | 3,818 | 3,871 | ||||
Equity: | ||||||
Common stock | 0 | 0 | ||||
Additional paid-in capital | 9,094 | 9,095 | ||||
Accumulated other comprehensive income (loss) | 2,982 | 2,144 | ||||
Retained earnings | (1,879) | (1,984) | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 10,197 | 9,255 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 10,197 | 9,255 | ||||
Total liabilities and equity | 14,015 | 13,126 | ||||
Reportable Legal Entities | All Other Subsidiaries | ||||||
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | 63,974 | 59,861 | ||||
Equity securities, at fair value | 644 | 655 | ||||
Commercial mortgage loans | 7,019 | 6,749 | ||||
Policy loans | 2,076 | 1,861 | ||||
Other invested assets | 1,493 | 1,104 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Total investments | 75,206 | 70,230 | ||||
Cash, cash equivalents and restricted cash | 1,580 | 1,748 | 1,696 | 2,080 | ||
Accrued investment income | 630 | 679 | ||||
Deferred acquisition costs | 2,105 | 3,263 | ||||
Intangible assets and goodwill | 244 | 347 | ||||
Reinsurance recoverable | 17,211 | 17,278 | ||||
Other assets | 505 | 397 | ||||
Intercompany notes receivable | 0 | 6 | ||||
Deferred tax assets | (423) | (185) | ||||
Separate account assets | 6,187 | 5,859 | ||||
Total assets | 103,245 | 99,622 | ||||
Liabilities and equity | ||||||
Future policy benefits | 39,583 | 37,940 | ||||
Policyholder account balances | 22,673 | 22,968 | ||||
Liability for policy and contract claims | 10,677 | 10,379 | ||||
Unearned premiums | 3,488 | 3,546 | ||||
Other liabilities | 1,689 | 1,565 | ||||
Intercompany notes payable | 122 | 57 | ||||
Non-recourse funding obligations | 311 | 311 | ||||
Long-term borrowings | 473 | 458 | ||||
Deferred tax liability | 28 | 24 | ||||
Separate account liabilities | 6,187 | 5,859 | ||||
Total liabilities | 85,231 | 83,107 | ||||
Equity: | ||||||
Common stock | 3 | 3 | ||||
Additional paid-in capital | 18,428 | 18,425 | ||||
Accumulated other comprehensive income (loss) | 3,051 | 2,060 | ||||
Retained earnings | (5,603) | (6,012) | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 15,879 | 14,476 | ||||
Noncontrolling interests | 2,135 | 2,039 | ||||
Total equity | 18,014 | 16,515 | ||||
Total liabilities and equity | 103,245 | 99,622 | ||||
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 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | (7) | (2) | ||||
Investments in subsidiaries | (26,377) | (24,032) | ||||
Total investments | (26,584) | (24,234) | ||||
Cash, cash equivalents and restricted cash | 0 | 0 | $ 0 | $ 0 | ||
Accrued investment income | (4) | (4) | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets and goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | (1) | 0 | ||||
Intercompany notes receivable | (273) | (186) | ||||
Deferred tax assets | 0 | 0 | ||||
Separate account assets | 0 | 0 | ||||
Total assets | (26,862) | (24,424) | ||||
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 | (13) | (7) | ||||
Intercompany notes payable | (473) | (386) | ||||
Non-recourse funding obligations | 0 | 0 | ||||
Long-term borrowings | 0 | 0 | ||||
Deferred tax liability | 0 | 0 | ||||
Separate account liabilities | 0 | 0 | ||||
Total liabilities | (486) | (393) | ||||
Equity: | ||||||
Common stock | (3) | (3) | ||||
Additional paid-in capital | (27,522) | (27,520) | ||||
Accumulated other comprehensive income (loss) | (6,033) | (4,204) | ||||
Retained earnings | 7,482 | 7,996 | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | (26,076) | (23,731) | ||||
Noncontrolling interests | (300) | (300) | ||||
Total equity | (26,376) | (24,031) | ||||
Total liabilities and equity | $ (26,862) | $ (24,424) |
Condensed Consolidating Balan_2
Condensed Consolidating Balance Sheet (Detail) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||
Restricted commercial mortgage loans related to securitization entities | $ 56 | $ 62 |
Condensed Consolidating Income
Condensed Consolidating Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Premiums | $ 1,126 | $ 1,136 | $ 2,240 | $ 2,276 |
Net investment income | 852 | 828 | 1,681 | 1,632 |
Net investment gains (losses) | (45) | (14) | 29 | (45) |
Policy fees and other income | 223 | 209 | 410 | 411 |
Total revenues | 2,156 | 2,159 | 4,360 | 4,274 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,270 | 1,205 | 2,571 | 2,516 |
Interest credited | 146 | 152 | 293 | 308 |
Acquisition and operating expenses, net of deferrals | 247 | 253 | 498 | 493 |
Amortization of deferred acquisition costs and intangibles | 95 | 112 | 186 | 216 |
Interest expense | 73 | 77 | 145 | 153 |
