Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 28, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001276520 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity Registrant Name | GENWORTH FINANCIAL, INC. | |
Entity File Number | 001-32195 | |
Entity Tax Identification Number | 80-0873306 | |
Entity Incorporation, State or Country Code | DE | |
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, par value $.001 per share | |
Entity Common Stock, Shares Outstanding | 505,594,794 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $0 and allowance for credit losses of $0 as of September 30, 2020) | $ 64,416 | $ 60,339 | |
Equity securities, at fair value | 629 | 239 | |
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $0 as of September 30, 2020 and December 31, 2019) | 6,911 | 6,976 | |
Less: Allowance for credit losses | (31) | (13) | |
Commercial mortgage loans, net | 6,880 | 6,963 | |
Policy loans | 2,153 | 2,058 | |
Other invested assets | 2,402 | 1,632 | |
Total investments | 76,480 | 71,231 | |
Cash, cash equivalents and restricted cash | 2,780 | 3,341 | |
Accrued investment income | 650 | 654 | |
Deferred acquisition costs | 1,623 | 1,836 | |
Intangible assets and goodwill | 209 | 201 | |
Reinsurance recoverable | 16,832 | 17,103 | |
Less: Allowance for credit losses | (44) | 0 | |
Reinsurance recoverable, net | 16,788 | 17,103 | |
Other assets | 445 | 443 | |
Deferred tax asset | 250 | 425 | |
Separate account assets | 5,700 | 6,108 | |
Total assets | 104,925 | 101,342 | |
Liabilities and equity | |||
Future policy benefits | 41,995 | 40,384 | |
Policyholder account balances | 22,731 | 22,217 | |
Liability for policy and contract claims | 11,373 | 10,958 | |
Unearned premiums | 1,846 | 1,893 | |
Other liabilities | 1,913 | 1,386 | |
Non-recourse funding obligations | 0 | 311 | |
Long-term borrowings | [1] | 3,570 | 3,277 |
Separate account liabilities | 5,700 | 6,108 | |
Liabilities related to discontinued operations | 565 | 176 | |
Total liabilities | 89,693 | 86,710 | |
Commitments and contingencies | |||
Equity: | |||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 594 million and 592 million shares issued as of September 30, 2020 and December 31, 2019, respectively; 506 million and 504 million shares outstanding as of September 30, 2020 and December 31, 2019, respectively | 1 | 1 | |
Additional paid-in capital | 11,997 | 11,990 | |
Accumulated other comprehensive income (loss) | 4,141 | 3,433 | |
Retained earnings | 1,317 | 1,461 | |
Treasury stock, at cost (88 million shares as of September 30, 2020 and December 31, 2019) | (2,700) | (2,700) | |
Total Genworth Financial, Inc.'s stockholders' equity | 14,756 | 14,185 | |
Noncontrolling interests | 476 | 447 | |
Total equity | 15,232 | 14,632 | |
Total liabilities and equity | $ 104,925 | $ 101,342 | |
[1] | Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited (“GFMIPL”), our indirect majority-owned subsidiary, who currently has the option to redeem the notes due in 2025 at face value at any time, subject to the Australian Prudential Regulation Authority’s (“APRA”) prior written approval. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt securities amortized costs | $ 55,252 | |
Debt securities allowance for credit losses | 5 | |
Unamortized balance of loan origination fees | $ 4 | $ 4 |
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 | 594,000,000 | 592,000,000 |
Class A common stock, shares outstanding | 506,000,000 | 504,000,000 |
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 | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues: | |||||
Premiums | $ 1,034 | $ 1,015 | $ 3,068 | $ 3,004 | |
Net investment income | 827 | 816 | 2,406 | 2,426 | |
Net investment gains (losses) | 375 | (2) | 382 | 27 | |
Policy fees and other income | 184 | 191 | 539 | 601 | |
Total revenues | 2,420 | 2,020 | 6,395 | 6,058 | |
Benefits and expenses: | |||||
Benefits and other changes in policy reserves | 1,299 | 1,284 | 4,146 | 3,817 | |
Interest credited | 137 | 146 | 417 | 439 | |
Acquisition and operating expenses, net of deferrals | 249 | 247 | 721 | 713 | |
Amortization of deferred acquisition costs and intangibles | 101 | 112 | 310 | 277 | |
Goodwill impairment | 0 | 0 | 5 | 0 | |
Interest expense | 49 | 59 | 145 | 179 | |
Total benefits and expenses | 1,835 | 1,848 | 5,744 | 5,425 | |
Income from continuing operations before income taxes | 585 | 172 | 651 | 633 | |
Provision for income taxes | 150 | 34 | 186 | 169 | |
Income from continuing operations | 435 | 138 | 465 | 464 | |
Income (loss) from discontinued operations, net of taxes | 1 | (80) | (519) | 42 | |
Net income (loss) | 436 | 58 | (54) | 506 | |
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | |
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 30 | 0 | 101 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 418 | 18 | (89) | 360 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders: | |||||
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders | 417 | 128 | 430 | 419 | |
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | 1 | (110) | (519) | (59) | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 418 | $ 18 | $ (89) | $ 360 | |
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | |||||
Basic | $ 0.83 | $ 0.25 | $ 0.85 | $ 0.83 | |
Diluted | 0.82 | 0.25 | 0.84 | 0.82 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: | |||||
Basic | [1] | 0.83 | 0.04 | (0.18) | 0.72 |
Diluted | [1] | $ 0.82 | $ 0.04 | $ (0.17) | $ 0.71 |
Weighted-average common shares outstanding: | |||||
Basic | 505.6 | 503.5 | 505.1 | 502.7 | |
Diluted | 511.5 | 511.2 | 511.2 | 509.5 | |
[1] | May not total due to whole number calculation. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) | $ 436 | $ 58 | $ (54) | $ 506 |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (98) | 0 | 264 | 0 |
Net unrealized gains (losses) on securities with an allowance for credit losses | (2) | 0 | (10) | 0 |
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 0 | 371 | 0 | 1,126 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 0 | 0 | 1 |
Derivatives qualifying as hedges | (226) | 276 | 449 | 478 |
Foreign currency translation and other adjustments | 33 | (64) | 8 | 33 |
Total other comprehensive income (loss) | (293) | 583 | 711 | 1,638 |
Total comprehensive income | 143 | 641 | 657 | 2,144 |
Less: comprehensive income attributable to noncontrolling interests | 31 | 14 | 38 | 206 |
Total comprehensive income available to Genworth Financial, Inc.'s common stockholders | $ 112 | $ 627 | $ 619 | $ 1,938 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Cumulative effect of change in accounting, net of taxes | Common stock | Common stockCumulative effect of change in accounting, net of taxes | Additional paid-in capital | Additional paid-in capitalCumulative effect of change in accounting, net of taxes | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Cumulative effect of change in accounting, net of taxes | Retained earnings | Retained earningsCumulative effect of change in accounting, net of taxes | Treasury stock, at cost | Treasury stock, at costCumulative effect of change in accounting, net of taxes | Total Genworth Financial, Inc.'s stockholders' equity | Total Genworth Financial, Inc.'s stockholders' equityCumulative effect of change in accounting, net of taxes | Noncontrolling interests | Noncontrolling interestsCumulative effect of change in accounting, net of taxes |
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) | 0 | 0 | 0 | 0 | 0 | 0 | (44) | ||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | 506 | 0 | 0 | 0 | 360 | 0 | 360 | 146 | ||||||||
Other comprehensive income (loss), net of taxes | 1,638 | 0 | 0 | 1,578 | 0 | 0 | 1,578 | 60 | ||||||||
Total comprehensive income | 2,144 | 1,938 | 206 | |||||||||||||
Dividends to noncontrolling interests | (149) | 0 | 0 | 0 | 0 | 0 | 0 | (149) | ||||||||
Stock-based compensation expense and exercises and other | 5 | 0 | (1) | 0 | 0 | 0 | (1) | 6 | ||||||||
Balances, ending at Sep. 30, 2019 | 16,145 | 1 | 11,986 | 3,622 | 1,478 | (2,700) | 14,387 | 1,758 | ||||||||
Balances, beginning at Jun. 30, 2019 | 15,592 | 1 | 11,983 | 3,013 | 1,460 | (2,700) | 13,757 | 1,835 | ||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | 58 | 0 | 0 | 0 | 18 | 0 | 18 | 40 | ||||||||
Other comprehensive income (loss), net of taxes | 583 | 0 | 0 | 609 | 0 | 0 | 609 | (26) | ||||||||
Total comprehensive income | 641 | 627 | 14 | |||||||||||||
Dividends to noncontrolling interests | (96) | 0 | 0 | 0 | 0 | 0 | 0 | (96) | ||||||||
Stock-based compensation expense and exercises and other | 8 | 0 | 3 | 0 | 0 | 0 | 3 | 5 | ||||||||
Balances, ending at Sep. 30, 2019 | 16,145 | 1 | 11,986 | 3,622 | 1,478 | (2,700) | 14,387 | 1,758 | ||||||||
Balances, beginning at Dec. 31, 2019 | 14,632 | $ (55) | 1 | $ 0 | 11,990 | $ 0 | 3,433 | $ 0 | 1,461 | $ (55) | (2,700) | $ 0 | 14,185 | $ (55) | 447 | $ 0 |
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | (54) | 0 | 0 | 0 | (89) | 0 | (89) | 35 | ||||||||
Other comprehensive income (loss), net of taxes | 711 | 0 | 0 | 708 | 0 | 0 | 708 | 3 | ||||||||
Total comprehensive income | 657 | 619 | 38 | |||||||||||||
Dividends to noncontrolling interests | (9) | 0 | 0 | 0 | 0 | 0 | 0 | (9) | ||||||||
Stock-based compensation expense and exercises and other | 7 | 0 | 7 | 0 | 0 | 0 | 7 | 0 | ||||||||
Balances, ending at Sep. 30, 2020 | 15,232 | 1 | 11,997 | 4,141 | 1,317 | (2,700) | 14,756 | 476 | ||||||||
Balances, beginning at Jun. 30, 2020 | 15,088 | 1 | 11,996 | 4,447 | 899 | (2,700) | 14,643 | 445 | ||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | 436 | 0 | 0 | 0 | 418 | 0 | 418 | 18 | ||||||||
Other comprehensive income (loss), net of taxes | (293) | 0 | 0 | (306) | 0 | 0 | (306) | 13 | ||||||||
Total comprehensive income | 143 | 112 | 31 | |||||||||||||
Stock-based compensation expense and exercises and other | 1 | 0 | 1 | 0 | 0 | 0 | 1 | 0 | ||||||||
Balances, ending at Sep. 30, 2020 | $ 15,232 | $ 1 | $ 11,997 | $ 4,141 | $ 1,317 | $ (2,700) | $ 14,756 | $ 476 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (54) | $ 506 |
Less (income) loss from discontinued operations, net of taxes | 519 | (42) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Amortization of fixed maturity securities discounts and premiums | (97) | (93) |
Net investment gains | (382) | (27) |
Charges assessed to policyholders | (479) | (532) |
Acquisition costs deferred | (9) | (22) |
Amortization of deferred acquisition costs and intangibles | 310 | 277 |
Goodwill impairment | 5 | 0 |
Deferred income taxes | 166 | 106 |
Derivative instruments, limited partnerships and other | 88 | 121 |
Stock-based compensation expense | 22 | 17 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (183) | (327) |
Insurance reserves | 1,034 | 906 |
Current tax liabilities | 6 | 36 |
Other liabilities, policy and contract claims and other policy-related balances | 769 | 348 |
Cash from (used by) operating activities—discontinued operations | (263) | 334 |
Net cash from operating activities | 1,452 | 1,608 |
Cash flows used by investing activities: | ||
Fixed maturity securities | 2,760 | 2,734 |
Commercial mortgage loans | 479 | 395 |
Other invested assets | 108 | 106 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 3,270 | 3,024 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | (7,179) | (5,805) |
Commercial mortgage loans | (414) | (682) |
Other invested assets | (318) | (349) |
Short-term investments, net | (12) | (16) |
Policy loans, net | 27 | 51 |
Cash used by investing activities—discontinued operations | 0 | (6) |
Net cash used by investing activities | (1,279) | (548) |
Cash flows used by financing activities: | ||
Deposits to universal life and investment contracts | 693 | 637 |
Withdrawals from universal life and investment contracts | (1,408) | (1,699) |
Redemption of non-recourse funding obligations | (315) | 0 |
Proceeds from issuance of long-term debt | 767 | 0 |
Repayment and repurchase of long-term debt | (493) | (3) |
Repurchase of subsidiary shares | 0 | (22) |
Dividends paid to noncontrolling interests | (9) | (55) |
Other, net | 31 | (24) |
Cash used by financing activities—discontinued operations | 0 | (76) |
Net cash used by financing activities | (734) | (1,242) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $—and $8 related to discontinued operations) | 0 | (4) |
Net change in cash, cash equivalents and restricted cash | (561) | (186) |
Cash, cash equivalents and restricted cash at beginning of period | 3,341 | 2,177 |
Cash, cash equivalents and restricted cash at end of period | 2,780 | 1,991 |
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | 0 | 362 |
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ 2,780 | $ 1,629 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Discontinued operations exchange rate effect | $ 0 | $ 8 |
Formation of Genworth and Basis
Formation of Genworth and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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 F 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 Financial,” “Genworth,” the “Company,” “we” or “our” in the accompanying unaudited condensed consolidated financial statements and the notes thereto are, unless the context otherwise requires, to Genworth Financial, Inc. on a consolidated basis. In the third quarter of 2020, we revised the product descriptions in our U.S. Mortgage Insurance segment to conform with industry convention and certain regulatory definitions. Prior year amounts have been reclassified to conform to the current year presentation. We operate our business through the following four operating segments: • U.S. Mortgage Insurance. • Australia Mortgage Insurance. • U.S. Life Insurance. • Runoff. In addition to our operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements include all adjustments (including normal recurring adjustments) considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. In addition, potential impacts, risks and uncertainties of the coronavirus pandemic (“COVID-19”) may include investment valuations and impairments, commercial mortgage loan restructurings, deferred acquisition cost or intangible assets impairments or the acceleration of amortization, deferred tax asset recoverability and increases to insurance reserves, including higher claims reserves in our mortgage insurance businesses, among other matters. 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 2019 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation. Each reporting period, we assess our ability to continue as a going concern for one year from the date the financial statements are issued. As of September 30, 2020, Genworth Holdings has $740 million of unrestricted cash and cash equivalents. For the quarterly period ended September 30, 2020, our evaluation of our ability to meet our obligations included the following contractual obligations due within one year from the issue date of our unaudited condensed consolidated financial statements included herein: • Genworth Holdings has $338 million of its 7.20% senior notes maturing in February 2021 and $659 million of its 7.625% senior note s • As part of the settlement agreement reached in July 2020 regarding the case titled AXA S.A. v. Genworth Financial International Holdings, LLC et al., of interest on the promissory note, assuming we do not make any pre-payments, and a one-time payment on an unrelated liability associated with underwriting losses on a product sold by a distributor in our former lifestyle protection insurance business. See note 12 for additional details on the case. See note 14 for additional details related to the sale of our former lifestyle protection insurance business and amounts recorded related to discontinued operations. We also evaluate other conditions and events and their relative significance in relation to our ability to meet our obligations. For example, Genworth Holdings expects to receive intercompany tax payments generated primarily from realized gains in the third quarter of 2020, among other transactions, and is expecting additional intercompany tax payments in future periods. In addition, we are exposed to risks associated with COVID-19, which has disrupted the global economy and financial markets, business operations, and consumer behavior and confidence. • Due to higher delinquencies and the impact to capital levels resulting from COVID-19, we do not expect to receive further dividends in 2020 from our mortgage insurance subsidiaries. In 2021, until the secured promissory note to AXA is paid, dividends above $ 50 In addition, the receipt of dividends and sale proceeds above certain thresholds from ou r gage insurance business are also subject to mandatory prepayment conditions. • Due to the uncertain macroeconomic conditions surrounding COVID-19, on September 30, 2020, Genworth and China Oceanwide agreed to a sixteenth waiver and agreement extending the merger deadline to no later than November 30, 2020. However, the consummation of this transaction is dependent on steps outside of our control; accordingly, the associated post-closing capital contributions from China Oceanwide have not been included in this evaluation. Absent accessing additional liquidity through third party sources and/or the completion of the China Oceanwide transaction, Genworth Holdings expects to have a cash shortfall of approximately $215 million which raises doubt about our ability to meet our financial obligations for the next year. While conditions and events occurring and expected to occur raise doubt about our ability to meet our financial obligations for the next year, management’s plans alleviate this doubt. Management believes that its , financial The impact of the ongoing coronavirus pandemic is very difficult to predict. Its related outcomes and impact on our business and the capital markets, and our ability to raise capital will depend on the length of the pandemic, economic impacts of social, global and political influences, and the shape of the economic recovery, among other |
Accounting Changes
Accounting Changes | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure of Accounting Changes [Abstract] | |
Accounting Changes | (2) Accounting Changes Accounting Pronouncements Recently Adopted On January 1, 2020, we adopted new accounting guidance related to disclosure requirements for defined benefit plans as part of the Financial Accounting Standards Board’s (the “FASB”) disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for defined benefit pension and other postretirement benefit plans. We adopted this new accounting guidance using the retrospective method, which did not have a significant impact on our condensed consolidated financial statements and disclosures. On January 1, 2020, we adopted new accounting guidance related to fair value disclosure requirements as part of the FASB’s disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for fair value measurements. The guidance includes new disclosure requirements related to changes 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. We adopted this new accounting guidance using the prospective method for disclosures related to changes 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, the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty and the retrospective method for all other disclosures. This accounting guidance did not impact our condensed consolidated financial statements but impacted our fair value disclosures. In March 2020, the FASB issued new accounting guidance related to reference rate reform, which was effective for us on January 1, 2020. The guidance provides temporary guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform, which includes the transition away from the London Interbank Offered Rate (“LIBOR”). This new guidance provides optional practical expedients and exceptions for applying generally accepted accounting principles to investments, derivatives or other transactions affected by reference rate reform such as those that impact the assessment of derivative hedge effectiveness and contract modifications, to include continuing hedge accounting when certain critical terms of a hedging relationship change and modifying certain effectiveness assessments to exclude certain potential sources of ineffectiveness. In addition to the optional practical expedients, th e R. On January 1, 2020, we adopted new accounting guidance related to accounting for credit losses on financial instruments. The guidance requires entities to recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most financial instruments not measured at fair value, which primarily includes our commercial mortgage loans, bank loan investments and reinsurance recoverables. The new guidance also requires the recognition of an allowance for expected credit losses as a liability in our consolidated balance sheet for off-balance sheet credit exposures, including commitments to fund bank loan investments, private placement investments and commercial mortgage loans. The new guidance did not have a significant impact on other assets not measured at fair value. 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 did not elect. For our commercial mortgage loans, we determine the adequacy of the allowance for credit losses utilizing an analytical model that provides various loss scenarios based on historical experience adjusted for current events, trends, economic conditions and reasonable and supportable forecasts that result in a loss in the loan portfolio over the estimated life of the loans. We revert to historical credit loss experience for periods beyond forecasts that are reasonable and supportable. The allowance for credit losses is measured on a collective basis with consideration for debt service coverage ratio, debt-to-value, property-type and geographic location. Key inputs into the analytical model include exposure, weighted-average life, return, historical loss rates and forecast scenarios. Actual amounts realized over time could differ from the amounts estimated for the allowance for credit losses reported in the condensed consolidated financial statements. Commercial mortgage loans are written off against the allowance to the extent principal or interest is deemed uncollectible. Accrued interest related to commercial mortgage loans is included in accrued investment income in our condensed consolidated balance sheet and had a carrying value of $24 million as of September 30, 2020. We do not measure an allowance for credit losses related to accrued interest as uncollectible accrued interest related to our commercial mortgage loans are written off after 90 days and once collectability is determined to be uncertain and not probable. Amounts written off related to accrued interest are recorded as a credit loss expense included in net investment gains (losses). We adopted the guidance related to our investments carried at amortized cost using the modified retrospective method and recorded an allowance related to lifetime expected credit losses of $23 million, net of deferred taxes of $6 million, for commercial mortgage loans and bank loan investments, with an offset to cumulative effect of change in accounting within retained earnings. See note 4 for additional disclosures related to commercial mortgage loans. We adopted the guidance related to our off-balance sheet credit exposures using the modified retrospective method and recorded an allowance related to lifetime expected credit losses of $1 million, included in other liabilities in our condensed consolidated balance sheet, with an offset to cumulative effect of change in accounting within retained earnings. The allowance for credit losses for reinsurance recoverables is evaluated based on historical loss experience adjusted for current events and reasonable and supportable forecasts from both internal and external sources. The allowance is measured by reinsurer, taking into consideration the reinsured product type and collateral type, and is calculated based on an externally reported probability of default corresponding to the reinsurer’s credit rating and the expected duration of the reinsurer’s contractual obligation to reimburse us for ceded claims on the underlying policies. Our estimate of the allowance reflects consideration for collateral securing the reinsurance agreements and expected recoveries of amounts previously charged off and expected to be charged off. We also consider other credit risk factors, including, among other factors, the historical frequency and severity of the associated insurance claims, aging of recoverables and regulatory, legal and economic factors, to determine if an additional incremental allowance for credit losses is required. No reversion adjustments are necessary as the starting point for our allowance for credit losses reflects historical loss experience covering the expected duration of the reinsurer’s contractual obligation to reimburse us. If available facts and circumstances indicate the reinsurance recoverable does not reflect expectations consistent with the collective analysis, the reinsurance recoverable is assessed on a separate basis. Write-offs of reinsurance recoverables are deducted from the allowance in the period the reinsurance recoverable is determined to be uncollectible. We adopted the guidance related to our reinsurance recoverables using the modified retrospective method and recorded an allowance related to lifetime expected credit losses of $31 million, net of deferred taxes of $9 million, with an offset to cumulative effect of change in accounting within retained earnings. See note 8 for additional disclosures related to reinsurance recoverables. The new guidance retains most of the existing impairment guidance for available-for-sale fixed maturity securities but amends the presentation of credit losses to reflect an allowance for credit losses as opposed to a write-down of the amortized cost of the investment and permits the reversal of credit losses through net income (loss) when reassessing changes in credit losses each reporting period. Available-for-sale fixed maturity securities in an unrealized loss position are evaluated to determine whether the decline in fair value is related to credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency/agencies and adverse conditions specifically related to the security, among other factors. If a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Estimating the cash flows expected to be collected is a quantitative and qualitative process that incorporates information received from third-party sources along with internal assumptions and judgments. When developing the estimate of cash flows expected to be collected, we utilize an analytical model that provides for various loss scenarios and consider the industry sector, current levels of subordination, geographic location and other relevant characteristics of the security or underlying assets, as well as reasonable and supportable forecasts. Losses are written off against the allowance when deemed uncollectible or when we intend to sell or expect we will be required to sell a security prior to recovering our amortized cost. We exclude accrued interest related to available-for-sale fixed maturity securities from the estimate of allowance for credit losses. Accrued interest is included in accrued investment income in our condensed consolidated balance sheet and had a carrying value of $ million as of September 30, 2020. We do not measure an allowance for credit losses related to accrued interest as uncollectible accrued interest related to our available-for-sale fixed maturity securities are written off after 90 days and once is determined to be uncertain and not probable. Amounts written off related to accrued interest are recorded as a credit loss expense included in net investment gains (losses). We adopted the guidance related to our available-for-sale fixed maturity securities for which a previous other-than-temporary impairment was recognized prior to the date of adoption using the prospective method and the modified retrospective method for all other available-for-sale fixed maturity securities, which did not have any impact upon adoption. Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued new accounting guidance related to simplifying the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance is currently effective for us on January 1, 2021 using the retrospective method or modified retrospective method for certain changes and prospective method for all other changes, with early adoption permitted. We do not expect a significant impact from this guidance on our condensed consolidated financial statements and disclosures. In August 2018, 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 at contract inception and all cash flow assumptions used to estimate the liability for future policy benefits (except the discount rate) will be reviewed at least annually in the same period each year or more frequently if actual experience indicates a change is required. Changes will be recorded in net income (loss) using a retrospective approach with a cumulative catch-up adjustment by recalculating the net premium ratio (which will be capped at 100%) using actual historical and updated future cash flow assumptions; • 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 rated bond rate for the same duration, and is required to be reviewed quarterly, with changes in the discount rate recorded in other comprehensive income (loss); • 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 related to instrument-specific credit risk recorded in other comprehensive income (loss) and remaining 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. We expect this guidance to be effective for us on January 1, 2023, subject to the FASB finalizing an additional one-year delay, using the modified retrospective method, with early adoption permitted, which we do not intend to elect. Given the nature and extent of the changes to our operations, this guidance is expected to have a significant impact on our condensed consolidated financial statements. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings (Loss) Per Share | (3) Earnings (Loss) Per Share Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated: Three months ended September 30, Nine months ended September 30, (Amounts in millions, except per share amounts) 2020 20 19 2020 2019 Weighted-average shares used in basic earnings per share calculations 505.6 503.5 505.1 502.7 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 5.9 7.7 6.1 6.8 Weighted-average shares used in diluted earnings per share calculations 511.5 511.2 511.2 509.5 Income from continuing operations: Income from continuing operations $ 435 $ 138 $ 465 $ 464 Less: net income from continuing operations attributable to noncontrolling interests 18 10 35 45 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 417 $ 128 $ 430 $ 419 Basic per share $ 0.83 $ 0.25 $ 0.85 $ 0.83 Diluted per share $ 0.82 $ 0.25 $ 0.84 $ 0.82 Income (loss) from discontinued operations: Income (loss) from discontinued operations, net of taxes $ 1 $ (80 ) $ (519 ) $ 42 Less: net income from discontinued operations attributable to noncontrolling interests — 30 — 101 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders $ 1 $ (110 ) $ (519 ) $ (59 ) Basic per share $ — $ (0.22 ) $ (1.03 ) $ (0.12 ) Diluted per share $ — $ (0.21 ) $ (1.02 ) $ (0.12 ) Net income (loss): Income from continuing operations $ 435 $ 138 $ 465 $ 464 Income (loss) from discontinued operations, net of taxes 1 (80 ) (519 ) 42 Net income (loss) 436 58 (54 ) 506 Less: net income attributable to noncontrolling interests 18 40 35 146 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 418 $ 18 $ (89 ) $ 360 Basic per share (1) $ 0.83 $ 0.04 $ (0.18 ) $ 0.72 Diluted per share (1) $ 0.82 $ 0.04 $ (0.17 ) $ 0.71 (1) May not total due to whole number calculation. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments | (4) Investments (a) Net Investment Income Sources of net investment income were as follows for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Fixed maturity securities—taxable $ 632 $ 631 $ 1,855 $ 1,878 Fixed maturity securities—non-taxable 2 2 5 6 Equity securities 3 4 7 13 Commercial mortgage loans 82 87 251 254 Policy loans 51 47 149 138 Other invested assets 79 62 192 180 Cash, cash equivalents, restricted cash and short-term investments 2 8 17 30 Gross investment income before expenses and fees 851 841 2,476 2,499 Expenses and fees (24 ) (25 ) (70 ) (73 ) Net investment income $ 827 $ 816 $ 2,406 $ 2,426 (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Available-for-sale fixed maturity securities: Realized gains $ 332 $ 19 $ 465 $ 93 Realized losses (2 ) (3 ) (8 ) (30 ) Net realized gains (losses) on available-for-sale fixed maturity securities 330 16 457 63 Impairments: Total other-than-temporary impairments — — — — Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — — Net other-than-temporary impairments — — — — Net change in allowance for credit losses on available-for-sale fixed maturity securities 2 — (5 ) — Write-down of available-for-sale fixed maturity securities (1) (4 ) — (4 ) — Net realized gains (losses) on equity securities sold (3 ) 6 (3 ) 9 Net unrealized gains (losses) on equity securities still held 3 (4 ) (7 ) 13 Limited partnerships 31 6 28 10 Commercial mortgage loans (3 ) (1 ) (2 ) (1 ) Derivative instruments (2) 22 (29 ) (73 ) (71 ) Other (3 ) 4 (9 ) 4 Net investment gains (losses) $ 375 $ (2 ) $ 382 $ 27 (1) Represents write-down of securities we intend to sell or will be required to sell prior to recovery of the amortized cost basis. (2) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). See note 2 for a discussion of our policy for evaluating and measuring the allowance for credit losses related to our available-for-sale fixed maturity securities. The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity investments as of and for the periods indicated: Three months ended September 30, 2020 (Amounts in millions) Beginning Increase Increase Securities Decrease in Write-offs Recoveries Ending Fixed maturity securities: Non-U.S. corporate $ 4 $ — $ (2 ) $ — $ — $ — $ — $ 2 Commercial mortgage-backed 3 — — — — — — 3 Total available-for-sale fixed maturity securities $ 7 $ — $ (2 ) $ — $ — $ — $ — $ 5 Nine months ended September 30, 2020 (Amounts in millions) Beginning Increase Increase Securities Decrease Write-offs Recoveries Ending Fixed maturity securities: Non-U.S. corporate $ — $ 4 $ (2 ) $ — $ — $ — $ — $ 2 Commercial mortgage-backed — 3 — — — — — 3 Total available-for-sale fixed maturity securities $ — $ 7 $ (2 ) $ — $ — $ — $ — $ 5 The following represents the activity for credit losses recognized in net income (loss) 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: (Amounts in millions) Three months Nine months Beginning balance $ 23 $ 24 Reductions: Securities sold, paid down or disposed — (1 ) Ending balance $ 23 $ 23 (c) Unrealized Investment Gains and Losses Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of the dates indicated: (Amounts in millions) September 30, December 31, Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses (1) $ 9,218 $ 6,676 Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses (1) (12 ) — Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (6,998 ) (4,789 ) Income taxes, net (473 ) (406 ) Net unrealized investment gains (losses) 1,735 1,481 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 24 25 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,711 $ 1,456 (1) Excludes foreign exchange. The change in net unrealized gains (losses) on available-for-sale investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the periods indicated: As of or for the three months ended September 30, (Amounts in millions) 2020 2019 Beginning balance $ 1,811 $ 1,305 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on fixed maturity securities 781 1,607 Adjustment to deferred acquisition costs (9 ) (8 ) Adjustment to present value of future profits 2 1 Adjustment to sales inducements (5 ) (4 ) Adjustment to benefit reserves (566 ) (1,108 ) Provision for income taxes (42 ) (104 ) Change in unrealized gains (losses) on investment securities 161 384 Reclassification adjustments to net investment (gains) losses, net of taxes of $70 and $4 (261 ) (13 ) Change in net unrealized investment gains (losses) (100 ) 371 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests — 1 Ending balance $ 1,711 $ 1,675 As of or for the nine months ended September 30, (Amounts in millions) 2020 2019 Beginning balance $ 1,456 $ 595 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on fixed maturity securities 2,980 5,563 Adjustment to deferred acquisition costs 48 (1,049 ) Adjustment to present value of future profits 6 (54 ) Adjustment to sales inducements (3 ) (35 ) Adjustment to benefit reserves (2,260 ) (2,908 ) Provision for income taxes (162 ) (331 ) Change in unrealized gains (losses) on investment securities 609 1,186 Reclassification adjustments to net investment (gains) losses, net of taxes of $95 and $16 (355 ) (59 ) Change in net unrealized investment gains (losses) 254 1,127 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) 47 Ending balance $ 1,711 $ 1,675 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 September 30, 2020, the amortized cost or cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale were as follows: (Amounts in millions) Amortized Gross Gross Allowance Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 3,318 $ 1,474 $ — $ — $ 4,792 State and political subdivisions 2,591 525 (1 ) — 3,115 Non-U.S. government 1,276 126 (7 ) — 1,395 U.S. corporate: Utilities 4,294 924 (1 ) — 5,217 Energy 2,581 238 (54 ) — 2,765 Finance and insurance 7,611 1,135 (11 ) — 8,735 Consumer—non-cyclical 5,160 1,210 (2 ) — 6,368 Technology and communications 2,993 537 (3 ) — 3,527 Industrial 1,363 189 (1 ) — 1,551 Capital goods 2,558 503 (4 ) — 3,057 Consumer—cyclical 1,794 252 (2 ) — 2,044 Transportation 1,325 271 (15 ) — 1,581 Other 346 43 — — 389 Total U.S. corporate 30,025 5,302 (93 ) — 35,234 Non-U.S. corporate: Utilities 860 75 — — 935 Energy 1,192 163 (7 ) — 1,348 Finance and insurance 2,319 312 (12 ) (1 ) 2,618 Consumer—non-cyclical 712 95 (1 ) — 806 Technology and communications 1,066 190 — — 1,256 Industrial 935 134 (1 ) — 1,068 Capital goods 571 61 (6 ) — 626 Consumer—cyclical 400 38 (2 ) — 436 Transportation 571 87 (9 ) (1 ) 648 Other 1,562 241 (1 ) — 1,802 Total non-U.S. corporate 10,188 1,396 (39 ) (2 ) 11,543 Residential mortgage-backed 1,825 250 — — 2,075 Commercial mortgage-backed 2,775 228 (24 ) (3 ) 2,976 Other asset-backed 3,254 48 (16 ) — 3,286 Total available-for-sale fixed maturity securities $ 55,252 $ 9,349 $ (180 ) $ (5 ) $ 64,416 As of December 31, 2019, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other- t Not other-than- Other- t Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,073 $ 952 $ — $ — $ — $ 5,025 State and political subdivisions 2,394 355 — (2 ) — 2,747 Non-U.S. government 1,235 117 — (2 ) — 1,350 U.S. corporate: Utilities 4,322 675 — — — 4,997 Energy 2,404 303 — (8 ) — 2,699 Finance and insurance 6,977 798 — (1 ) — 7,774 Consumer—non-cyclical 4,909 796 — (4 ) — 5,701 Technology and communications 2,883 363 — (1 ) — 3,245 Industrial 1,271 125 — — — 1,396 Capital goods 2,345 367 — (1 ) — 2,711 Consumer—cyclical 1,590 172 — (2 ) — 1,760 Transportation 1,320 187 — (1 ) — 1,506 Other 292 30 — — — 322 Total U.S. corporate 28,313 3,816 — (18 ) — 32,111 Non-U.S. corporate: Utilities 779 50 — — — 829 Energy 1,140 179 — — — 1,319 Finance and insurance 2,087 232 — — — 2,319 Consumer—non-cyclical 631 55 — (2 ) — 684 Technology and communications 1,010 128 — — — 1,138 Industrial 896 92 — — — 988 Capital goods 565 40 — — — 605 Consumer—cyclical 373 24 — — — 397 Transportation 557 73 — (1 ) — 629 Other 1,431 188 — (2 ) — 1,617 Total non-U.S. corporate 9,469 1,061 — (5 ) — 10,525 Residential mortgage-backed 2,057 199 15 (1 ) — 2,270 Commercial mortgage-backed 2,897 137 — (8 ) — 3,026 Other asset-backed 3,262 30 — (7 ) — 3,285 Total available-for-sale fixed maturity securities $ 53,700 $ 6,667 $ 15 $ (43 ) $ — $ 60,339 The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of September 30, 2020: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: State and political subdivisions $ 66 $ (1 ) 10 $ — $ — — $ 66 $ (1 ) 10 Non-U.S. government 103 (7 ) 16 — — — 103 (7 ) 16 U.S. corporate 1,475 (82 ) 228 95 (11 ) 10 1,570 (93 ) 238 Non-U.S. corporate 589 (27 ) 106 7 (1 ) 2 596 (28 ) 108 Commercial mortgage-backed 430 (22 ) 68 1 (1 ) 1 431 (23 ) 69 Other asset-backed 675 (10 ) 159 308 (6 ) 67 983 (16 ) 226 Total for fixed maturity securities in an unrealized loss position $ 3,338 $ (149 ) 587 $ 411 $ (19 ) 80 $ 3,749 $ (168 ) 667 % Below cost: <20% Below cost $ 3,264 $ (122 ) 569 $ 401 $ (16 ) 78 $ 3,665 $ (138 ) 647 20%-50% Below cost 74 (27 ) 18 10 (3 ) 2 84 (30 ) 20 Total for fixed maturity securities in an unrealized loss position $ 