Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-32630 | ||
Entity Registrant Name | FIDELITY NATIONAL FINANCIAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 16-1725106 | ||
Entity Address, Address Line One | 601 Riverside Avenue | ||
Entity Address, City or Town | Jacksonville | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32204 | ||
City Area Code | 904 | ||
Local Phone Number | 854-8100 | ||
Title of 12(b) Security | FNF Common Stock, $0.0001 par value | ||
Trading Symbol | FNF | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,507,709,079 | ||
Entity Common Stock, Shares Outstanding | 291,168,384 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001331875 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: December 31, 2020 - $25,577; December 31, 2019 - $2,029 and allowance for expected credit losses: December 31, 2020 - $701; December 31, 2019 - $0) | $ 27,587 | $ 2,090 |
Derivative investments | 548 | 0 |
Mortgage loans, net of allowance for credit losses of $39 at December 31, 2020 | 2,031 | 0 |
Investments in unconsolidated affiliates | 1,294 | 131 |
Other long-term investments | 482 | 153 |
Short-term investments, at December 31, 2020 and December 31, 2019 includes pledged short-term investments of $1 and $12, respectively, related to secured trust deposits | 769 | 876 |
Total investments | 35,047 | 4,384 |
Cash and cash equivalents, at December 31, 2020 and December 31, 2019 includes $270 and $384, respectively, of pledged cash related to secured trust deposits | 2,719 | 1,376 |
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 437 | 346 |
Reinsurance recoverable, net of allowance for credit losses of $21 at December 31, 2020 | 3,211 | 0 |
Goodwill | 4,495 | 2,727 |
Prepaid expenses and other assets | 997 | 432 |
Lease assets | 374 | 410 |
Other intangible assets, net | 2,264 | 422 |
Title plants | 404 | 404 |
Property and equipment, net | 180 | 176 |
Assets of discontinued operations | 327 | 0 |
Total assets | 50,455 | 10,677 |
Liabilities: | ||
Contractholder funds | 28,718 | 0 |
Future policy benefits | 4,010 | 0 |
Accounts payable and accrued liabilities | 2,402 | 1,094 |
Notes payable | 2,662 | 838 |
Reserve for title claim losses | 1,623 | 1,509 |
Funds withheld for reinsurance liabilities | 806 | 0 |
Secured trust deposits | 711 | 791 |
Lease liabilities | 414 | 442 |
Income taxes payable | 56 | 10 |
Deferred tax liability | 300 | 284 |
Liabilities of discontinued operations | 361 | 0 |
Total liabilities | 42,063 | 4,968 |
Commitments and Contingencies | ||
Redeemable non-controlling interest by 21% minority holder of ServiceLink Holdings, LLC (see Note R) | 0 | 344 |
Equity: | ||
FNF common stock, $0.0001 par value; authorized 600,000,000 shares as of December 31, 2020 and December 31, 2019; outstanding of 291,448,627 and 275,563,436 as of December 31, 2020 and December 31, 2019, respectively, and issued of 322,622,948 and 292,236,476 as of December 31, 2020 and December 31, 2019, respectively | 0 | 0 |
Preferred stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding, none | 0 | 0 |
Additional paid-in capital | 5,720 | 4,581 |
Retained earnings | 2,394 | 1,356 |
Accumulated other comprehensive earnings | 1,304 | 43 |
Less: Treasury stock, 31,174,321 shares and 16,673,040 shares as of December 31, 2020 and December 31, 2019, respectively, at cost | (1,067) | (598) |
Total Fidelity National Financial, Inc. shareholders’ equity | 8,351 | 5,382 |
Non-controlling interests | 41 | (17) |
Total equity | 8,392 | 5,365 |
Total liabilities, redeemable non-controlling interest and equity | 50,455 | 10,677 |
Preferred securities | ||
Investments: | ||
Securities, at fair value | 1,341 | 323 |
Equity securities | ||
Investments: | ||
Securities, at fair value | $ 995 | $ 811 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Available for sale securities, allowance for credit losses | $ 19,000,000 | $ 0 |
Available-for-sale securities, pledged securities, secured trust deposits | 455,000,000 | 410,000,000 |
Allowance for credit loss | 39,000,000 | |
Short-term investments, pledged, secured trust deposits | 1,000,000 | 12,000,000 |
Cash, pledged, secured trust deposits | 270,000,000 | 384,000,000 |
Allowance for doubtful accounts, premiums and other receivables | 28,000,000 | $ 20,000,000 |
Expected credit losses on reinsurance recoverable | $ 21,000,000 | |
Common stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares, outstanding (in shares) | 291,448,627 | 275,563,436 |
Common stock, shares, issued (in shares) | 322,622,948 | 292,236,476 |
Treasury stock (in shares) | 31,174,321 | 16,673,040 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Direct title insurance premiums | $ 2,699 | $ 2,381 | $ 2,221 |
Agency title insurance premiums | 3,599 | 2,961 | 2,690 |
Escrow, title-related and other fees | 3,092 | 2,584 | 2,615 |
Interest and investment income | 900 | 225 | 177 |
Recognized gains and losses, net | 488 | 318 | (109) |
Total revenues | 10,778 | 8,469 | 7,594 |
Expenses: | |||