Total benefits and expenses | 1,831 | 1,799 | 3,693 | 3,686 |
Income (loss) before income taxes and equity in income of subsidiaries | 325 | 360 | 667 | 588 |
Provision (benefit) for income taxes | 107 | 111 | 219 | 174 |
Equity in income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 218 | 249 | 448 | 414 |
Less: net income attributable to noncontrolling interests | 50 | 59 | 106 | 112 |
Net income available to Genworth Financial, Inc.'s common stockholders | 168 | 190 | 342 | 302 |
Reportable Legal Entities | Parent Guarantor | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | (1) | (1) |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Policy fees and other income | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | (1) | (1) |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | 0 |
Interest credited | 0 | 0 | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 3 | 7 | 7 | 14 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Interest expense | 1 | 1 | 3 | 1 |
Total benefits and expenses | 4 | 8 | 10 | 15 |
Income (loss) before income taxes and equity in income of subsidiaries | (4) | (8) | (11) | (16) |
Provision (benefit) for income taxes | 23 | 32 | 44 | 38 |
Equity in income of subsidiaries | 195 | 230 | 397 | 356 |
Net income | 168 | 190 | 342 | 302 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | 168 | 190 | 342 | 302 |
Reportable Legal Entities | Issuer | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | 1 | 4 | 4 | 7 |
Net investment gains (losses) | (9) | (8) | (12) | (2) |
Policy fees and other income | 2 | 1 | 2 | 1 |
Total revenues | (6) | (3) | (6) | 6 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | 0 |
Interest credited | 0 | 0 | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 0 | 0 | (2) | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Interest expense | 65 | 70 | 130 | 138 |
Total benefits and expenses | 65 | 70 | 128 | 138 |
Income (loss) before income taxes and equity in income of subsidiaries | (71) | (73) | (134) | (132) |
Provision (benefit) for income taxes | (14) | (14) | (26) | (31) |
Equity in income of subsidiaries | 93 | 151 | 213 | 196 |
Net income | 36 | 92 | 105 | 95 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | 36 | 92 | 105 | 95 |
Reportable Legal Entities | All Other Subsidiaries | ||||
Revenues: | ||||
Premiums | 1,126 | 1,136 | 2,240 | 2,276 |
Net investment income | 854 | 828 | 1,685 | 1,633 |
Net investment gains (losses) | (36) | (6) | 41 | (43) |
Policy fees and other income | 223 | 209 | 411 | 412 |
Total revenues | 2,167 | 2,167 | 4,377 | 4,278 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,270 | 1,205 | 2,571 | 2,516 |
Interest credited | 146 | 152 | 293 | 308 |
Acquisition and operating expenses, net of deferrals | 244 | 246 | 493 | 479 |
Amortization of deferred acquisition costs and intangibles | 95 | 112 | 186 | 216 |
Interest expense | 12 | 11 | 22 | 23 |
Total benefits and expenses | 1,767 | 1,726 | 3,565 | 3,542 |
Income (loss) before income taxes and equity in income of subsidiaries | 400 | 441 | 812 | 736 |
Provision (benefit) for income taxes | 98 | 93 | 201 | 167 |
Equity in income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 302 | 348 | 611 | 569 |
Less: net income attributable to noncontrolling interests | 50 | 59 | 106 | 112 |
Net income available to Genworth Financial, Inc.'s common stockholders | 252 | 289 | 505 | 457 |
Eliminations | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | (3) | (4) | (7) | (7) |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Policy fees and other income | (2) | (1) | (3) | (2) |
Total revenues | (5) | (5) | (10) | (9) |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | 0 |
Interest credited | 0 | 0 | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Interest expense | (5) | (5) | (10) | (9) |
Total benefits and expenses | (5) | (5) | (10) | (9) |
Income (loss) before income taxes and equity in income of subsidiaries | 0 | 0 | 0 | 0 |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Equity in income of subsidiaries | (288) | (381) | (610) | (552) |
Net income | (288) | (381) | (610) | (552) |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ (288) | $ (381) | $ (610) | $ (552) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 218 | $ 249 | $ 448 | $ 414 |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 376 | (185) | 755 | (526) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (2) | 1 | (2) | |
Derivatives qualifying as hedges | 133 | (64) | 202 | (216) |
Foreign currency translation and other adjustments | 43 | (98) | 97 | (185) |