3,338 $ (149 ) 587 $ 411 $ (19 ) 80 $ 3,749 $ (168 ) 667 Investment grade $ 2,631 $ (85 ) 472 $ 338 $ (9 ) 70 $ 2,969 $ (94 ) 542 Below investment grade 707 (64 ) 115 73 (10 ) 10 780 (74 ) 125 Total for fixed maturity securities in an unrealized loss position $ 3,338 $ (149 ) 587 $ 411 $ (19 ) 80 $ 3,749 $ (168 ) 667 The following table presents the gross unrealized losses and fair values of our corporate securities for which an allowance for credit losses has not been recorded, 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 September 30, 2020: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities U.S. corporate: Utilities $ 24 $ (1 ) 6 $ — $ — — $ 24 $ (1 ) 6 Energy 557 (45 ) 84 52 (9 ) 6 609 (54 ) 90 Finance and insurance 373 (11 ) 42 — — — 373 (11 ) 42 Consumer—non-cyclical 93 (2 ) 12 — — — 93 (2 ) 12 Technology and communications 100 (3 ) 12 — — — 100 (3 ) 12 Industrial 72 (1 ) 6 — — — 72 (1 ) 6 Capital goods 33 (3 ) 7 14 (1 ) 1 47 (4 ) 8 Consumer—cyclical 86 (1 ) 21 29 (1 ) 3 115 (2 ) 24 Transportation 137 (15 ) 38 — — — 137 (15 ) 38 Subtotal, U.S. corporate securities 1,475 (82 ) 228 95 (11 ) 10 1,570 (93 ) 238 Non-U.S. corporate: Energy 179 (7 ) 18 — — — 179 (7 ) 18 Finance and insurance 196 (5 ) 34 — — — 196 (5 ) 34 Consumer—non-cyclical — — — 7 (1 ) 2 7 (1 ) 2 Industrial 29 (1 ) 4 — — — 29 (1 ) 4 Capital goods 59 (6 ) 11 — — — 59 (6 ) 11 Consumer—cyclical 22 (2 ) 11 — — — 22 (2 ) 11 Transportation 59 (5 ) 15 — — — 59 (5 ) 15 Other 45 (1 ) 13 — — — 45 (1 ) 13 Subtotal, non-U.S. corporate securities 589 (27 ) 106 7 (1 ) 2 596 (28 ) 108 Total for corporate securities in an unrealized loss position $ 2,064 $ (109 ) 334 $ 102 $ (12 ) 12 $ 2,166 $ (121 ) 346 We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the tables above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the decline in fair value is largely due to recent market volatility and is not indicative of credit losses. The issuers continue to make timely principal and interest payments. For all securities in an unrealized loss position without an allowance for credit losses, 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, 2019: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: State and political subdivisions $ 91 $ (2 ) 14 $ — $ — — $ 91 $ (2 ) 14 Non-U.S. government 224 (2 ) 20 — — — 224 (2 ) 20 U.S. corporate 123 (5 ) 27 302 (13 ) 33 425 (18 ) 60 Non-U.S. corporate 79 (1 ) 12 62 (4 ) 7 141 (5 ) 19 Residential mortgage-backed 22 (1 ) 10 — — — 22 (1 ) 10 Commercial mortgage-backed 381 (5 ) 51 14 (3 ) 3 395 (8 ) 54 Other asset-backed 532 (2 ) 97 439 (5 ) 115 971 (7 ) 212 Total for fixed maturity securities in an unrealized loss position $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 % Below cost: <20% Below cost $ 1,452 $ (18 ) 231 $ 807 $ (20 ) 155 $ 2,259 $ (38 ) 386 20%-50% Below cost — — — 10 (5 ) 3 10 (5 ) 3 Total for fixed maturity securities in an unrealized loss position $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 Investment grade $ 1,408 $ (14 ) 223 $ 702 $ (15 ) 145 $ 2,110 $ (29 ) 368 Below investment grade 44 (4 ) 8 115 (10 ) 13 159 (14 ) 21 Total for fixed maturity securities in an unrealized loss position $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 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, 2019: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities U.S. corporate: Energy $ 54 $ (3 ) 10 $ 80 $ (5 ) 10 $ 134 $ (8 ) 20 Finance and insurance — — — 34 (1 ) 4 34 (1 ) 4 Consumer—non-cyclical 34 (1 ) 9 93 (3 ) 9 127 (4 ) 18 Technology and communications — — — 18 (1 ) 2 18 (1 ) 2 Capital goods 35 (1 ) 8 — — — 35 (1 ) 8 Consumer—cyclical — — — 54 (2 ) 6 54 (2 ) 6 Transportation — — — 23 (1 ) 2 23 (1 ) 2 Subtotal, U.S. corporate securities 123 (5 ) 27 302 (13 ) 33 425 (18 ) 60 Non-U.S. corporate: Consumer—non-cyclical — — — 31 (2 ) 3 31 (2 ) 3 Transportation — — — 25 (1 ) 3 25 (1 ) 3 Other 79 (1 ) 12 6 (1 ) 1 85 (2 ) 13 Subtotal, non-U.S. corporate securities 79 (1 ) 12 62 (4 ) 7 141 (5 ) 19 Total for corporate securities in an unrealized loss position $ 202 $ (6 ) 39 $ 364 $ (17 ) 40 $ 566 $ (23 ) 79 The scheduled maturity distribution of fixed maturity securities as of September 30, 2020 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in millions) Amortized Fair Due one year or less $ 1,476 $ 1,499 Due after one year through five years 9,646 10,265 Due after five years through ten years 13,164 14,863 Due after ten years 23,112 29,452 Subtotal 47,398 56,079 Residential mortgage-backed 1,825 2,075 Commercial mortgage-backed 2,775 2,976 Other asset-backed 3,254 3,286 Total $ 55,252 $ 64,416 As of September 30, 2020, securities issued by finance and insurance, consumer—non-cyclical, utilities and technology and communications industry groups represented approximately 24%, 15%, 13% and 10%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio. As of September 30, 2020, 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: September 30, December 31, (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,481 36 % $ 2,590 37 % Industrial 1,685 24 1,670 24 Office 1,625 24 1,632 23 Apartments 566 8 541 8 Mixed use 292 4 281 4 Other 262 4 266 4 Subtotal 6,911 100 % 6,980 100 % Unamortized balance of loan origination fees — (4 ) Allowance for credit losses (31 ) (13 ) Total $ 6,880 $ 6,963 September 30, December 31, (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,761 25 % $ 1,715 25 % Pacific 1,571 23 1,673 24 Middle Atlantic 993 14 992 14 Mountain 776 11 753 11 West North Central 481 7 488 7 East North Central 451 7 455 6 West South Central 427 6 433 6 New England 262 4 257 4 East South Central 189 3 214 3 Subtotal 6,911 100 % 6,980 100 % Unamortized balance of loan origination fees — (4 ) Allowance for credit losses (31 ) (13 ) Total $ 6,880 $ 6,963 The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: September 30, 2020 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than due Total Current Total Property type: Retail $ 4 $ — $ 10 $ 14 $ 2,467 $ 2,481 Industrial — — — — 1,685 1,685 Office — — — — 1,625 1,625 Apartments — — — — 566 566 Mixed use — — — — 292 292 Other — — — — 262 262 Total amortized cost $ 4 $ — $ 10 $ 14 $ 6,897 $ 6,911 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2019 (Amounts in millions) 31 - 60 days past due 61 - 90 days Greater than due Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,590 $ 2,590 Industrial — — — — 1,670 1,670 Office — — — — 1,632 1,632 Apartments — — — — 541 541 Mixed use — — — — 281 281 Other — — — — 266 266 Total recorded investment $ — $ — $ — $ — $ 6,980 $ 6,980 % of total commercial mortgage loans — % — % — % — % 100 % 100 % For a discussion of our policy related to placing commercial mortgage loans on non-accrual status, see Note 2—Summary of Significant Accounting Policies included in the Notes to Consolidated Financial Statements in our 2019 Annual Report on Form 10-K. As of September 30, 2020, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest. We also did not have any commercial mortgage loans that were past due for less than 90 days on non-accrual status as of September 30, 2020. As of December 31, 2019, we had commercial mortgage loans on non-accrual status. During the nine months ended September 30, 2020 and the year ended December 31, 2019, we did not have any modifications or extensions that were considered troubled debt restructurings. The following table sets forth the allowance for credit losses related to commercial mortgage loans as of or for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Allowance for credit losses: Beginning balance $ 28 $ 11 $ 13 $ 9 Cumulative effect of change in accounting — — 16 — Provision 3 1 2 3 Write-offs — — — — Recoveries — — — — Ending balance $ 31 $ 12 $ 31 $ 12 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 debt-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average debt-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower debt-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was sold. The debt service coverage ratio is based on “normalized” annual income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio is not used without considering other factors associated with the borrower, such as the borrower’s liquidity or access to other resources that may result in our expectation that the borrower will continue to make the future scheduled payments. The following tables set forth commercial mortgage loans by year of origination and credit quality indicator as of September 30, 2020: (Amounts in millions) 2020 2019 2018 2017 2016 2015 and Total Debt-to-value: 0% - 50% $ 9 $ 15 $ 38 $ 108 $ 131 $ 2,307 $ 2,608 51% - 60% 29 33 191 289 141 734 1,417 61% - 75% 373 746 758 330 223 448 2,878 76% - 100% — — 8 — — — 8 Greater than 100% — — — — — — — Total amortized cost $ 411 $ 794 $ 995 $ 727 $ 495 $ 3,489 $ 6,911 Debt service coverage ratio: Less than 1.00 $ — $ — $ 33 $ 3 $ — $ 123 $ 159 1.00 - 1.25 41 12 106 73 13 252 497 1.26 - 1.50 69 357 260 96 87 405 1,274 1.51 - 2.00 251 356 503 320 266 1,214 2,910 Greater than 2.00 50 69 93 235 129 1,495 2,071 Total amortized cost $ 411 $ 794 $ 995 $ 727 $ 495 $ 3,489 $ 6,911 Write-offs, gross $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — Write-offs, net $ — $ — $ — $ — $ — $ — $ — The following tables set forth the debt-to-value of commercial mortgage loans by property type as of the dates indicated: September 30, 2020 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 940 $ 557 $ 984 $ — $ — $ 2,481 Industrial 775 310 600 — — 1,685 Office 513 337 767 8 — 1,625 Apartments 220 85 261 — — 566 Mixed use 106 63 123 — — 292 Other 54 65 143 — — 262 Total amortized cost $ 2,608 $ 1,417 $ 2,878 $ 8 $ — $ 6,911 % of total 38 % 20 % 42 % — % — % 100 % Weighted-average debt service coverage ratio 2.31 1.81 1.57 1.42 — 1.90 December 31, 2019 (Amounts in millions) 0% - 50% 51% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 986 $ 579 $ 1,025 $ — $ — $ 2,590 Industrial 808 337 525 — — 1,670 Office 529 380 723 — — 1,632 Apartments 211 110 220 — — 541 Mixed use 104 70 107 — — 281 Other 56 69 141 — — 266 Total recorded investment $ 2,694 $ 1,545 $ 2,741 $ — $ — $ 6,980 % of total 39 % 22 % 39 % — % — % 100 % Weighted-average debt service coverage ratio 2.32 1.81 1.55 — — 1.90 The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated: September 30, 2020 (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 $ 61 $ 134 $ 585 $ 1,100 $ 601 $ 2,481 Industrial 23 66 218 704 674 1,685 Office 28 111 238 770 478 1,625 Apartments 11 24 177 182 172 566 Mixed use 3 18 37 118 116 292 Other 33 144 19 36 30 262 Total amortized cost $ 159 $ 497 $ 1,274 $ 2,910 $ 2,071 $ 6,911 % of total 2 % 7 % 19 % 42 % 30 % 100 % Weighted-average debt-to-value 57 % 61 % 63 % 59 % 41 % 54 % December 31, 2019 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 68 $ 141 $ 596 $ 1,148 $ 637 $ 2,590 Industrial 24 51 221 658 716 1,670 Office 44 89 277 751 471 1,632 Apartments 16 32 129 175 189 541 Mixed use 4 16 37 107 117 281 Other 34 147 20 31 34 266 Total recorded investment $ 190 $ 476 $ 1,280 $ 2,870 $ 2,164 $ 6,980 % of total 3 % 7 % 18 % 41 % 31 % 100 % Weighted-average debt-to-value 59 % 61 % 63 % 58 % 41 % 54 % (f) Limited Partnerships or Similar Entities Limited partnerships are accounted for at fair value when our partnership interest is considered minor (generally less than 3% ownership in the limited partnerships) and we exercise no influence over operating and financial policies. If our ownership percentage exceeds that threshold, limited partnerships are accounted for using the equity method of accounting. In applying either method, we use financial information provided by the investee generally on a one-to-three month lag. However, for limited partnerships measured at fair value, we consider whether an adjustment to the estimated fair value is necessary when the measurement date is not aligned with our reporting date. Investments 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 September 30, 2020 and December 31, 2019, the total carrying value of these investments was $823 million and $616 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 | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments | (5) Derivative Instruments Our business activities routinely deal with fluctuations in interest rates, equity prices, currency exchange 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 September 30, December 31, Balance sheet September 30, December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $ 708 $ 197 Other liabilities $ 4 $ 10 Foreign currency swaps Other invested assets 10 4 Other liabilities — — Total cash flow hedges 718 201 4 10 Total derivatives designated as hedges 718 201 4 10 Derivatives not designated as hedges Equity index options Other invested assets 67 81 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Other foreign currency contracts Other invested assets 19 8 Other liabilities 5 1 GMWB embedded derivatives Reinsurance recoverable (1) 35 20 Policyholder account balances (2) 508 323 Fixed index annuity embedded derivatives Other assets — — Policyholder (3) 432 452 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (4) 25 19 Total derivatives not designated as hedges 121 109 970 795 Total derivatives $ 839 $ 310 $ 974 $ 805 (1) Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities. (2) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (3) Represents the embedded derivatives associated with our fixed index annuity liabilities. (4) Represents the embedded derivatives associated with our indexed universal life liabilities. The fair value of derivative positions presented above was not offset by the respective collateral amounts received or provided under these agreements. The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for GMWB embedded derivatives, fixed index annuity embedded derivatives and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies. The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ September 30, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 8,968 $ 1,844 $ (2,616 ) $ 8,196 Foreign currency swaps Notional 110 — — 110 Total cash flow hedges 9,078 1,844 (2,616 ) 8,306 Total derivatives designated as hedges 9,078 1,844 (2,616 ) 8,306 Derivatives not designated as hedges Interest rate swaps Notional 4,674 — — 4,674 Equity index options Notional 2,451 1,527 (1,849 ) 2,129 Financial futures Notional 1,182 4,362 (4,275 ) 1,269 Other foreign currency contracts Notional 628 5,689 (4,687 ) 1,630 Total derivatives not designated as hedges 8,935 11,578 (10,811 ) 9,702 Total derivatives $ 18,013 $ 13,422 $ (13,427 ) $ 18,008 (Number of policies) Measurement December 31, Additions Maturities/ September 30, Derivatives not designated as hedges GMWB embedded derivatives Policies 25,623 — (1,452 ) 24,171 Fixed index annuity embedded derivatives Policies 15,441 — (1,511 ) 13,930 Indexed universal life embedded derivatives Policies 884 — (37 ) 847 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 income (loss) effects of cash flow hedges for the three months ended September 30, 2020: (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) Classification of Interest rate swaps hedging assets $ (246 ) $ 50 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging — 4 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities 10 — Interest expense — Net investment gains (losses) Foreign currency swaps (7 ) — Net investment income — Net investment gains (losses) Total $ (243 ) $ 54 $ — The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2019: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) Classification of gain Interest rate swaps hedging assets $ 406 $ 41 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging assets — 4 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (23 ) — Interest expense — Net investment gains (losses) Foreign currency 5 1 Net investment income — Net investment gains (losses) Total $ 388 $ 46 $ — The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2020: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) Classification of gain Interest rate swaps hedging assets $ 738 $ 139 Net investment $ — Net investment Interest rate swaps hedging assets — 8 Net investment — Net investment Interest rate swaps hedging liabilities (52 ) — Interest expense — Net investment Foreign currency 6 — Net investment — Net investment Total $ 692 $ 147 $ — The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2019: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) Classification of gain Interest rate swaps hedging assets $ 759 $ 121 Net investment $ — Net investment Interest rate swaps hedging assets — 6 Net investment — Net investment Interest rate swaps hedging liabilities (55 ) — Interest expense — Net investment Foreign currency 4 — Net investment — Net investment Foreign currency — — Net investment 2 Net investment Total $ 708 $ 127 $ 2 The following tables provide a reconciliation of current period changes, net of applicable income taxes, for these designated Three months ended (Amounts in millions) 2020 2019 Derivatives qualifying as effective accounting hedges as of July 1 $ 2,677 $ 1,983 Current period increases (decreases) in fair value, net of deferred taxes of $52 and $(82) (191 ) 306 Reclassification to net (income) loss, net of deferred taxes of $19 and $16 (35 ) (30 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,451 $ 2,259 Nine months ended (Amounts in millions) 2020 2019 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,002 $ 1,781 Current period increases (decreases) in fair value, net of deferred taxes of $(148) in both periods 544 560 Reclassification to net (income) loss, net of deferred taxes of $52 and $45 (95 ) (82 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,451 $ 2,259 The total of derivatives designated as cash flow hedges of $2,451 million, net of taxes, recorded in stockholders’ equity as of September 30, 2020 is expected to be reclassified to net income (loss) 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, $127 million, net of taxes, is expected to be reclassified to net income (loss) 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 nine months ended September 30, 2020 and 2019, we reclassified $7 million and $4 million, respectively, to net income (loss) 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 caps where the hedging relationship does not qualify for hedge accounting; (iv) foreign currency forward contracts to mitigate currency risk associated with non-functional currency investments held by certain foreign subsidiaries; and (v) foreign currency options and forward contracts to mitigate currency risk associated with future dividends or other cash flows from certain foreign subsidiaries to our holding company. 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 table provides the pre-tax gain (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the periods indicated: Three months ended Classification of gain (loss) recognized in net income (loss) (Amounts in millions) 2020 2019 Interest rate swaps $ 1 $ (2 ) Net investment gains (losses) Equity index options 7 1 Net investment gains (losses) Financial futures (41 ) 35 Net investment gains (losses) Other foreign currency contracts 12 (10 ) Net investment gains (losses) GMWB embedded derivatives 54 (44 ) Net investment gains (losses) Fixed index annuity embedded derivatives (18 ) (14 ) Net investment gains (losses) Indexed universal life embedded derivatives 3 1 Net investment gains (losses) Total derivatives not designated as hedges $ 18 $ (33 ) (Amounts in millions) Nine months ended Classification of gain (loss) recognized in net income (loss) 2020 2019 Interest rate swaps $ (11 ) $ (6 ) Net investment gains (losses) Equity index options (2 ) 28 Net investment gains (losses) Financial futures 97 8 Net investment gains (losses) Other foreign currency contracts 9 (17 ) Net investment gains (losses) GMWB embedded derivatives (153 ) (21 ) Net investment gains (losses) Fixed index annuity embedded derivatives (31 ) (72 ) Net investment gains (losses) Indexed universal life embedded derivatives 10 1 Net investment gains (losses) Total derivatives not designated as hedges $ (81 ) $ (79 ) 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: September 30, 2020 December 31, 2019 (Amounts in millions) Derivative (1) Derivative (2) Net Derivative (1) Derivative (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 804 $ 9 $ 795 $ 291 $ 11 $ 280 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 804 9 795 291 11 280 Gross amounts not offset in the balance sheet: Financial instruments (3) (5 ) (5 ) — (7 ) (7 ) — Collateral received (663 ) — (663 ) (179 ) — (179 ) Collateral pledged — (489 ) 489 — (405 ) 405 Over collateralization 13 485 (472 ) 18 401 (383 ) Net amount $ 149 $ — $ 149 $ 123 $ — $ 123 (1) Included $1 million of accruals on derivatives classified as other assets as of December 31, 2019 and does not include amounts related to embedded derivatives as of September 30, 2020 and December 31, 2019. (2) Does not include amounts related to embedded derivatives as of September 30, 2020 and December 31, 2019. (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 | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Financial Instruments | (6) Fair Value of Financial Instruments Recurring Fair Value Measurements We have fixed maturity securities, 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. Fixed maturity, short-term investments and equity securities The fair value of fixed maturity securities, 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, that security is valued using market information for similar securities, which is also a market approach. When market information is not available for a specific security (or similar securities) 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. Further, 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. In general, we first obtain valuations from pricing services. If prices are unavailable for public securities, we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for similar securities are not readily observable and these securities are not typically valued by pricing services. Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3. 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 private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating or public bond spread as Level 3. In general, a significant increase (decrease) in credit spreads would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of September 30, 2020. For remaining securities priced using internal models, we determine fair value using an income approach. 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. 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 pricing services to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3. A summary of the inputs used for our fixed maturity securities, 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. Separate account assets. Level 2 measurements Fixed maturity securities • Third-party pricing services: In estimating the fair value of fixed maturity securities, approximately 91% of our portfolio was priced using third-party pricing services as of September 30, 2020. These pricing services utilize industry-standard valuation techniques that include market-based approaches, income-based approaches, a combination of market-based and income-based approaches or other proprietary, internally generated models as part of the valuation processes. These third-party pricing vendors maximize the use of publicly available data inputs to generate valuations for each asset class. Priority and type of inputs used may change frequently as certain inputs may be more direct drivers of valuation at the time of pricing. Examples of significant inputs incorporated by pricing services may include sector and issuer spreads, seasoning, capital structure, security optionality, collateral data, prepayment assumptions, default assumptions, delinquencies, debt covenants, benchmark yields, trade data, dealer quotes, credit ratings, maturity and weighted-average life. We conduct regular meetings with our pricing services for the purpose of understanding the methodologies, techniques and inputs used by the third-party pricing providers. The following table presents a summary of the significant inputs used by our pricing services for certain fair value measurements of fixed maturity securities that are classified as Level as of September : (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 4,792 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 $ 3,058 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 $ 1,395 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 $ 31,695 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 $ 9,220 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 $ 2,061 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 $ 2,956 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 $ 3,125 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: 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 pricing services. Short-term investments The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by pricing services. Level 3 measurements Fixed maturity securities • Broker quotes: • Internal models: A portion of our state and political subdivisions, U.S. corporate, non-U.S. corporate, residential mortgage-backed and other asset-backed securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain private fixed maturity securities are valued using an internal model using market observable inputs such as the interest rate yield curve, as well as published credit spreads for similar securities, which includes significant unobservable inputs. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps are established using inputs from market participants. For structured securities, the primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, weighted-average coupon, weighted-average maturity, issuer rating, structure of the security, expected prepayment speeds and volumes, collateral type, current and forecasted loss severity, average delinquency rates, vintage of the loans, geographic region, debt service coverage ratios, payment priority with the tranche, benchmark yields and credit spreads. The fair value of our Level 3 fixed maturity securities priced using internal models was $3,314 million as of September 30, 2020. Equity securities. Net asset value 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”) from the underlying fund statements as a practical expedient for fair value. Derivatives We consider counterparty collateral arrangements and rights of set-off when evaluating our net credit risk exposure to our derivative counterparties. Accordingly, we are permitted to include consideration of these arrangements when determining whether any incremental adjustment should be made for both the counterparty’s and our non-performance risk in measuring fair value for our derivative instruments. As a result of these counterparty arrangements, we determined that any adjustment for credit risk would not be material and we have not recorded any incremental adjustment for our non-performance risk or the non-performance risk of the derivative counterparty for our derivative assets or liabilities. Interest rate swaps. Interest rate caps. Foreign currency swaps. Equity index options. Financial futures. Equity return swaps. Other foreign currency contracts. 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. We determine fair value using an internal model based on the various inputs noted above. Non-performance risk is integrated into the discount rate used to value GMWB liabilities. Our discount rate used to determine fair value of our GMWB liabilities includes market credit spreads above U.S. Treasury rates to reflect an adjustment for the non-performance risk of the GMWB liabilities. As of September 30, 2020 and December 31, 2019, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $85 million and $62 million, respectively. We classify the GMWB valuation as Level 3 based on having significant unobservable inputs, with equity index volatility and non-performance risk being considered the more significant unobservable inputs. As equity 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. As of September 30, 2020, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement. 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. As of September 30, 2020, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement. 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. As of September 30, 2020, a significant change in the unobservable inputs discussed above would have resulted in a significantly lower or higher fair value measurement. 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: September 30, 2020 (Amounts in millions) Total Level Level 2 Level NAV (1) Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,792 $ — $ 4,792 $ — $ — State and political subdivisions 3,115 — 3,058 57 — Non-U.S. government 1,395 — 1,395 — — U.S. corporate: Utilities 5,217 — 4,376 841 — Energy 2,765 — 2,651 114 — Finance and insurance 8,735 — 8,204 531 — Consumer—non-cyclical 6,368 — 6,265 103 — Technology and communications 3,527 — 3,401 126 — Industrial 1,551 — 1,511 40 — Capital goods 3,057 — 2,960 97 — Consumer—cyclical 2,044 — 1,874 170 — Transportation 1,581 — 1,527 54 — Other 389 — 225 164 — Total U.S. corporate 35,234 — 32,994 2,240 — Non-U.S. corporate: Utilities 935 — 588 347 — Energy 1,348 — 1,111 237 — Finance and insurance 2,618 — 2,314 304 — Consumer—non-cyclical 806 — 752 54 — Technology and communications 1,256 — 1,228 28 — Industrial 1,068 — 975 93 — Capital goods 626 — 453 173 — Consumer—cyclical 436 — 269 167 — Transportation 648 — 537 111 — Other 1,802 — 1,666 136 — Total non-U.S. corporate 11,543 — 9,893 1,650 — Residential mortgage-backed 2,075 — 2,061 14 — Commercial mortgage-backed 2,976 — 2,956 20 — Other asset-backed 3,286 — 3,125 161 — Total fixed maturity securities 64,416 — 60,274 4,142 — Equity securities 629 465 112 52 — Other invested assets: Derivative assets: Interest rate swaps 708 — 708 — — Foreign currency swaps 10 — 10 — — Equity index options 67 — — 67 — Other foreign currency contracts 19 — 19 — — Total derivative assets 804 — 737 67 — Securities lending collateral 75 — 75 — — Short-term investments 251 — 251 — — Limited partnerships 674 — — — 674 Total other invested assets 1,804 — 1,063 67 674 Reinsurance recoverable (2) 35 — — 35 — Separate account assets 5,700 5,700 — — — Total assets $ 72,584 $ 6,165 $ 61,449 $ 4,296 $ 674 (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. December 31, 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 enterprises $ 5,025 $ — $ 5,025 $ — $ — State and political subdivisions 2,747 — 2,645 102 — Non-U.S. government 1,350 — 1,350 — — U.S. corporate: Utilities 4,997 — 4,132 865 — Energy 2,699 — 2,570 129 — Finance and insurance 7,774 — 7,202 572 — Consumer—non-cyclical 5,701 — 5,607 94 — Technology and communications 3,245 — 3,195 50 — Industrial 1,396 — 1,356 40 — Capital goods 2,711 — 2,609 102 — Consumer—cyclical 1,760 — 1,587 173 — Transportation 1,506 — 1,428 78 — Other 322 — 186 136 — Total U.S. corporate 32,111 — 29,872 2,239 — Non-U.S. corporate: Utilities 829 — 455 374 — Energy 1,319 — 1,072 247 — Finance and insurance 2,319 — 2,085 234 — Consumer—non-cyclical 684 — 625 59 — Technology and communications 1,138 — 1,110 28 — Industrial 988 — 884 104 — Capital goods 605 — 444 161 — Consumer—cyclical 397 — 250 147 — Transportation 629 — 438 191 — Other 1,617 — 1,477 140 — Total non-U.S. corporate 10,525 — 8,840 1,685 — Residential mortgage-backed 2,270 — 2,243 27 — Commercial mortgage-backed 3,026 — 3,020 6 — Other asset-backed 3,285 — 3,153 132 — Total fixed maturity securities 60,339 — 56,148 4,191 — Equity securities 239 62 126 51 — Other invested assets: Derivative assets: Interest rate swaps 197 — 197 — — Foreign currency swaps 4 — 4 — — Equity index options 81 — — 81 — Other foreign currency contracts 8 — 8 — — Total derivative assets 290 — 209 81 — Securities lending collateral 51 — 51 — — Short-term investments 211 — 211 — — Limited partnerships 503 — — — 503 Total other invested assets 1,055 — 471 81 503 Reinsurance recoverable (2) 20 — — 20 — Separate account assets 6,108 6,108 — — — Total assets $ 67,761 $ 6,170 $ 56,745 $ 4,343 $ 503 (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. 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: Beginning as of Total realized and Ending as of Total gains (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Included Included Fixed maturity securities: State and political subdivisions $ 63 $ 1 $ (7 ) $ — $ — $ — $ — $ — $ — $ 57 $ 1 $ (6 ) U.S. corporate: Utilities 936 10 (4 ) 15 — — (52 ) — (64 ) 841 — 1 Energy 123 — — 7 — — (16 ) — — 114 — — Finance and insurance 551 — 2 71 — — (16 ) — (77 ) 531 — 2 Consumer—non-cyclical 103 — — — — — — — — 103 — 1 Technology and communications 66 — 3 57 — — — — — 126 — 3 Industrial 39 — 1 — — — — — — 40 — — Capital goods 97 — — — — — — — — 97 — — Consumer— cyclical 198 3 (1 ) — — — (30 ) — — 170 — 1 Transportation 54 — 1 — — — (1 ) — — 54 — 1 Other 165 — — — — — (1 ) — — 164 — — Total U.S. corporate 2,332 13 2 150 — — (116 ) — (141 ) 2,240 — 9 Non-U.S. corporate: Utilities 357 — 4 — — — — 6 (20 ) 347 — 3 Energy 237 — — — — — — — — 237 — 1 Finance and insurance 311 1 (2 ) — — — — 19 (25 ) 304 1 (2 ) Consumer—non-cyclical 54 — — — — — — — — 54 — — Technology and communications 28 — — — — — — — — 28 — — Industrial 92 — 1 — — — — — — 93 — 1 Capital goods 173 — — 10 — — (10 ) — — 173 — (1 ) Consumer—cyclical 156 — 4 17 — — — — (10 ) 167 — 4 Transportation 141 — (2 ) — — — — — (28 ) 111 — (3 ) Other 145 — 3 — — — (12 ) — — 136 — 3 Total non-U.S. corporate 1,694 1 8 27 — — (22 ) 25 (83 ) 1,650 1 6 Residential mortgage-backed 24 — (1 ) — — — — — (9 ) 14 — — Commercial mortgage-backed 21 — (1 ) — — — — — — 20 — — Other asset-backed 121 — 1 78 — — (10 ) — (29 ) 161 — 1 Total fixed maturity securities 4,255 15 2 255 — — (148 ) 25 (262 ) 4,142 2 10 Equity securities 53 — — — (1 ) — — — — 52 — — Other invested assets: Derivative assets: Equity index options 66 7 — 27 — — (33 ) — — 67 (1 ) — Total derivative assets 66 7 — 27 — — (33 ) — — 67 (1 ) — Total other invested assets 66 7 — 27 — — (33 ) — — 67 (1 ) — Reinsurance recoverable (2) 38 (3 ) — — — — — — — 35 (3 ) — Total Level 3 assets $ 4,412 $ 19 $ 2 $ 282 $ (1 ) $ — $ (181 ) $ 25 $ (262 ) $ 4,296 $ (2 ) $ 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. Beginning as of Total realized and Ending as of Total gains attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Fixed maturity securities: State and political subdivisions $ 61 $ — $ 11 $ — $ — $ — $ — $ — $ — $ 72 $ 1 U.S. corporate: Utilities 789 1 28 13 — — (7 ) — — 824 — Energy 122 — 2 12 — — (1 ) — — 135 — Finance and insurance 607 — 11 — — — (26 ) 20 — 612 — Consumer—non-cyclical 89 — 1 9 — — (1 ) — — 98 — Technology and communications 44 — 1 — — — — 5 — 50 — Industrial 40 — — — — — — — — 40 — Capital goods 98 — 2 — — — — — — 100 — Consumer—cyclical 185 — 2 — — — (2 ) — (9 ) 176 — Transportation 54 — 1 3 — — (1 ) — — 57 — Other 199 — — — — — — — (31 ) 168 — Total U.S. corporate 2,227 1 48 37 — — (38 ) 25 (40 ) 2,260 — Non-U.S. corporate: Utilities 417 — 5 — — — (25 ) — — 397 — Energy 241 — 5 31 — — (12 ) — — 265 — Finance and insurance 179 1 4 — — — (3 ) 16 — 197 1 Consumer—non-cyclical 68 — 1 — — — (5 ) — — 64 — Technology and communications 27 — 1 — — — — — — 28 — Industrial 64 — — 13 — — — — — 77 — Capital goods 181 — 2 — — — (4 ) — — 179 — Consumer—cyclical 126 — 2 9 — — — — — 137 — Transportation 199 — 1 — — — — — — 200 — Other 129 — 3 — — — (1 ) — — 131 — Total non-U.S. corporate 1,631 1 24 53 — — (50 ) 16 — 1,675 1 Residential mortgage-backed 36 — 1 — — — (1 ) — (4 ) 32 — Commercial mortgage-backed 92 — 14 — — — — — — 106 — Other asset-backed 234 — — 13 — — (11 ) — (106 ) 130 — Total fixed maturity securities 4,281 2 98 103 — — (100 ) 41 (150 ) 4,275 2 Equity securities 56 — — — (2 ) — — — — 54 — Other invested assets: Derivative assets: Equity index options 65 1 — 13 — — (17 ) — — 62 — Total derivative assets 65 1 — 13 — — (17 ) — — 62 — Total other invested assets 65 1 — 13 — — (17 ) — — 62 — Reinsurance recoverable (2) 20 5 — — — — — — — 25 5 Total Level 3 assets $ 4,422 $ 8 $ 98 $ 116 $ (2 ) $ — $ (117 ) $ 41 $ (150 ) $ 4,416 $ 7 (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: Beginning as of Total realized and Ending as of Total gains (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Included Included Fixed maturity securities: State and political subdivisions $ 102 $ 2 $ (19 ) $ — $ — $ — $ (1 ) $ — $ (27 ) $ 57 $ 2 $ (19 ) Non-U.S. government — — — — — — (1 ) 1 — — — — U.S. corporate: Utilities 865 10 8 47 — — (54 ) 42 (77 ) 841 — 14 Energy 129 1 (2 ) 17 (21 ) — (19 ) 22 (13 ) 114 — (4 ) Finance and insurance 572 2 4 92 — — (40 ) — (99 ) 531 — 7 Consumer—non-cyclical 94 — 2 8 — — (1 ) — — 103 — 3 Technology and communications 50 — 4 77 — — — — (5 ) 126 — 4 Industrial 40 — — — — — — — — 40 — — Capital goods 102 — (1 ) — — — (4 ) — — 97 — (1 ) Consumer—cyclical 173 3 3 — — — (33 ) 24 — 170 — 5 Transportation 78 — (1 ) — — — (3 ) 10 (30 ) 54 — 1 Other 136 — 1 5 — — (5 ) 27 — 164 — 1 Total U.S. corporate 2,239 16 18 246 (21 ) — (159 ) 125 (224 ) 2,240 — 30 Non-U.S. corporate: Utilities 374 — 7 12 — — — 27 (73 ) 347 — 5 Energy 247 — (8 ) — — — (26 ) 24 — 237 — (7 ) Finance and insurance 234 3 7 15 — — — 77 (32 ) 304 3 8 Consumer—non-cyclical 59 — 2 8 — — — 1 (16 ) 54 — 1 Technology and communications 28 — — — — — — — — 28 — — Industrial 104 — 2 — — — (5 ) — (8 ) 93 — 2 Capital goods 161 1 (2 ) 10 — — (26 ) 29 — 173 — (2 ) Consumer—cyclical 147 — 1 21 — — (7 ) 32 (27 ) 167 — (1 ) Transportation 191 — — — — — — 22 (102 ) 111 — 3 Other 140 — 3 5 — — (13 ) 1 — 136 — 3 Total non-U.S. corporate 1,685 4 12 71 — — (77 ) 213 (258 ) 1,650 3 12 Residential mortgage-backed 27 — (1 ) — — — (1 ) 4 (15 ) 14 — — Commercial mortgage-backed 6 — 1 — — — — 20 (7 ) 20 — 1 Other asset-backed 132 — (1 ) 93 — — (32 ) — (31 ) 161 — (1 ) Total fixed maturity securities 4,191 22 10 410 (21 ) — (271 ) 363 (562 ) 4,142 5 23 Equity securities 51 — — 6 (5 ) — — — — 52 — — Other invested assets: Derivative assets: Equity index options 81 (2 ) — 45 — — (57 ) — — 67 4 — Total derivative assets 81 (2 ) — 45 — — (57 ) — — 67 4 — Total other invested assets 81 (2 ) — 45 — — (57 ) — — 67 4 — Reinsurance recoverable (2) 20 14 — — — 1 — — — 35 14 — Total Level 3 assets $ 4,343 $ 34 $ 10 $ 461 $ (26 ) $ 1 $ (328 ) $ 363 $ (562 ) $ 4,296 $ 23 $ 23 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning as of Total realized and Ending as of Total gains attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Fixed maturity securities: State and political subdivisions $ 51 $ 2 $ 19 $ — $ — $ — $ — $ — $ — $ 72 $ 2 U.S. corporate: Utilities 643 1 70 109 (14 ) — (47 ) 72 (10 ) 824 — Energy 121 — 9 17 — — (12 ) — — 135 — Finance and insurance 534 — 49 40 — — (38 ) 27 — 612 — Consumer—non-cyclical 73 — 4 23 — — (11 ) 9 — 98 — Technology and communications 50 — 6 — — — — 5 (11 ) 50 — Industrial 39 — 1 — — — — — — 40 — Capital goods 92 — 8 — — — — — — 100 — Consumer—cyclical 211 — 12 — (13 ) — (16 ) — (18 ) 176 — Transportation 57 — 2 7 — — (9 ) — — 57 — Other 178 — 6 22 — — (15 ) 8 (31 ) 168 — Total U.S. corporate 1,998 1 167 218 (27 ) — (148 ) 121 (70 ) 2,260 — Non-U.S. corporate: Utilities 404 — 28 30 (7 ) — (42 ) — (16 ) 397 — Energy 217 — 17 47 — — (16 ) — — 265 — Finance and insurance 171 3 22 7 — — (16 ) 16 (6 ) 197 3 Consumer—non-cyclical 106 2 5 — — — (49 ) — — 64 — Technology and communications 26 — 2 — — — — — — 28 — Industrial 61 — 3 13 — — — — — 77 — Capital goods 173 — 11 10 — — (15 ) — — 179 — Consumer—cyclical 122 — 10 9 — — (4 ) — — 137 — Transportation 171 — 10 19 — — — — — 200 — Other 81 — 11 35 — — (2 ) 6 — 131 — Total non-U.S. corporate 1,532 5 119 170 (7 ) — (144 ) 22 (22 ) 1,675 3 Residential mortgage-backed 35 — 2 — — — (1 ) — (4 ) 32 — Commercial mortgage-backed 95 — 23 2 — — — — (14 ) 106 — Other asset-backed 154 — 2 109 — — (53 ) 28 (110 ) 130 — Total fixed maturity securities 3,865 8 332 499 (34 ) — (346 ) 171 (220 ) 4,275 5 Equity securit |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 9 Months Ended |
Sep. 30, 2020 | |