Personnel costs | 2,951 | 2,696 | 2,538 |
Agent commissions | 2,749 | 2,258 | 2,059 |
Other operating expenses | 1,759 | 1,681 | 1,801 |
Benefits and other changes in policy reserves | 866 | 0 | 0 |
Depreciation and amortization | 296 | 178 | 182 |
Provision for title claim losses | 283 | 240 | 221 |
Interest expense | 90 | 47 | 43 |
Total expenses | 8,994 | 7,100 | 6,844 |
Earnings from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 1,784 | 1,369 | 750 |
Income tax expense | 322 | 308 | 120 |
Earnings before equity in earnings of unconsolidated affiliates | 1,462 | 1,061 | 630 |
Equity in earnings of unconsolidated affiliates | 15 | 15 | 5 |
Net earnings from continuing operations | 1,477 | 1,076 | 635 |
Net loss from discontinued operations, net of tax | (25) | 0 | 0 |
Net earnings | 1,452 | 1,076 | 635 |
Less: Net earnings attributable to non-controlling interests | 25 | 14 | 7 |
Net earnings attributable to Fidelity National Financial, Inc. common shareholders | $ 1,427 | $ 1,062 | $ 628 |
Basic | |||
Net earnings from continuing operations attributable to FNF commons shareholders (in usd per share) | $ 5.11 | $ 3.89 | $ 2.30 |
Net loss from discontinued operations attributable to FNF common shareholders (in usd per share) | (0.09) | 0 | 0 |
Net earnings per share attributable to FNF common shareholders, basic (in usd per share) | 5.02 | 3.89 | 2.30 |
Diluted | |||
Net earnings from continuing operations attributable to FNF commons shareholders (in usd per share) | 5.08 | 3.83 | 2.26 |
Net loss from discontinued operations attributable to FNF common shareholders (in usd per share) | (0.09) | 0 | 0 |
Net earnings per share attributable to FNF common shareholders, diluted (in usd per share) | $ 4.99 | $ 3.83 | $ 2.26 |
Weighted average shares outstanding FNF common stock, basic basis (in shares) | 284 | 273 | 273 |
Weighted average shares outstanding FNF common stock, diluted basis (in shares) | 286 | 277 | 278 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 1,452 | $ 1,076 | $ 635 | |
Other comprehensive earnings: | ||||
Unrealized gain (loss) on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | [1] | 1,310 | 56 | (11) |
Unrealized gain on investments in unconsolidated affiliates | [2] | 3 | 5 | 3 |
Unrealized gain (loss) on foreign currency translation | [3] | 10 | 4 | (8) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings | [4] | (73) | (9) | 0 |
Change in reinsurance liabilities held at fair value resulting from change in instrument-specific credit risk | [5] | (3) | 0 | 0 |
Minimum pension liability adjustment | [6] | 14 | 0 | 1 |
Other comprehensive earnings | 1,261 | 56 | (15) | |
Comprehensive earnings | 2,713 | 1,132 | 620 | |
Less: Comprehensive earnings attributable to non-controlling interests | 25 | 14 | 7 | |
Comprehensive earnings attributable to Fidelity National Financial, Inc. common shareholders | $ 2,688 | $ 1,118 | $ 613 | |
[1] | Net of income tax expense (benefit) of $350 million, $17 million, and $(4) million for the years ended December 31, 2020, 2019, and 2018, respectively. | |||
[2] | Net of income tax expense of $1 million, $2 million, and $1 million for the years ended December 31, 2020, 2019, and 2018, respectively. | |||
[3] | Net of income tax expense (benefit) of $1 million, $1 million, and $(2) million for the years ended December 31, 2020, 2019, and 2018, respectively. | |||
[4] | Net of income tax expense $18 million and $3 million for the years ended December 31, 2020 and 2019, respectively. | |||
[5] | Net of income tax benefit of $1 million for the year ended December 31, 2020. | |||
[6] | Net of income tax expense of $4 million and less than $1 million for the years ended December 31, 2020 and December 31, 2018, respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Statement of Comprehensive Income [Abstract] | |||||
Unrealized gain (loss) on investments and other financial instruments, tax expense (benefit) | [1] | $ 350 | $ 17 | $ (4) | |
Unrealized gain on investments in unconsolidated affiliates tax expense | [2] | 1 | 2 | 1 | |
Unrealized gain (loss) foreign currency translation, tax expense (benefit) | [3] | 1 | 1 | (2) | |
Reclassification adjustments for change in unrealized gains and losses included in net earnings, tax expense | (18) | $ (3) | |||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk, tax (benefit) | (1) | ||||
Minimum pension liability adjustment, tax expense (less than for 2018) | $ 4 | [4] | $ 1 | ||
[1] | Net of income tax expense (benefit) of $350 million, $17 million, and $(4) million for the years ended December 31, 2020, 2019, and 2018, respectively. | ||||
[2] | Net of income tax expense of $1 million, $2 million, and $1 million for the years ended December 31, 2020, 2019, and 2018, respectively. | ||||
[3] | Net of income tax expense (benefit) of $1 million, $1 million, and $(2) million for the years ended December 31, 2020, 2019, and 2018, respectively. | ||||