Total other comprehensive income (loss) | 552 | (349) | 1,055 | (929) |
Total comprehensive income (loss) | 770 | (100) | 1,503 | (515) |
Less: comprehensive income attributable to noncontrolling interests | 81 | 10 | 192 | 14 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 689 | (110) | 1,311 | (529) |
Reportable Legal Entities | Parent Guarantor | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 168 | 190 | 342 | 302 |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 362 | (179) | 709 | (511) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (2) | 1 | (2) | |
Derivatives qualifying as hedges | 133 | (64) | 202 | (216) |
Foreign currency translation and other adjustments | 26 | (55) | 57 | (102) |
Total other comprehensive income (loss) | 521 | (300) | 969 | (831) |
Total comprehensive income (loss) | 689 | (110) | 1,311 | (529) |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 689 | (110) | 1,311 | (529) |
Reportable Legal Entities | Issuer | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 36 | 92 | 105 | 95 |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 311 | (167) | 594 | (462) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (1) | 1 | (1) | |
Derivatives qualifying as hedges | 133 | (64) | 202 | (217) |
Foreign currency translation and other adjustments | 17 | (46) | 41 | (82) |
Total other comprehensive income (loss) | 461 | (278) | 838 | (762) |
Total comprehensive income (loss) | 497 | (186) | 943 | (667) |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 497 | (186) | 943 | (667) |
Reportable Legal Entities | All Other Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 302 | 348 | 611 | 569 |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 376 | (185) | 755 | (526) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (2) | 1 | (2) | |
Derivatives qualifying as hedges | 148 | (68) | 225 | (233) |
Foreign currency translation and other adjustments | 43 | (97) | 96 | (185) |
Total other comprehensive income (loss) | 567 | (352) | 1,077 | (946) |
Total comprehensive income (loss) | 869 | (4) | 1,688 | (377) |
Less: comprehensive income attributable to noncontrolling interests | 81 | 10 | 192 | 14 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 788 | (14) | 1,496 | (391) |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (288) | (381) | (610) | (552) |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (673) | 346 | (1,303) | 973 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 3 | (2) | 3 | |
Derivatives qualifying as hedges | (281) | 132 | (427) | 450 |
Foreign currency translation and other adjustments | (43) | 100 | (97) | 184 |
Total other comprehensive income (loss) | (997) | 581 | (1,829) | 1,610 |
Total comprehensive income (loss) | (1,285) | 200 | (2,439) | 1,058 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (1,285) | $ 200 | $ (2,439) | $ 1,058 |
Condensed Consolidating State_2
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from (used by) operating activities: | ||||
Net income | $ 218 | $ 249 | $ 448 | $ 414 |
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | ||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | 0 |
Dividends from subsidiaries | 0 | 0 | ||
Amortization of fixed maturity securities discounts and premiums | (54) | (62) | ||
Net investment (gains) losses | 45 | 14 | (29) | 45 |
Charges assessed to policyholders | (364) | (359) | ||
Acquisition costs deferred | (35) | (40) | ||
Amortization of deferred acquisition costs and intangibles | 186 | 216 | ||
Deferred income taxes | 134 | 83 | ||
Derivative instruments and limited partnerships | 22 | (195) | ||
Stock-based compensation expense | 12 | 16 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (290) | (89) | ||
Insurance reserves | 609 | 691 | ||
Current tax liabilities | 27 | (37) | ||
Other liabilities, policy and contract claims and other policy-related balances | 129 | (122) | ||
Net cash from (used by) operating activities | 795 | 561 | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 1,929 | 1,979 | ||
Commercial mortgage loans | 285 | 350 | ||
Restricted commercial mortgage loans related to a securitization entity | 6 | 16 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 2,859 | 1,920 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | (4,681) | (4,082) | ||
Commercial mortgage loans | (561) | (489) | ||
Other invested assets, net | (227) | 93 | ||
Policy loans, net | 39 | 15 | ||
Intercompany notes receivable | 0 | 0 | ||
Capital contributions to subsidiaries | 0 | 0 | ||
Net cash used by investing activities | (351) | (198) | ||