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 nine (Amounts in millions) 2020 2019 Beginning balance $ 10,958 $ 10,295 Less reinsurance recoverables (2,406 ) (2,379 ) Net beginning balance 8,552 7,916 Incurred related to insured events of: Current year 3,179 2,865 Prior years (389 ) (237 ) Total incurred 2,790 2,628 Paid related to insured events of: Current year (708 ) (659 ) Prior years (1,867 ) (1,794 ) Total paid (2,575 ) (2,453 ) Interest on liability for policy and contract claims 308 285 Foreign currency translation 5 (9 ) Net ending balance 9,080 8,367 Add reinsurance recoverables 2,293 2,413 Ending balance $ 11,373 $ 10,780 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 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. In addition, loss reserves recorded on new delinquencies in our U.S. mortgage insurance business have a high degree of estimation, particularly due to the level of uncertainty regarding whether borrowers in forbearance will ultimately cure or result in a claim payment. For the nine months ended September 30, 2020, the favorable development of $389 million related to insured events of prior years was primarily attributable to our long-term care insurance business largely from favorable claim terminations mostly attributable to higher mortality, favorable development on prior year incurred but not reported claims and favorable experience on pending claims that terminated before becoming an active claim. These decreases were partially offset by a strengthening of incurred but not reported reserves. For the nine months ended September 30, 2020, the liability for policy and contract claims increased $415 million largely related to our U.S. mortgage insurance business, principally attributable to a significant increase in the number of new delinquencies driven largely by borrower forbearance resulting from COVID-19. In addition, existing reserves were strengthened by $28 million in the current year primarily driven by unfavorable cure emergence impacting claim frequency and severity offset by net benefits from cures and paid claims. The increase was also attributable to our long-term care insurance business primarily attributable to new claims, which includes higher new claims frequency as a result of the aging of the in-force block, as well as higher severity, partially offset by an increase in claim terminations driven mostly by higher mortality and favorable development on incurred but not reported claims in the current year. Given the lower new claim counts submitted during COVID-19, incurred but not reported reserves were strengthened by $61 million reflecting our assumption that new claim incidence during this period will ultimately return to normal levels, partially offsetting the favorable development on incurred but not reported claims. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2020 | |
Reinsurance | (8) Reinsurance The following table sets forth the changes in the allowance for credit losses related to reinsurance recoverables as of or for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2020 Allowance for credit losses: Beginning balance $ 44 $ — Cumulative effect of change in accounting — 40 Provision — 4 Write-offs — — Recoveries — — Ending balance $ 44 $ 44 As discussed in note 2, our policy for evaluating and measuring the allowance for credit losses related to reinsurance recoverables utilizes the reinsurer’s credit rating, updated quarterly, to assess the credit quality of reinsurance recoverables. The following table sets forth A.M. Best Company, Inc.’s (“A.M. Best”) credit ratings related to our reinsurance recoverables, gross of the allowance for credit losses, as of September 30, 2020: (Amounts in millions) Collateralized Non-collateralized Total Credit rating: A++ $ — $ 514 $ 514 A+ 1,380 1,366 2,746 A 20 46 66 B+ — 2 2 Not rated 13,422 82 13,504 Total reinsurance recoverable $ 14,822 $ 2,010 $ 16,832 We have several significant reinsurance transactions (“Reinsurance Transactions”) with Union Fidelity Life Insurance Company (“UFLIC”), an affiliate of our former parent, General Electric Company (“GE”). In the Reinsurance Transactions, we ceded to UFLIC in-force blocks of structured settlements issued prior to 2004, substantially all of our in-force blocks of variable annuities issued prior to 2004 and a block of long-term care insurance policies that we reinsured in 2000 from legal entities now a part of Brighthouse Life Insurance Company. Although we remain directly liable under these contracts and policies as the ceding insurer, the Reinsurance Transactions have the effect of transferring the financial results of the reinsured blocks to UFLIC. To secure the payment of its obligations to us under the reinsurance agreements governing the Reinsurance Transactions, UFLIC has established trust accounts to maintain an aggregate amount of assets with a statutory book value at least equal to the statutory general account reserves attributable to the reinsured business less an amount required to be held in certain claims-paying accounts. A trustee administers the trust accounts and we are permitted to withdraw from the trust accounts amounts due to us pursuant to the terms of the reinsurance agreements that are not otherwise paid by UFLIC. In addition, pursuant to a Capital Maintenance Agreement, GE is obligated to maintain sufficient capital in UFLIC to maintain UFLIC’s risk-based capital (“RBC”) at not less than 150% of its company action level, as defined by the National Association of Insurance Commissioners (“NAIC”). As of September 30, 2020 and December 31, 2019, we had a reinsurance recoverable of $13,418 million and $13,752 million, respectively, with UFLIC. In March 2019, upon UFLIC’s request, A.M. Best withdrew UFLIC’s credit rating. There was no impact to us from this action as UFLIC has trust accounts and a guarantee from its parent, as discussed above, and is sufficiently collateralized. Accordingly, the reinsurance recoverable with UFLIC is fully collectible and no allowance for credit losses was recorded as of September 30, 2020. Reinsurance recoverables are considered past due when contractual payments have not been received from the reinsurer by the required payment date. Claims submitted for payment are generally due in less than one year. As of September 30, 2020, we did not have any reinsurance recoverables past due, except for Scottish Re US Inc. (“Scottish Re”), a reinsurance company domiciled in Delaware. On March 6, 2019, Scottish Re was ordered into receivership for the purposes of rehabilitation by the Court of Chancery of the State of Delaware. The proposed Plan of Rehabilitation of Scottish Re was filed on June 30, 2020; however, we expect a revised Plan of Rehabilitation to be filed by March 16, 2021 with any objections required to be submitted by April 15, 2021. We do not know what deadlines will be imposed related to the Court of Chancery’s consideration of the proposed plan and no hearing date has been scheduled. As of September 30, 2020, amounts past due related to Scottish Re were $16 million, all of which was included in the allowance for credit losses. We will continue to monitor the plan of rehabilitation and expected recovery of the claims balance. Mortgage Insurance—Excess of Loss Reinsurance On October 22, 2020, our U.S. mortgage insurance business obtained $350 million of excess of loss reinsurance coverage from Triangle Re 2020-1 Ltd. on a portfolio of existing mortgage insurance policies written from January 2020 through August 2020. Triangle Re 2020-1 Ltd. is a VIE and special purpose insurer domiciled in Bermuda and financed the reinsurance coverage by issuing mortgage insurance-linked notes to unaffiliated investors. The notes are non-recourse to us and our affiliates. The excess of loss reinsurance coverage is fully collateralized by a reinsurance trust account which requires the proceeds from the sale of the mortgage insurance-linked |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Borrowings | (9) Borrowings (a) Long-Term Borrowings The following table sets forth total long-term borrowings as of the dates indicated: (Amounts in millions) September 30, December 31, Genworth Holdings (1) 7.70% Senior Notes, due 2020 $ — $ 397 7.20% Senior Notes, due 2021 338 382 7.625% Senior Notes, due 2021 661 701 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 2,693 3,174 Bond consent fees (20 ) (25 ) Deferred borrowing charges (10 ) (12 ) Total Genworth Holdings 2,663 3,137 Genworth Mortgage Holdings, Inc. 6.50% Senior Notes, due 2025 750 — Deferred borrowing charges (12 ) — Total Genworth Mortgage Holdings, Inc. 738 — Australia (2) Floating Rate Junior Subordinated Notes, due 2025 35 140 Floating Rate Junior Subordinated Notes, due 2030 136 — Subtotal 171 140 Deferred borrowing charges (2 ) — Total Australia 169 140 Total $ 3,570 $ 3,277 (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) Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited (“GFMIPL”), our indirect majority-owned subsidiary, who currently has the option to redeem the notes due in 2025 at face value at any time, subject to the Australian Prudential Regulation Authority’s (“APRA”) prior written approval. On January 21, 2020, Genworth Holdings early redeemed $397 million of its 7.70% senior notes originally scheduled to mature in June 2020 for a pre-tax loss of $9 million. The senior notes were fully redeemed with a cash payment of $409 million, comprised of the outstanding principal balance of $397 million, accrued interest of $3 million and a make-whole premium of $9 million. During the nine months ended September 30, 2020, Genworth Holdings repurchased $84 million principal amount of its senior notes with 2021 maturity dates for a pre-tax gain of $4 million and paid accrued interest thereon. On August 21, 2020, Genworth Mortgage Holdings, Inc. (“GMHI”) issued $750 million of its 6.50% senior notes due in 2025. Interest on the notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2021. These notes mature on On July 3, 2020, GFMIPL issued AUD$147 million floating rate subordinated notes due in July 2030 in exchange for AUD$147 million of its floating rate subordinated notes due in July 2025 and issued an additional AUD$43 million floating rate subordinated notes due in July 2030. These notes will pay interest quarterly at a floating rate equal to the three-month bank bill swap reference rate plus a margin of a minimum of 5.0 On August 24, 2020, GFMIPL redeemed AUD$5 million of its floating rate subordinated notes due in July 2025 and paid accrued interest thereon. GFMIPL redeemed the remaining AUD$48 million of its floating rate subordinated notes due in July 2025 on October 6, 2020. (b) Non-Recourse Funding Obligations In January 2020, upon receipt of approval from the Director of Insurance of the State of South Carolina, Rivermont Life Insurance Company I (“Rivermont I”) redeemed all of its $315 million of outstanding non-recourse funding obligations due in 2050. The early redemption resulted in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | (10) 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 Nine months ended 2020 2019 2020 2019 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Increase (reduction) in rate resulting from: Swaps terminated prior to the TCJA 2.6 1.2 4.3 3.2 Provision to return adjustments 0.8 (1.6 ) 0.7 (0.4 ) Effect of foreign operations 1.1 (0.8 ) 1.8 2.5 Other, net 0.1 0.1 0.8 0.3 Effective rate 25.6 % 19.9 % 28.6 % 26.6 % The increase in the effective tax rate for the three and nine months ended September 30, 2020 was primarily attributable to unfavorable provision to return adjustments in the current year compared to favorable adjustments in the prior year and tax expense on forward starting swaps settled prior to the enactment of the Tax Cuts and Jobs Act (“TCJA”), which are tax effected at 35% as they are amortized into net investment income. The increase was also attributable to a higher tax expense related to foreign operations for the three months ended September 30, 2020. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Information | (11) Segment Information We have the following four operating business segments: U.S. 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 since 2011). In addition to our four operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. 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. The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year. We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income (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) from continuing operations 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 estimated future credit losses, 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. Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate for our domestic segments and a 30% tax rate for our Australia Mortgage Insurance segment and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves. During the nine months ended September 30, 2020, we repurchased $84 million principal amount of Genworth Holdings’ senior notes with 2021 maturity dates for a pre-tax gain of $4 million. In January 2020, we paid a pre-tax make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont I, our indirect wholly-owned special purpose consolidated captive insurance subsidiary, early redeemed all of its $315 million outstanding non-recourse funding obligations originally due in 2050 resulting in a pre-tax loss of $4 million from the write-off of deferred borrowing costs. These transactions were excluded from adjusted operating income (loss) for the periods presented as they relate to gains (losses) on the early extinguishment of debt. In the second quarter of 2020, we recorded a goodwill impairment of $3 million, net of the portion attributable to noncontrolling interests, in our Australia mortgage insurance business. We recorded a pre-tax expense of $2 million and $4 million for the nine months ended September 30, 2020 and 2019, respectively, related to restructuring costs as we continue to evaluate and appropriately size our organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) 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 Nine months ended (Amounts in millions) 2020 2019 2020 2019 Revenues: U.S. Mortgage Insurance segment $ 284 $ 251 $ 819 $ 709 Australia Mortgage Insurance segment 102 82 265 288 U.S. Life Insurance segment: Long-term care insurance 1,466 1,110 3,672 3,279 Life insurance 333 347 1,016 1,101 Fixed annuities 138 145 400 455 U.S. Life Insurance segment 1,937 1,602 5,088 4,835 Runoff segment 103 74 200 234 Corporate and Other activities (6 ) 11 23 (8 ) Total revenues $ 2,420 $ 2,020 $ 6,395 $ 6,058 The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) 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 Nine months ended (Amounts in millions) 2020 2019 2020 2019 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 418 $ 18 $ (89 ) $ 360 Add: net income from continuing operations attributable to noncontrolling interests 18 10 35 45 Add: net income from discontinued operations attributable to noncontrolling interests — 30 — 101 Net income (loss) 436 58 (54 ) 506 Less: income (loss) from discontinued operations, net of taxes 1 (80 ) (519 ) 42 Income from continuing operations 435 138 465 464 Less: net income from continuing operations attributable to noncontrolling interests 18 10 35 45 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders 417 128 430 419 Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (362 ) (5 ) (378 ) (33 ) Goodwill impairment, net (2) — — 3 — (Gains) losses on early extinguishment of debt — — 9 — Expenses related to restructuring — — 2 4 Taxes on adjustments 77 — 78 6 Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 132 $ 123 $ 144 $ 396 (1) For the three months ended September 30, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $1 and $(3) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $12 million and $(4) million, respectively. For the nine months ended September 30, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(14) million and $(8) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $18 million and $2 million, respectively. (2) For the nine months ended September 30, 2020, goodwill impairment was adjusted for the portion attributable to noncontrolling interests of $2 million. Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 141 $ 137 $ 286 $ 408 Australia Mortgage Insurance segment 7 12 17 39 U.S. Life Insurance segment: Long-term care insurance 59 21 108 38 Life insurance (69 ) (25 ) (227 ) (17 ) Fixed annuities 24 3 58 39 U.S. Life Insurance segment 14 (1 ) (61 ) 60 Runoff segment 19 10 30 39 Corporate and Other activities (49 ) (35 ) (128 ) (150 ) Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 132 $ 123 $ 144 $ 396 The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) September 30, December 31, Assets: U.S. Mortgage Insurance segment $ 5,494 $ 4,504 Australia Mortgage Insurance segment 2,601 2,406 U.S. Life Insurance segment 84,208 81,640 Runoff segment 9,901 9,953 Corporate and Other activities 2,721 2,839 Total assets $ 104,925 $ 101,342 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | (12) 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 long-term care insurance premiums, payment of contingent or other sales commissions, claims payments and procedures, product design, product disclosure, product administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, recommending unsuitable products to customers, our pricing structures and business practices in our 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 then 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 then current chief financial officer, its then 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 (“GFIH”) and Genworth Financial were named as defendants in an action captioned AXA S.A. v. Genworth Financial International Holdings, LLC et al., initially sought in excess of £28 million on an indemnity provided for in the 2015 agreement pursuant to which Genworth sold to AXA two insurance companies, Financial Insurance Company Limited (“FICL”) and Financial Assurance Company Limited (“FACL”), relating to alleged remediation it has paid to customers who purchased payment protection insurance (“PPI”). The hearing on liability and subrogation matters commenced on November 4, 2019 and concluded on November 12, 2019. On December 6, 2019, the Court issued its judgment, ruling in AXA’s favor with respect to its claim against Genworth for 90% of AXA’s payment of PPI mis-selling losses. The Court further ruled, among other matters, that Genworth is not entitled to be subrogated to the rights of FICL/FACL against Santander Cards UK Limited or require AXA to assert reasonable defenses with respect to PPI mis-selling claims. In January 2020, we made an interim payment to AXA for approximately $134 million, which was previously accrued in December 2019 in connection with the aforementioned Court ruling. On June 8, 2020, AXA amended its claim and updated its demand to £499 million, excluding an alleged claim for a tax gross up for a possible additional amount of £117 million or more. The damages hearing took place from June 15, 2020 through June 23, 2020. On July 20, 2020, Genworth and GFIH entered into a settlement agreement with AXA pursuant to which the parties have agreed, pending satisfaction of certain conditions, not to enforce, appeal or set aside the liability judgment of December 6, 2019 and the subsequently issued damages judgment of July 27, 2020. See note 14 for additional details on the terms of the settlement with AXA, the sale of our former lifestyle protection insurance business and amounts recorded related to loss from discontinued operations. 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 whether Genworth has altered how it calculates or charges cost of insurance since the McBride settlement. The Eleventh Circuit Court of Appeals did not reach a decision on Genworth’s counterclaim. We intend to continue to vigorously defend the dismissal of this action. In September 2018, Genworth Financial, Genworth Holdings, Genworth North America Corporation, GFIH 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 nationwide basis. On November 22, 2019, plaintiffs filed an amended complaint, adding Genworth Life Insurance Company of New York as a defendant and expanding the class to all fifty states and the District of Columbia. On January 15, 2020, the Court preliminarily approved the settlement and set the final approval hearing for July 10, 2020. On March 26, 2020, the parties filed a Joint Motion for Leave to Amend certain aspects of the settlement, which was approved by the Court on March 31, 2020. On April 10, 2020, the Indiana Department of Insurance filed a Motion to Intervene and Motion to Stay, seeking to stay the current schedule for class settlement and delay the date of the final approval hearing in light of disruptions caused by COVID-19. On April 14, 2020, the class administrator sent out class notices to potential settlement class members. On April 17, 2020, plaintiffs filed their opposition to the Indiana Department of Insurance’s motion to stay. The Court conducted final approval hearings on July 10, 2020, July 14, 2020 and September 11, 2020. Based on the Court’s preliminary approval of the settlement, we do not anticipate the outcome of this matter to have a material adverse impact on our results of operations or financial position. If the court does not approve the final settlement, we intend to continue to vigorously defend this action. On April 6, 2020, GLAIC, our indirect wholly-owned subsidiary, was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Eastern District of Virginia, captioned Brighton Trustees, LLC, on behalf of and as trustee for Diamond LS Trust; and Bank of Utah, solely as securities intermediary for Diamond LS Trust; on behalf of themselves and all others similarly situated v. Genworth Life and Annuity Insurance Company. Ronald L. Daubenmier, individually and on behalf of himself and all others similarly situated v. Genworth Life and Annuity Insurance Company 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 September 30, 2020, we were committed to fund $1,112 million in limited partnership investments, $11 million in U.S. commercial mortgage loan investments and $115 million in private placement investments. As of September 30, 2020, we were also committed to fund $35 million of bank loan investments which had not yet been drawn. Amounts disclosed are net of an allowance for credit losses, see note 2 for additional information related to credit losses on off-balance sheet credit exposures. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Changes In Accumulated Other Comprehensive Income (Loss) | (13) 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 July 1, 2020 $ 1,811 $ 2,677 $ (41 ) $ 4,447 OCI before reclassifications 161 (191 ) 33 3 Amounts reclassified from (to) OCI (261 ) (35 ) — (296 ) Current period OCI (100 ) (226 ) 33 (293 ) Balances as of September 30, 2020 before noncontrolling interests 1,711 2,451 (8 ) 4,154 Less: change in OCI attributable to noncontrolling interests — — 13 13 Balances as of September 30, 2020 $ 1,711 $ 2,451 $ (21 ) $ 4,141 (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 July 1, 2019 $ 1,305 $ 1,983 $ (275 ) $ 3,013 OCI before reclassifications 384 306 (64 ) 626 Amounts reclassified from (to) OCI (13 ) (30 ) — (43 ) Current period OCI 371 276 (64 ) 583 Balances as of September 30, 2019 before noncontrolling interests 1,676 2,259 (339 ) 3,596 Less: change in OCI attributable to noncontrolling interests 1 — (27 ) (26 ) Balances as of September 30, 2019 $ 1,675 $ 2,259 $ (312 ) $ 3,622 (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, 2020 $ 1,456 $ 2,002 $ (25 ) $ 3,433 OCI before reclassifications 609 544 8 1,161 Amounts reclassified from (to) OCI (355 ) (95 ) — (450 ) Current period OCI 254 449 8 711 Balances as of September 30, 2020 before noncontrolling interests 1,710 2,451 (17 ) 4,144 Less: change in OCI attributable to noncontrolling interests (1 ) — 4 3 Balances as of September 30, 2020 $ 1,711 $ 2,451 $ (21 ) $ 4,141 (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, 2019 $ 595 $ 1,781 $ (332 ) $ 2,044 OCI before reclassifications 1,186 560 33 1,779 Amounts reclassified from (to) OCI (59 ) (82 ) — (141 ) Current period OCI 1,127 478 33 1,638 Balances as of September 30, 2019 before noncontrolling interests 1,722 2,259 (299 ) 3,682 Less: change in OCI attributable to noncontrolling interests 47 — 13 60 Balances as of September 30, 2019 $ 1,675 $ 2,259 $ (312 ) $ 3,622 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. The foreign currency translation and other adjustments balance in the charts above included $(2) million, net of taxes of $1 million, related to a net unrecognized postretirement benefit obligation as of September 30, 2019. The balance also included taxes of $22 million and $(44) million, respectively, related to foreign currency translation adjustments as of September 30, 2020 and 2019. The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from accumulated other comprehensive Affected line item in the consolidated statements of income Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (331 ) $ (17 ) $ (450 ) $ (75 ) Net investment (gains) losses Income taxes 70 4 95 16 Provision for income taxes Total $ (261 ) $ (13 ) $ (355 ) $ (59 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (50 ) $ (41 ) $ (139 ) $ (121 ) Net investment income Interest rate swaps hedging assets (4 ) (4 ) (8 ) (6 ) Net investment (gains) losses Foreign currency swaps — (1 ) — — Net investment income Income taxes 19 16 52 45 Provision for income taxes Total $ (35 ) $ (30 ) $ (95 ) $ (82 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | (14) Discontinued Operations On December 1, 2015, we completed the sale of our lifestyle protection insurance business to AXA. In 2017, AXA sued us for damages on an indemnity in the 2015 agreement related to alleged remediation it paid to customers who purchased PPI. On July 20, 2020, we reached a settlement agreement with AXA for losses incurred from mis-selling complaints on policies sold from 1970 through 2004 and paid an initial amount of £100 million ($125 million) to AXA. An after-tax loss of $21 million and $537 million related to the settlement is included in income (loss) from discontinued operations for the three and nine months ended September 30, 2020, respectively. We also recorded other after-tax legal fees and expenses of $1 million and $5 million for the three and nine months ended September 30, 2020, respectively. See note 12 for a As part of the settlement agreement, we agreed to make payments for certain PPI mis-selling claims, along with a significant portion of future claims that are still being processed. Under the settlement agreement, we issued a secured promissory note to AXA, in which we agreed to make deferred cash payments in two installments i The following table presents the amounts owed to AXA under the settlement agreement, which are reflected as liabilities related to discontinued operations in our unaudited condensed consolidated balance sheet for the period presented: (Amounts in millions) September 30, 2020 British Pounds U.S. Dollar Installment payments due to AXA: June 2022 £ 159 $ 206 September 2022: Beginning balance 158 205 Amounts billed as future losses 29 38 Ending balance 187 243 Total amounts due under the promissory note 346 449 Future claims: Estimated beginning balance 107 138 Less: Amounts billed to date (29 ) (38 ) Estimated future billings 78 100 Total amounts due to AXA under the settlement agreement £ 424 $ 549 The three months ended September 30, 2020 includes an after-tax expense of $18 million attributable to foreign currency remeasurement that is included in income (loss) from discontinued operations. The promissory note will accrue interest at a fixed rate of 5.25% due quarterly, with a potential for an interest rate decrease to 2.75% following certain prepayment trigger events. Income (loss) from discontinued operations for the three and nine months ended September 30, 2020 includes after-tax interest expense of $3 million attributable to the promissory note. To secure our obligation under the promissory note, we granted a 19.9% security interest in the outstanding common stock of GMHI and Genworth Mortgage Insurance Australia Limited to AXA. AXA does not have the right to sell or repledge the collateral and is not entitled to any voting rights. The collateral will be released back to us upon full repayment of the promissory note. Accordingly, the collateral arrangement has no impact on our unaudited condensed consolidated financial statements. In the event AXA recovers amounts from third parties related to the mis-selling losses, including from the distributor responsible for the sale of the policies, we have certain rights to share in those recoveries to recoup payments for the underlying mis-selling losses. As of September 30, 2020, we have not recorded any amounts associated with recoveries from third parties. The promissory note is also subject to certain mandatory prepayments upon the occurrence of: • the consummation of certain qualifying debt transactions in which total gross proceeds of at least $750 million are raised; • the consummation of certain qualifying equity issuances or dispositions with respect to GMHI, or any of our subsidiaries, in which total net cash proceeds of at least $475 million are raised; • certain dispositions of our U.S. mortgage insurance business; • the consummation of the China Oceanwide merger and the funding of the contemplated capital investment plan; • transactions involving a change of control of Genworth, other than the China Oceanwide transaction; and • receipt of dividends and sale proceeds from certain Genworth subsidiaries above certain threshold amounts. The promissory note also contains certain negative and affirmative covenants, restrictions imposed on the collateral, representations and warranties and customary events of default. In addition to the promissory note, we also have an unrelated liability that is owed to AXA associated with underwriting losses on a product sold by a distributor in our former lifestyle protection insurance business. The balance of the liability as of September 30, 2020 and December 31, 2019 is $16 million and $42 million, respectively, and is included as liabilities related to discontinued operations in our unaudited condensed consolidated balance sheets. During the third quarter of 2020, based on an updated estimate, we reduced the liability by $28 million which was recognized as an after-tax benefit to earnings of $23 million and is included in income (loss) from discontinued operations for the three months ended September 30, 2020. In January 2020, we made an interim payment to AXA for £100 million ($134 million), which was accrued as a contingent liability and reflected as liabilities related to discontinued operations as of December 31, 2019. This amount was included in income (loss) from discontinued operations for the year ended December 31, 2019. We have established our current best estimates for future claims that are still being processed under the settlement agreement, as well as for the unrelated liability related to underwriting losses and other expenses; however, there may be future adjustments to these estimates. If amounts are different from our estimates, it could result in an adjustment to our liabilities and an additional amount reflected in income (loss) from discontinued operations. |
Accounting Changes (Policies)
Accounting Changes (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure of Accounting Changes [Abstract] | |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted On January 1, 2020, we adopted new accounting guidance related to disclosure requirements for defined benefit plans as part of the Financial Accounting Standards Board’s (the “FASB”) disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for defined benefit pension and other postretirement benefit plans. We adopted this new accounting guidance using the retrospective method, which did not have a significant impact on our condensed consolidated financial statements and disclosures. On January 1, 2020, we adopted new accounting guidance related to fair value disclosure requirements as part of the FASB’s disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for fair value measurements. The guidance includes new disclosure requirements related to changes 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. We adopted this new accounting guidance using the prospective method for disclosures related to changes 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, the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty and the retrospective method for all other disclosures. This accounting guidance did not impact our condensed consolidated financial statements but impacted our fair value disclosures. In March 2020, the FASB issued new accounting guidance related to reference rate reform, which was effective for us on January 1, 2020. The guidance provides temporary guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform, which includes the transition away from the London Interbank Offered Rate (“LIBOR”). This new guidance provides optional practical expedients and exceptions for applying generally accepted accounting principles to investments, derivatives or other transactions affected by reference rate reform such as those that impact the assessment of derivative hedge effectiveness and contract modifications, to include continuing hedge accounting when certain critical terms of a hedging relationship change and modifying certain effectiveness assessments to exclude certain potential sources of ineffectiveness. In addition to the optional practical expedients, th e R. On January 1, 2020, we adopted new accounting guidance related to accounting for credit losses on financial instruments. The guidance requires entities to recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most financial instruments not measured at fair value, which primarily includes our commercial mortgage loans, bank loan investments and reinsurance recoverables. The new guidance also requires the recognition of an allowance for expected credit losses as a liability in our consolidated balance sheet for off-balance sheet credit exposures, including commitments to fund bank loan investments, private placement investments and commercial mortgage loans. The new guidance did not have a significant impact on other assets not measured at fair value. 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 did not elect. For our commercial mortgage loans, we determine the adequacy of the allowance for credit losses utilizing an analytical model that provides various loss scenarios based on historical experience adjusted for current events, trends, economic conditions and reasonable and supportable forecasts that result in a loss in the loan portfolio over the estimated life of the loans. We revert to historical credit loss experience for periods beyond forecasts that are reasonable and supportable. The allowance for credit losses is measured on a collective basis with consideration for debt service coverage ratio, debt-to-value, property-type and geographic location. Key inputs into the analytical model include exposure, weighted-average life, return, historical loss rates and forecast scenarios. Actual amounts realized over time could differ from the amounts estimated for the allowance for credit losses reported in the condensed consolidated financial statements. Commercial mortgage loans are written off against the allowance to the extent principal or interest is deemed uncollectible. Accrued interest related to commercial mortgage loans is included in accrued investment income in our condensed consolidated balance sheet and had a carrying value of $24 million as of September 30, 2020. We do not measure an allowance for credit losses related to accrued interest as uncollectible accrued interest related to our commercial mortgage loans are written off after 90 days and once collectability is determined to be uncertain and not probable. Amounts written off related to accrued interest are recorded as a credit loss expense included in net investment gains (losses). We adopted the guidance related to our investments carried at amortized cost using the modified retrospective method and recorded an allowance related to lifetime expected credit losses of $23 million, net of deferred taxes of $6 million, for commercial mortgage loans and bank loan investments, with an offset to cumulative effect of change in accounting within retained earnings. See note 4 for additional disclosures related to commercial mortgage loans. We adopted the guidance related to our off-balance sheet credit exposures using the modified retrospective method and recorded an allowance related to lifetime expected credit losses of $1 million, included in other liabilities in our condensed consolidated balance sheet, with an offset to cumulative effect of change in accounting within retained earnings. The allowance for credit losses for reinsurance recoverables is evaluated based on historical loss experience adjusted for current events and reasonable and supportable forecasts from both internal and external sources. The allowance is measured by reinsurer, taking into consideration the reinsured product type and collateral type, and is calculated based on an externally reported probability of default corresponding to the reinsurer’s credit rating and the expected duration of the reinsurer’s contractual obligation to reimburse us for ceded claims on the underlying policies. Our estimate of the allowance reflects consideration for collateral securing the reinsurance agreements and expected recoveries of amounts previously charged off and expected to be charged off. We also consider other credit risk factors, including, among other factors, the historical frequency and severity of the associated insurance claims, aging of recoverables and regulatory, legal and economic factors, to determine if an additional incremental allowance for credit losses is required. No reversion adjustments are necessary as the starting point for our allowance for credit losses reflects historical loss experience covering the expected duration of the reinsurer’s contractual obligation to reimburse us. If available facts and circumstances indicate the reinsurance recoverable does not reflect expectations consistent with the collective analysis, the reinsurance recoverable is assessed on a separate basis. Write-offs of reinsurance recoverables are deducted from the allowance in the period the reinsurance recoverable is determined to be uncollectible. We adopted the guidance related to our reinsurance recoverables using the modified retrospective method and recorded an allowance related to lifetime expected credit losses of $31 million, net of deferred taxes of $9 million, with an offset to cumulative effect of change in accounting within retained earnings. See note 8 for additional disclosures related to reinsurance recoverables. The new guidance retains most of the existing impairment guidance for available-for-sale fixed maturity securities but amends the presentation of credit losses to reflect an allowance for credit losses as opposed to a write-down of the amortized cost of the investment and permits the reversal of credit losses through net income (loss) when reassessing changes in credit losses each reporting period. Available-for-sale fixed maturity securities in an unrealized loss position are evaluated to determine whether the decline in fair value is related to credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency/agencies and adverse conditions specifically related to the security, among other factors. If a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Estimating the cash flows expected to be collected is a quantitative and qualitative process that incorporates information received from third-party sources along with internal assumptions and judgments. When developing the estimate of cash flows expected to be collected, we utilize an analytical model that provides for various loss scenarios and consider the industry sector, current levels of subordination, geographic location and other relevant characteristics of the security or underlying assets, as well as reasonable and supportable forecasts. Losses are written off against the allowance when deemed uncollectible or when we intend to sell or expect we will be required to sell a security prior to recovering our amortized cost. We exclude accrued interest related to available-for-sale fixed maturity securities from the estimate of allowance for credit losses. Accrued interest is included in accrued investment income in our condensed consolidated balance sheet and had a carrying value of $ million as of September 30, 2020. We do not measure an allowance for credit losses related to accrued interest as uncollectible accrued interest related to our available-for-sale fixed maturity securities are written off after 90 days and once is determined to be uncertain and not probable. Amounts written off related to accrued interest are recorded as a credit loss expense included in net investment gains (losses). We adopted the guidance related to our available-for-sale fixed maturity securities for which a previous other-than-temporary impairment was recognized prior to the date of adoption using the prospective method and the modified retrospective method for all other available-for-sale fixed maturity securities, which did not have any impact upon adoption. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued new accounting guidance related to simplifying the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance is currently effective for us on January 1, 2021 using the retrospective method or modified retrospective method for certain changes and prospective method for all other changes, with early adoption permitted. We do not expect a significant impact from this guidance on our condensed consolidated financial statements and disclosures. In August 2018, 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 at contract inception and all cash flow assumptions used to estimate the liability for future policy benefits (except the discount rate) will be reviewed at least annually in the same period each year or more frequently if actual experience indicates a change is required. Changes will be recorded in net income (loss) using a retrospective approach with a cumulative catch-up adjustment by recalculating the net premium ratio (which will be capped at 100%) using actual historical and updated future cash flow assumptions; • 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 rated bond rate for the same duration, and is required to be reviewed quarterly, with changes in the discount rate recorded in other comprehensive income (loss); • 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 related to instrument-specific credit risk recorded in other comprehensive income (loss) and remaining 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. We expect this guidance to be effective for us on January 1, 2023, subject to the FASB finalizing an additional one-year delay, using the modified retrospective method, with early adoption permitted, which we do not intend to elect. Given the nature and extent of the changes to our operations, this guidance is expected to have a significant impact on our condensed consolidated financial statements. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings (Loss) Per Share | Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated: Three months ended September 30, Nine months ended September 30, (Amounts in millions, except per share amounts) 2020 20 19 2020 2019 Weighted-average shares used in basic earnings per share calculations 505.6 503.5 505.1 502.7 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 5.9 7.7 6.1 6.8 Weighted-average shares used in diluted earnings per share calculations 511.5 511.2 511.2 509.5 Income from continuing operations: Income from continuing operations $ 435 $ 138 $ 465 $ 464 Less: net income from continuing operations attributable to noncontrolling interests 18 10 35 45 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 417 $ 128 $ 430 $ 419 Basic per share $ 0.83 $ 0.25 $ 0.85 $ 0.83 Diluted per share $ 0.82 $ 0.25 $ 0.84 $ 0.82 Income (loss) from discontinued operations: Income (loss) from discontinued operations, net of taxes $ 1 $ (80 ) $ (519 ) $ 42 Less: net income from discontinued operations attributable to noncontrolling interests — 30 — 101 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders $ 1 $ (110 ) $ (519 ) $ (59 ) Basic per share $ — $ (0.22 ) $ (1.03 ) $ (0.12 ) Diluted per share $ — $ (0.21 ) $ (1.02 ) $ (0.12 ) Net income (loss): Income from continuing operations $ 435 $ 138 $ 465 $ 464 Income (loss) from discontinued operations, net of taxes 1 (80 ) (519 ) 42 Net income (loss) 436 58 (54 ) 506 Less: net income attributable to noncontrolling interests 18 40 35 146 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 418 $ 18 $ (89 ) $ 360 Basic per share (1) $ 0.83 $ 0.04 $ (0.18 ) $ 0.72 Diluted per share (1) $ 0.82 $ 0.04 $ (0.17 ) $ 0.71 (1) May not total due to whole number calculation. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net Investment Income | Sources of net investment income were as follows for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Fixed maturity securities—taxable $ 632 $ 631 $ 1,855 $ 1,878 Fixed maturity securities—non-taxable 2 2 5 6 Equity securities 3 4 7 13 Commercial mortgage loans 82 87 251 254 Policy loans 51 47 149 138 Other invested assets 79 62 192 180 Cash, cash equivalents, restricted cash and short-term investments 2 8 17 30 Gross investment income before expenses and fees 851 841 2,476 2,499 Expenses and fees (24 ) (25 ) (70 ) (73 ) Net investment income $ 827 $ 816 $ 2,406 $ 2,426 |