[4] | Net of income tax expense of $4 million and less than $1 million for the years ended December 31, 2020 and December 31, 2018, respectively. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Earnings (Loss) | Accumulated Other Comprehensive Earnings (Loss)Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Non-controlling Interest | ||
Beginning balance at Dec. 31, 2017 | $ 4,467 | $ 19 | $ 0 | $ 4,587 | $ 217 | $ 128 | $ 111 | $ (109) | $ (468) | $ 20 | ||
Beginning balance (in shares) at Dec. 31, 2017 | 288 | 13 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 1 | |||||||||||
Exercise of stock options | 19 | 19 | ||||||||||
Issuance of restricted stock (in shares) | 1 | |||||||||||
Treasury stock repurchased | (21) | $ (21) | ||||||||||
Treasury stock repurchased (in shares) | 1 | |||||||||||
Other comprehensive earnings/gain (loss) - unrealized gain on investments and other financial instruments | (11) | (11) | ||||||||||
Other comprehensive earnings - unrealized gain (loss) on investments in unconsolidated affiliates | 3 | [1] | 3 | |||||||||
Other comprehensive earnings - unrealized (loss) gain on foreign currency translation | (8) | [2] | (8) | |||||||||
Other comprehensive earnings - minimum pension liability adjustment | 1 | 1 | ||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | [3] | 0 | ||||||||||
Stock-based compensation | 31 | 31 | ||||||||||
Shares withheld for taxes and in treasury | (9) | $ (9) | ||||||||||
Debt conversions settled in cash | (134) | (134) | ||||||||||
Dilution resulting from subsidiary equity/Purchase of ServiceLink noncontrolling interest | 2 | (3) | 5 | |||||||||
Dividends declared | (330) | (330) | ||||||||||
Subsidiary dividends declared to non-controlling interests | (10) | (10) | ||||||||||
Pacific Union Sale | (25) | (25) | ||||||||||
Other equity activity | (1) | (2) | 1 | |||||||||
Change in reinsurance liabilities held at fair value resulting from change in instrument-specific credit risk | [4] | 0 | ||||||||||
Net earnings | 635 | 628 | 7 | |||||||||
Ending balance at Dec. 31, 2018 | 4,628 | $ 0 | 4,500 | 641 | (13) | $ (498) | (2) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 290 | 14 | ||||||||||
Beginning Balance at Dec. 31, 2017 | 344 | |||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||
Purchase of ServiceLink noncontrolling interest | 0 | |||||||||||
Ending Balance at Dec. 31, 2018 | 344 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 2 | |||||||||||
Exercise of stock options | 39 | 39 | ||||||||||
Treasury stock repurchased | (85) | $ (85) | ||||||||||
Treasury stock repurchased (in shares) | 2 | |||||||||||
Other comprehensive earnings/gain (loss) - unrealized gain on investments and other financial instruments | 56 | 56 | ||||||||||
Other comprehensive earnings - unrealized gain (loss) on investments in unconsolidated affiliates | 5 | [1] | 5 | |||||||||
Other comprehensive earnings - unrealized (loss) gain on foreign currency translation | 4 | [2] | 4 | |||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | (9) | [3] | (9) | |||||||||
Stock-based compensation | 38 | 38 | ||||||||||
Purchase of additional interest in consolidated subsidiaries | (14) | 4 | (18) | |||||||||
Shares withheld for taxes and in treasury | (15) | $ (15) | ||||||||||
Shares withheld for taxes in treasury (in shares) | 1 | |||||||||||
Dividends declared | (347) | (347) | ||||||||||
Subsidiary dividends declared to non-controlling interests | (11) | (11) | ||||||||||
Change in reinsurance liabilities held at fair value resulting from change in instrument-specific credit risk | [4] | 0 | ||||||||||
Net earnings | 1,076 | 1,062 | 14 | |||||||||
Ending balance at Dec. 31, 2019 | 5,365 | $ 0 | 4,581 | 1,356 | 43 | $ (598) | (17) | |||||
Ending balance (in shares) at Dec. 31, 2019 | 292 | 17 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||
Purchase of ServiceLink noncontrolling interest | 0 | |||||||||||
Ending Balance at Dec. 31, 2019 | 344 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 3 | |||||||||||
Exercise of stock options | 62 | 62 | ||||||||||
Issuance of restricted stock (in shares) | 2 | |||||||||||
Treasury stock repurchased | (244) | $ (244) | ||||||||||
Treasury stock repurchased (in shares) | (7) | |||||||||||
Other comprehensive earnings/gain (loss) - unrealized gain on investments and other financial instruments | 1,310 | 1,310 | ||||||||||
Other comprehensive earnings - unrealized gain (loss) on investments in unconsolidated affiliates | 3 | [1] | 3 | |||||||||
Other comprehensive earnings - unrealized (loss) gain on foreign currency translation | 10 | [2] | 10 | |||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | (73) | [3] | (73) | |||||||||
Stock-based compensation | 39 | 39 | ||||||||||
Shares withheld for taxes and in treasury | (8) | $ (8) | ||||||||||
Dilution resulting from subsidiary equity/Purchase of ServiceLink noncontrolling interest | 258 | 211 | 47 | |||||||||
Dividends declared | (389) | (389) | ||||||||||
Subsidiary dividends declared to non-controlling interests | (14) | (14) | ||||||||||