Cash flows from (used by) financing activities: | ||||
Deposits to universal life and investment contracts | 444 | 503 | ||
Withdrawals from universal life and investment contracts | (1,096) | (1,177) | ||
Proceeds from the issuance of long-term debt | 77 | 441 | ||
Repayment and repurchase of long-term debt | (78) | (597) | ||
Repayment of borrowings related to a securitization entity | (12) | |||
Repurchase of subsidiary shares | (44) | (49) | ||
Dividends paid to noncontrolling interests | (53) | (50) | ||
Intercompany notes payable | 0 | 0 | ||
Other, net | 55 | (2) | ||
Net cash from (used by) financing activities | (695) | (943) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 12 | (52) | ||
Net change in cash, cash equivalents and restricted cash | (239) | (632) | ||
Cash, cash equivalents and restricted cash at beginning of period | 2,177 | 2,875 | ||
Cash, cash equivalents and restricted cash at end of period | 1,938 | 2,243 | 1,938 | 2,243 |
Reportable Legal Entities | Parent Guarantor | ||||
Cash flows from (used by) operating activities: | ||||
Net income | 168 | 190 | 342 | 302 |
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | ||||
Equity in (income) loss from subsidiaries | (195) | (230) | (397) | (356) |
Dividends from subsidiaries | 0 | 50 | ||
Amortization of fixed maturity securities discounts and premiums | 0 | 0 | ||
Net investment (gains) losses | 0 | 0 | 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 | 49 | 42 | ||
Derivative instruments and limited partnerships | 0 | 0 | ||
Stock-based compensation expense | 10 | 15 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (1) | (1) | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | (4) | (27) | ||
Other liabilities, policy and contract claims and other policy-related balances | (18) | (15) | ||
Net cash from (used by) operating activities | (19) | 10 | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to a securitization entity | 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 | 0 | ||
Intercompany notes receivable | 0 | 0 | ||
Capital contributions to subsidiaries | (3) | (1) | ||
Net cash used by investing activities | (3) | (1) | ||
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 | 0 | ||
Repayment and repurchase of long-term debt | 0 | 0 | ||
Repayment of borrowings related to a securitization entity | 0 | |||
Repurchase of subsidiary shares | 0 | 0 | ||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Intercompany notes payable | 29 | (7) | ||
Other, net | (7) | (2) | ||
Net cash from (used by) financing activities | 22 | (9) | ||
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 | 0 | 0 |
Reportable Legal Entities | Issuer | ||||
Cash flows from (used by) operating activities: | ||||
Net income | 36 | 92 | 105 | 95 |
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | ||||
Equity in (income) loss from subsidiaries | (93) | (151) | (213) | (196) |
Dividends from subsidiaries | 105 | 91 | ||
Amortization of fixed maturity securities discounts and premiums | 3 | 3 | ||
Net investment (gains) losses | 9 | 8 | 12 | 2 |
Charges assessed to policyholders | 0 | 0 | ||
Acquisition costs deferred | 0 | 0 | ||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | ||
Deferred income taxes | 74 | (117) | ||
Derivative instruments and limited partnerships | (30) | 22 | ||
Stock-based compensation expense | 0 | 0 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | 0 | 59 | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | (40) | 87 | ||
Other liabilities, policy and contract claims and other policy-related balances | (3) | (50) | ||
Net cash from (used by) operating activities | 13 | (4) | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to a securitization entity | 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 | 29 | 0 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | (93) | (10) | ||
Capital contributions to subsidiaries | 0 | 0 | ||
Net cash used by investing activities | (64) | (10) | ||
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 | 441 | ||
Repayment and repurchase of long-term debt | (1) | (597) | ||
Repayment of borrowings related to a securitization entity | 0 | |||
Repurchase of subsidiary shares | 0 | 0 | ||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Intercompany notes payable | (7) | (59) | ||
Other, net | (12) | (19) | ||
Net cash from (used by) financing activities | (20) | (234) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||
Net change in cash, cash equivalents and restricted cash | (71) | (248) | ||
Cash, cash equivalents and restricted cash at beginning of period | 429 | 795 | ||