Net Investment Gains (Losses) | (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Available-for-sale fixed maturity securities: Realized gains $ 332 $ 19 $ 465 $ 93 Realized losses (2 ) (3 ) (8 ) (30 ) Net realized gains (losses) on available-for-sale fixed maturity securities 330 16 457 63 Impairments: Total other-than-temporary impairments — — — — Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — — Net other-than-temporary impairments — — — — Net change in allowance for credit losses on available-for-sale fixed maturity securities 2 — (5 ) — Write-down of available-for-sale fixed maturity securities (1) (4 ) — (4 ) — Net realized gains (losses) on equity securities sold (3 ) 6 (3 ) 9 Net unrealized gains (losses) on equity securities still held 3 (4 ) (7 ) 13 Limited partnerships 31 6 28 10 Commercial mortgage loans (3 ) (1 ) (2 ) (1 ) Derivative instruments (2) 22 (29 ) (73 ) (71 ) Other (3 ) 4 (9 ) 4 Net investment gains (losses) $ 375 $ (2 ) $ 382 $ 27 (1) Represents write-down of securities we intend to sell or will be required to sell prior to recovery of the amortized cost basis. (2) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Allowance for credit losses related to fixed maturity securities | The following table represents the allowance for credit losses aggregated by security type for available-for-sale fixed maturity investments as of and for the periods indicated: Three months ended September 30, 2020 (Amounts in millions) Beginning Increase Increase Securities Decrease in Write-offs Recoveries Ending Fixed maturity securities: Non-U.S. corporate $ 4 $ — $ (2 ) $ — $ — $ — $ — $ 2 Commercial mortgage-backed 3 — — — — — — 3 Total available-for-sale fixed maturity securities $ 7 $ — $ (2 ) $ — $ — $ — $ — $ 5 Nine months ended September 30, 2020 (Amounts in millions) Beginning Increase Increase Securities Decrease Write-offs Recoveries Ending Fixed maturity securities: Non-U.S. corporate $ — $ 4 $ (2 ) $ — $ — $ — $ — $ 2 Commercial mortgage-backed — 3 — — — — — 3 Total available-for-sale fixed maturity securities $ — $ 7 $ (2 ) $ — $ — $ — $ — $ 5 |
Credit Losses Recognized in Net Income (Loss) | The following represents the activity for credit losses recognized in net income (loss) 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: (Amounts in millions) Three months Nine months Beginning balance $ 23 $ 24 Reductions: Securities sold, paid down or disposed — (1 ) Ending balance $ 23 $ 23 |
Unrealized Investment Gains and Losses | Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of the dates indicated: (Amounts in millions) September 30, December 31, Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses (1) $ 9,218 $ 6,676 Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses (1) (12 ) — Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (6,998 ) (4,789 ) Income taxes, net (473 ) (406 ) Net unrealized investment gains (losses) 1,735 1,481 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 24 25 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,711 $ 1,456 (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 investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the periods indicated: As of or for the three months ended September 30, (Amounts in millions) 2020 2019 Beginning balance $ 1,811 $ 1,305 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on fixed maturity securities 781 1,607 Adjustment to deferred acquisition costs (9 ) (8 ) Adjustment to present value of future profits 2 1 Adjustment to sales inducements (5 ) (4 ) Adjustment to benefit reserves (566 ) (1,108 ) Provision for income taxes (42 ) (104 ) Change in unrealized gains (losses) on investment securities 161 384 Reclassification adjustments to net investment (gains) losses, net of taxes of $70 and $4 (261 ) (13 ) Change in net unrealized investment gains (losses) (100 ) 371 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests — 1 Ending balance $ 1,711 $ 1,675 As of or for the nine months ended September 30, (Amounts in millions) 2020 2019 Beginning balance $ 1,456 $ 595 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on fixed maturity securities 2,980 5,563 Adjustment to deferred acquisition costs 48 (1,049 ) Adjustment to present value of future profits 6 (54 ) Adjustment to sales inducements (3 ) (35 ) Adjustment to benefit reserves (2,260 ) (2,908 ) Provision for income taxes (162 ) (331 ) Change in unrealized gains (losses) on investment securities 609 1,186 Reclassification adjustments to net investment (gains) losses, net of taxes of $95 and $16 (355 ) (59 ) Change in net unrealized investment gains (losses) 254 1,127 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) 47 Ending balance $ 1,711 $ 1,675 |
Fixed Maturity Securities | As of September 30, 2020, the amortized cost or cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale were as follows: (Amounts in millions) Amortized Gross Gross Allowance Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 3,318 $ 1,474 $ — $ — $ 4,792 State and political subdivisions 2,591 525 (1 ) — 3,115 Non-U.S. government 1,276 126 (7 ) — 1,395 U.S. corporate: Utilities 4,294 924 (1 ) — 5,217 Energy 2,581 238 (54 ) — 2,765 Finance and insurance 7,611 1,135 (11 ) — 8,735 Consumer—non-cyclical 5,160 1,210 (2 ) — 6,368 Technology and communications 2,993 537 (3 ) — 3,527 Industrial 1,363 189 (1 ) — 1,551 Capital goods 2,558 503 (4 ) — 3,057 Consumer—cyclical 1,794 252 (2 ) — 2,044 Transportation 1,325 271 (15 ) — 1,581 Other 346 43 — — 389 Total U.S. corporate 30,025 5,302 (93 ) — 35,234 Non-U.S. corporate: Utilities 860 75 — — 935 Energy 1,192 163 (7 ) — 1,348 Finance and insurance 2,319 312 (12 ) (1 ) 2,618 Consumer—non-cyclical 712 95 (1 ) — 806 Technology and communications 1,066 190 — — 1,256 Industrial 935 134 (1 ) — 1,068 Capital goods 571 61 (6 ) — 626 Consumer—cyclical 400 38 (2 ) — 436 Transportation 571 87 (9 ) (1 ) 648 Other 1,562 241 (1 ) — 1,802 Total non-U.S. corporate 10,188 1,396 (39 ) (2 ) 11,543 Residential mortgage-backed 1,825 250 — — 2,075 Commercial mortgage-backed 2,775 228 (24 ) (3 ) 2,976 Other asset-backed 3,254 48 (16 ) — 3,286 Total available-for-sale fixed maturity securities $ 55,252 $ 9,349 $ (180 ) $ (5 ) $ 64,416 As of December 31, 2019, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other- t Not other-than- Other- t Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,073 $ 952 $ — $ — $ — $ 5,025 State and political subdivisions 2,394 355 — (2 ) — 2,747 Non-U.S. government 1,235 117 — (2 ) — 1,350 U.S. corporate: Utilities 4,322 675 — — — 4,997 Energy 2,404 303 — (8 ) — 2,699 Finance and insurance 6,977 798 — (1 ) — 7,774 Consumer—non-cyclical 4,909 796 — (4 ) — 5,701 Technology and communications 2,883 363 — (1 ) — 3,245 Industrial 1,271 125 — — — 1,396 Capital goods 2,345 367 — (1 ) — 2,711 Consumer—cyclical 1,590 172 — (2 ) — 1,760 Transportation 1,320 187 — (1 ) — 1,506 Other 292 30 — — — 322 Total U.S. corporate 28,313 3,816 — (18 ) — 32,111 Non-U.S. corporate: Utilities 779 50 — — — 829 Energy 1,140 179 — — — 1,319 Finance and insurance 2,087 232 — — — 2,319 Consumer—non-cyclical 631 55 — (2 ) — 684 Technology and communications 1,010 128 — — — 1,138 Industrial 896 92 — — — 988 Capital goods 565 40 — — — 605 Consumer—cyclical 373 24 — — — 397 Transportation 557 73 — (1 ) — 629 Other 1,431 188 — (2 ) — 1,617 Total non-U.S. corporate 9,469 1,061 — (5 ) — 10,525 Residential mortgage-backed 2,057 199 15 (1 ) — 2,270 Commercial mortgage-backed 2,897 137 — (8 ) — 3,026 Other asset-backed 3,262 30 — (7 ) — 3,285 Total available-for-sale fixed maturity securities $ 53,700 $ 6,667 $ 15 $ (43 ) $ — $ 60,339 |
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 for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of September 30, 2020: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: State and political subdivisions $ 66 $ (1 ) 10 $ — $ — — $ 66 $ (1 ) 10 Non-U.S. government 103 (7 ) 16 — — — 103 (7 ) 16 U.S. corporate 1,475 (82 ) 228 95 (11 ) 10 1,570 (93 ) 238 Non-U.S. corporate 589 (27 ) 106 7 (1 ) 2 596 (28 ) 108 Commercial mortgage-backed 430 (22 ) 68 1 (1 ) 1 431 (23 ) 69 Other asset-backed 675 (10 ) 159 308 (6 ) 67 983 (16 ) 226 Total for fixed maturity securities in an unrealized loss position $ 3,338 $ (149 ) 587 $ 411 $ (19 ) 80 $ 3,749 $ (168 ) 667 % Below cost: <20% Below cost $ 3,264 $ (122 ) 569 $ 401 $ (16 ) 78 $ 3,665 $ (138 ) 647 20%-50% Below cost 74 (27 ) 18 10 (3 ) 2 84 (30 ) 20 Total for fixed maturity securities in an unrealized loss position $ 3,338 $ (149 ) 587 $ 411 $ (19 ) 80 $ 3,749 $ (168 ) 667 Investment grade $ 2,631 $ (85 ) 472 $ 338 $ (9 ) 70 $ 2,969 $ (94 ) 542 Below investment grade 707 (64 ) 115 73 (10 ) 10 780 (74 ) 125 Total for fixed maturity securities in an unrealized loss position $ 3,338 $ (149 ) 587 $ 411 $ (19 ) 80 $ 3,749 $ (168 ) 667 The following table presents the gross unrealized losses and fair values of our corporate securities for which an allowance for credit losses has not been recorded, 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 September 30, 2020: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities U.S. corporate: Utilities $ 24 $ (1 ) 6 $ — $ — — $ 24 $ (1 ) 6 Energy 557 (45 ) 84 52 (9 ) 6 609 (54 ) 90 Finance and insurance 373 (11 ) 42 — — — 373 (11 ) 42 Consumer—non-cyclical 93 (2 ) 12 — — — 93 (2 ) 12 Technology and communications 100 (3 ) 12 — — — 100 (3 ) 12 Industrial 72 (1 ) 6 — — — 72 (1 ) 6 Capital goods 33 (3 ) 7 14 (1 ) 1 47 (4 ) 8 Consumer—cyclical 86 (1 ) 21 29 (1 ) 3 115 (2 ) 24 Transportation 137 (15 ) 38 — — — 137 (15 ) 38 Subtotal, U.S. corporate securities 1,475 (82 ) 228 95 (11 ) 10 1,570 (93 ) 238 Non-U.S. corporate: Energy 179 (7 ) 18 — — — 179 (7 ) 18 Finance and insurance 196 (5 ) 34 — — — 196 (5 ) 34 Consumer—non-cyclical — — — 7 (1 ) 2 7 (1 ) 2 Industrial 29 (1 ) 4 — — — 29 (1 ) 4 Capital goods 59 (6 ) 11 — — — 59 (6 ) 11 Consumer—cyclical 22 (2 ) 11 — — — 22 (2 ) 11 Transportation 59 (5 ) 15 — — — 59 (5 ) 15 Other 45 (1 ) 13 — — — 45 (1 ) 13 Subtotal, non-U.S. corporate securities 589 (27 ) 106 7 (1 ) 2 596 (28 ) 108 Total for corporate securities in an unrealized loss position $ 2,064 $ (109 ) 334 $ 102 $ (12 ) 12 $ 2,166 $ (121 ) 346 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, 2019: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: State and political subdivisions $ 91 $ (2 ) 14 $ — $ — — $ 91 $ (2 ) 14 Non-U.S. government 224 (2 ) 20 — — — 224 (2 ) 20 U.S. corporate 123 (5 ) 27 302 (13 ) 33 425 (18 ) 60 Non-U.S. corporate 79 (1 ) 12 62 (4 ) 7 141 (5 ) 19 Residential mortgage-backed 22 (1 ) 10 — — — 22 (1 ) 10 Commercial mortgage-backed 381 (5 ) 51 14 (3 ) 3 395 (8 ) 54 Other asset-backed 532 (2 ) 97 439 (5 ) 115 971 (7 ) 212 Total for fixed maturity securities in an unrealized loss position $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 % Below cost: <20% Below cost $ 1,452 $ (18 ) 231 $ 807 $ (20 ) 155 $ 2,259 $ (38 ) 386 20%-50% Below cost — — — 10 (5 ) 3 10 (5 ) 3 Total for fixed maturity securities in an unrealized loss position $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 Investment grade $ 1,408 $ (14 ) 223 $ 702 $ (15 ) 145 $ 2,110 $ (29 ) 368 Below investment grade 44 (4 ) 8 115 (10 ) 13 159 (14 ) 21 Total for fixed maturity securities in an unrealized loss position $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 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, 2019: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities U.S. corporate: Energy $ 54 $ (3 ) 10 $ 80 $ (5 ) 10 $ 134 $ (8 ) 20 Finance and insurance — — — 34 (1 ) 4 34 (1 ) 4 Consumer—non-cyclical 34 (1 ) 9 93 (3 ) 9 127 (4 ) 18 Technology and communications — — — 18 (1 ) 2 18 (1 ) 2 Capital goods 35 (1 ) 8 — — — 35 (1 ) 8 Consumer—cyclical — — — 54 (2 ) 6 54 (2 ) 6 Transportation — — — 23 (1 ) 2 23 (1 ) 2 Subtotal, U.S. corporate securities 123 (5 ) 27 302 (13 ) 33 425 (18 ) 60 Non-U.S. corporate: Consumer—non-cyclical — — — 31 (2 ) 3 31 (2 ) 3 Transportation — — — 25 (1 ) 3 25 (1 ) 3 Other 79 (1 ) 12 6 (1 ) 1 85 (2 ) 13 Subtotal, non-U.S. corporate securities 79 (1 ) 12 62 (4 ) 7 141 (5 ) 19 Total for corporate securities in an unrealized loss position $ 202 $ (6 ) 39 $ 364 $ (17 ) 40 $ 566 $ (23 ) 79 |
Maturity Distribution of Fixed Maturity Securities | Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in millions) Amortized Fair Due one year or less $ 1,476 $ 1,499 Due after one year through five years 9,646 10,265 Due after five years through ten years 13,164 14,863 Due after ten years 23,112 29,452 Subtotal 47,398 56,079 Residential mortgage-backed 1,825 2,075 Commercial mortgage-backed 2,775 2,976 Other asset-backed 3,254 3,286 Total $ 55,252 $ 64,416 |
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: September 30, 2020 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than due Total Current Total Property type: Retail $ 4 $ — $ 10 $ 14 $ 2,467 $ 2,481 Industrial — — — — 1,685 1,685 Office — — — — 1,625 1,625 Apartments — — — — 566 566 Mixed use — — — — 292 292 Other — — — — 262 262 Total amortized cost $ 4 $ — $ 10 $ 14 $ 6,897 $ 6,911 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2019 (Amounts in millions) 31 - 60 days past due 61 - 90 days Greater than due Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,590 $ 2,590 Industrial — — — — 1,670 1,670 Office — — — — 1,632 1,632 Apartments — — — — 541 541 Mixed use — — — — 281 281 Other — — — — 266 266 Total recorded investment $ — $ — $ — $ — $ 6,980 $ 6,980 % of total commercial mortgage loans — % — % — % — % 100 % 100 % |
Allowance for credit losses related to commercial mortgage loans | The following table sets forth the allowance for credit losses related to commercial mortgage loans as of or for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Allowance for credit losses: Beginning balance $ 28 $ 11 $ 13 $ 9 Cumulative effect of change in accounting — — 16 — Provision 3 1 2 3 Write-offs — — — — Recoveries — — — — Ending balance $ 31 $ 12 $ 31 $ 12 |
Commercial Mortgage Loans By Credit Quality Indicator | The following tables set forth commercial mortgage loans by year of origination and credit quality indicator as of September 30, 2020: (Amounts in millions) 2020 2019 2018 2017 2016 2015 and Total Debt-to-value: 0% - 50% $ 9 $ 15 $ 38 $ 108 $ 131 $ 2,307 $ 2,608 51% - 60% 29 33 191 289 141 734 1,417 61% - 75% 373 746 758 330 223 448 2,878 76% - 100% — — 8 — — — 8 Greater than 100% — — — — — — — Total amortized cost $ 411 $ 794 $ 995 $ 727 $ 495 $ 3,489 $ 6,911 Debt service coverage ratio: Less than 1.00 $ — $ — $ 33 $ 3 $ — $ 123 $ 159 1.00 - 1.25 41 12 106 73 13 252 497 1.26 - 1.50 69 357 260 96 87 405 1,274 1.51 - 2.00 251 356 503 320 266 1,214 2,910 Greater than 2.00 50 69 93 235 129 1,495 2,071 Total amortized cost $ 411 $ 794 $ 995 $ 727 $ 495 $ 3,489 $ 6,911 Write-offs, gross $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — Write-offs, net $ — $ — $ — $ — $ — $ — $ — |
Debt Service Coverage Ratio | |
Commercial Mortgage Loans By Credit Quality Indicator | The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated: September 30, 2020 (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 $ 61 $ 134 $ 585 $ 1,100 $ 601 $ 2,481 Industrial 23 66 218 704 674 1,685 Office 28 111 238 770 478 1,625 Apartments 11 24 177 182 172 566 Mixed use 3 18 37 118 116 292 Other 33 144 19 36 30 262 Total amortized cost $ 159 $ 497 $ 1,274 $ 2,910 $ 2,071 $ 6,911 % of total 2 % 7 % 19 % 42 % 30 % 100 % Weighted-average debt-to-value 57 % 61 % 63 % 59 % 41 % 54 % December 31, 2019 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 68 $ 141 $ 596 $ 1,148 $ 637 $ 2,590 Industrial 24 51 221 658 716 1,670 Office 44 89 277 751 471 1,632 Apartments 16 32 129 175 189 541 Mixed use 4 16 37 107 117 281 Other 34 147 20 31 34 266 Total recorded investment $ 190 $ 476 $ 1,280 $ 2,870 $ 2,164 $ 6,980 % of total 3 % 7 % 18 % 41 % 31 % 100 % Weighted-average debt-to-value 59 % 61 % 63 % 58 % 41 % 54 % |
Loan To Value Ratio | |
Commercial Mortgage Loans By Credit Quality Indicator | The following tables set forth the debt-to-value of commercial mortgage loans by property type as of the dates indicated: September 30, 2020 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 940 $ 557 $ 984 $ — $ — $ 2,481 Industrial 775 310 600 — — 1,685 Office 513 337 767 8 — 1,625 Apartments 220 85 261 — — 566 Mixed use 106 63 123 — — 292 Other 54 65 143 — — 262 Total amortized cost $ 2,608 $ 1,417 $ 2,878 $ 8 $ — $ 6,911 % of total 38 % 20 % 42 % — % — % 100 % Weighted-average debt service coverage ratio 2.31 1.81 1.57 1.42 — 1.90 December 31, 2019 (Amounts in millions) 0% - 50% 51% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 986 $ 579 $ 1,025 $ — $ — $ 2,590 Industrial 808 337 525 — — 1,670 Office 529 380 723 — — 1,632 Apartments 211 110 220 — — 541 Mixed use 104 70 107 — — 281 Other 56 69 141 — — 266 Total recorded investment $ 2,694 $ 1,545 $ 2,741 $ — $ — $ 6,980 % of total 39 % 22 % 39 % — % — % 100 % Weighted-average debt service coverage ratio 2.32 1.81 1.55 — — 1.90 |
Other Geographic Area | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated: September 30, December 31, (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,481 36 % $ 2,590 37 % Industrial 1,685 24 1,670 24 Office 1,625 24 1,632 23 Apartments 566 8 541 8 Mixed use 292 4 281 4 Other 262 4 266 4 Subtotal 6,911 100 % 6,980 100 % Unamortized balance of loan origination fees — (4 ) Allowance for credit losses (31 ) (13 ) Total $ 6,880 $ 6,963 September 30, December 31, (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,761 25 % $ 1,715 25 % Pacific 1,571 23 1,673 24 Middle Atlantic 993 14 992 14 Mountain 776 11 753 11 West North Central 481 7 488 7 East North Central 451 7 455 6 West South Central 427 6 433 6 New England 262 4 257 4 East South Central 189 3 214 3 Subtotal 6,911 100 % 6,980 100 % Unamortized balance of loan origination fees — (4 ) Allowance for credit losses (31 ) (13 ) Total $ 6,880 $ 6,963 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, December 31, Balance sheet September 30, December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $ 708 $ 197 Other liabilities $ 4 $ 10 Foreign currency swaps Other invested assets 10 4 Other liabilities — — Total cash flow hedges 718 201 4 10 Total derivatives designated as hedges 718 201 4 10 Derivatives not designated as hedges Equity index options Other invested assets 67 81 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Other foreign currency contracts Other invested assets 19 8 Other liabilities 5 1 GMWB embedded derivatives Reinsurance recoverable (1) 35 20 Policyholder account balances (2) 508 323 Fixed index annuity embedded derivatives Other assets — — Policyholder (3) 432 452 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (4) 25 19 Total derivatives not designated as hedges 121 109 970 795 Total derivatives $ 839 $ 310 $ 974 $ 805 (1) Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities. (2) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (3) Represents the embedded derivatives associated with our fixed index annuity liabilities. (4) Represents the embedded derivatives associated with our indexed universal life liabilities. |
Schedule of Notional Amounts Outstanding on Derivative Instruments | The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ September 30, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 8,968 $ 1,844 $ (2,616 ) $ 8,196 Foreign currency swaps Notional 110 — — 110 Total cash flow hedges 9,078 1,844 (2,616 ) 8,306 Total derivatives designated as hedges 9,078 1,844 (2,616 ) 8,306 Derivatives not designated as hedges Interest rate swaps Notional 4,674 — — 4,674 Equity index options Notional 2,451 1,527 (1,849 ) 2,129 Financial futures Notional 1,182 4,362 (4,275 ) 1,269 Other foreign currency contracts Notional 628 5,689 (4,687 ) 1,630 Total derivatives not designated as hedges 8,935 11,578 (10,811 ) 9,702 Total derivatives $ 18,013 $ 13,422 $ (13,427 ) $ 18,008 (Number of policies) Measurement December 31, Additions Maturities/ September 30, Derivatives not designated as hedges GMWB embedded derivatives Policies 25,623 — (1,452 ) 24,171 Fixed index annuity embedded derivatives Policies 15,441 — (1,511 ) 13,930 Indexed universal life embedded derivatives Policies 884 — (37 ) 847 |
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges | The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2020: (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) Classification of Interest rate swaps hedging assets $ (246 ) $ 50 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging — 4 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities 10 — Interest expense — Net investment gains (losses) Foreign currency swaps (7 ) — Net investment income — Net investment gains (losses) Total $ (243 ) $ 54 $ — The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2019: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) Classification of gain Interest rate swaps hedging assets $ 406 $ 41 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging assets — 4 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (23 ) — Interest expense — Net investment gains (losses) Foreign currency 5 1 Net investment income — Net investment gains (losses) Total $ 388 $ 46 $ — The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2020: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) Classification of gain Interest rate swaps hedging assets $ 738 $ 139 Net investment $ — Net investment Interest rate swaps hedging assets — 8 Net investment — Net investment Interest rate swaps hedging liabilities (52 ) — Interest expense — Net investment Foreign currency 6 — Net investment — Net investment Total $ 692 $ 147 $ — The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2019: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) Classification of gain Interest rate swaps hedging assets $ 759 $ 121 Net investment $ — Net investment Interest rate swaps hedging assets — 6 Net investment — Net investment Interest rate swaps hedging liabilities (55 ) — Interest expense — Net investment Foreign currency 4 — Net investment — Net investment Foreign currency — — Net investment 2 Net investment Total $ 708 $ 127 $ 2 |
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 Three months ended (Amounts in millions) 2020 2019 Derivatives qualifying as effective accounting hedges as of July 1 $ 2,677 $ 1,983 Current period increases (decreases) in fair value, net of deferred taxes of $52 and $(82) (191 ) 306 Reclassification to net (income) loss, net of deferred taxes of $19 and $16 (35 ) (30 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,451 $ 2,259 Nine months ended (Amounts in millions) 2020 2019 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,002 $ 1,781 Current period increases (decreases) in fair value, net of deferred taxes of $(148) in both periods 544 560 Reclassification to net (income) loss, net of deferred taxes of $52 and $45 (95 ) (82 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,451 $ 2,259 |
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (loss) for Effects of Derivatives Not Designated as Hedges | The following table provides the pre-tax gain (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the periods indicated: Three months ended Classification of gain (loss) recognized in net income (loss) (Amounts in millions) 2020 2019 Interest rate swaps $ 1 $ (2 ) Net investment gains (losses) Equity index options 7 1 Net investment gains (losses) Financial futures (41 ) 35 Net investment gains (losses) Other foreign currency contracts 12 (10 ) Net investment gains (losses) GMWB embedded derivatives 54 (44 ) Net investment gains (losses) Fixed index annuity embedded derivatives (18 ) (14 ) Net investment gains (losses) Indexed universal life embedded derivatives 3 1 Net investment gains (losses) Total derivatives not designated as hedges $ 18 $ (33 ) (Amounts in millions) Nine months ended Classification of gain (loss) recognized in net income (loss) 2020 2019 Interest rate swaps $ (11 ) $ (6 ) Net investment gains (losses) Equity index options (2 ) 28 Net investment gains (losses) Financial futures 97 8 Net investment gains (losses) Other foreign currency contracts 9 (17 ) Net investment gains (losses) GMWB embedded derivatives (153 ) (21 ) Net investment gains (losses) Fixed index annuity embedded derivatives (31 ) (72 ) Net investment gains (losses) Indexed universal life embedded derivatives 10 1 Net investment gains (losses) Total derivatives not designated as hedges $ (81 ) $ (79 ) |
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: September 30, 2020 December 31, 2019 (Amounts in millions) Derivative (1) Derivative (2) Net Derivative (1) Derivative (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 804 $ 9 $ 795 $ 291 $ 11 $ 280 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 804 9 795 291 11 280 Gross amounts not offset in the balance sheet: Financial instruments (3) (5 ) (5 ) — (7 ) (7 ) — Collateral received (663 ) — (663 ) (179 ) — (179 ) Collateral pledged — (489 ) 489 — (405 ) 405 Over collateralization 13 485 (472 ) 18 401 (383 ) Net amount $ 149 $ — $ 149 $ 123 $ — $ 123 (1) Included $1 million of accruals on derivatives classified as other assets as of December 31, 2019 and does not include amounts related to embedded derivatives as of September 30, 2020 and December 31, 2019. (2) Does not include amounts related to embedded derivatives as of September 30, 2020 and December 31, 2019. (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) | 9 Months Ended |
Sep. 30, 2020 | |
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 pricing services for certain fair value measurements of fixed maturity securities that are classified as Level as of September : (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 4,792 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 $ 3,058 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 $ 1,395 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 $ 31,695 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 $ 9,220 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 $ 2,061 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 $ 2,956 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 $ 3,125 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: |
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: September 30, 2020 (Amounts in millions) Total Level Level 2 Level NAV (1) Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,792 $ — $ 4,792 $ — $ — State and political subdivisions 3,115 — 3,058 57 — Non-U.S. government 1,395 — 1,395 — — U.S. corporate: Utilities 5,217 — 4,376 841 — Energy 2,765 — 2,651 114 — Finance and insurance 8,735 — 8,204 531 — Consumer—non-cyclical 6,368 — 6,265 103 — Technology and communications 3,527 — 3,401 126 — Industrial 1,551 — 1,511 40 — Capital goods 3,057 — 2,960 97 — Consumer—cyclical 2,044 — 1,874 170 — Transportation 1,581 — 1,527 54 — Other 389 — 225 164 — Total U.S. corporate 35,234 — 32,994 2,240 — Non-U.S. corporate: Utilities 935 — 588 347 — Energy 1,348 — 1,111 237 — Finance and insurance 2,618 — 2,314 304 — Consumer—non-cyclical 806 — 752 54 — Technology and communications 1,256 — 1,228 28 — Industrial 1,068 — 975 93 — Capital goods 626 — 453 173 — Consumer—cyclical 436 — 269 167 — Transportation 648 — 537 111 — Other 1,802 — 1,666 136 — Total non-U.S. corporate 11,543 — 9,893 1,650 — Residential mortgage-backed 2,075 — 2,061 14 — Commercial mortgage-backed 2,976 — 2,956 20 — Other asset-backed 3,286 — 3,125 161 — Total fixed maturity securities 64,416 — 60,274 4,142 — Equity securities 629 465 112 52 — Other invested assets: Derivative assets: Interest rate swaps 708 — 708 — — Foreign currency swaps 10 — 10 — — Equity index options 67 — — 67 — Other foreign currency contracts 19 — 19 — — Total derivative assets 804 — 737 67 — Securities lending collateral 75 — 75 — — Short-term investments 251 — 251 — — Limited partnerships 674 — — — 674 Total other invested assets 1,804 — 1,063 67 674 Reinsurance recoverable (2) 35 — — 35 — Separate account assets 5,700 5,700 — — — Total assets $ 72,584 $ 6,165 $ 61,449 $ 4,296 $ 674 (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. December 31, 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 enterprises $ 5,025 $ — $ 5,025 $ — $ — State and political subdivisions 2,747 — 2,645 102 — Non-U.S. government 1,350 — 1,350 — — U.S. corporate: Utilities 4,997 — 4,132 865 — Energy 2,699 — 2,570 129 — Finance and insurance 7,774 — 7,202 572 — Consumer—non-cyclical 5,701 — 5,607 94 — Technology and communications 3,245 — 3,195 50 — Industrial 1,396 — 1,356 40 — Capital goods 2,711 — 2,609 102 — Consumer—cyclical 1,760 — 1,587 173 — Transportation 1,506 — 1,428 78 — Other 322 — 186 136 — Total U.S. corporate 32,111 — 29,872 2,239 — Non-U.S. corporate: Utilities 829 — 455 374 — Energy 1,319 — 1,072 247 — Finance and insurance 2,319 — 2,085 234 — Consumer—non-cyclical 684 — 625 59 — Technology and communications 1,138 — 1,110 28 — Industrial 988 — 884 104 — Capital goods 605 — 444 161 — Consumer—cyclical 397 — 250 147 — Transportation 629 — 438 191 — Other 1,617 — 1,477 140 — Total non-U.S. corporate 10,525 — 8,840 1,685 — Residential mortgage-backed 2,270 — 2,243 27 — Commercial mortgage-backed 3,026 — 3,020 6 — Other asset-backed 3,285 — 3,153 132 — Total fixed maturity securities 60,339 — 56,148 4,191 — Equity securities 239 62 126 51 — Other invested assets: Derivative assets: Interest rate swaps 197 — 197 — — Foreign currency swaps 4 — 4 — — Equity index options 81 — — 81 — Other foreign currency contracts 8 — 8 — — Total derivative assets 290 — 209 81 — Securities lending collateral 51 — 51 — — Short-term investments 211 — 211 — — Limited partnerships 503 — — — 503 Total other invested assets 1,055 — 471 81 503 Reinsurance recoverable (2) 20 — — 20 — Separate account assets 6,108 6,108 — — — Total assets $ 67,761 $ 6,170 $ 56,745 $ 4,343 $ 503 (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. |
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: Beginning as of Total realized and Ending as of Total gains (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Included Included Fixed maturity securities: State and political subdivisions $ 63 $ 1 $ (7 ) $ — $ — $ — $ — $ — $ — $ 57 $ 1 $ (6 ) U.S. corporate: Utilities 936 10 (4 ) 15 — — (52 ) — (64 ) 841 — 1 Energy 123 — — 7 — — (16 ) — — 114 — — Finance and insurance 551 — 2 71 — — (16 ) — (77 ) 531 — 2 Consumer—non-cyclical 103 — — — — — — — — 103 — 1 Technology and communications 66 — 3 57 — — — — — 126 — 3 Industrial 39 — 1 — — — — — — 40 — — Capital goods 97 — — — — — — — — 97 — — Consumer— cyclical 198 3 (1 ) — — — (30 ) — — 170 — 1 Transportation 54 — 1 — — — (1 ) — — 54 — 1 Other 165 — — — — — (1 ) — — 164 — — Total U.S. corporate 2,332 13 2 150 — — (116 ) — (141 ) 2,240 — 9 Non-U.S. corporate: Utilities 357 — 4 — — — — 6 (20 ) 347 — 3 Energy 237 — — — — — — — — 237 — 1 Finance and insurance 311 1 (2 ) — — — — 19 (25 ) 304 1 (2 ) Consumer—non-cyclical 54 — — — — — — — — 54 — — Technology and communications 28 — — — — — — — — 28 — — Industrial 92 — 1 — — — — — — 93 — 1 Capital goods 173 — — 10 — — (10 ) — — 173 — (1 ) Consumer—cyclical 156 — 4 17 — — — — (10 ) 167 — 4 Transportation 141 — (2 ) — — — — — (28 ) 111 — (3 ) Other 145 — 3 — — — (12 ) — — 136 — 3 Total non-U.S. corporate 1,694 1 8 27 — — (22 ) 25 (83 ) 1,650 1 6 Residential mortgage-backed 24 — (1 ) — — — — — (9 ) 14 — — Commercial mortgage-backed 21 — (1 ) — — — — — — 20 — — Other asset-backed 121 — 1 78 — — (10 ) — (29 ) 161 — 1 Total fixed maturity securities 4,255 15 2 255 — — (148 ) 25 (262 ) 4,142 2 10 Equity securities 53 — — — (1 ) — — — — 52 — — Other invested assets: Derivative assets: Equity index options 66 7 — 27 — — (33 ) — — 67 (1 ) — Total derivative assets 66 7 — 27 — — (33 ) — — 67 (1 ) — Total other invested assets 66 7 — 27 — — (33 ) — — 67 (1 ) — Reinsurance recoverable (2) 38 (3 ) — — — — — — — 35 (3 ) — Total Level 3 assets $ 4,412 $ 19 $ 2 $ 282 $ (1 ) $ — $ (181 ) $ 25 $ (262 ) $ 4,296 $ (2 ) $ 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. Beginning as of Total realized and Ending as of Total gains attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Fixed maturity securities: State and political subdivisions $ 61 $ — $ 11 $ — $ — $ — $ — $ — $ — $ 72 $ 1 U.S. corporate: Utilities 789 1 28 13 — — (7 ) — — 824 — Energy 122 — 2 12 — — (1 ) — — 135 — Finance and insurance 607 — 11 — — — (26 ) 20 — 612 — Consumer—non-cyclical 89 — 1 9 — — (1 ) — — 98 — Technology and communications 44 — 1 — — — — 5 — 50 — Industrial 40 — — — — — — — — 40 — Capital goods 98 — 2 — — — — — — 100 — Consumer—cyclical 185 — 2 — — — (2 ) — (9 ) 176 — Transportation 54 — 1 3 — — (1 ) — — 57 — Other 199 — — — — — — — (31 ) 168 — Total U.S. corporate 2,227 1 48 37 — — (38 ) 25 (40 ) 2,260 — Non-U.S. corporate: Utilities 417 — 5 — — — (25 ) — — 397 — Energy 241 — 5 31 — — (12 ) — — 265 — Finance and insurance 179 1 4 — — — (3 ) 16 — 197 1 Consumer—non-cyclical 68 — 1 — — — (5 ) — — 64 — Technology and communications 27 — 1 — — — — — — 28 — Industrial 64 — — 13 — — — — — 77 — Capital goods 181 — 2 — — — (4 ) — — 179 — Consumer—cyclical 126 — 2 9 — — — — — 137 — Transportation 199 — 1 — — — — — — 200 — Other 129 — 3 — — — (1 ) — — 131 — Total non-U.S. corporate 1,631 1 24 53 — — (50 ) 16 — 1,675 1 Residential mortgage-backed 36 — 1 — — — (1 ) — (4 ) 32 — Commercial mortgage-backed 92 — 14 — — — — — — 106 — Other asset-backed 234 — — 13 — — (11 ) — (106 ) 130 — Total fixed maturity securities 4,281 2 98 103 — — (100 ) 41 (150 ) 4,275 2 Equity securities 56 — — — (2 ) — — — — 54 — Other invested assets: Derivative assets: Equity index options 65 1 — 13 — — (17 ) — — 62 — Total derivative assets 65 1 — 13 — — (17 ) — — 62 — Total other invested assets 65 1 — 13 — — (17 ) — — 62 — Reinsurance recoverable (2) 20 5 — — — — — — — 25 5 Total Level 3 assets $ 4,422 $ 8 $ 98 $ 116 $ (2 ) $ — $ (117 ) $ 41 $ (150 ) $ 4,416 $ 7 (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: Beginning as of Total realized and Ending as of Total gains (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Included Included Fixed maturity securities: State and political subdivisions $ 102 $ 2 $ (19 ) $ — $ — $ — $ (1 ) $ — $ (27 ) $ 57 $ 2 $ (19 ) Non-U.S. government — — — — — — (1 ) 1 — — — — U.S. corporate: Utilities 865 10 8 47 — — (54 ) 42 (77 ) 841 — 14 Energy 129 1 (2 ) 17 (21 ) — (19 ) 22 (13 ) 114 — (4 ) Finance and insurance 572 2 4 92 — — (40 ) — (99 ) 531 — 7 Consumer—non-cyclical 94 — 2 8 — — (1 ) — — 103 — 3 Technology and communications 50 — 4 77 — — — — (5 ) 126 — 4 Industrial 40 — — — — — — — — 40 — — Capital goods 102 — (1 ) — — — (4 ) — — 97 — (1 ) Consumer—cyclical 173 3 3 — — — (33 ) 24 — 170 — 5 Transportation 78 — (1 ) — — — (3 ) 10 (30 ) 54 — 1 Other 136 — 1 5 — — (5 ) 27 — 164 — 1 Total U.S. corporate 2,239 16 18 246 (21 ) — (159 ) 125 (224 ) 2,240 — 30 Non-U.S. corporate: Utilities 374 — 7 12 — — — 27 (73 ) 347 — 5 Energy 247 — (8 ) — — — (26 ) 24 — 237 — (7 ) Finance and insurance 234 3 7 15 — — — 77 (32 ) 304 3 8 Consumer—non-cyclical 59 — 2 8 — — — 1 (16 ) 54 — 1 Technology and communications 28 — — — — — — — — 28 — — Industrial 104 — 2 — — — (5 ) — (8 ) 93 — 2 Capital goods 161 1 (2 ) 10 — — (26 ) 29 — 173 — (2 ) Consumer—cyclical 147 — 1 21 — — (7 ) 32 (27 ) 167 — (1 ) Transportation 191 — — — — — — 22 (102 ) 111 — 3 Other 140 — 3 5 — — (13 ) 1 — 136 — 3 Total non-U.S. corporate 1,685 4 12 71 — — (77 ) 213 (258 ) 1,650 3 12 Residential mortgage-backed 27 — (1 ) — — — (1 ) 4 (15 ) 14 — — Commercial mortgage-backed 6 — 1 — — — — 20 (7 ) 20 — 1 Other asset-backed 132 — (1 ) 93 — — (32 ) — (31 ) 161 — (1 ) Total fixed maturity securities 4,191 22 10 410 (21 ) — (271 ) 363 (562 ) 4,142 5 23 Equity securities 51 — — 6 (5 ) — — — — 52 — — Other invested assets: Derivative assets: Equity index options 81 (2 ) — 45 — — (57 ) — — 67 4 — Total derivative assets 81 (2 ) — 45 — — (57 ) — — 67 4 — Total other invested assets 81 (2 ) — 45 — — (57 ) — — 67 4 — Reinsurance recoverable (2) 20 14 — — — 1 — — — 35 14 — Total Level 3 assets $ 4,343 $ 34 $ 10 $ 461 $ (26 ) $ 1 $ (328 ) $ 363 $ (562 ) $ 4,296 $ 23 $ 23 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning as of Total realized and Ending as of Total gains attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Fixed maturity securities: State and political subdivisions $ 51 $ 2 $ 19 $ — $ — $ — $ — $ — $ — $ 72 $ 2 U.S. corporate: Utilities 643 1 70 109 (14 ) — (47 ) 72 (10 ) 824 — Energy 121 — 9 17 — — (12 ) — — 135 — Finance and insurance 534 — 49 40 — — (38 ) 27 — 612 — Consumer—non-cyclical 73 — 4 23 — — (11 ) 9 — 98 — Technology and communications 50 — 6 — — — — 5 (11 ) 50 — Industrial 39 — 1 — — — — — — 40 — Capital goods 92 — 8 — — — — — — 100 — Consumer—cyclical 211 — 12 — (13 ) — (16 ) — (18 ) 176 — Transportation 57 — 2 7 — — (9 ) — — 57 — Other 178 — 6 22 — — (15 ) 8 (31 ) 168 — Total U.S. corporate 1,998 1 167 218 (27 ) — (148 ) 121 (70 ) 2,260 — Non-U.S. corporate: Utilities 404 — 28 30 (7 ) — (42 ) — (16 ) 397 — Energy 217 — 17 47 — — (16 ) — — 265 — Finance and insurance 171 3 22 7 — — (16 ) 16 (6 ) 197 3 Consumer—non-cyclical 106 2 5 — — — (49 ) — — 64 — Technology and communications 26 — 2 — — — — — — 28 — Industrial 61 — 3 13 — — — — — 77 — Capital goods 173 — 11 10 — — (15 ) — — 179 — Consumer—cyclical 122 — 10 9 — — (4 ) — — 137 — Transportation 171 — 10 19 — — — — — 200 — Other 81 — 11 35 — — (2 ) 6 — 131 — Total non-U.S. corporate 1,532 5 119 170 (7 ) — (144 ) 22 (22 ) 1,675 3 Residential mortgage-backed 35 — 2 — — — (1 ) — (4 ) 32 — Commercial mortgage-backed 95 — 23 2 — — — — (14 ) 106 — Other asset-backed 154 — 2 109 — — (53 ) 28 (110 ) 130 — Total fixed maturity securities 3,865 8 332 499 (34 ) — (346 ) 171 (220 ) 4,275 5 Equity securities 58 — — 2 (6 ) — — — — 54 — Other invested assets: Derivative assets: Equity index options 39 28 — 34 — — (39 ) — — 62 (2 ) Total derivative assets 39 28 — 34 — — (39 ) — — 62 (2 ) Total other invested assets 39 28 — 34 — — (39 ) — — 62 (2 ) Reinsurance recoverable (2) 20 4 — — — 1 — — — 25 4 Total Level 3 assets $ 3,982 $ 40 $ 332 $ 535 $ (40 ) $ 1 $ (385 ) $ 171 $ (220 ) $ 4,416 $ 7 (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 (loss) 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 Nine months (Amounts in millions) 2020 2019 2020 2019 Total realized and unrealized gains (losses) included in net income (loss): Net investment income $ 15 $ 2 $ 21 $ 8 Net investment gains (losses) 4 6 13 32 Total $ 19 $ 8 $ 34 $ 40 Total gains (losses) included in net income (loss) attributable to assets still held: Net investment income $ 2 $ 2 $ 5 $ 5 Net investment gains (losses) (4 ) 5 18 2 Total $ (2 ) $ 7 $ 23 $ 7 |