F&G Acquisition (in shares) | 25 | 7 | ||||||||||
F&G Acquisition | 610 | 827 | $ (217) | |||||||||
Change in reinsurance liabilities held at fair value resulting from change in instrument-specific credit risk | (3) | [4] | (3) | |||||||||
Net earnings | 1,452 | 1,427 | 25 | |||||||||
Ending balance at Dec. 31, 2020 | 8,392 | $ 0 | $ 5,720 | $ 2,394 | $ 1,304 | $ (1,067) | $ 41 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 322 | 31 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||
Purchase of ServiceLink noncontrolling interest | (344) | |||||||||||
Ending Balance at Dec. 31, 2020 | $ 0 | |||||||||||
[1] | Net of income tax expense of $1 million, $2 million, and $1 million for the years ended December 31, 2020, 2019, and 2018, respectively. | |||||||||||
[2] | Net of income tax expense (benefit) of $1 million, $1 million, and $(2) million for the years ended December 31, 2020, 2019, and 2018, respectively. | |||||||||||
[3] | Net of income tax expense $18 million and $3 million for the years ended December 31, 2020 and 2019, respectively. | |||||||||||
[4] | Net of income tax benefit of $1 million for the year ended December 31, 2020. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net earnings | $ 1,452 | $ 1,076 | $ 635 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 296 | 178 | 182 |
Equity in earnings of unconsolidated affiliates | (15) | (15) | (5) |
Loss on sales of investments and other assets and asset impairments, net | 80 | 10 | 18 |
Gain on Pacific Union Sale | 9 | 0 | (4) |
Interest credited/index credits to contractholder account balances | 750 | 0 | 0 |
Deferred policy acquisition costs and deferred sales inducements | (266) | 0 | 0 |
Charges assessed to contractholders for mortality and administration | (100) | 0 | 0 |
Non-cash lease costs | 150 | 147 | 0 |
Operating lease payments | (152) | (149) | 0 |
Distributions from unconsolidated affiliates, return on investment | 0 | 5 | 6 |
Stock-based compensation cost | 39 | 38 | 31 |
Change in valuation of derivatives, equity and preferred securities, net | (568) | (328) | 95 |
Changes in assets and liabilities, net of effects from acquisitions: | |||
Change in reinsurance recoverable | 40 | 0 | 0 |
Change in future policy benefits | (92) | 0 | 0 |
Change in funds withheld from reinsurers | (15) | 0 | 0 |
Net (increase) decrease in trade receivables | (83) | (36) | 15 |
Net increase (decrease) in reserve for title claim losses | 114 | 21 | (2) |
Net change in income taxes | 24 | 53 | (83) |
Net change in other assets and other liabilities | (85) | 121 | 55 |
Net cash provided by (used in) operating activities | 1,578 | 1,121 | 943 |
Cash Flows From Investing Activities: | |||
Proceeds from calls and maturities of investment securities | 3,592 | 831 | 1,193 |
Proceeds from sales of property and equipment | 9 | 4 | 21 |
Fundings of Cannae Holdings Inc. note receivable | 0 | (200) | 0 |
Proceeds from repayments of Cannae Holdings Inc. note receivable | 0 | 200 | 0 |
Additions to property and equipment and capitalized software | (110) | (96) | (83) |
Purchases of investment securities | (4,959) | (867) | (1,313) |
Net proceeds from (purchases of) sales and maturities of short-term investment securities | 145 | (395) | (185) |
F&G acquisition | (1,076) | 0 | 0 |
Other acquisitions/disposals of businesses, net of cash acquired/disposed | 158 | (1) | 3 |
Additional investments in unconsolidated affiliates | (327) | (34) | (62) |
Distributions from unconsolidated affiliates, return of investment | 241 | 46 | 73 |
Net other investing activities | (4) | (8) | (1) |
Net cash provided by (used in) investing activities | (2,331) | (520) | (354) |
Cash Flows From Financing Activities: | |||
Draw on revolving credit facility | 1,000 | 0 | 442 |
Debt offering | 1,246 | 0 | 0 |
Debt costs/equity issuance additions | (22) | 0 | 0 |
Debt service payments | (1,000) | 0 | (370) |
Equity portion of debt conversions paid in cash | 0 | 0 | (142) |
Dividends paid | (389) | (344) | (328) |
Subsidiary dividends paid to non-controlling interest shareholders | (14) | (11) | (10) |
Exercise of stock options | 62 | 39 | 19 |
Net change in secured trust deposits | (80) | (31) | (8) |
Purchase of additional share in consolidated subsidiaries | (90) | (3) | 0 |
Payment of contingent consideration for prior period acquisitions | (13) | (21) | (13) |
Payment for shares withheld for taxes and in treasury | (8) | (15) | (9) |
Contractholder account deposits | 2,967 | 0 | 0 |
Contractholder account withdrawals | (1,327) | 0 | 0 |
Purchases of treasury stock | (236) | (86) | (20) |
Other financing activity | 0 | (10) | (3) |
Net cash provided by (used in) financing activities | 2,096 | (482) | (442) |
Net increase in cash and cash equivalents | 1,343 | 119 | 147 |
Cash and cash equivalents at beginning of period | 1,376 | 1,257 | 1,110 |