Cash, cash equivalents and restricted cash at end of period | 358 | 547 | 358 | 547 |
Reportable Legal Entities | All Other Subsidiaries | ||||
Cash flows from (used by) operating activities: | ||||
Net income | 302 | 348 | 611 | 569 |
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | ||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | 0 |
Dividends from subsidiaries | (105) | (141) | ||
Amortization of fixed maturity securities discounts and premiums | (57) | (65) | ||
Net investment (gains) losses | 36 | 6 | (41) | 43 |
Charges assessed to policyholders | (364) | (359) | ||
Acquisition costs deferred | (35) | (40) | ||
Amortization of deferred acquisition costs and intangibles | 186 | 216 | ||
Deferred income taxes | 11 | 158 | ||
Derivative instruments and limited partnerships | 52 | (217) | ||
Stock-based compensation expense | 2 | 1 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (290) | (147) | ||
Insurance reserves | 609 | 691 | ||
Current tax liabilities | 71 | (97) | ||
Other liabilities, policy and contract claims and other policy-related balances | 156 | (49) | ||
Net cash from (used by) operating activities | 806 | 563 | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 1,929 | 1,979 | ||
Commercial mortgage loans | 285 | 350 | ||
Restricted commercial mortgage loans related to a securitization entity | 6 | 16 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 2,859 | 1,920 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | (4,681) | (4,082) | ||
Commercial mortgage loans | (561) | (489) | ||
Other invested assets, net | (261) | 85 | ||
Policy loans, net | 39 | 15 | ||
Intercompany notes receivable | 6 | 58 | ||
Capital contributions to subsidiaries | 3 | 1 | ||
Net cash used by investing activities | (376) | (147) | ||
Cash flows from (used by) financing activities: | ||||
Deposits to universal life and investment contracts | 444 | 503 | ||
Withdrawals from universal life and investment contracts | (1,096) | (1,177) | ||
Proceeds from the issuance of long-term debt | 77 | 0 | ||
Repayment and repurchase of long-term debt | (77) | 0 | ||
Repayment of borrowings related to a securitization entity | (12) | |||
Repurchase of subsidiary shares | (44) | (49) | ||
Dividends paid to noncontrolling interests | (53) | (50) | ||
Intercompany notes payable | 65 | 18 | ||
Other, net | 74 | 19 | ||
Net cash from (used by) financing activities | (610) | (748) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 12 | (52) | ||
Net change in cash, cash equivalents and restricted cash | (168) | (384) | ||
Cash, cash equivalents and restricted cash at beginning of period | 1,748 | 2,080 | ||
Cash, cash equivalents and restricted cash at end of period | 1,580 | 1,696 | 1,580 | 1,696 |
Eliminations | ||||
Cash flows from (used by) operating activities: | ||||
Net income | (288) | (381) | (610) | (552) |
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | ||||
Equity in (income) loss from subsidiaries | 288 | 381 | 610 | 552 |
Dividends from subsidiaries | 0 | 0 | ||
Amortization of fixed maturity securities discounts and premiums | 0 | 0 | ||
Net investment (gains) losses | 0 | 0 | 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 | ||
Derivative instruments and limited partnerships | 0 | 0 | ||
Stock-based compensation expense | 0 | 0 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | 1 | 0 | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | 0 | 0 | ||
Other liabilities, policy and contract claims and other policy-related balances | (6) | (8) | ||
Net cash from (used by) operating activities | (5) | (8) | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to a securitization entity | 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 | 5 | 8 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | 87 | (48) | ||
Capital contributions to subsidiaries | 0 | 0 | ||
Net cash used by investing activities | 92 | (40) | ||
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 | 0 | ||
Repayment and repurchase of long-term debt | 0 | 0 | ||
Repayment of borrowings related to a securitization entity | 0 | |||
Repurchase of subsidiary shares | 0 | 0 | ||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Intercompany notes payable | (87) | 48 | ||
Other, net | 0 | 0 | ||
Net cash from (used by) financing activities | (87) | 48 | ||
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 | $ 0 | $ 0 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 500 | |
Genworth Financial's Subsidiaries [Member] | ||
Restricted net assets | $ 13,400 | |
Genworth Holdings Subsidiaries [Member] | ||
Restricted net assets | $ 12,200 |