Summary of Significant Unobservable Inputs Used for Certain Asset Fair Value Measurements | The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of September 30, 2020: (Amounts in millions) Valuation Fair value Unobservable Range Weighted-average (1) Fixed maturity securities: U.S. corporate: Utilities Internal models $ 774 Credit spreads 71bps – 368bps 183bps Energy Internal models 7 Credit spreads 91bps Not applicable Finance and insurance Internal models 493 Credit spreads 66bps – 321bps 178bps Consumer—non-cyclical Internal models 103 Credit spreads 78bps – 358bps 174bps Technology and communications Internal models 126 Credit spreads 133bps – 358bps 224bps Industrial Internal models 40 Credit spreads 156bps – 373bps 230bps Capital goods Internal models 97 Credit spreads 102bps – 273bps 190bps Consumer—cyclical Internal models 133 Credit spreads 139bps – 276bps 201bps Transportation Internal models 43 Credit spreads 67bps – 156bps 118bps Other Internal models 164 Credit spreads 93bps – 206bps 114bps Total U.S. corporate Internal models $ 1,980 Credit spreads 66bps – 373bps 179bps Non-U.S. corporate: Utilities Internal models $ 347 Credit spreads 89bps – 292bps 164bps Energy Internal models 82 Credit spreads 102bps – 241bps 156bps Finance and insurance Internal models 199 Credit spreads 86bps – 174bps 134bps Consumer—non-cyclical Internal models 53 Credit spreads 97bps – 162bps 142bps Technology and communications Internal models 28 Credit spreads 102bps – 238bps 184bps Industrial Internal models 93 Credit spreads 91bps – 241bps 165bps Capital goods Internal models 146 Credit spreads 97bps – 254bps 177bps Consumer—cyclical Internal models 54 Credit spreads 102bps – 241bps 197bps Transportation Internal models 95 Credit spreads 78bps – 241bps 129bps Other Internal models 135 Credit spreads 110bps – 490bps 209bps Total non-U.S. corporate Internal models $ 1,232 Credit spreads 78bps – 490bps 163bps Derivative assets: Equity index options Discounted cash $ 67 Equity index 6% – 41% 28% (1) Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets. |
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: September 30, 2020 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 508 $ — $ — $ 508 Fixed index annuity embedded derivatives 432 — — 432 Indexed universal life embedded derivatives 25 — — 25 Total policyholder account balances 965 — — 965 Derivative liabilities: Interest rate swaps 4 — 4 — Other foreign currency contracts 5 — 5 — Total derivative liabilities 9 — 9 — Total liabilities $ 974 $ — $ 9 $ 965 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. December 31, 2019 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 323 $ — $ — $ 323 Fixed index annuity embedded derivatives 452 — — 452 Indexed universal life embedded derivatives 19 — — 19 Total policyholder account balances 794 — — 794 Derivative liabilities: Interest rate swaps 10 — 10 — Other foreign currency contracts 1 — 1 — Total derivative liabilities 11 — 11 — Total liabilities $ 805 $ — $ 11 $ 794 (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: Beginning as of Total realized and Ending as of Total (gains) losses attributable to still held (Amounts in millions) Included in net (income) Included Purchases Sales Issuances Settlements Transfer Transfer Included Included Policyholder account balances: GMWB embedded derivatives (1) $ 559 $ (57 ) $ — $ — $ — $ 6 $ — $ — $ — $ 508 $ (57 ) $ — Fixed index annuity embedded derivatives 447 18 — — — — (33 ) — — 432 18 — Indexed universal life embedded derivatives 23 (3 ) — — — 5 — — — 25 (3 ) — Total policyholder account balances 1,029 (42 ) — — — 11 (33 ) — — 965 (42 ) — Total Level 3 liabilities $ 1,029 $ (42 ) $ — $ — $ — $ 11 $ (33 ) $ — $ — $ 965 $ (42 ) $ — (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of Total realized and Ending as of Total (gains) in net attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: GMWB embedded derivatives (1) $ 325 $ 49 $ — $ — $ — $ 7 $ — $ — $ — $ 381 $ 50 Fixed index annuity embedded derivatives 438 14 — — — — (8 ) — — 444 14 Indexed universal life embedded derivatives 15 (1 ) — — — 4 — — — 18 (1 ) Total policyholder account balances 778 62 — — — 11 (8 ) — — 843 63 Total Level 3 liabilities $ 778 $ 62 $ — $ — $ — $ 11 $ (8 ) $ — $ — $ 843 $ 63 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of Total realized and Ending as of Total (gains) attributable to still held (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Included Included Policyholder account balances: GMWB embedded derivatives (1) $ 323 $ 167 $ — $ — $ — $ 18 $ — $ — $ — $ 508 $ 174 $ — Fixed index annuity embedded derivatives 452 31 — — — — (51 ) — — 432 31 — Indexed universal life embedded derivatives 19 (10 ) — — — 16 — — — 25 (10 ) — Total policyholder account balances 794 188 — — — 34 (51 ) — — 965 195 — Total Level 3 liabilities $ 794 $ 188 $ — $ — $ — $ 34 $ (51 ) $ — $ — $ 965 $ 195 $ — (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of Total realized and Ending as of Total (gains) in net attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: GMWB embedded derivatives (1) $ 337 $ 25 $ — $ — $ — $ 19 $ — $ — $ — $ 381 $ 29 Fixed index annuity embedded derivatives 389 72 — — — — (17 ) — — 444 72 Indexed universal life embedded derivatives 12 (1 ) — — — 7 — — — 18 (1 ) Total policyholder account balances 738 96 — — — 26 (17 ) — — 843 100 Total Level 3 liabilities $ 738 $ 96 $ — $ — $ — $ 26 $ (17 ) $ — $ — $ 843 $ 100 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value | The following table presents the gains and losses included in net (income) loss from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Total realized and unrealized (gains) losses included in net (income) loss: Net investment income $ — $ — $ — $ — Net investment (gains) losses (42 ) 62 188 96 Total $ (42 ) $ 62 $ 188 $ 96 Total (gains) losses included in net (income) loss attributable to liabilities still held: Net investment income $ — $ — $ — $ — Net investment (gains) losses (42 ) 63 195 100 Total $ (42 ) $ 63 $ 195 $ 100 |
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 September 30, 2020: (Amounts in millions) Valuation technique Fair value Unobservable input Range Weighted- (1) Policyholder account balances: Withdrawal 56% – 88% 73% Lapse rate 2% – 9% 4% Non-performance risk 12bps –83bps 67bps GMWB embedded derivatives (2) Stochastic cash flow $ 508 Equity index 21% – 27% 23% Fixed index annuity embedded derivatives Option budget $ 432 Expected future — % – 3% 1% Indexed universal life embedded derivatives Option budget $ 25 Expected future 3% – 10% 5% (1) Unobservable inputs weighted by the policyholder account balances associated with the instrument. (2) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs. |
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: September 30, 2020 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans (1) $ 6,880 $ 7,169 $ — $ — $ 7,169 Other invested assets (1) 410 411 — 23 388 Liabilities: Long-term borrowings (1) 3,570 3,148 — 2,979 169 Investment contracts (1) 10,872 12,016 — — 12,016 Other firm commitments: Commitments to fund limited partnerships 1,112 — — — — — Commitments to fund bank loan investments 35 — — — — — Ordinary course of business lending commitments 126 — — — — — (1) These financial instruments do not have notional amounts. December 31, 2019 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans (1) $ 6,963 $ 7,239 $ — $ — $ 7,239 Other invested assets (1) 432 432 — 49 383 Liabilities: Long-term borrowings (1) 3,277 3,093 — 2,951 142 Non-recourse funding obligations (1) 311 207 — — 207 Investment contracts (1) 11,466 12,086 — — 12,086 Other firm commitments: Commitments to fund limited partnerships 976 — — — — — Commitments to fund bank loan investments 52 — — — — — Ordinary course of business lending commitments 69 — — — — — (1) These financial instruments do not have notional amounts. |
Liability for Policy and Cont_2
Liability for Policy and Contract Claims (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 nine (Amounts in millions) 2020 2019 Beginning balance $ 10,958 $ 10,295 Less reinsurance recoverables (2,406 ) (2,379 ) Net beginning balance 8,552 7,916 Incurred related to insured events of: Current year 3,179 2,865 Prior years (389 ) (237 ) Total incurred 2,790 2,628 Paid related to insured events of: Current year (708 ) (659 ) Prior years (1,867 ) (1,794 ) Total paid (2,575 ) (2,453 ) Interest on liability for policy and contract claims 308 285 Foreign currency translation 5 (9 ) Net ending balance 9,080 8,367 Add reinsurance recoverables 2,293 2,413 Ending balance $ 11,373 $ 10,780 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of Reinsurance Recoverable in Allowance for Credit Losses | The following table sets forth the changes in the allowance for credit losses related to reinsurance recoverables as of or for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2020 2020 Allowance for credit losses: Beginning balance $ 44 $ — Cumulative effect of change in accounting — 40 Provision — 4 Write-offs — — Recoveries — — Ending balance $ 44 $ 44 |
Schedule Of Credit Ratings on Reinsurance Recoverable | As discussed in note 2, our policy for evaluating and measuring the allowance for credit losses related to reinsurance recoverables utilizes the reinsurer’s credit rating, updated quarterly, to assess the credit quality of reinsurance recoverables. The following table sets forth A.M. Best Company, Inc.’s (“A.M. Best”) credit ratings related to our reinsurance recoverables, gross of the allowance for credit losses, as of September 30, 2020: (Amounts in millions) Collateralized Non-collateralized Total Credit rating: A++ $ — $ 514 $ 514 A+ 1,380 1,366 2,746 A 20 46 66 B+ — 2 2 Not rated 13,422 82 13,504 Total reinsurance recoverable $ 14,822 $ 2,010 $ 16,832 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of Long Term Borrowings | The following table sets forth total long-term borrowings as of the dates indicated: (Amounts in millions) September 30, December 31, Genworth Holdings (1) 7.70% Senior Notes, due 2020 $ — $ 397 7.20% Senior Notes, due 2021 338 382 7.625% Senior Notes, due 2021 661 701 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 2,693 3,174 Bond consent fees (20 ) (25 ) Deferred borrowing charges (10 ) (12 ) Total Genworth Holdings 2,663 3,137 Genworth Mortgage Holdings, Inc. 6.50% Senior Notes, due 2025 750 — Deferred borrowing charges (12 ) — Total Genworth Mortgage Holdings, Inc. 738 — Australia (2) Floating Rate Junior Subordinated Notes, due 2025 35 140 Floating Rate Junior Subordinated Notes, due 2030 136 — Subtotal 171 140 Deferred borrowing charges (2 ) — Total Australia 169 140 Total $ 3,570 $ 3,277 (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) Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited (“GFMIPL”), our indirect majority-owned subsidiary, who currently has the option to redeem the notes due in 2025 at face value at any time, subject to the Australian Prudential Regulation Authority’s (“APRA”) prior written approval. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine months ended 2020 2019 2020 2019 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Increase (reduction) in rate resulting from: Swaps terminated prior to the TCJA 2.6 1.2 4.3 3.2 Provision to return adjustments 0.8 (1.6 ) 0.7 (0.4 ) Effect of foreign operations 1.1 (0.8 ) 1.8 2.5 Other, net 0.1 0.1 0.8 0.3 Effective rate 25.6 % 19.9 % 28.6 % 26.6 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine months ended (Amounts in millions) 2020 2019 2020 2019 Revenues: U.S. Mortgage Insurance segment $ 284 $ 251 $ 819 $ 709 Australia Mortgage Insurance segment 102 82 265 288 U.S. Life Insurance segment: Long-term care insurance 1,466 1,110 3,672 3,279 Life insurance 333 347 1,016 1,101 Fixed annuities 138 145 400 455 U.S. Life Insurance segment 1,937 1,602 5,088 4,835 Runoff segment 103 74 200 234 Corporate and Other activities (6 ) 11 23 (8 ) Total revenues $ 2,420 $ 2,020 $ 6,395 $ 6,058 |
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities | The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) 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 Nine months ended (Amounts in millions) 2020 2019 2020 2019 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 418 $ 18 $ (89 ) $ 360 Add: net income from continuing operations attributable to noncontrolling interests 18 10 35 45 Add: net income from discontinued operations attributable to noncontrolling interests — 30 — 101 Net income (loss) 436 58 (54 ) 506 Less: income (loss) from discontinued operations, net of taxes 1 (80 ) (519 ) 42 Income from continuing operations 435 138 465 464 Less: net income from continuing operations attributable to noncontrolling interests 18 10 35 45 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders 417 128 430 419 Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (362 ) (5 ) (378 ) (33 ) Goodwill impairment, net (2) — — 3 — (Gains) losses on early extinguishment of debt — — 9 — Expenses related to restructuring — — 2 4 Taxes on adjustments 77 — 78 6 Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 132 $ 123 $ 144 $ 396 (1) For the three months ended September 30, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $1 and $(3) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $12 million and $(4) million, respectively. For the nine months ended September 30, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(14) million and $(8) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $18 million and $2 million, respectively. (2) For the nine months ended September 30, 2020, goodwill impairment was adjusted for the portion attributable to noncontrolling interests of $2 million. Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 141 $ 137 $ 286 $ 408 Australia Mortgage Insurance segment 7 12 17 39 U.S. Life Insurance segment: Long-term care insurance 59 21 108 38 Life insurance (69 ) (25 ) (227 ) (17 ) Fixed annuities 24 3 58 39 U.S. Life Insurance segment 14 (1 ) (61 ) 60 Runoff segment 19 10 30 39 Corporate and Other activities (49 ) (35 ) (128 ) (150 ) Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 132 $ 123 $ 144 $ 396 |
Summary of Segments and Corporate and Other Activities | The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) September 30, December 31, Assets: U.S. Mortgage Insurance segment $ 5,494 $ 4,504 Australia Mortgage Insurance segment 2,601 2,406 U.S. Life Insurance segment 84,208 81,640 Runoff segment 9,901 9,953 Corporate and Other activities 2,721 2,839 Total assets $ 104,925 $ 101,342 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Component of Changes in Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2020 $ 1,811 $ 2,677 $ (41 ) $ 4,447 OCI before reclassifications 161 (191 ) 33 3 Amounts reclassified from (to) OCI (261 ) (35 ) — (296 ) Current period OCI (100 ) (226 ) 33 (293 ) Balances as of September 30, 2020 before noncontrolling interests 1,711 2,451 (8 ) 4,154 Less: change in OCI attributable to noncontrolling interests — — 13 13 Balances as of September 30, 2020 $ 1,711 $ 2,451 $ (21 ) $ 4,141 (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 July 1, 2019 $ 1,305 $ 1,983 $ (275 ) $ 3,013 OCI before reclassifications 384 306 (64 ) 626 Amounts reclassified from (to) OCI (13 ) (30 ) — (43 ) Current period OCI 371 276 (64 ) 583 Balances as of September 30, 2019 before noncontrolling interests 1,676 2,259 (339 ) 3,596 Less: change in OCI attributable to noncontrolling interests 1 — (27 ) (26 ) Balances as of September 30, 2019 $ 1,675 $ 2,259 $ (312 ) $ 3,622 (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, 2020 $ 1,456 $ 2,002 $ (25 ) $ 3,433 OCI before reclassifications 609 544 8 1,161 Amounts reclassified from (to) OCI (355 ) (95 ) — (450 ) Current period OCI 254 449 8 711 Balances as of September 30, 2020 before noncontrolling interests 1,710 2,451 (17 ) 4,144 Less: change in OCI attributable to noncontrolling interests (1 ) — 4 3 Balances as of September 30, 2020 $ 1,711 $ 2,451 $ (21 ) $ 4,141 (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, 2019 $ 595 $ 1,781 $ (332 ) $ 2,044 OCI before reclassifications 1,186 560 33 1,779 Amounts reclassified from (to) OCI (59 ) (82 ) — (141 ) Current period OCI 1,127 478 33 1,638 Balances as of September 30, 2019 before noncontrolling interests 1,722 2,259 (299 ) 3,682 Less: change in OCI attributable to noncontrolling interests 47 — 13 60 Balances as of September 30, 2019 $ 1,675 $ 2,259 $ (312 ) $ 3,622 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. |
Reclassifications in (out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from accumulated other comprehensive Affected line item in the consolidated statements of income Three months ended Nine months ended (Amounts in millions) 2020 2019 2020 2019 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (331 ) $ (17 ) $ (450 ) $ (75 ) Net investment (gains) losses Income taxes 70 4 95 16 Provision for income taxes Total $ (261 ) $ (13 ) $ (355 ) $ (59 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (50 ) $ (41 ) $ (139 ) $ (121 ) Net investment income Interest rate swaps hedging assets (4 ) (4 ) (8 ) (6 ) Net investment (gains) losses Foreign currency swaps — (1 ) — — Net investment income Income taxes 19 16 52 45 Provision for income taxes Total $ (35 ) $ (30 ) $ (95 ) $ (82 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Liabilities related to Discontinued Operations | The following table presents the amounts owed to AXA under the settlement agreement, which are reflected as liabilities related to discontinued operations in our unaudited condensed consolidated balance sheet for the period presented: (Amounts in millions) September 30, 2020 British Pounds U.S. Dollar Installment payments due to AXA: June 2022 £ 159 $ 206 September 2022: Beginning balance 158 205 Amounts billed as future losses 29 38 Ending balance 187 243 Total amounts due under the promissory note 346 449 Future claims: Estimated beginning balance 107 138 Less: Amounts billed to date (29 ) (38 ) Estimated future billings 78 100 Total amounts due to AXA under the settlement agreement £ 424 $ 549 |
Formation of Genworth and Bas_2
Formation of Genworth and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions | Oct. 22, 2020USD ($) | Oct. 21, 2016USD ($)$ / shares | Jan. 31, 2020 | Sep. 30, 2020USD ($)Segment | Apr. 01, 2013 |
Number of operating segments | Segment | 4 | ||||
Unrestricted cash and cash equivalents | $ 740 | ||||
Debt instrument interest payment on outstanding debt | 144 | ||||
Forecasted cash deficit | 215 | ||||
Domestic Insurance Subsidiaries | Minimum | |||||
Dividends receivable | 50 | ||||
Subsequent Event | AXA Settlement Agreement | |||||
Litigation Settlement, Expense | $ 45 | ||||
Genworth Holdings | |||||
Percentage of subsidiary equity ownership | 100.00% | ||||
Debt instrument, maturity month and year | 2020-06 | ||||
Genworth Holdings | 7.20% Senior Notes, Due 2021 | |||||
Debt instrument face amount | $ 338 | ||||
Debt instrument interest rate | 7.20% | ||||
Debt instrument, maturity month and year | 2021-02 | ||||
Genworth Holdings | 7.625% Senior Notes, Due 2021 | |||||
Debt instrument face amount | $ 659 | ||||
Debt instrument interest rate | 7.625% | ||||
Debt instrument, maturity month and year | 2021-09 | ||||
China Oceanwide Holdings Group Co., Ltd. | Definitive Acquisition Agreement | |||||
Total transaction value to acquire all of our outstanding common stock | $ 2,700 | ||||
Per share amount to acquire all of our outstanding common stock | $ / shares | $ 5.43 |
Accounting Changes - Additional
Accounting Changes - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure of Accounting Changes [Line Items] | ||
Retained earnings | $ 1,317 | $ 1,461 |
Commercial mortgage loans | ||
Disclosure of Accounting Changes [Line Items] | ||
Accrued interest carrying value in Accrued investment income | 24 | |
Fixed maturity securities | ||
Disclosure of Accounting Changes [Line Items] | ||
Accrued interest carrying value in Accrued investment income | 565 | |
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Investments carried at amortized cost | ||
Disclosure of Accounting Changes [Line Items] | ||
Adoption of new accounting guidance, deferred tax impact | 6 | |
Retained earnings | 23 | |
Accounting Standards Update 2016-13 | Off-balance sheet credit exposures | Cumulative Effect, Period of Adoption, Adjustment | ||
Disclosure of Accounting Changes [Line Items] | ||
Retained earnings | 1 | |
Accounting Standards Update 2016-13 | Reinsurance recoverables | Cumulative Effect, Period of Adoption, Adjustment | ||
Disclosure of Accounting Changes [Line Items] | ||
Adoption of new accounting guidance, deferred tax impact | 9 | |
Retained earnings | $ 31 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Earnings Per Share [Abstract] | |||||
Weighted-average shares used in basic earnings per share calculations | 505.6 | 503.5 | 505.1 | 502.7 | |
Stock options, restricted stock units and stock appreciation rights | 5.9 | 7.7 | 6.1 | 6.8 | |
Weighted-average shares used in diluted earnings per share calculations | 511.5 | 511.2 | 511.2 | 509.5 | |
Income from continuing operations: | |||||
Income from continuing operations | $ 435 | $ 138 | $ 465 | $ 464 | |
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | |
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ 417 | $ 128 | $ 430 | $ 419 | |
Basic per share | $ 0.83 | $ 0.25 | $ 0.85 | $ 0.83 | |
Diluted per share | $ 0.82 | $ 0.25 | $ 0.84 | $ 0.82 | |
Income (loss) from discontinued operations: | |||||
Income (loss) from discontinued operations, net of taxes | $ 1 | $ (80) | $ (519) | $ 42 | |
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 30 | 0 | 101 | |
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | $ 1 | $ (110) | $ (519) | $ (59) | |
Basic per share | $ 0 | $ (0.22) | $ (1.03) | $ (0.12) | |
Diluted per share | $ 0 | $ (0.21) | $ (1.02) | $ (0.12) | |
Net income (loss): | |||||
Income from continuing operations | $ 435 | $ 138 | $ 465 | $ 464 | |
Income (loss) from discontinued operations, net of taxes | 1 | (80) | (519) | 42 | |
Net income (loss) | 436 | 58 | (54) | 506 | |
Less: net income attributable to noncontrolling interests | 18 | 40 | 35 | 146 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 418 | $ 18 | $ (89) | $ 360 | |
Basic per share | [1] | $ 0.83 | $ 0.04 | $ (0.18) | $ 0.72 |
Diluted per share | [1] | $ 0.82 | $ 0.04 | $ (0.17) | $ 0.71 |
[1] | May not total due to whole number calculation. |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 851 | $ 841 | $ 2,476 | $ 2,499 |
Expenses and fees | (24) | (25) | (70) | (73) |
Net investment income | 827 | 816 | 2,406 | 2,426 |
Fixed maturity securities—taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 632 | 631 | 1,855 | 1,878 |
Fixed maturity securities—non-taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 2 | 2 | 5 | 6 |
Equity Securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 3 | 4 | 7 | 13 |
Commercial mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 82 | 87 | 251 | 254 |
Policy Loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 51 | 47 | 149 | 138 |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 79 | 62 | 192 | 180 |
Cash, cash equivalents, restricted cash and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 2 | $ 8 | $ 17 | $ 30 |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Available-for-sale securities: | |||||
Realized gains | $ 332 | $ 19 | $ 465 | $ 93 | |
Realized losses | (2) | (3) | (8) | (30) | |
Net realized gains (losses) on available-for-sale securities | 330 | 16 | 457 | 63 | |
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 change in allowance for credit losses on available-for-sale fixed maturity securities | 2 | 0 | (5) | 0 | |
Write-down of available-for-sale fixed maturity securities | [1] | (4) | 0 | (4) | 0 |
Net realized gains (losses) on equity securities sold | (3) | 6 | (3) | 9 | |
Net unrealized gains (losses) on equity securities still held | 3 | (4) | (7) | 13 | |
Limited partnerships | 31 | 6 | 28 | 10 | |
Commercial mortgage loans | (3) | (1) | (2) | (1) | |
Derivative instruments | [2] | 22 | (29) | (73) | (71) |
Other | (3) | 4 | (9) | 4 | |
Total net investment gains (losses) | $ 375 | $ (2) | $ 382 | $ 27 | |
[1] | Represents write-down of securities we intend to sell or will be required to sell prior to recovery of the amortized cost basis. | ||||
[2] | See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Net Investment Allowance for Cr
Net Investment Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Ending Balance | $ 5 | $ 5 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 7 | 0 |
Increase from securities without allowance in previous periods | 0 | 7 |
Increase (decrease) from securities with allowance in previous periods | (2) | (2) |
Securities Sold | 0 | 0 |
Decrease due to change in intent or requirement to sell | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending Balance | 5 | 5 |
Non-U.S. corporate | Fixed maturity securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 4 | 0 |
Increase from securities without allowance in previous periods | 0 | 4 |
Increase (decrease) from securities with allowance in previous periods | (2) | (2) |
Securities Sold | 0 | 0 |
Decrease due to change in intent or requirement to sell | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending Balance | 2 | 2 |
Commercial mortgage-backed | Fixed maturity securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 3 | 0 |
Increase from securities without allowance in previous periods | 0 | 3 |
Increase (decrease) from securities with allowance in previous periods | 0 | 0 |
Securities Sold | 0 | 0 |
Decrease due to change in intent or requirement to sell | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending Balance | $ 3 | $ 3 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | ||
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 |
Modified or extended troubled debt restructurings | 0 | 0 |
Total Assets | 104,925 | 101,342 |
Variable interest Entity, not primary beneficiary | ||
Schedule of Investments [Line Items] | ||
Total Assets | 823 | 616 |
Fixed Rate Commercial Mortgage Loans | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans on nonaccrual status | $ 0 | $ 0 |
Finance and insurance | Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Percent of investment portfolio, greater than 10% | 24.00% | |
Utilities | Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Percent of investment portfolio, greater than 10% | 13.00% | |
Consumer-non-cyclical | Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Percent of investment portfolio, greater than 10% | 15.00% | |
Technology and Communications [Member] | Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Percent of investment portfolio, greater than 10% | 10.00% |
Credit Losses Recognized in Net
Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Cumulative credit losses, beginning balance | $ 23 | $ 24 |
Securities sold, paid down or disposed | 0 | (1) |
Cumulative credit losses, ending balance | $ 23 | $ 23 |
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 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses | [1] | $ 9,218 | $ 6,676 | ||||
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses | [1] | (12) | 0 | ||||
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves | (6,998) | (4,789) | |||||
Income taxes, net | (473) | (406) | |||||
Net unrealized investment gains (losses) | 1,735 | 1,481 | |||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 24 | 25 | |||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | $ 1,711 | $ 1,811 | $ 1,456 | $ 1,675 | $ 1,305 | $ 595 | |
[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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments [Abstract] | ||||
Net unrealized investment gains (losses), beginning of period | $ 1,811 | $ 1,305 | $ 1,456 | $ 595 |
Unrealized gains (losses) arising during the period: | ||||
Unrealized gains (losses) on fixed maturity securities | 781 | 1,607 | 2,980 | 5,563 |
Adjustment to deferred acquisition costs | (9) | (8) | 48 | (1,049) |
Adjustment to present value of future profits | 2 | 1 | 6 | (54) |
Adjustment to sales inducements | (5) | (4) | (3) | (35) |
Adjustment to benefit reserves and policyholder contract balances | (566) | (1,108) | (2,260) | (2,908) |
Provision for income taxes | (42) | (104) | (162) | (331) |
Change in unrealized gains (losses) on investment securities | 161 | 384 | 609 | 1,186 |
Reclassification adjustments to net investment (gains) losses, net of taxes | (261) | (13) | (355) | (59) |
Change in net unrealized investment gains (losses) | (100) | 371 | 254 | 1,127 |
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | 0 | 1 | (1) | 47 |
Net unrealized investment gains (losses), end of period | $ 1,711 | $ 1,675 | $ 1,711 | $ 1,675 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification adjustments to net investment (gains) losses, taxes | $ 70 | $ 4 | $ 95 | $ 16 |
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 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | |||
Amortized cost or cost, total | $ 55,252 | $ 53,700 | |
Gross unrealized gains | 9,349 | ||
Gross unrealized losses | (180) | ||
Fair value, total | 64,416 | 60,339 | |
Amortized cost or cost, fixed maturity securities | 55,252 | ||
Allowance for credit losses | (5) | ||
Fair value, fixed maturity securities | 64,416 | 60,339 | |
Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Allowance for credit losses | (5) | $ (7) | 0 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 3,318 | 4,073 | |
Gross unrealized gains, fixed maturity securities | 1,474 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 4,792 | 5,025 | |
Fixed maturity securities | State and Political Subdivisions | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 2,591 | 2,394 | |
Gross unrealized gains, fixed maturity securities | 525 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 3,115 | 2,747 | |
Fixed maturity securities | Non-U.S. government | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 1,276 | 1,235 | |
Gross unrealized gains, fixed maturity securities | 126 | ||
Gross unrealized losses, fixed maturity securities | (7) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 1,395 | 1,350 | |
Fixed maturity securities | U.S. corporate | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 30,025 | 28,313 | |
Gross unrealized gains, fixed maturity securities | 5,302 | ||
Gross unrealized losses, fixed maturity securities | (93) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 35,234 | 32,111 | |
Fixed maturity securities | U.S. corporate | Utilities | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 4,294 | 4,322 | |
Gross unrealized gains, fixed maturity securities | 924 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 5,217 | 4,997 | |
Fixed maturity securities | U.S. corporate | Energy | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 2,581 | 2,404 | |
Gross unrealized gains, fixed maturity securities | 238 | ||
Gross unrealized losses, fixed maturity securities | (54) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 2,765 | 2,699 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 7,611 | 6,977 | |
Gross unrealized gains, fixed maturity securities | 1,135 | ||
Gross unrealized losses, fixed maturity securities | (11) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 8,735 | 7,774 | |
Fixed maturity securities | U.S. corporate | Consumer—non-cyclical | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 5,160 | 4,909 | |
Gross unrealized gains, fixed maturity securities | 1,210 | ||
Gross unrealized losses, fixed maturity securities | (2) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 6,368 | 5,701 | |
Fixed maturity securities | U.S. corporate | Technology and communications | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 2,993 | 2,883 | |
Gross unrealized gains, fixed maturity securities | 537 | ||
Gross unrealized losses, fixed maturity securities | (3) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 3,527 | 3,245 | |
Fixed maturity securities | U.S. corporate | Industrial | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 1,363 | 1,271 | |
Gross unrealized gains, fixed maturity securities | 189 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 1,551 | 1,396 | |
Fixed maturity securities | U.S. corporate | Capital goods | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 2,558 | 2,345 | |
Gross unrealized gains, fixed maturity securities | 503 | ||
Gross unrealized losses, fixed maturity securities | (4) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 3,057 | 2,711 | |
Fixed maturity securities | U.S. corporate | Consumer—cyclical | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 1,794 | 1,590 | |
Gross unrealized gains, fixed maturity securities | 252 | ||
Gross unrealized losses, fixed maturity securities | (2) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 2,044 | 1,760 | |
Fixed maturity securities | U.S. corporate | Transportation | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 1,325 | 1,320 | |
Gross unrealized gains, fixed maturity securities | 271 | ||
Gross unrealized losses, fixed maturity securities | (15) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 1,581 | 1,506 | |
Fixed maturity securities | U.S. corporate | Other | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 346 | 292 | |
Gross unrealized gains, fixed maturity securities | 43 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 389 | 322 | |
Fixed maturity securities | Non-U.S. corporate | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 10,188 | 9,469 | |
Gross unrealized gains, fixed maturity securities | 1,396 | ||
Gross unrealized losses, fixed maturity securities | (39) | ||
Allowance for credit losses | (2) | (4) | 0 |
Fair value, fixed maturity securities | 11,543 | 10,525 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 860 | 779 | |
Gross unrealized gains, fixed maturity securities | 75 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 935 | 829 | |
Fixed maturity securities | Non-U.S. corporate | Energy | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 1,192 | 1,140 | |
Gross unrealized gains, fixed maturity securities | 163 | ||
Gross unrealized losses, fixed maturity securities | (7) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 1,348 | 1,319 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 2,319 | 2,087 | |
Gross unrealized gains, fixed maturity securities | 312 | ||
Gross unrealized losses, fixed maturity securities | (12) | ||
Allowance for credit losses | (1) | ||
Fair value, fixed maturity securities | 2,618 | 2,319 | |
Fixed maturity securities | Non-U.S. corporate | Consumer—non-cyclical | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 712 | 631 | |
Gross unrealized gains, fixed maturity securities | 95 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 806 | 684 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 1,066 | 1,010 | |
Gross unrealized gains, fixed maturity securities | 190 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 1,256 | 1,138 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 935 | 896 | |
Gross unrealized gains, fixed maturity securities | 134 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 1,068 | 988 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 571 | 565 | |
Gross unrealized gains, fixed maturity securities | 61 | ||
Gross unrealized losses, fixed maturity securities | (6) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 626 | 605 | |
Fixed maturity securities | Non-U.S. corporate | Consumer—cyclical | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 400 | 373 | |
Gross unrealized gains, fixed maturity securities | 38 | ||
Gross unrealized losses, fixed maturity securities | (2) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 436 | 397 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 571 | 557 | |
Gross unrealized gains, fixed maturity securities | 87 | ||
Gross unrealized losses, fixed maturity securities | (9) | ||
Allowance for credit losses | (1) | ||
Fair value, fixed maturity securities | 648 | 629 | |
Fixed maturity securities | Non-U.S. corporate | Other | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 1,562 | 1,431 | |
Gross unrealized gains, fixed maturity securities | 241 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 1,802 | 1,617 | |
Fixed maturity securities | Residential mortgage-backed | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 1,825 | 2,057 | |
Gross unrealized gains, fixed maturity securities | 250 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | 2,075 | 2,270 | |
Fixed maturity securities | Commercial mortgage-backed | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 2,775 | 2,897 | |
Gross unrealized gains, fixed maturity securities | 228 | ||
Gross unrealized losses, fixed maturity securities | (24) | ||
Allowance for credit losses | (3) | $ (3) | 0 |
Fair value, fixed maturity securities | 2,976 | 3,026 | |
Fixed maturity securities | Other asset-backed | |||
Schedule of Investments [Line Items] | |||
Amortized cost or cost, fixed maturity securities | 3,254 | 3,262 | |
Gross unrealized gains, fixed maturity securities | 48 | ||
Gross unrealized losses, fixed maturity securities | (16) | ||
Allowance for credit losses | 0 | ||
Fair value, fixed maturity securities | $ 3,286 | 3,285 | |
Not other-than-temporary impairments | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains | 6,667 | ||
Gross unrealized losses | (43) | ||
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 | 952 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 355 | ||
Gross unrealized losses, fixed maturity securities | (2) | ||
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 117 | ||
Gross unrealized losses, fixed maturity securities | (2) | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 3,816 | ||
Gross unrealized losses, fixed maturity securities | (18) | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 675 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 303 | ||
Gross unrealized losses, fixed maturity securities | (8) | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 798 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
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 | 796 | ||
Gross unrealized losses, fixed maturity securities | (4) | ||
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 | 363 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 125 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 367 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer—cyclical | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 172 | ||
Gross unrealized losses, fixed maturity securities | (2) | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 187 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 30 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 1,061 | ||
Gross unrealized losses, fixed maturity securities | (5) | ||