Cash and cash equivalents at end of period | $ 2,719 | $ 1,376 | $ 1,257 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies The following describes the business and significant accounting policies of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” the "Company" or “FNF”), which have been followed in preparing the accompanying Consolidated Financial Statement s. Description of the Business We are a leading provider of (i) title insurance, escrow and other title-related services, including trust activities, trustee sales guarantees, recordings and reconveyances and home warranty products, (ii) technology and transaction services to the real estate and mortgage industries and (iii) annuity and life insurance products. FNF is one of the nation’s largest title insurance companies operating through its title insurance underwriters - Fidelity National Title Insurance Company ("FNTIC"), Chicago Title Insurance Company ("Chicago Title"), Commonwealth Land Title Insurance Company ("Commonwealth Title"), Alamo Title Insurance and National Title Insurance of New York Inc. - which collectively issue more title insurance policies than any other title company in the United States. Through our wholly-owned subsidiary, ServiceLink Holdings, LLC ("ServiceLink"), we provide mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. We are also a provider of annuity and life insurance products, providing deferred annuities, including fixed indexed annuities ("FIA"), fixed rate annuities, and immediate annuities and indexed universal life ("IUL") insurance through our wholly-owned subsidiary, FGL Holdings ("F&G"). For information about our reportable segments refe r to Note J Seg ment Information . Recent Developments Subscription Agreements with Acrobat Holdings, Inc., now known as Alight, Inc. ("Alight") and Foley Trasimene Acquisition Corp. ("FTAC") On January 25, 2021, each of our wholly-owned subsidiaries, FNTIC, Commonwealth Title and Chicago Title (collectively, the "FTAC Subscribers") entered into common stock subscription agreements (the "FTAC Subscription Agreements") with Alight and FTAC to purchase in the aggregate $150 million (the "Alight Purchase Price") of Class A Common Stock, par value $.001 per share, of Alight at a purchase price of $10.00 per share. The proceeds from the FTAC Subscription Agreements will be used to partially fund the cash consideration to be paid by FTAC to Tempo Holding Company, LLC ("Tempo") upon the closing of the transactions contemplated by the Business Combination Agreement, dated January 25, 2021, by and among Alight, FTAC, and other parties thereto. The closing of the transactions is expected to occur in the second quarter of 2021. Upon the closing of the transactions, the FTAC Subscribers are expected to hold approximately 2.8% of Alight's outstanding Class A Common Stock. Additionally, Alight has agreed to pay the FTAC Subscribers a fee of 2.5% of the Alight Purchase price upon closing of the transactions. The FTAC Subscription Agreements are with a related party as we share certain members of our Board of Directors with FTAC . Subscription Agreements with Paysafe Limited ("Paysafe") and Foley Trasimene Acquisition Corp. II ("FTAC II") On December 7, 2020, each of our wholly-owned subsidiaries, FNTIC, Commonwealth Title, Chicago Title and F&G (collectively, the "FTAC II Subscribers") entered into common stock subscription agreements (the "FTAC II Subscription Agreements") with Paysafe and FTAC II to purchase in the aggregate $500 million (the "Purchase Price") of common shares, par value $.001 per share, of Paysafe at a purchase price of $10.00 per share. The proceeds from the FTAC II Subscription Agreements will be used to partially fund the cash consideration to be paid by FTAC II to Paysafe Group Holdings Limited ("PGHL"), which is contingent upon the closing of the transactions contemplated by the Agreement and Plan of Merger, dated December 7, 2020, by and among Paysafe, FTAC II, PGHL and other parties thereto. The closing of the transactions are expected to occur in the first half of 2021. Upon the closing of the transactions, the FTAC II Subscribers are expected to hold approximately 7% of Paysafe's outstanding common shares. Additionally, Paysafe has agreed to pay the FTAC II Subscribers a fee of 1.6% of the Purchase Price upon the closing of the transactions. As of December 31, 2020, the fair value of the subscription agreements was $199 million, which is included in Equity securities in the accompanying Consolidated Balance Sheets. The corresponding unrealized gain of $199 million is included in Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings for the year ended December 31, 2020. The FTAC II subscription agreements are with a related party as we share a common director with FTAC II. For further information related to our subscription agreements, refer to Note D Fair Value of Financial Instruments , Note E Investments and Note H Commitments and Contingencies . Termination of F&G Credit Agreement On October 29, 2020, we terminated our $250 million senior unsecured revolving credit facility with Royal Bank of Canada, as administrative agent, and a maturity date of November 30, 2020 (the "F&G Credit Agreement"), which we assumed in connection with our acquisition of F&G on June 1, 2020. Amendment to our Revolving Credit Facility On October 29, 2020, we entered into a Fifth Amended and Restated Credit Agreement for our $800 million revolving credit facility (the "Amended Revolving Credit Facility") with Bank of America, N.A., as administrative agent and other agents party thereto (the "Fifth Restated Credit Agreement"). For further information related to the Amended Revolving Credit Facility and the Fifth Restated Credit Agreement refer to Note G Notes Payable . 