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 50 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 179 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
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 | 232 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
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 | 55 | ||
Gross unrealized losses, fixed maturity securities | (2) | ||
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 | 128 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 92 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
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 | 40 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
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 | 24 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 73 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 188 | ||
Gross unrealized losses, fixed maturity securities | (2) | ||
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 199 | ||
Gross unrealized losses, fixed maturity securities | (1) | ||
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 137 | ||
Gross unrealized losses, fixed maturity securities | (8) | ||
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 30 | ||
Gross unrealized losses, fixed maturity securities | (7) | ||
Other-than-temporary impairments | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains | 15 | ||
Gross unrealized losses | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer—non-cyclical | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer—cyclical | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer—non-cyclical | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer—cyclical | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 15 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | 0 | ||
Other-than-temporary impairments | Fixed maturity securities | Other asset-backed | |||
Schedule of Investments [Line Items] | |||
Gross unrealized gains, fixed maturity securities | 0 | ||
Gross unrealized losses, fixed maturity securities | $ 0 |
Gross Unrealized Losses and Fai
Gross Unrealized Losses and Fair Value of Investment Securities (Detail) $ in Millions | Sep. 30, 2020USD ($)Securities | Dec. 31, 2019USD ($)Securities |
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 3,338 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (149) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 587 | 231 |
12 months or more, Fair value | $ 411 | $ 817 |
12 months or more, Gross unrealized losses | $ (19) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 80 | 158 |
Fair value | $ 3,749 | $ 2,269 |
Gross unrealized losses | $ (168) | $ (43) |
Number of securities in a continuous loss position | Securities | 667 | 389 |
Investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 2,631 | $ 1,408 |
Less than 12 months, Gross unrealized losses | $ (85) | $ (14) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 472 | 223 |
12 months or more, Fair value | $ 338 | $ 702 |
12 months or more, Gross unrealized losses | $ (9) | $ (15) |
12 months or more, Number of securities in a continuous loss position | Securities | 70 | 145 |
Fair value | $ 2,969 | $ 2,110 |
Gross unrealized losses | $ (94) | $ (29) |
Number of securities in a continuous loss position | Securities | 542 | 368 |
Below investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 707 | $ 44 |
Less than 12 months, Gross unrealized losses | $ (64) | $ (4) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 115 | 8 |
12 months or more, Fair value | $ 73 | $ 115 |
12 months or more, Gross unrealized losses | $ (10) | $ (10) |
12 months or more, Number of securities in a continuous loss position | Securities | 10 | 13 |
Fair value | $ 780 | $ 159 |
Gross unrealized losses | $ (74) | $ (14) |
Number of securities in a continuous loss position | Securities | 125 | 21 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 3,338 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (149) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 587 | 231 |
12 months or more, Fair value | $ 411 | $ 817 |
12 months or more, Gross unrealized losses | $ (19) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 80 | 158 |
Fair value | $ 3,749 | $ 2,269 |
Gross unrealized losses | $ (168) | $ (43) |
Number of securities in a continuous loss position | Securities | 667 | 389 |
Fixed maturity securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 3,264 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (122) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 569 | 231 |
12 months or more, Fair value | $ 401 | $ 807 |
12 months or more, Gross unrealized losses | $ (16) | $ (20) |
12 months or more, Number of securities in a continuous loss position | Securities | 78 | 155 |
Fair value | $ 3,665 | $ 2,259 |
Gross unrealized losses | $ (138) | $ (38) |
Number of securities in a continuous loss position | Securities | 647 | 386 |
Fixed maturity securities | 20 To 50 percent below cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 74 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (27) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 18 | 0 |
12 months or more, Fair value | $ 10 | $ 10 |
12 months or more, Gross unrealized losses | $ (3) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 3 |
Fair value | $ 84 | $ 10 |
Gross unrealized losses | $ (30) | $ (5) |
Number of securities in a continuous loss position | Securities | 20 | 3 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 66 | $ 91 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 10 | 14 |
12 months or more, Fair value | $ 0 | $ 0 |
12 months or more, Gross unrealized losses | $ 0 | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 66 | $ 91 |
Gross unrealized losses | $ (1) | $ (2) |
Number of securities in a continuous loss position | Securities | 10 | 14 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 103 | $ 224 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 16 | 20 |
12 months or more, Fair value | $ 0 | $ 0 |
12 months or more, Gross unrealized losses | $ 0 | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 0 |
Fair value | $ 103 | $ 224 |
Gross unrealized losses | $ (7) | $ (2) |
Number of securities in a continuous loss position | Securities | 16 | 20 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,475 | $ 123 |
Less than 12 months, Gross unrealized losses | $ (82) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 228 | 27 |
12 months or more, Fair value | $ 95 | $ 302 |
12 months or more, Gross unrealized losses | $ (11) | $ (13) |
12 months or more, Number of securities in a continuous loss position | Securities | 10 | 33 |
Fair value | $ 1,570 | $ 425 |
Gross unrealized losses | $ (93) | $ (18) |
Number of securities in a continuous loss position | Securities | 238 | 60 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 589 | $ 79 |
Less than 12 months, Gross unrealized losses | $ (27) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 106 | 12 |
12 months or more, Fair value | $ 7 | $ 62 |
12 months or more, Gross unrealized losses | $ (1) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 7 |
Fair value | $ 596 | $ 141 |
Gross unrealized losses | $ (28) | $ (5) |
Number of securities in a continuous loss position | Securities | 108 | 19 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 22 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 10 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 22 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 10 | |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 430 | $ 381 |
Less than 12 months, Gross unrealized losses | $ (22) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 68 | 51 |
12 months or more, Fair value | $ 1 | $ 14 |
12 months or more, Gross unrealized losses | $ (1) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 3 |
Fair value | $ 431 | $ 395 |
Gross unrealized losses | $ (23) | $ (8) |
Number of securities in a continuous loss position | Securities | 69 | 54 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 675 | $ 532 |
Less than 12 months, Gross unrealized losses | $ (10) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 159 | 97 |
12 months or more, Fair value | $ 308 | $ 439 |
12 months or more, Gross unrealized losses | $ (6) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 67 | 115 |
Fair value | $ 983 | $ 971 |
Gross unrealized losses | $ (16) | $ (7) |
Number of securities in a continuous loss position | Securities | 226 | 212 |
Gross Unrealized Losses and F_2
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Sep. 30, 2020USD ($)Securities | Dec. 31, 2019USD ($)Securities |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 3,338 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (149) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 587 | 231 |
12 months or more, Fair value | $ 411 | $ 817 |
12 months or more, Gross unrealized losses | $ (19) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 80 | 158 |
Fair value | $ 3,749 | $ 2,269 |
Gross unrealized losses | $ (168) | $ (43) |
Number of securities in a continuous loss position | Securities | 667 | 389 |
Fixed maturity securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 3,338 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (149) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 587 | 231 |
12 months or more, Fair value | $ 411 | $ 817 |
12 months or more, Gross unrealized losses | $ (19) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 80 | 158 |
Fair value | $ 3,749 | $ 2,269 |
Gross unrealized losses | $ (168) | $ (43) |
Number of securities in a continuous loss position | Securities | 667 | 389 |
Fixed maturity securities | U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,475 | $ 123 |
Less than 12 months, Gross unrealized losses | $ (82) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 228 | 27 |
12 months or more, Fair value | $ 95 | $ 302 |
12 months or more, Gross unrealized losses | $ (11) | $ (13) |
12 months or more, Number of securities in a continuous loss position | Securities | 10 | 33 |
Fair value | $ 1,570 | $ 425 |
Gross unrealized losses | $ (93) | $ (18) |
Number of securities in a continuous loss position | Securities | 238 | 60 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 24 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 6 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 24 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 6 | |
Fixed maturity securities | U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 557 | $ 54 |
Less than 12 months, Gross unrealized losses | $ (45) | $ (3) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 84 | 10 |
12 months or more, Fair value | $ 52 | $ 80 |
12 months or more, Gross unrealized losses | $ (9) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 10 |
Fair value | $ 609 | $ 134 |
Gross unrealized losses | $ (54) | $ (8) |
Number of securities in a continuous loss position | Securities | 90 | 20 |
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 | $ 373 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (11) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 42 | 0 |
12 months or more, Fair value | $ 0 | $ 34 |
12 months or more, Gross unrealized losses | $ 0 | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 4 |
Fair value | $ 373 | $ 34 |
Gross unrealized losses | $ (11) | $ (1) |
Number of securities in a continuous loss position | Securities | 42 | 4 |
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 | $ 34 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 12 | 9 |
12 months or more, Fair value | $ 0 | $ 93 |
12 months or more, Gross unrealized losses | $ 0 | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 9 |
Fair value | $ 93 | $ 127 |
Gross unrealized losses | $ (2) | $ (4) |
Number of securities in a continuous loss position | Securities | 12 | 18 |
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 | $ 100 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (3) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 12 | 0 |
12 months or more, Fair value | $ 0 | $ 18 |
12 months or more, Gross unrealized losses | $ 0 | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 2 |
Fair value | $ 100 | $ 18 |
Gross unrealized losses | $ (3) | $ (1) |
Number of securities in a continuous loss position | Securities | 12 | 2 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 72 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 6 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 72 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 6 | |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 33 | $ 35 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 7 | 8 |
12 months or more, Fair value | $ 14 | $ 0 |
12 months or more, Gross unrealized losses | $ (1) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 0 |
Fair value | $ 47 | $ 35 |
Gross unrealized losses | $ (4) | $ (1) |
Number of securities in a continuous loss position | Securities | 8 | 8 |
Fixed maturity securities | U.S. corporate | Consumer—cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 86 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (1) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 21 | 0 |
12 months or more, Fair value | $ 29 | $ 54 |
12 months or more, Gross unrealized losses | $ (1) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 6 |
Fair value | $ 115 | $ 54 |
Gross unrealized losses | $ (2) | $ (2) |
Number of securities in a continuous loss position | Securities | 24 | 6 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 137 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (15) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 38 | 0 |
12 months or more, Fair value | $ 0 | $ 23 |
12 months or more, Gross unrealized losses | $ 0 | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 2 |
Fair value | $ 137 | $ 23 |
Gross unrealized losses | $ (15) | $ (1) |
Number of securities in a continuous loss position | Securities | 38 | 2 |
Fixed maturity securities | Non-U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 589 | $ 79 |
Less than 12 months, Gross unrealized losses | $ (27) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 106 | 12 |
12 months or more, Fair value | $ 7 | $ 62 |
12 months or more, Gross unrealized losses | $ (1) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 7 |
Fair value | $ 596 | $ 141 |
Gross unrealized losses | $ (28) | $ (5) |
Number of securities in a continuous loss position | Securities | 108 | 19 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 179 | |
Less than 12 months, Gross unrealized losses | $ (7) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 18 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 179 | |
Gross unrealized losses | $ (7) | |
Number of securities in a continuous loss position | Securities | 18 | |
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 | $ 196 | |
Less than 12 months, Gross unrealized losses | $ (5) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 34 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 196 | |
Gross unrealized losses | $ (5) | |
Number of securities in a continuous loss position | Securities | 34 | |
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 | $ 0 | $ 0 |
Less than 12 months, Gross unrealized losses | $ 0 | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 0 | 0 |
12 months or more, Fair value | $ 7 | $ 31 |
12 months or more, Gross unrealized losses | $ (1) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 3 |
Fair value | $ 7 | $ 31 |
Gross unrealized losses | $ (1) | $ (2) |
Number of securities in a continuous loss position | Securities | 2 | 3 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 29 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 4 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 29 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 4 | |
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 | $ 59 | |
Less than 12 months, Gross unrealized losses | $ (6) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 11 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 59 | |
Gross unrealized losses | $ (6) | |
Number of securities in a continuous loss position | Securities | 11 | |
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 | $ 22 | |
Less than 12 months, Gross unrealized losses | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 11 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 22 | |
Gross unrealized losses | $ (2) | |
Number of securities in a continuous loss position | Securities | 11 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 59 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (5) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 15 | 0 |
12 months or more, Fair value | $ 0 | $ 25 |
12 months or more, Gross unrealized losses | $ 0 | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 3 |
Fair value | $ 59 | $ 25 |
Gross unrealized losses | $ (5) | $ (1) |
Number of securities in a continuous loss position | Securities | 15 | 3 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 45 | $ 79 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 13 | 12 |
12 months or more, Fair value | $ 0 | $ 6 |
12 months or more, Gross unrealized losses | $ 0 | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 1 |
Fair value | $ 45 | $ 85 |
Gross unrealized losses | $ (1) | $ (2) |
Number of securities in a continuous loss position | Securities | 13 | 13 |
Fixed maturity securities | Corporate Debt Securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 2,064 | $ 202 |
Less than 12 months, Gross unrealized losses | $ (109) | $ (6) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 334 | 39 |
12 months or more, Fair value | $ 102 | $ 364 |
12 months or more, Gross unrealized losses | $ (12) | $ (17) |
12 months or more, Number of securities in a continuous loss position | Securities | 12 | 40 |
Fair value | $ 2,166 | $ 566 |
Gross unrealized losses | $ (121) | $ (23) |
Number of securities in a continuous loss position | Securities | 346 | 79 |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized cost or cost | ||
Due one year or less | $ 1,476 | |
Due after one year through five years | 9,646 | |
Due after five years through ten years | 13,164 | |
Due after ten years | 23,112 | |
Subtotal | 47,398 | |
Amortized cost or cost, fixed maturity securities | 55,252 | |
Fair value | ||
Due one year or less | 1,499 | |
Due after one year through five years | 10,265 | |
Due after five years through ten years | 14,863 | |
Due after ten years | 29,452 | |
Subtotal | 56,079 | |
Fair value, fixed maturity securities | 64,416 | $ 60,339 |
Residential mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 1,825 | |
Fair value | ||
Fixed maturity securities | 2,075 | |
Commercial mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 2,775 | |
Fair value | ||
Fixed maturity securities | 2,976 | |
Other asset-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,254 | |
Fair value | ||
Fixed maturity securities | $ 3,286 |
Distribution Across Property Ty
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 6,911 | $ 6,976 |
Commercial mortgage loans, recorded investment | 6,980 | |
Unamortized balance of loan origination fees and costs | $ 0 | $ (4) |
% of total | 100.00% | 100.00% |
Allowance for credit losses | $ (31) | $ (13) |
Commercial mortgage loans, net | 6,880 | 6,963 |
Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 6,911 | 6,980 |
Unamortized balance of loan origination fees and costs | $ 0 | $ (4) |
% of total | 100.00% | 100.00% |
Allowance for credit losses | $ (31) | $ (13) |
Commercial mortgage loans, net | 6,880 | 6,963 |
South Atlantic | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,761 | $ 1,715 |
% of total | 25.00% | 25.00% |
Pacific | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,571 | $ 1,673 |
% of total | 23.00% | 24.00% |
Middle Atlantic | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 993 | $ 992 |
% 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, amortized cost | $ 776 | $ 753 |
% of total | 11.00% | 11.00% |
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, amortized cost | $ 481 | $ 488 |
% 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, amortized cost | $ 451 | $ 455 |
% 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, amortized cost | $ 427 | $ 433 |
% 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, amortized cost | $ 262 | $ 257 |
% of total | 4.00% | 4.00% |
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, amortized cost | $ 189 | $ 214 |
% 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, amortized cost | $ 2,481 | $ 2,590 |
% of total | 36.00% | 37.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,685 | $ 1,670 |
% of total | 24.00% | 24.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,625 | $ 1,632 |
% 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, amortized cost | $ 566 | $ 541 |
% of total | 8.00% | 8.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 292 | $ 281 |
% 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, amortized cost | $ 262 | $ 266 |
% 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 | Sep. 30, 2020 | Dec. 31, 2019 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 6,911 | $ 6,976 |
Commercial mortgage loans, recorded investment | $ 6,980 | |
% 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, amortized cost | $ 2,481 | $ 2,590 |
% of total | 36.00% | 37.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,685 | $ 1,670 |
% of total | 24.00% | 24.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,625 | $ 1,632 |
% 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, amortized cost | $ 566 | $ 541 |
% of total | 8.00% | 8.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 292 | $ 281 |
% 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, amortized cost | $ 262 | $ 266 |
% 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, amortized cost | $ 4 | $ 0 |
% of total | 0.00% | 0.00% |
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, amortized cost | $ 4 | $ 0 |
31-60 days past due | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
31-60 days past due | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
31-60 days past due | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
31-60 days past due | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
31-60 days past due | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
61-90 days past due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 0 | $ 0 |
% of total | 0.00% | 0.00% |
61-90 days past due | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 0 | $ 0 |
61-90 days past due | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
61-90 days past due | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
61-90 days past due | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
61-90 days past due | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
61-90 days past due | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
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, amortized cost | $ 10 | $ 0 |
% of total | 0.00% | 0.00% |
Greater than 90 days past due | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 10 | $ 0 |
Greater than 90 days past due | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
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, amortized cost | 0 | 0 |
Greater than 90 days past due | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 90 days past due | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 90 days past due | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Total past due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 14 | $ 0 |
% of total | 0.00% | 0.00% |
Total past due | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 14 | $ 0 |
Total past due | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Total past due | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Total past due | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Total past due | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Total past due | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Current | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 6,897 | $ 6,980 |
% 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, amortized cost | $ 2,467 | $ 2,590 |
Current | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 1,685 | 1,670 |
Current | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 1,625 | 1,632 |
Current | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 566 | 541 |
Current | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 292 | 281 |
Current | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 262 | $ 266 |
Allowance for Credit Losses and
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | $ 13 | |||
Ending balance | $ 31 | 31 | ||
Allowance for Credit Losses | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 28 | $ 11 | 13 | $ 9 |
Cumulative effect of change in accounting | 0 | 0 | 16 | 0 |
Provision | 3 | 1 | 2 | 3 |
Write-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | $ 31 | $ 12 | $ 31 | $ 12 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 6,911 | $ 6,976 |
Commercial mortgage loans, recorded investment | $ 6,980 | |
% of total | 100.00% | 100.00% |
Weighted-average debt service coverage ratio | 1.90 | 1.90 |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 2,481 | $ 2,590 |
% of total | 36.00% | 37.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,685 | $ 1,670 |
% of total | 24.00% | 24.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,625 | $ 1,632 |
% 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, amortized cost | $ 566 | $ 541 |
% of total | 8.00% | 8.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 292 | $ 281 |
% 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, amortized cost | $ 262 | $ 266 |
% 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, amortized cost | $ 2,608 | $ 2,694 |
% of total | 38.00% | 39.00% |
Weighted-average debt service coverage ratio | 2.31 | 2.32 |
0% - 50% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 940 | $ 986 |
0% - 50% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 775 | 808 |
0% - 50% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 513 | 529 |
0% - 50% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 220 | 211 |
0% - 50% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 106 | 104 |
0% - 50% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 54 | 56 |
51% - 60% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,417 | $ 1,545 |
% of total | 20.00% | 22.00% |
Weighted-average debt service coverage ratio | 1.81 | 1.81 |
51% - 60% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 557 | $ 579 |
51% - 60% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 310 | 337 |
51% - 60% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 337 | 380 |
51% - 60% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 85 | 110 |
51% - 60% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 63 | 70 |
51% - 60% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 65 | 69 |
61% - 75% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 2,878 | $ 2,741 |
% of total | 42.00% | 39.00% |
Weighted-average debt service coverage ratio | 1.57 | 1.55 |
61% - 75% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 984 | $ 1,025 |
61% - 75% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 600 | 525 |
61% - 75% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 767 | 723 |
61% - 75% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 261 | 220 |
61% - 75% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 123 | 107 |
61% - 75% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 143 | 141 |
76% - 100% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 8 | $ 0 |
% of total | 0.00% | 0.00% |
Weighted-average debt service coverage ratio | 1.42 | 0 |
76% - 100% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 0 | $ 0 |
76% - 100% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
76% - 100% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 8 | 0 |
76% - 100% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
76% - 100% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
76% - 100% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 0 | $ 0 |
% of total | 0.00% | 0.00% |
Weighted-average debt service coverage ratio | 0 | 0 |
Greater than 100% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 0 | $ 0 |
Greater than 100% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 0 | $ 0 |
Debt Service Coverage Ratio for
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,911 | $ 6,976 |
% 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 | $ 6,911 | $ 6,980 |
% of total | 100.00% | 100.00% |
Weighted-average loan-to-value | 54.00% | 54.00% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,481 | $ 2,590 |
% of total | 36.00% | 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 | $ 2,481 | $ 2,590 |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,685 | $ 1,670 |
% of total | 24.00% | 24.00% |
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 | $ 1,685 | $ 1,670 |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,625 | $ 1,632 |
% 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 | $ 1,625 | $ 1,632 |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 566 | $ 541 |
% of total | 8.00% | 8.00% |
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 | $ 566 | $ 541 |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 292 | $ 281 |
% 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 | $ 292 | $ 281 |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 262 | $ 266 |
% 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 | $ 262 | $ 266 |
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 | $ 159 | $ 190 |
% of total | 2.00% | 3.00% |
Weighted-average loan-to-value | 57.00% | 59.00% |
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 | $ 61 | $ 68 |
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 | 23 | 24 |
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 | 28 | 44 |
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 | 11 | 16 |
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 | 4 |
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 | 33 | 34 |
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 | $ 497 | $ 476 |
% of total | 7.00% | 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 | $ 134 | $ 141 |
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 | 66 | 51 |
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 | 111 | 89 |
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 | 32 |
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 | 16 |
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 | 144 | 147 |
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 | $ 1,274 | $ 1,280 |
% of total | 19.00% | 18.00% |
Weighted-average loan-to-value | 63.00% | 63.00% |
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 | $ 585 | $ 596 |
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 | 218 | 221 |
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 | 238 | 277 |
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 | 177 | 129 |
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 | 37 | 37 |
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 | 19 | 20 |
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 | $ 2,910 | $ 2,870 |
% of total | 42.00% | 41.00% |
Weighted-average loan-to-value | 59.00% | 58.00% |
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 | $ 1,100 | $ 1,148 |
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 | 704 | 658 |
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 | 770 | 751 |
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 | 182 | 175 |
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 | 118 | 107 |
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 | 36 | 31 |
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 | $ 2,071 | $ 2,164 |
% of total | 30.00% | 31.00% |
Weighted-average loan-to-value | 41.00% | 41.00% |
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 | $ 601 | $ 637 |
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 | 674 | 716 |
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 | 478 | 471 |
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 | 172 | 189 |
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 | 116 | 117 |
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 | $ 30 | $ 34 |
Commercial Mortgage Loans By Ye
Commercial Mortgage Loans By Year of Origination and Credit Quality Indicator (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,911 | $ 6,976 |
Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 6,911 | 6,980 |
Write-offs, gross | 0 | |
Recoveries | 0 | |
Write-offs, net | 0 | |
0% - 50% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,608 | 2,694 |
0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,608 | |
51% - 60% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,417 | 1,545 |
51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,417 | |
61% - 75% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,878 | 2,741 |
61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,878 | |
76% - 100% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 8 | 0 |
76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 8 | |
Greater than 100% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 159 | 190 |
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 497 | 476 |
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,274 | 1,280 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,910 | 2,870 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,071 | $ 2,164 |
2020 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 411 | |
Write-offs, gross | 0 | |
Recoveries | 0 | |
Write-offs, net | 0 | |
2020 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 9 | |
2020 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 29 | |
2020 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 373 | |
2020 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2020 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2020 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2020 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 41 | |
2020 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 69 | |
2020 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 251 | |
2020 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 50 | |
2019 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 794 | |
Write-offs, gross | 0 | |
Recoveries | 0 | |
Write-offs, net | 0 | |
2019 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 15 | |
2019 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 33 | |
2019 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 746 | |
2019 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2019 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2019 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2019 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 12 | |
2019 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 357 | |
2019 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 356 | |
2019 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 69 | |
2018 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 995 | |
Write-offs, gross | 0 | |
Recoveries | 0 | |
Write-offs, net | 0 | |
2018 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 38 | |
2018 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 191 | |
2018 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 758 | |
2018 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 8 | |
2018 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2018 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 33 | |
2018 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 106 | |
2018 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 260 | |
2018 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 503 | |
2018 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 93 | |
2017 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 727 | |
Write-offs, gross | 0 | |
Recoveries | 0 | |
Write-offs, net | 0 | |
2017 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 108 | |
2017 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 289 | |
2017 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 330 | |
2017 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2017 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2017 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | |
2017 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 73 | |
2017 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 96 | |
2017 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 320 | |
2017 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 235 | |
2016 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 495 | |
Write-offs, gross | 0 | |
Recoveries | 0 | |
Write-offs, net | 0 | |
2016 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 131 | |
2016 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 141 | |
2016 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 223 | |
2016 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2016 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2016 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2016 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 13 | |
2016 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 87 | |
2016 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 266 | |
2016 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 129 | |
2015 and prior | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 3,489 | |
Write-offs, gross | 0 | |
Recoveries | 0 | |
Write-offs, net | 0 | |
2015 and prior | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,307 | |
2015 and prior | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 734 | |
2015 and prior | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 448 | |
2015 and prior | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2015 and prior | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2015 and prior | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 123 | |
2015 and prior | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 252 | |
2015 and prior | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 405 | |
2015 and prior | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,214 | |
2015 and prior | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,495 |
Schedule of Positions in Deriva
Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Derivative assets, fair value | $ 839 | $ 310 | |
Derivative liabilities, fair value | 974 | 805 | |
Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 965 | 794 | |
Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 9 | 11 | |
Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 804 | 290 | |
Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 4 | 10 | |
Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 708 | 197 | |
Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 10 | 4 | |
Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 67 | 81 | |
Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 5 | 1 | |
Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 19 | 8 | |
GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [1] | 508 | 323 |
GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [2] | 35 | 20 |
Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 432 | 452 | |
Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 25 | 19 | |
Designated As Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 718 | 201 | |
Derivative liabilities, fair value | 4 | 10 | |
Designated As Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 718 | 201 | |
Derivative liabilities, fair value | 4 | 10 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 4 | 10 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 708 | 197 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 10 | 4 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 121 | 109 | |
Derivative liabilities, fair value | 970 | 795 | |
Derivatives not designated as hedges | Equity index options | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Derivatives not designated as hedges | Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 67 | 81 | |
Derivatives not designated as hedges | Financial futures | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Derivatives not designated as hedges | Financial futures | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | ||
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 5 | 1 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 19 | 8 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [3] | 508 | 323 |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [4] | 35 | 20 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [5] | 432 | 452 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Other assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | ||
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [6] | 25 | 19 |
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 | 9 Months Ended |
Sep. 30, 2020USD ($)Policies | |
Derivative [Line Items] | |
Notional amount, beginning balance | $ 18,013 |
Additions | 13,422 |
Maturities/ terminations | (13,427) |
Notional amount, ending balance | 18,008 |
Designated As Hedging Instrument | |
Derivative [Line Items] | |
Notional amount, beginning balance | 9,078 |
Additions | 1,844 |
Maturities/ terminations | (2,616) |
Notional amount, ending balance | 8,306 |
Designated As Hedging Instrument | Cash Flow Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 9,078 |
Additions | 1,844 |
Maturities/ terminations | (2,616) |
Notional amount, ending balance | 8,306 |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 8,968 |
Additions | 1,844 |
Maturities/ terminations | (2,616) |
Notional amount, ending balance | 8,196 |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 110 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 110 |
Derivatives not designated as hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 8,935 |
Additions | 11,578 |
Maturities/ terminations | (10,811) |
Notional amount, ending balance | 9,702 |
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 | Equity index options | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,451 |
Additions | 1,527 |
Maturities/ terminations | (1,849) |
Notional amount, ending balance | 2,129 |
Derivatives not designated as hedges | Financial futures | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,182 |
Additions | 4,362 |
Maturities/ terminations | (4,275) |
Notional amount, ending balance | 1,269 |
Derivatives not designated as hedges | Other foreign currency contracts | |
Derivative [Line Items] | |
Notional amount, beginning balance | 628 |
Additions | 5,689 |
Maturities/ terminations | (4,687) |
Notional amount, ending balance | $ 1,630 |
Derivatives not designated as hedges | GMWB embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 25,623 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (1,452) |
Notional amount, ending balance | Policies | 24,171 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 15,441 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (1,511) |
Notional amount, ending balance | Policies | 13,930 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 884 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (37) |
Notional amount, ending balance | Policies | 847 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in OCI | $ (243) | $ 388 | $ 692 | $ 708 |
Gain (loss) reclassified into net income from OCI | 54 | 46 | 147 | 127 |
Gain (loss) recognized in net income (loss) | 0 | 0 | 0 | 2 |
Interest Rate Swaps Hedging Assets | Net Investment Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in OCI | (246) | 406 | 738 | 759 |
Gain (loss) reclassified into net income from OCI | 50 | 41 | 139 | 121 |
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 | 0 |
Gain (loss) reclassified into net income from OCI | 4 | 4 | 8 | 6 |
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 | 10 | (23) | (52) | (55) |
Gain (loss) reclassified into net income from OCI | 0 | 0 | 0 | 0 |
Gain (loss) recognized in net income (loss) | 0 | 0 | 0 | 0 |
Foreign currency swaps | Net Investment Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in OCI | (7) | 5 | 6 | 4 |
Gain (loss) reclassified into net income from OCI | 0 | 1 | 0 | 0 |
Gain (loss) recognized in net income (loss) | $ 0 | $ 0 | $ 0 | 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) | $ 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments [Abstract] | ||||
Derivatives qualifying as effective accounting hedges, beginning of period | $ 2,677 | $ 1,983 | $ 2,002 | $ 1,781 |
Cumulative effect of changes in accounting: | ||||
Current period increases (decreases) in fair value, net of deferred taxes | (191) | 306 | 544 | 560 |
Reclassification to net (income) loss, net of deferred taxes | (35) | (30) | (95) | (82) |
Derivatives qualifying as effective accounting hedges, end of period | $ 2,451 | $ 2,259 | $ 2,451 | $ 2,259 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Current period increases (decreases) in fair value, deferred taxes | $ 52 | $ (82) | $ (148) | $ (148) |
Reclassification to net (income) loss, deferred taxes | $ 19 | $ 16 | $ 52 | $ 45 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax | $ 2,451 | $ 2,259 | $ 2,677 | $ 2,002 | $ 1,983 | $ 1,781 |
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 | $ 127 | |||||
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring | $ 7 | $ 4 |
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) - Derivatives not designated as hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 18 | $ (33) | $ (81) | $ (79) |
Interest rate swaps | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 1 | (2) | (11) | (6) |
Equity index options | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 7 | 1 | (2) | 28 |
Financial futures | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (41) | 35 | 97 | 8 |
Other foreign currency contracts | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 12 | (10) | 9 | (17) |
GMWB embedded derivatives | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 54 | (44) | (153) | (21) |
Fixed index annuity embedded derivatives | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (18) | (14) | (31) | (72) |
Indexed universal life embedded derivatives | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 3 | $ 1 | $ 10 | $ 1 |
Additional Information about De
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | $ 839 | $ 310 | |
Gross amounts recognized, derivatives liabilities | 974 | 805 | |
Subject to enforceable master netting arrangement | |||
Derivative [Line Items] | |||
Gross amounts recognized, net derivatives | 795 | 280 | |
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | |
Net amounts presented in the balance sheet, net derivatives | 795 | 280 | |
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [1] | 0 | 0 |
Collateral received | (663) | (179) | |
Collateral pledged | 489 | 405 | |
Over collateralization, net derivatives | (472) | (383) | |
Net amount | 149 | 123 | |
Subject to enforceable master netting arrangement | Derivative assets | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | [2] | 804 | 291 |
Gross amounts offset in the balance sheet, derivatives assets | [2] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives assets | [2] | 804 | 291 |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [1],[2] | (5) | (7) |
Collateral received | [2] | (663) | (179) |
Collateral pledged | [2] | 0 | 0 |
Over collateralization, derivatives assets | [2] | 13 | 18 |
Net amount, derivatives assets | [2] | 149 | 123 |
Subject to enforceable master netting arrangement | Derivative liabilities | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives liabilities | [3] | 9 | 11 |
Gross amounts offset in the balance sheet, derivatives liabilities | [3] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives liabilities | [3] | 9 | 11 |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [1],[3] | (5) | (7) |
Collateral received | [3] | 0 | 0 |
Collateral pledged | [3] | (489) | (405) |
Over collateralization, derivatives liabilities | [3] | 485 | 401 |
Net amount, derivatives liabilities | [3] | $ 0 | $ 0 |
[1] | Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. | ||
[2] | Included $1 million of accruals on derivatives classified as other assets as of December 31, 2019 and does not include amounts related to embedded derivatives as of September 30, 2020 and December 31, 2019. | ||
[3] | Does not include amounts related to embedded derivatives as of September 30, 2020 and December 31, 2019. |
Additional Information about _2
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Derivative assets - Subject to enforceable master netting arrangement - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | [1] | $ 804 | $ 291 |
Other assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | $ 1 | ||
[1] | Included $1 million of accruals on derivatives classified as other assets as of December 31, 2019 and does not include amounts related to embedded derivatives as of September 30, 2020 and December 31, 2019. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 64,416 | $ 60,339 |
GMWB non-performance risk impact | $ 85 | 62 |
Period end valuation | 0 | |
Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 35,234 | 32,111 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 11,543 | 10,525 |
Level 2 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 60,274 | 56,148 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 32,994 | 29,872 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 9,893 | 8,840 |
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 | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 31,695 | |
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 | 9,220 | |
Level 2 | Fixed maturity securities | Internal models | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,299 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 673 | |
Level 3 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 4,142 | 4,191 |
Level 3 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,240 | 2,239 |
Level 3 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,650 | $ 1,685 |
Level 3 | Fixed maturity securities | Internal models | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,314 | |
Level 3 | Fixed maturity securities | Broker Quotes | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 828 |
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 | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 64,416 | $ 60,339 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,792 | 5,025 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,115 | 2,747 |
Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 1,395 | 1,350 |
Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 35,234 | 32,111 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 11,543 | 10,525 |
Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,075 | 2,270 |
Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,976 | 3,026 |
Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,286 | 3,285 |
Level 2 | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 60,274 | 56,148 |
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 | 4,792 | 5,025 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,058 | 2,645 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 1,395 | 1,350 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 32,994 | 29,872 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 9,893 | 8,840 |
Level 2 | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,061 | 2,243 |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,956 | 3,020 |
Level 2 | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,125 | $ 3,153 |
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 | $ 4,792 | |
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 | $ 3,058 | |
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 | $ 1,395 | |
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 | $ 31,695 | |
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 | $ 9,220 | |
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 | $ 2,061 | |
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 | $ 2,956 | |
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 | $ 3,125 | |
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 swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports |
Assets by Class of Instrument t
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 64,416 | $ 60,339 | |
Available-for-sale equity securities | 629 | 239 | |
Derivative assets, fair value | 839 | 310 | |
Total other invested assets | 2,402 | 1,632 | |
Separate account assets | 5,700 | 6,108 | |
Total assets | 72,584 | 67,761 | |
Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Available-for-sale equity securities | [1] | 0 | 0 |
Separate account assets | [1] | 0 | 0 |
Total assets | [1] | 674 | 503 |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 804 | 290 | |
Securities lending collateral | 75 | 51 | |
Short-term investments | 251 | 211 | |
Limited partnerships | 674 | 503 | |
Total other invested assets | 1,804 | 1,055 | |
Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 0 |
Securities lending collateral | [1] | 0 | 0 |
Short-term investments | [1] | 0 | 0 |
Limited partnerships | [1] | 674 | 503 |
Total other invested assets | [1] | 674 | 503 |
Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 708 | 197 | |
Interest rate swaps | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 0 |
Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 10 | 4 | |
Foreign currency swaps | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 0 |
Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 67 | 81 | |
Equity index options | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 0 |
Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 19 | 8 | |
Other foreign currency contracts | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 0 |
GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 35 | 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 | [1],[2] | 0 | 0 |
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 | 4,792 | 5,025 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,115 | 2,747 | |
Fixed maturity securities | State and Political Subdivisions | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,395 | 1,350 | |
Fixed maturity securities | Non-U.S. government | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 35,234 | 32,111 | |
Fixed maturity securities | U.S. corporate | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,217 | 4,997 | |
Fixed maturity securities | U.S. corporate | Utilities | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,765 | 2,699 | |
Fixed maturity securities | U.S. corporate | Energy | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 8,735 | 7,774 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 6,368 | 5,701 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,527 | 3,245 | |
Fixed maturity securities | U.S. corporate | Technology and communications | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,551 | 1,396 | |
Fixed maturity securities | U.S. corporate | Industrial | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,057 | 2,711 | |
Fixed maturity securities | U.S. corporate | Capital goods | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,044 | 1,760 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,581 | 1,506 | |
Fixed maturity securities | U.S. corporate | Transportation | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 389 | 322 | |
Fixed maturity securities | U.S. corporate | Other | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 11,543 | 10,525 | |
Fixed maturity securities | Non-U.S. corporate | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 935 | 829 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,348 | 1,319 | |
Fixed maturity securities | Non-U.S. corporate | Energy | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,618 | 2,319 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 806 | 684 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,256 | 1,138 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,068 | 988 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 626 | 605 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 436 | 397 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 648 | 629 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,802 | 1,617 | |
Fixed maturity securities | Non-U.S. corporate | Other | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,075 | 2,270 | |
Fixed maturity securities | Residential mortgage-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,976 | 3,026 | |
Fixed maturity securities | Commercial mortgage-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,286 | 3,285 | |
Fixed maturity securities | Other asset-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | 0 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Available-for-sale equity securities | 465 | 62 | |
Total other invested assets | [3] | 0 | 0 |
Separate account assets | 5,700 | 6,108 | |
Total assets | 6,165 | 6,170 | |
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 | |
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 | Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 0 | 0 |
Level 1 | 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 | 60,274 | 56,148 | |
Available-for-sale equity securities | 112 | 126 | |
Total other invested assets | [3] | 23 | 49 |
Separate account assets | 0 | 0 | |
Total assets | 61,449 | 56,745 | |
Level 2 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 737 | 209 | |
Securities lending collateral | 75 | 51 | |
Short-term investments | 251 | 211 | |
Limited partnerships | 0 | 0 | |
Total other invested assets | 1,063 | 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 | 708 | 197 | |
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 | 10 | 4 | |
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 | 19 | 8 | |
Level 2 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 0 | 0 |
Level 2 | 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 | 4,792 | 5,025 | |
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 | 3,058 | 2,645 | |
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 | 1,395 | 1,350 | |
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 | 32,994 | 29,872 | |
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 | 4,376 | 4,132 | |
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 | 2,651 | 2,570 | |
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 | 8,204 | 7,202 | |
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 | 6,265 | 5,607 | |
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 | 3,401 | 3,195 | |
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 | 1,511 | 1,356 | |
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 | 2,960 | 2,609 | |
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 | 1,874 | 1,587 | |
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 | 1,527 | 1,428 | |
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 | 225 | 186 | |
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 | 9,893 | 8,840 | |
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 | 588 | 455 | |
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 | 1,111 | 1,072 | |
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 | 2,314 | 2,085 | |
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 | 752 | 625 | |
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 | 1,228 | 1,110 | |
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 | 975 | 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 | 453 | 444 | |
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 | 269 | 250 | |
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 | 537 | 438 | |
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 | 1,666 | 1,477 | |
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 | 2,061 | 2,243 | |
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 | 2,956 | 3,020 | |
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 | 3,125 | 3,153 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,142 | 4,191 | |
Available-for-sale equity securities | 52 | 51 | |
Total other invested assets | [3] | 388 | 383 |
Separate account assets | 0 | 0 | |
Total assets | 4,296 | 4,343 | |
Level 3 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 67 | 81 | |
Securities lending collateral | 0 | 0 | |
Short-term investments | 0 | 0 | |
Limited partnerships | 0 | 0 | |
Total other invested assets | 67 | 81 | |
Level 3 | Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 67 | 81 | |
Level 3 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 35 | 20 |
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 | 57 | 102 | |
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 | 2,240 | 2,239 | |
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 | 841 | 865 | |
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 | 114 | 129 | |
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 | 531 | 572 | |
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 | 103 | 94 | |
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 | 126 | 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 | 40 | |
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 | 97 | 102 | |
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 | 170 | 173 | |
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 | 78 | |
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 | 164 | 136 | |
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 | 1,650 | 1,685 | |
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 | 347 | 374 | |
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 | 237 | 247 | |
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 | 304 | 234 | |
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 | 54 | 59 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 28 | 28 | |
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 | 93 | 104 | |
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 | 173 | 161 | |
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 | 167 | 147 | |
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 | 111 | 191 | |
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 | 136 | 140 | |
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 | 14 | 27 | |
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 | 20 | 6 | |
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 | $ 161 | $ 132 | |
[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. | ||
[3] | These financial instruments do not have notional amounts. |
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 | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 4,412 | $ 4,422 | $ 4,343 | $ 3,982 | |
Total realized and unrealized gains (losses), Included in net income | 19 | 8 | 34 | 40 | |
Total realized and unrealized gains (losses), Included in OCI | 2 | 98 | 10 | 332 | |
Purchases | 282 | 116 | 461 | 535 | |
Sales | (1) | (2) | (26) | (40) | |
Issuances | 0 | 0 | 1 | 1 | |
Settlements | (181) | (117) | (328) | (385) | |
Transfer into Level 3 | [1] | 25 | 41 | 363 | 171 |
Transfer out of Level 3 | [1] | (262) | (150) | (562) | (220) |
Ending balance | 4,296 | 4,416 | 4,296 | 4,416 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | (2) | 7 | 23 | 7 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 10 | 23 | |||
Other invested assets | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 66 | 65 | 81 | 39 | |
Total realized and unrealized gains (losses), Included in net income | 7 | 1 | (2) | 28 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 27 | 13 | 45 | 34 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (33) | (17) | (57) | (39) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 67 | 62 | 67 | 62 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | (1) | 0 | 4 | (2) | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 0 | |||
Other invested assets | Derivative assets | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 66 | 65 | 81 | 39 | |
Total realized and unrealized gains (losses), Included in net income | 7 | 1 | (2) | 28 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 27 | 13 | 45 | 34 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (33) | (17) | (57) | (39) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 67 | 62 | 67 | 62 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | (1) | 0 | 4 | (2) | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 0 | |||
Other invested assets | Derivative assets | Equity index options | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 66 | 65 | 81 | 39 | |
Total realized and unrealized gains (losses), Included in net income | 7 | 1 | (2) | 28 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 27 | 13 | 45 | 34 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (33) | (17) | (57) | (39) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 67 | 62 | 67 | 62 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | (1) | 0 | 4 | (2) | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 0 | |||
Reinsurance recoverable | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | [2] | 38 | 20 | 20 | 20 |
Total realized and unrealized gains (losses), Included in net income | [2] | (3) | 5 | 14 | 4 |
Total realized and unrealized gains (losses), Included in OCI | [2] | 0 | 0 | 0 | 0 |
Purchases | [2] | 0 | 0 | 0 | 0 |
Sales | [2] | 0 | 0 | 0 | 0 |
Issuances | [2] | 0 | 0 | 1 | 1 |
Settlements | [2] | 0 | 0 | 0 | 0 |
Transfer into Level 3 | [1],[2] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1],[2] | 0 | 0 | 0 | 0 |
Ending balance | [2] | 35 | 25 | 35 | 25 |
Total gains (losses) included in net income attributable to assets still held, Included in net income | [2] | (3) | 5 | 14 | 4 |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | [2] | 0 | 0 | ||
Fixed maturity securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 4,255 | 4,281 | 4,191 | 3,865 | |
Total realized and unrealized gains (losses), Included in net income | 15 | 2 | 22 | 8 | |
Total realized and unrealized gains (losses), Included in OCI | 2 | 98 | 10 | 332 | |
Purchases | 255 | 103 | 410 | 499 | |
Sales | 0 | 0 | (21) | (34) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (148) | (100) | (271) | (346) | |
Transfer into Level 3 | [1] | 25 | 41 | 363 | 171 |
Transfer out of Level 3 | [1] | (262) | (150) | (562) | (220) |
Ending balance | 4,142 | 4,275 | 4,142 | 4,275 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 2 | 2 | 5 | 5 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 10 | 23 | |||
Fixed maturity securities | Non-U.S. government | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 0 | ||||
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] | 1 | |||
Transfer out of Level 3 | [1] | 0 | |||
Ending balance | 0 | 0 | |||
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | ||||
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | ||||
Fixed maturity securities | State and political subdivisions | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 63 | 61 | 102 | 51 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 0 | 2 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | (7) | 11 | (19) | 19 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (1) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | (27) | 0 |
Ending balance | 57 | 72 | 57 | 72 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 1 | 1 | 2 | 2 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | (6) | (19) | |||
Fixed maturity securities | U.S. corporate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 2,332 | 2,227 | 2,239 | 1,998 | |
Total realized and unrealized gains (losses), Included in net income | 13 | 1 | 16 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 2 | 48 | 18 | 167 | |
Purchases | 150 | 37 | 246 | 218 | |
Sales | 0 | 0 | (21) | (27) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (116) | (38) | (159) | (148) | |
Transfer into Level 3 | [1] | 0 | 25 | 125 | 121 |
Transfer out of Level 3 | [1] | (141) | (40) | (224) | (70) |
Ending balance | 2,240 | 2,260 | 2,240 | 2,260 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 9 | 30 | |||
Fixed maturity securities | U.S. corporate | Utilities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 936 | 789 | 865 | 643 | |
Total realized and unrealized gains (losses), Included in net income | 10 | 1 | 10 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | (4) | 28 | 8 | 70 | |
Purchases | 15 | 13 | 47 | 109 | |
Sales | 0 | 0 | 0 | (14) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (52) | (7) | (54) | (47) | |
Transfer into Level 3 | [1] | 0 | 0 | 42 | 72 |
Transfer out of Level 3 | [1] | (64) | 0 | (77) | (10) |
Ending balance | 841 | 824 | 841 | 824 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 1 | 14 | |||
Fixed maturity securities | U.S. corporate | Energy | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 123 | 122 | 129 | 121 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 1 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 2 | (2) | 9 | |
Purchases | 7 | 12 | 17 | 17 | |
Sales | 0 | 0 | (21) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (16) | (1) | (19) | (12) | |
Transfer into Level 3 | [1] | 0 | 0 | 22 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | (13) | 0 |
Ending balance | 114 | 135 | 114 | 135 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | (4) | |||
Fixed maturity securities | U.S. corporate | Finance and insurance | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 551 | 607 | 572 | 534 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 2 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 2 | 11 | 4 | 49 | |
Purchases | 71 | 0 | 92 | 40 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (16) | (26) | (40) | (38) | |
Transfer into Level 3 | [1] | 0 | 20 | 0 | 27 |
Transfer out of Level 3 | [1] | (77) | 0 | (99) | 0 |
Ending balance | 531 | 612 | 531 | 612 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 2 | 7 | |||
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 103 | 89 | 94 | 73 | |
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 | 2 | 4 | |
Purchases | 0 | 9 | 8 | 23 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (1) | (1) | (11) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 9 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 103 | 98 | 103 | 98 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 1 | 3 | |||
Fixed maturity securities | U.S. corporate | Technology and communications | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 66 | 44 | 50 | 50 | |
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 | 4 | 6 | |
Purchases | 57 | 0 | 77 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 5 | 0 | 5 |
Transfer out of Level 3 | [1] | 0 | 0 | (5) | (11) |
Ending balance | 126 | 50 | 126 | 50 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 3 | 4 | |||
Fixed maturity securities | U.S. corporate | Industrial | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 39 | 40 | 40 | 39 | |
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 | 0 | 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, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 0 | |||
Fixed maturity securities | U.S. corporate | Capital goods | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 97 | 98 | 102 | 92 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 2 | (1) | 8 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (4) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 97 | 100 | 97 | 100 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | (1) | |||
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 198 | 185 | 173 | 211 | |
Total realized and unrealized gains (losses), Included in net income | 3 | 0 | 3 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (1) | 2 | 3 | 12 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | (13) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (30) | (2) | (33) | (16) | |
Transfer into Level 3 | [1] | 0 | 0 | 24 | 0 |
Transfer out of Level 3 | [1] | 0 | (9) | 0 | (18) |
Ending balance | 170 | 176 | 170 | 176 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 1 | 5 | |||
Fixed maturity securities | U.S. corporate | Transportation | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 54 | 54 | 78 | 57 | |
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 | (1) | 2 | |
Purchases | 0 | 3 | 0 | 7 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | (1) | (3) | (9) | |
Transfer into Level 3 | [1] | 0 | 0 | 10 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | (30) | 0 |
Ending balance | 54 | 57 | 54 | 57 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 1 | 1 | |||
Fixed maturity securities | U.S. corporate | Other | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 165 | 199 | 136 | 178 | |
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 | 6 | |
Purchases | 0 | 0 | 5 | 22 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | 0 | (5) | (15) | |
Transfer into Level 3 | [1] | 0 | 0 | 27 | 8 |
Transfer out of Level 3 | [1] | 0 | (31) | 0 | (31) |
Ending balance | 164 | 168 | 164 | 168 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 1 | |||
Fixed maturity securities | Non-U.S. corporate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 1,694 | 1,631 | 1,685 | 1,532 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 1 | 4 | 5 | |
Total realized and unrealized gains (losses), Included in OCI | 8 | 24 | 12 | 119 | |
Purchases | 27 | 53 | 71 | 170 | |
Sales | 0 | 0 | 0 | (7) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (22) | (50) | (77) | (144) | |
Transfer into Level 3 | [1] | 25 | 16 | 213 | 22 |
Transfer out of Level 3 | [1] | (83) | 0 | (258) | (22) |
Ending balance | 1,650 | 1,675 | 1,650 | 1,675 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 1 | 1 | 3 | 3 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 6 | 12 | |||
Fixed maturity securities | Non-U.S. corporate | Utilities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 357 | 417 | 374 | 404 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 4 | 5 | 7 | 28 | |
Purchases | 0 | 0 | 12 | 30 | |
Sales | 0 | 0 | 0 | (7) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (25) | 0 | (42) | |
Transfer into Level 3 | [1] | 6 | 0 | 27 | 0 |
Transfer out of Level 3 | [1] | (20) | 0 | (73) | (16) |
Ending balance | 347 | 397 | 347 | 397 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 3 | 5 | |||
Fixed maturity securities | Non-U.S. corporate | Energy | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 237 | 241 | 247 | 217 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 5 | (8) | 17 | |
Purchases | 0 | 31 | 0 | 47 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (12) | (26) | (16) | |
Transfer into Level 3 | [1] | 0 | 0 | 24 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 237 | 265 | 237 | 265 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 1 | (7) | |||
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 311 | 179 | 234 | 171 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 1 | 3 | 3 | |
Total realized and unrealized gains (losses), Included in OCI | (2) | 4 | 7 | 22 | |
Purchases | 0 | 0 | 15 | 7 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (3) | 0 | (16) | |
Transfer into Level 3 | [1] | 19 | 16 | 77 | 16 |
Transfer out of Level 3 | [1] | (25) | 0 | (32) | (6) |
Ending balance | 304 | 197 | 304 | 197 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 1 | 1 | 3 | 3 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | (2) | 8 | |||
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 54 | 68 | 59 | 106 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 1 | 2 | 5 | |
Purchases | 0 | 0 | 8 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (5) | 0 | (49) | |
Transfer into Level 3 | [1] | 0 | 0 | 1 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | (16) | 0 |
Ending balance | 54 | 64 | 54 | 64 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 1 | |||
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 28 | 27 | 28 | 26 | |
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 | 0 | 2 | |
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 | 28 | 28 | 28 | 28 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 0 | |||
Fixed maturity securities | Non-U.S. corporate | Industrial | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 92 | 64 | 104 | 61 | |
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 | 2 | 3 | |
Purchases | 0 | 13 | 0 | 13 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (5) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | (8) | 0 |
Ending balance | 93 | 77 | 93 | 77 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 1 | 2 | |||
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 173 | 181 | 161 | 173 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 1 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 2 | (2) | 11 | |
Purchases | 10 | 0 | 10 | 10 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (10) | (4) | (26) | (15) | |
Transfer into Level 3 | [1] | 0 | 0 | 29 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 173 | 179 | 173 | 179 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | (1) | (2) | |||
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 156 | 126 | 147 | 122 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 4 | 2 | 1 | 10 | |
Purchases | 17 | 9 | 21 | 9 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (7) | (4) | |
Transfer into Level 3 | [1] | 0 | 0 | 32 | 0 |
Transfer out of Level 3 | [1] | (10) | 0 | (27) | 0 |
Ending balance | 167 | 137 | 167 | 137 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 4 | (1) | |||
Fixed maturity securities | Non-U.S. corporate | Transportation | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 141 | 199 | 191 | 171 | |
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 | 0 | 10 | |
Purchases | 0 | 0 | 0 | 19 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 22 | 0 |
Transfer out of Level 3 | [1] | (28) | 0 | (102) | 0 |
Ending balance | 111 | 200 | 111 | 200 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | (3) | 3 | |||
Fixed maturity securities | Non-U.S. corporate | Other | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 145 | 129 | 140 | 81 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 3 | 3 | 3 | 11 | |
Purchases | 0 | 0 | 5 | 35 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (12) | (1) | (13) | (2) | |
Transfer into Level 3 | [1] | 0 | 0 | 1 | 6 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 136 | 131 | 136 | 131 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 3 | 3 | |||
Fixed maturity securities | Residential mortgage-backed | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 24 | 36 | 27 | 35 | |
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 | (1) | 2 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (1) | (1) | (1) | |
Transfer into Level 3 | [1] | 0 | 0 | 4 | 0 |
Transfer out of Level 3 | [1] | (9) | (4) | (15) | (4) |
Ending balance | 14 | 32 | 14 | 32 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 0 | |||
Fixed maturity securities | Commercial mortgage-backed | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 21 | 92 | 6 | 95 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (1) | 14 | 1 | 23 | |
Purchases | 0 | 0 | 0 | 2 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 20 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | (7) | (14) |
Ending balance | 20 | 106 | 20 | 106 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 0 | 1 | |||
Fixed maturity securities | Other asset-backed | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 121 | 234 | 132 | 154 | |
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 | (1) | 2 | |
Purchases | 78 | 13 | 93 | 109 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (10) | (11) | (32) | (53) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 28 |
Transfer out of Level 3 | [1] | (29) | (106) | (31) | (110) |
Ending balance | 161 | 130 | 161 | 130 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | 0 | 0 | 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | 1 | (1) | |||
Equity Securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 53 | 56 | 51 | 58 | |
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 | 0 | 0 | 6 | 2 | |
Sales | (1) | (2) | (5) | (6) | |
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 | 52 | 54 | 52 | 54 | |
Total gains (losses) included in net income attributable to assets still held, Included in net income | 0 | $ 0 | 0 | $ 0 | |
Total gains (losses) included in net income attributable to assets still held, Included in OCI | $ 0 | $ 0 | |||
[1] | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. | ||||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Gains and Losses Included in Ne
Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | $ 19 | $ 8 | $ 34 | $ 40 |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | (2) | 7 | 23 | 7 |
Net Investment Income | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | 15 | 2 | 21 | 8 |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | 2 | 2 | 5 | 5 |
Net investment gains (losses) | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | 4 | 6 | 13 | 32 |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | $ (4) | $ 5 | $ 18 | $ 2 |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020USD ($)bps | Dec. 31, 2019USD ($) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | $ 974 | $ 805 | ||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | 64,416 | 60,339 | ||
Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | 965 | 794 | ||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 4,142 | 4,191 | ||
Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 1,980 | |||
Fair value input, credit spreads, lower limit | 66 | |||
Fair value input, credit spreads, upper limit | 373 | |||
Fair value input, credit spreads, weighted-average | [1] | 179 | ||
Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 1,232 | |||
Fair value input, credit spreads, lower limit | 78 | |||
Fair value input, credit spreads, upper limit | 490 | |||
Fair value input, credit spreads, weighted-average | [1] | 163 | ||
Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | $ 965 | 794 | ||
Capital goods | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 97 | |||
Fair value input, credit spreads, lower limit | 102 | |||
Fair value input, credit spreads, upper limit | 273 | |||
Fair value input, credit spreads, weighted-average | [1] | 190 | ||
Capital goods | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 146 | |||
Fair value input, credit spreads, lower limit | 97 | |||
Fair value input, credit spreads, upper limit | 254 | |||
Fair value input, credit spreads, weighted-average | [1] | 177 | ||
Consumer-cyclical | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 133 | |||
Fair value input, credit spreads, lower limit | 139 | |||
Fair value input, credit spreads, upper limit | 276 | |||
Fair value input, credit spreads, weighted-average | [1] | 201 | ||
Consumer-cyclical | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 54 | |||
Fair value input, credit spreads, lower limit | 102 | |||
Fair value input, credit spreads, upper limit | 241 | |||
Fair value input, credit spreads, weighted-average | [1] | 197 | ||
Consumer-non-cyclical | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 103 | |||
Fair value input, credit spreads, lower limit | 78 | |||
Fair value input, credit spreads, upper limit | 358 | |||
Fair value input, credit spreads, weighted-average | [1] | 174 | ||
Consumer-non-cyclical | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 53 | |||
Fair value input, credit spreads, lower limit | 97 | |||
Fair value input, credit spreads, upper limit | 162 | |||
Fair value input, credit spreads, weighted-average | [1] | 142 | ||
Energy | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 7 | |||
Fair value input, credit spreads, upper limit | 91 | |||
Energy | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 82 | |||
Fair value input, credit spreads, lower limit | 102 | |||
Fair value input, credit spreads, upper limit | 241 | |||
Fair value input, credit spreads, weighted-average | [1] | 156 | ||
Finance and insurance | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 493 | |||
Fair value input, credit spreads, lower limit | 66 | |||
Fair value input, credit spreads, upper limit | 321 | |||
Fair value input, credit spreads, weighted-average | [1] | 178 | ||
Finance and insurance | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 199 | |||
Fair value input, credit spreads, lower limit | 86 | |||
Fair value input, credit spreads, upper limit | 174 | |||
Fair value input, credit spreads, weighted-average | [1] | 134 | ||
Industrial | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 40 | |||
Fair value input, credit spreads, lower limit | 156 | |||
Fair value input, credit spreads, upper limit | 373 | |||
Fair value input, credit spreads, weighted-average | [1] | 230 | ||
Industrial | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 93 | |||
Fair value input, credit spreads, lower limit | 91 | |||
Fair value input, credit spreads, upper limit | 241 | |||
Fair value input, credit spreads, weighted-average | [1] | 165 | ||
Other | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 164 | |||
Fair value input, credit spreads, lower limit | 93 | |||
Fair value input, credit spreads, upper limit | 206 | |||
Fair value input, credit spreads, weighted-average | [1] | 114 | ||
Other | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 135 | |||
Fair value input, credit spreads, lower limit | 110 | |||
Fair value input, credit spreads, upper limit | 490 | |||
Fair value input, credit spreads, weighted-average | [1] | 209 | ||
Technology and communications | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 126 | |||
Fair value input, credit spreads, lower limit | 133 | |||
Fair value input, credit spreads, upper limit | 358 | |||
Fair value input, credit spreads, weighted-average | [1] | 224 | ||
Technology and communications | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 28 | |||
Fair value input, credit spreads, lower limit | 102 | |||
Fair value input, credit spreads, upper limit | 238 | |||
Fair value input, credit spreads, weighted-average | [1] | 184 | ||
Transportation | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 43 | |||
Fair value input, credit spreads, lower limit | 67 | |||
Fair value input, credit spreads, upper limit | 156 | |||
Fair value input, credit spreads, weighted-average | [1] | 118 | ||
Transportation | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 95 | |||
Fair value input, credit spreads, lower limit | 78 | |||
Fair value input, credit spreads, upper limit | 241 | |||
Fair value input, credit spreads, weighted-average | [1] | 129 | ||
Utilities | Level 3 | U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 774 | |||
Fair value input, credit spreads, lower limit | 71 | |||
Fair value input, credit spreads, upper limit | 368 | |||
Fair value input, credit spreads, weighted-average | [1] | 183 | ||
Utilities | Level 3 | Non-U.S. corporate | Internal Models | ||||
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 (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 347 | |||
Fair value input, credit spreads, lower limit | 89 | |||
Fair value input, credit spreads, upper limit | 292 | |||
Fair value input, credit spreads, weighted-average | [1] | 164 | ||
Fixed index annuity embedded derivatives | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | $ 432 | 452 | ||
Fixed index annuity embedded derivatives | Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Valuation technique | Option budget method | |||
Derivative liabilities, fair value | $ | $ 432 | 452 | ||
Fair value, expected future interest credited, lower limit | 0.00% | |||
Fair value, expected future interest credited, upper limit | 3.00% | |||
Fair value, expected future interest credited, weighted-average | [2] | 1.00% | ||
Equity index options | Level 3 | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | $ 67 | |||
Fair value input, equity index volatility, lower limit | 6.00% | |||
Fair value input, equity index volatility, upper limit | 41.00% | |||
Fair value input, equity index volatility, weighted-average | [1] | 28.00% | ||
Indexed universal life embedded derivatives | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | $ 25 | 19 | ||
Indexed universal life embedded derivatives | Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Valuation technique | Option budget method | |||
Derivative liabilities, fair value | $ | $ 25 | 19 | ||
Fair value, expected future interest credited, lower limit | 3.00% | |||
Fair value, expected future interest credited, upper limit | 10.00% | |||
Fair value, expected future interest credited, weighted-average | [2] | 5.00% | ||
GMWB embedded derivatives | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | [3] | $ 508 | 323 | |
GMWB embedded derivatives | Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Valuation technique | [4] | Stochastic cash flow model | ||
Derivative liabilities, fair value | $ | [3] | $ 508 | [4] | $ 323 |
Fair value, withdrawal utilization rate, lower limit | 56.00% | |||
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 | 12 | |||
Fair value input, credit spreads, upper limit | 83 | |||
Fair value input, credit spreads, weighted-average | [2] | 67 | ||
Fair value input, equity index volatility, lower limit | [4] | 21.00% | ||
Fair value input, equity index volatility, upper limit | [4] | 27.00% | ||
Fair value, withdrawal utilization rate, weighted-average | [2] | 73.00% | ||
Fair value, lapse rate, weighted-average | [2] | 4.00% | ||
Fair value input, equity index volatility, weighted-average | [2],[4] | 23.00% | ||
[1] | Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets. | |||
[2] | Unobservable inputs weighted by the policyholder account balances associated with the instrument. | |||
[3] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | |||
[4] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs. |
Liabilities by Class of Instrum
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | $ 974 | $ 805 | ||
Total liabilities | 974 | 805 | ||
Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 9 | 11 | ||
Other liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 4 | 10 | ||
Other liabilities | Other foreign currency contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 5 | 1 | ||
Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 965 | 794 | ||
Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | [1] | 508 | 323 | |
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 | 432 | 452 | ||
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 | 25 | 19 | ||
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 | Other foreign currency contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 0 | 0 | ||
Level 1 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 0 | 0 | ||
Level 1 | Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | [1] | 0 | 0 | |
Level 1 | Policyholder account balances | Fixed index annuity embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 0 | 0 | ||
Level 1 | Policyholder account balances | Indexed universal life embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 0 | 0 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities | 9 | 11 | ||
Level 2 | Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 9 | 11 | ||
Level 2 | Other liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 4 | 10 | ||
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 | 5 | 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 | 965 | 794 | ||
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 | Other foreign currency contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 0 | 0 | ||
Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 965 | 794 | ||
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] | 508 | [2] | 323 |
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 | 432 | 452 | ||
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 | $ 25 | $ 19 | ||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | |||
[2] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs. |
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 | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 1,029 | $ 778 | $ 794 | $ 738 | |
Total realized and unrealized (gains) losses included in net (income) | (42) | 62 | 188 | 96 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 11 | 11 | 34 | 26 | |
Settlements | (33) | (8) | (51) | (17) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 965 | 843 | 965 | 843 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (42) | 63 | 195 | 100 | |
Total (gains) losses included in OCI attributable to liabilities still held | 0 | 0 | |||
Policyholder account balances | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 1,029 | 778 | 794 | 738 | |
Total realized and unrealized (gains) losses included in net (income) | (42) | 62 | 188 | 96 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 11 | 11 | 34 | 26 | |
Settlements | (33) | (8) | (51) | (17) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 965 | 843 | 965 | 843 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (42) | 63 | 195 | 100 | |
Total (gains) losses included in OCI attributable to liabilities still held | 0 | 0 | |||
Policyholder account balances | GMWB embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | [1] | 559 | 325 | 323 | 337 |
Total realized and unrealized (gains) losses included in net (income) | [1] | (57) | 49 | 167 | 25 |
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 | 18 | 19 |
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] | 508 | 381 | 508 | 381 |
Total (gains) losses included in net (income) attributable to liabilities still held | [1] | (57) | 50 | 174 | 29 |
Total (gains) losses included in OCI attributable to liabilities still held | [1] | 0 | 0 | ||
Policyholder account balances | Fixed index annuity embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 447 | 438 | 452 | 389 | |
Total realized and unrealized (gains) losses included in net (income) | 18 | 14 | 31 | 72 | |
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 | (33) | (8) | (51) | (17) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 432 | 444 | 432 | 444 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 18 | 14 | 31 | 72 | |
Total (gains) losses included in OCI attributable to liabilities still held | 0 | 0 | |||
Policyholder account balances | Indexed universal life embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 23 | 15 | 19 | 12 | |
Total realized and unrealized (gains) losses included in net (income) | (3) | (1) | (10) | (1) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 5 | 4 | 16 | 7 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 25 | 18 | 25 | 18 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (3) | $ (1) | (10) | $ (1) | |
Total (gains) losses included in OCI attributable to liabilities still held | $ 0 | $ 0 | |||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | $ (42) | $ 62 | $ 188 | $ 96 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | (42) | 63 | 195 | 100 |
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 | (42) | 62 | 188 | 96 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | $ (42) | $ 63 | $ 195 | $ 100 |
Fair Value Financial Instrument
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 6,880 | $ 6,963 | |
Other invested assets | 2,402 | 1,632 | |
Liabilities: | |||
Long-term borrowings | [1] | 3,570 | 3,277 |
Non-recourse funding obligations | 0 | 311 | |
Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 1,112 | ||
Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 35 | ||
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | [2] | 0 | 0 |
Other invested assets | [2] | 0 | 0 |
Liabilities: | |||
Long-term borrowings | [2] | 0 | 0 |
Non-recourse funding obligations | [2] | 0 | |
Investment contracts | [2] | 0 | 0 |
Level 1 | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 1 | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 1 | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | [2] | 0 | 0 |
Other invested assets | [2] | 23 | 49 |
Liabilities: | |||
Long-term borrowings | [2] | 2,979 | 2,951 |
Non-recourse funding obligations | [2] | 0 | |
Investment contracts | [2] | 0 | 0 |
Level 2 | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 2 | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 2 | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | [2] | 7,169 | 7,239 |
Other invested assets | [2] | 388 | 383 |
Liabilities: | |||
Long-term borrowings | [2] | 169 | 142 |
Non-recourse funding obligations | [2] | 207 | |
Investment contracts | [2] | 12,016 | 12,086 |
Level 3 | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 3 | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 3 | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Carrying value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | [2] | 6,880 | 6,963 |
Other invested assets | [2] | 410 | 432 |
Liabilities: | |||
Long-term borrowings | [2] | 3,570 | 3,277 |
Non-recourse funding obligations | [2] | 311 | |
Investment contracts | [2] | 10,872 | 11,466 |
Carrying value | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Carrying value | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Carrying value | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | [2] | 7,169 | 7,239 |
Other invested assets | [2] | 411 | 432 |
Liabilities: | |||
Long-term borrowings | [2] | 3,148 | 3,093 |
Non-recourse funding obligations | [2] | 207 | |
Investment contracts | [2] | 12,016 | 12,086 |
Fair value | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Fair value | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Fair value | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Notional amount | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 1,112 | 976 | |
Notional amount | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 35 | 52 | |
Notional amount | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | $ 126 | $ 69 | |
[1] | Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited (“GFMIPL”), our indirect majority-owned subsidiary, who currently has the option to redeem the notes due in 2025 at face value at any time, subject to the Australian Prudential Regulation Authority’s (“APRA”) prior written approval. | ||
[2] | These financial instruments do not have notional amounts. |
Changes in Liability for Policy
Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 10,958 | |
Ending balance | 11,373 | |
Long-term Care Insurance | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 10,958 | $ 10,295 |
Less reinsurance recoverables | (2,406) | (2,379) |
Net beginning balance | 8,552 | 7,916 |
Current year | 3,179 | 2,865 |
Prior years | (389) | (237) |
Total incurred | 2,790 | 2,628 |
Current year | (708) | (659) |
Prior years | (1,867) | (1,794) |
Total paid | (2,575) | (2,453) |
Interest on liability for policy and contract claims | 308 | 285 |
Foreign currency translation | 5 | (9) |
Net ending balance | 9,080 | 8,367 |
Add reinsurance recoverables | 2,293 | 2,413 |
Ending balance | $ 11,373 | $ 10,780 |
Liability for Policy and Cont_3
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Long-term Care Insurance | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred related to insured events of prior year | $ 389 | $ 237 |
Increase decrease in reserves for liability for policy and contract claims | 61 | |
U.S. Mortgage Insurance | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Increase decrease in reserves for liability for policy and contract claims | 415 | |
Policy Contract | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Increase decrease in reserves for liability for policy and contract claims | $ 28 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | Oct. 22, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Reinsurance recoverable | $ 16,788 | $ 17,103 | |
Reinsurance Recoverable, Past Due | 0 | ||
Scottish RE Group Limited | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Reinsurance Recoverable, Past Due | $ 16 | ||
Triangle Re [Member] | Mortgage Insurance Policy [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Fully collaterised excess loss coverage | $ 350 | ||
Reinsurance coverage in excess of retention | 350 | ||
Retain of First layer aggregate losses | $ 522 | ||
Percentage of reinsurance coverage losses | 67.00% | ||
Union Fidelity Life Insurance Company | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Minimum amount of risk-based capital General Electric Company agreed to maintain in UFLIC | 150.00% | ||
Union Fidelity Life Insurance Company | Ceded Credit Risk | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Reinsurance recoverable | $ 13,418 | $ 13,752 |
Reinsurance - Schedule of Reins
Reinsurance - Schedule of Reinsurance Recoverable in Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Beginning balance | $ 44 | $ 0 |
Cumulative effect of change in accounting | 0 | 40 |
Provision | 0 | 4 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | $ 44 | $ 44 |
Reinsurance - Schedule Of Credi
Reinsurance - Schedule Of Credit Ratings on Reinsurance Recoverable (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Reinsurance recoverable | $ 16,832 | $ 17,103 |
A++ | ||
Reinsurance recoverable | 514 | |
A+ | ||
Reinsurance recoverable | 2,746 | |
A | ||
Reinsurance recoverable | 66 | |
B+ | ||
Reinsurance recoverable | 2 | |
Non rated | ||
Reinsurance recoverable | 13,504 | |
Collateralized | ||
Reinsurance recoverable | 14,822 | |
Collateralized | A++ | ||
Reinsurance recoverable | 0 | |
Collateralized | A+ | ||
Reinsurance recoverable | 1,380 | |
Collateralized | A | ||
Reinsurance recoverable | 20 | |
Collateralized | B+ | ||
Reinsurance recoverable | 0 | |
Collateralized | Non rated | ||
Reinsurance recoverable | 13,422 | |
Non-collateralized | ||
Reinsurance recoverable | 2,010 | |
Non-collateralized | A++ | ||
Reinsurance recoverable | 514 | |
Non-collateralized | A+ | ||
Reinsurance recoverable | 1,366 | |
Non-collateralized | A | ||
Reinsurance recoverable | 46 | |
Non-collateralized | B+ | ||
Reinsurance recoverable | 2 | |
Non-collateralized | Non rated | ||
Reinsurance recoverable | $ 82 |
Borrowings - Long Term Borrowin
Borrowings - Long Term Borrowings (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Total | [1] | $ 3,570 | $ 3,277 |
Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 2,693 | 3,174 |
Bond consent fees | [2] | (20) | (25) |
Deferred borrowing charges | [2] | (10) | (12) |
Total | [2] | 2,663 | 3,137 |
Genworth Holdings | 7.70% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 0 | 397 |
Genworth Holdings | 7.20% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 338 | 382 |
Genworth Holdings | 7.625% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 661 | 701 |
Genworth Holdings | 4.90% Senior Notes, Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 399 | 399 |
Genworth Holdings | 4.80% Senior Notes, Due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 400 | 400 |
Genworth Holdings | 6.50% Senior Notes, Due 2034 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 297 | 297 |
Genworth Holdings | Floating Rate Junior Subordinated Notes, due 2066 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 598 | 598 |
Genworth Financial Mortgage Insurance Pty Limited | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 171 | 140 |
Deferred borrowing charges | [1] | (2) | 0 |
Total | [1] | 169 | 140 |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes, due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 35 | 140 |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes, due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 136 | 0 |
Genworth Mortgage Holdings, Inc. | |||
Debt Instrument [Line Items] | |||
Deferred borrowing charges | (12) | 0 | |
Total | 738 | 0 | |
Genworth Mortgage Holdings, Inc. | 6.50% Senior Notes, due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | $ 750 | $ 0 | |
[1] | Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited (“GFMIPL”), our indirect majority-owned subsidiary, who currently has the option to redeem the notes due in 2025 at face value at any time, subject to the Australian Prudential Regulation Authority’s (“APRA”) prior written approval. | ||
[2] | 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. |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) $ in Millions, $ in Millions | Aug. 21, 2020USD ($) | Jul. 03, 2020AUD ($) | Jan. 21, 2020USD ($) | Jan. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Oct. 06, 2020AUD ($) | Aug. 24, 2020AUD ($) | Jul. 31, 2020AUD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Pre-tax gain (loss) on early extinguishment of debt | $ 0 | $ 0 | $ (9) | $ 0 | |||||||||
Long-term Debt | [1] | 3,570 | 3,570 | $ 3,277 | |||||||||
Non-Recourse Funding Obligations | Floating Rate Subordinated Notes Due in 2050 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Pre-tax gain (loss) on early extinguishment of debt | $ 4 | ||||||||||||
Debt instrument, maturity year | 2050 | ||||||||||||
Redemption of secured debt | $ 315 | ||||||||||||
Genworth Holdings | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, maturity month and year | 2020-06 | ||||||||||||
Pre-tax make-whole expense on redemption of senior notes | $ 9 | ||||||||||||
Long-term Debt | [2] | 2,663 | 2,663 | 3,137 | |||||||||
Genworth Holdings | 7.70% Senior Notes, Due 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 7.70% | ||||||||||||
Debt instrument, maturity month and year | 2020-06 | ||||||||||||
Early redemption of senior notes | $ 409 | ||||||||||||
Pre-tax make-whole expense on redemption of senior notes | 9 | ||||||||||||
Pre-tax gain (loss) on early extinguishment of debt | 9 | ||||||||||||
Aggregate principal amount of notes repurchased | 397 | ||||||||||||
Interest paid | 3 | ||||||||||||
Early redemption of senior notes, principal amount | $ 397 | ||||||||||||
Genworth Holdings | Senior Notes 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Pre-tax gain (loss) on early extinguishment of debt | $ 4 | ||||||||||||
Debt instrument, maturity year | 2021 | ||||||||||||
Aggregate principal amount of notes repurchased | 84 | $ 84 | |||||||||||
Genworth Financial Mortgage Insurance Pty Limited | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | [1] | 169 | 169 | 140 | |||||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes Due in 2030 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Description of Variable Rate Basis | swap reference rate plus a margin of a minimum of 5.0% per annum | ||||||||||||
Debt instrument face amount | $ 43 | ||||||||||||
Debt instrument face amount issued in exchange | $ 147 | ||||||||||||
Debt instrument, maturity month and year | 2030-07 | ||||||||||||
Long-term Debt | $ 190 | ||||||||||||
Debt instrument, Option to redeem date | Jul. 3, 2025 | ||||||||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes Due in 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of notes repurchased | $ 5 | ||||||||||||
Long-term Debt | $ 53 | ||||||||||||
Aggregate principal amount of notes exchanged | $ 147 | ||||||||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes Due in 2025 | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument remaning notes repurchased | $ 48 | ||||||||||||
Genworth Mortgage Holdings, Inc. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 738 | $ 738 | $ 0 | ||||||||||
Genworth Mortgage Holdings, Inc. | 6.50% Senior Notes, due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 6.50% | ||||||||||||
First interest payment date | Feb. 15, 2021 | ||||||||||||
Debt instrument, call feature date | Feb. 15, 2025 | ||||||||||||
Debt instrument face amount | $ 750 | ||||||||||||
Option to redeem, price percentage of principal | 100.00% | ||||||||||||
Long term debt terms of interest payment | Interest on the notes is payable semi-annually | ||||||||||||
Long term debt date of maturity | Aug. 15, 2025 | ||||||||||||
[1] | Subordinated floating rate notes issued by Genworth Financial Mortgage Insurance Pty Limited (“GFMIPL”), our indirect majority-owned subsidiary, who currently has the option to redeem the notes due in 2025 at face value at any time, subject to the Australian Prudential Regulation Authority’s (“APRA”) prior written approval. | ||||||||||||
[2] | 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. |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Examination [Line Items] | ||||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Swaps terminated prior to the TCJA | 2.60% | 1.20% | 4.30% | 3.20% |
Provision to return adjustments | 0.80% | (1.60%) | 0.70% | (0.40%) |
Effect of foreign operations | 1.10% | (0.80%) | 1.80% | 2.50% |
Other, net | 0.10% | 0.10% | 0.80% | 0.30% |
Effective rate | 25.60% | 19.90% | 28.60% | 26.60% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | Segment | 4 | |||||
Assumed tax rate on adjustments to adjusted operating income | 21.00% | |||||
Expenses related to restructuring | $ 0 | $ 0 | $ 2 | $ 4 | ||
Pre-tax gain (loss) on early extinguishment of debt | 0 | 0 | (9) | 0 | ||
Goodwill impairment | 0 | $ 0 | $ 5 | $ 0 | ||
Floating Rate Subordinated Notes Due in 2050 | Non-Recourse Funding Obligations | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax gain (loss) on early extinguishment of debt | $ 4 | |||||
Redemption of secured debt | $ 315 | |||||
Debt instrument, maturity year | 2050 | |||||
Australia Mortgage Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill impairment | $ 3 | |||||
Segment, Continuing Operations | Australia Mortgage Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Assumed tax rate on adjustments to adjusted operating income | 30.00% | |||||
Genworth Holdings | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax make-whole expense | $ 9 | |||||
Debt instrument, maturity month and year | 2020-06 | |||||
Genworth Holdings | Senior Notes 2021 | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax gain (loss) on early extinguishment of debt | $ 4 | |||||
Aggregate principal amount of notes repurchased | $ 84 | $ 84 | ||||
Debt instrument, maturity year | 2021 |
Summary of Revenues for Segment
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,420 | $ 2,020 | $ 6,395 | $ 6,058 |
Segment, Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,420 | 2,020 | 6,395 | 6,058 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 284 | 251 | 819 | 709 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 102 | 82 | 265 | 288 |
Segment, Continuing Operations | Long-term Care Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,466 | 1,110 | 3,672 | 3,279 |
Segment, Continuing Operations | Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 333 | 347 | 1,016 | 1,101 |
Segment, Continuing Operations | Fixed Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 138 | 145 | 400 | 455 |
Segment, Continuing Operations | U.S. Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,937 | 1,602 | 5,088 | 4,835 |
Segment, Continuing Operations | Runoff | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 103 | 74 | 200 | 234 |
Segment, Continuing Operations | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (6) | $ 11 | $ 23 | $ (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 | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 418 | $ 18 | $ (89) | $ 360 | |
Add: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | |
Add: net income from discontinued operations attributable to noncontrolling interests | 0 | 30 | 0 | 101 | |
Net income (loss) | 436 | 58 | (54) | 506 | |
Less: income (loss) from discontinued operations, net of taxes | 1 | (80) | (519) | 42 | |
Income from continuing operations | 435 | 138 | 465 | 464 | |
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | |
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders | 417 | 128 | 430 | 419 | |
Net investment (gains) losses, net | [1] | (362) | (5) | (378) | (33) |
Goodwill impairment, net | [2] | 0 | 0 | 3 | 0 |
(Gains) losses on early extinguishment of debt | 0 | 0 | 9 | 0 | |
Expenses related to restructuring | 0 | 0 | 2 | 4 | |
Taxes on adjustments | 77 | 0 | 78 | 6 | |
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 132 | 123 | 144 | 396 | |
Segment, Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 132 | 123 | 144 | 396 | |
Segment, Continuing Operations | U.S. Mortgage Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 141 | 137 | 286 | 408 | |
Segment, Continuing Operations | Australia Mortgage Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 7 | 12 | 17 | 39 | |
Segment, Continuing Operations | Long-term Care Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 59 | 21 | 108 | 38 | |
Segment, Continuing Operations | Life Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | (69) | (25) | (227) | (17) | |
Segment, Continuing Operations | Fixed Annuities | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 24 | 3 | 58 | 39 | |
Segment, Continuing Operations | U.S. Life Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 14 | (1) | (61) | 60 | |
Segment, Continuing Operations | Runoff | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | 19 | 10 | 30 | 39 | |
Segment, Continuing Operations | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted operating income available to Genworth Financial, Inc.'s common stockholders | $ (49) | $ (35) | $ (128) | $ (150) | |
[1] | For the three months ended September 30, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $1 and $(3) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $12 million and $(4) million, respectively. For the nine months ended September 30, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(14) million and $(8) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $18 million and $2 million, respectively. | ||||
[2] | For the nine months ended September 30, 2020, goodwill impairment was adjusted for the portion attributable to noncontrolling interests of $2 million. |
Summary of Net Operating Inco_2
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Adjustment for DAC and other intangibles and certain benefit reserves | $ 1 | $ (3) | $ (14) | $ (8) |
Adjustment for portion attributable to noncontrolling interests | 12 | $ (4) | 18 | $ 2 |
Goodwill impairment loss attributable to noncontrolling interest | $ 2 | $ 2 |
Summary of Segments and Corpora
Summary of Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 104,925 | $ 101,342 |
Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 104,925 | 101,342 |
U.S. Mortgage Insurance | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,494 | 4,504 |
Australia Mortgage Insurance | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,601 | 2,406 |
U.S. Life Insurance | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 84,208 | 81,640 |
Runoff | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 9,901 | 9,953 |
Corporate and Other | Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,721 | $ 2,839 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) £ in Millions, $ in Millions | Jun. 08, 2020GBP (£) | Jan. 31, 2020USD ($) | Dec. 06, 2019 | Sep. 11, 2019USD ($) | Dec. 01, 2017GBP (£)Company | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Sep. 30, 2020GBP (£) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Loss contingencies actions by plaintiff | On September 11, 2019, plaintiffs filed a renewed motion seeking the same relief from their August 7, 2019 motion with an exception that allowed GFIH to transfer $450 million of expected proceeds from the sale of Genworth Canada through a dividend to Genworth Holdings to allow the pay-off of a senior secured term loan facility dated March 7, 2018 among Genworth Holdings as the borrower, GFIH as the limited guarantor and the lending parties thereto. Oral arguments on our motion to dismiss and plaintiffs’ motion occurred on October 21, 2019, and plaintiffs’ motion was denied. On January 31, 2020, the Court granted in part our motion to dismiss, dismissing claims relating to $395 million in dividends GLIC paid to its parent from 2012 to 2014 (out of the $410 million in total dividends subject to plaintiffs’ claims). The Court denied the balance of the motion to dismiss leaving a claim relating to $15 million in dividends and unquantified claims relating to the 2016 termination of a reinsurance transaction. On March 27, 2020, we filed our answer to plaintiffs’ amended complaint. We intend to continue to vigorously defend this action. | ||||||||||
Commitments to Fund Limited Partnerships | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Off-balance sheet risk | $ 1,112 | ||||||||||
Commitments to fund U.S. commercial mortgage loan investments | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Off-balance sheet risk | 11 | ||||||||||
Commitments to Fund Private Placement Investments | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Off-balance sheet risk | 115 | ||||||||||
Commitments to Fund Bank Loan Investments | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Off-balance sheet risk | $ 35 | ||||||||||
AXA Damages Hearing | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Number of insurance company sold | Company | 2 | ||||||||||
Loss Contingency, Damages Sought | £ | £ 499 | £ 28 | |||||||||
Percentage of losses sought as claims | 90.00% | ||||||||||
Payments for accruals | $ 134 | ||||||||||
Damages sought, tax gross up amount | £ | £ 117 | ||||||||||
Other Litigation | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Plaintiff's Motion Dismissed | $ 395 | ||||||||||
Loss Contingency, Damages Sought | $ 5 | $ 5 | |||||||||
Plaintiffs' motion | $ 15 | $ 410 | |||||||||
Restricted cash proceeds on sale per litigation | $ 450 |
Component of Changes in Accumul
Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ 4,447 | $ 3,013 | $ 3,433 | $ 2,044 | |
OCI before reclassifications | 3 | 626 | 1,161 | 1,779 | |
Amounts reclassified from (to) OCI | (296) | (43) | (450) | (141) | |
Total other comprehensive income (loss) | (293) | 583 | 711 | 1,638 | |
Balances before nonnontrolling interests | 4,154 | 3,596 | 4,144 | 3,682 | |
Less: change in OCI attributable to noncontrolling interests | 13 | (26) | 3 | 60 | |
Ending balance | 4,141 | 3,622 | 4,141 | 3,622 | |
Net unrealized investment (gains) losses | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | 1,811 | 1,305 | 1,456 | 595 |
OCI before reclassifications | [1] | 161 | 384 | 609 | 1,186 |
Amounts reclassified from (to) OCI | [1] | (261) | (13) | (355) | (59) |
Total other comprehensive income (loss) | [1] | (100) | 371 | 254 | 1,127 |
Balances before nonnontrolling interests | [1] | 1,711 | 1,676 | 1,710 | 1,722 |
Less: change in OCI attributable to noncontrolling interests | [1] | 0 | 1 | (1) | 47 |
Ending balance | [1] | 1,711 | 1,675 | 1,711 | 1,675 |
Derivatives qualifying as hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [2] | 2,677 | 1,983 | 2,002 | 1,781 |
OCI before reclassifications | [2] | (191) | 306 | 544 | 560 |
Amounts reclassified from (to) OCI | [2] | (35) | (30) | (95) | (82) |
Total other comprehensive income (loss) | [2] | (226) | 276 | 449 | 478 |
Balances before nonnontrolling interests | [2] | 2,451 | 2,259 | 2,451 | 2,259 |
Less: change in OCI attributable to noncontrolling interests | [2] | 0 | 0 | 0 | 0 |
Ending balance | [2] | 2,451 | 2,259 | 2,451 | 2,259 |
Foreign currency translation and other adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (41) | (275) | (25) | (332) | |
OCI before reclassifications | 33 | (64) | 8 | 33 | |
Amounts reclassified from (to) OCI | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss) | 33 | (64) | 8 | 33 | |
Balances before nonnontrolling interests | (8) | (339) | (17) | (299) | |
Less: change in OCI attributable to noncontrolling interests | 13 | (27) | 4 | 13 | |
Ending balance | $ (21) | $ (312) | $ (21) | $ (312) | |
[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 | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrecognized postretirement benefit obligation, current period OCI | $ (2) | |
Unrecognized postretirement benefit obligation, current period OCI, tax | 1 | |
Foreign currency translation and other adjustments, current period OCI, tax | $ 22 | $ (44) |
Reclassifications In (Out) of A
Reclassifications In (Out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net investment income | $ (827) | $ (816) | $ (2,406) | $ (2,426) | |
Net investment (gains) losses | (375) | 2 | (382) | (27) | |
Income taxes | 150 | 34 | 186 | 169 | |
(Income) loss from continuing operations | (435) | (138) | (465) | (464) | |
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] | (331) | (17) | (450) | (75) |
Income taxes | 70 | 4 | 95 | 16 | |
(Income) loss from continuing operations | (261) | (13) | (355) | (59) | |
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income taxes | 19 | 16 | 52 | 45 | |
(Income) loss from continuing operations | (35) | (30) | (95) | (82) | |
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 | (50) | (41) | (139) | (121) | |
Net investment (gains) losses | (4) | (4) | (8) | (6) | |
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 | $ 0 | $ (1) | $ 0 | $ 0 | |
[1] | Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) £ in Millions, $ in Millions | Jul. 20, 2020GBP (£) | Jul. 20, 2020USD ($) | Jan. 31, 2020GBP (£) | Jan. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loss Associated With Discontinued Opertions | $ 18 | ||||||
Other costs on legal settlement | 1 | $ 5 | |||||
AXA Settlement Agreement [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loss Associated With Discontinued Opertions | £ 100 | $ 125 | 21 | 537 | |||
Interest expenses | 3 | 3 | |||||
Unrelated liability | 16 | $ 16 | $ 42 | ||||
Loss Contingency Accrual, Provision | 28 | ||||||
Income (Loss) from Discontinued Operations | $ 23 | ||||||
AXA Damages - Interim Payment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Payments for accruals | £ 100 | $ 134 | |||||
Discontinued Operations [Member] | AXA Settlement Agreement [Member] | Promissory Note [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Debt instrument interest rate | 5.25% | 5.25% | |||||
Proceeds from Issuance of debt gross | $ 750 | ||||||
Debt Instrument, Interest Rate Decrease | 2.75% | 2.75% | |||||
Percent Of Security Interest Pledged | 19.90% | 19.90% | |||||
Proceeds from Issuance or Sale of Equity | $ 475 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Liabilities related to Discontinued Operations (Detail) - AXA Settlement Agreement - Promissory Note [Member] £ in Millions, $ in Millions | 9 Months Ended | ||
Sep. 30, 2020GBP (£) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Installment payments due to AXA: | |||
June 2022 | £ 159 | $ 206 | |
Beginning balance | 158 | $ 205 | |
Amounts billed as future losses | 29 | 38 | |
Ending balance | 187 | 243 | |
Total amounts due under the promissory note | 346 | 449 | |
Future claims: | |||
Estimated beginning balance | 107 | 138 | |
Less: Amounts billed to date | (29) | (38) | |
Estimated future billings | 78 | $ 100 | |
Total amounts due to AXA under the settlement agreement | £ 424 | $ 549 |