2.45% Senior Notes On September 15, 2020, we completed our underwritten public offering of $600 million aggregate principal amount of our 2.45% Notes due March 15, 2031 (the "2.45% Notes"), pursuant to our registration statement on Form S-3 (File No. 333-239002) and the related prospectus supplement. The net proceeds from the registered offering of the 2.45% Notes were approximately $593 million, after deducting underwriting discounts, commissions and offering expenses. We used the net proceeds from the offering (i) to repay all outstanding of our $260 million indebtedness under our term loan credit agreement, dated April 22, 2020, among us, as borrower, each lender from time to time party thereto, as lenders, and Bank of America, N.A., as administrative agent (the "Term Loan"), which we entered into to fund a portion of the acquisition of F&G, and (ii) for general corporate purposes. For further information related to the Term Loan and the 2.45% Notes refer to Note G Notes Payable. 3.40% Senior Notes On June 12, 2020, we completed our underwritten public offering of $650 million aggregate principal amount of our 3.40% Notes due June 15, 2030 (the “3.40% Notes”), pursuant to our registration statement on Form S-3 (File No. 333-239002) and the related prospectus supplement. The net proceeds from the registered offering of the 3.40% Notes were approximately $642 million, after deducting underwriting discounts, commissions and offering expenses. We used the net proceeds from the offering to repay $640 million of the outstanding principal amount under the Term Loan Agreement. For further information related to the Term Loan and the 3.40% Notes refer to Note G Notes Payable. Acquisition of F&G On June 1, 2020, we completed the acquisition of F&G for approximately $2.7 billion pursuant to the Agreement and Plan of Merger, dated February 7, 2020, as amended (the "Merger Agreement"). For additional information on our acquisition of F&G refer to Note B Acquisitions . Term Loan In connection with the acquisition of F&G, on April 22, 2020, we entered into the Term Loan, which provides for an aggregate principal borrowing of $1.0 billion (the "Term Loan Agreement") with Bank of America, N.A., as administrative agent (in such capacity, the "Administrative Agent"), JPMorgan Chase Bank, N.A., as syndication agent, and the other lenders party thereto from time to time (the “Term Lenders”), pursuant to which the Term Lenders provided the $1.0 billion delayed draw Term Loan. On June 1, 2020, we drew down the full $1.0 billion in aggregate borrowing under the Term Loan to fund a portion of the acquisition of F&G. On June 12, 2020 we repaid $640 million of principal on the Term Loan. On July 31, 2020, we repaid an additional $100 million of principal. On September 15, 2020, we repaid the remaining $260 million of principal under the Term Loan. As of December 31, 2020, we had no principal outstanding under the Term Loan. For further information related to the Term Loan refer to Note G Notes Payable. Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and include our accounts as well as our wholly-owned and majority-owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. Our investments in non-majority-owned partnerships and affiliates are accounted for using the equity method until such time that they become wholly or majority-owned. Earnings attributable to noncontrolling interests are recorded on the Consolidated Statements of Earnings relating to majority-owned subsidiaries with the appropriate noncontrolling interest that represents the portion of equity not related to our ownership interest recorded on the Consolidated Balance Sheets in each period. We are also involved in certain entities that are considered variable interest entities ("VIEs") as defined under GAAP. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our relationships to determine if we have the ability to direct the activities, or otherwise exert control, to evaluate if we are the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our Consolidated Financial Statements. See Note E Investments for additional information on our investments in VIEs. I nvestments Fixed Maturity Securities Available for Sale Fixed maturity securities are purchased to support our investment strategies, which are developed based on factors including rate of return, maturity, credit risk, duration, tax considerations and regulatory requirements. Our investments in fixed maturity securities have been designated as available-for-sale and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within accumulated other comprehensive income (loss) ("AOCI"), net of associated adjustments for deferred acquisition costs ("DAC"), value of business acquired ("VOBA"), deferred sales inducements ("DSI"), unearned revenue ("UREV"), SOP 03-1 reserves, and deferred income taxes. Fair values for fixed maturity securities are principally a function of current market conditions and are valued based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly. We recognize investment income on fixed maturities based on the interest method, which results in the recognition of a constant rate of return on the investment equal to the prevailing rate at the time of purchase or at the time of subsequent adjustments of book value. Changes in prepayment ass umptions are accounted for prospectively. In our title segment, Realized gains and losses on sales of our fixed maturity securitie s are determined on the basis of the cost of the specific investments sold and are credited or charged to income on a trade date basis. Our F&G segment uses FIFO cost basis and generally records security transactions on a trade date basis except for private placements, which are recorded on a settlement date basis. Realized gains and losses on sales of fixed maturity securities are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. For details on our policy around allowance for expected credit losses on available-for-sale securities, refer to Note E Investments. Preferred and Equity Securities Equity and prefer red securities held are carried at fair value as of the balance sheet dates. The fair values of our equity and preferred securities are based on quoted prices in active markets, or are valued based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly. Changes in fair value and realized gains and losses on sales of our preferred and equity securities are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. Recognized gains and losses on sales of our preferred and equity securities are credited or charged to income on a trade date basis, unless the security is a private placement in which case settlement date basis is used. Derivative Financial Instruments In our F&G segment, we hedge certain portions of our exposure to product related equity market risk by entering into derivative transactions (primarily call options). All such derivative instruments are recognized as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. The changes in fair value are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. We purchase financial instruments and issue products that may contain embedded derivative instruments. If it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract for measurement purposes. The embedded derivative is carried at fair value, which is determined through a combination of market observable inputs such as market value of option and interest swap rates and unobservable inputs such as the mortality multiplier, surrender and withdrawal rates and non-performance spread. The changes in fair value are reported within Benefits and other changes in policy reserves in the accompanying Consolidated Statements of Earnings. See a description of the fair value methodology used in Note D Fair Value of Financial Instruments . Reinsurance Related Embedded Derivatives As discussed in Note P Reinsurance , F&G has a reinsurance agreement with Kubera, to cede certain MYGA and deferred annuity statutory reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. Funds withheld arrangements allow the Company to retain legal ownership of assets backing reinsurance arrangements until they are earned by the reinsurer while passing credit risk associated with the assets in the funds withheld account to the reinsurer. These arrangements create embedded derivatives considered to be total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, are passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. These total return swaps are not clearly and closely related to the underlying reinsurance contract and thus require bifurcation. The reinsurance related embedded derivative is reported in Prepaid expenses and other assets if in a net gain position, or Accounts payable and accrued liabilities, if in a net loss position on the Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains (losses) on the Consolidated Statements of Earnings. Mortgage Loans Our investment in mortgage loans consists of commercial and residential mortgage loans on real estate, which are reported at amortized cost, less allowance for expected credit losses. For details on our policy around allowance for expected credit losses on mortgage loans, refer to Note E Investments . Commercial mortgage loans are continuously monitored by reviewing appraisals, operating statements, rent revenues, annual inspection reports, loan specific credit quality, property characteristics, market trends and other factors. Commercial mortgage loans are rated for the purpose of quantifying the level of risk. Loans are placed on a watch list when the debt service coverage ("DSC") ratio falls below and the loan-to-value ("LTV") ratios exceeds certain thresholds. Loans on the watchlist are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. We define delinquent mortgage loans as 30 days past due, consistent with industry practice. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. We define nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status, which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. We consider residential mortgage loans that are 90 or more days past due and have an LTV greater than 90% to be foreclosure probable. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Loan origination fees and direct costs, as well as premiums and discounts, are amortized as level yield adjustments over the respective loan terms. Unamortized net fees or costs are recognized upon early repayment of the loans. Loan commitment fees are deferred and amortized on an effective yield basis over the term of the loan. Short-term investments Short-term inve stments consist primarily of money market instruments, which are carried at fair value, and commercial paper, which have an original maturity of one year or less and are carried at amortized cost, which approximates fair value. Investments in Unconsolidated Affiliates In our F&G segment, we account for our investments in unconsolidated affiliates (primarily limited partnership interests) using the equity method and use net asset value ("NAV") as a practical expedient to determine the carrying value. Income from investments in unconsolidated affiliates is included within Interest and investment income in the accompanying Consolidated Statements of Earnings. Recognition of income is delayed due to the availability of the related financial statements, which are obtained from the general partner generally on a one to three-month delay. Management meets quarterly with the general partner to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. In our title business we account for our Investments in unconsolidated affiliates using the equity method of accounting, earnings on our investments in unconsolidated affiliates are recorded within Equity in earnings of unconsolidated affiliates within the Consolidated Statements of Earnings. Interest and investment income Dividends and interest income are recorded in Interest and investment income and recognized when earned. Income or losses upon call or prepayment of fixed maturity securities are recognized in Interest and investment income. Amortization of premiums and accretion of discounts on investments in fixed maturity securities are reflected in Interest and investment income over the contractual terms of the investments, and for callable investments at a premium, based on the earliest call date of the investments, in a manner that produces a constant effective yield. For mortgage-backed and asset-backed securities, included in the fixed maturity securities portfolios, we recognize income using a constant effective yield based on anticipated cash flows and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the effective yield is generally recalculated prospectively to reflect actual payments to date plus anticipated future payments. Any adjustments resulting from changes in effective yield are reflected in Interest and investment income. Interest and investment income is presented net of earned investment management fees. Cash and Cash Equivalents Highly liquid instruments purchased as part of cash management with original maturities of three months or less are considered cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair value. Trade and Notes Receivables The carrying values reported in the Consolidated Balance Sheets for trade and notes receivables approximate their fair value. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete and reported to us. Premium revenues from agency operations and related commissions include an accrual based on estimated historical transaction volume data for policies that have closed in a particular period in which premiums have not yet been reported to us. Historically, the time lag between the closing of these transactions by our agents and the reporting of these policies, or premiums, to us has been up to 15 months, with 74% - 89% reported within three months following closing, an additional 10% - 24% reported within the next three months and the remainder within seven fifteen Fair Value of Financial Instruments The fair values of financial instruments presented in the Consolidated Financial Statements are estimates of the fair values at a specific point in time using available market information and appropriate valuation methodologies. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. See a description of the fair value methodology used in Note D Fair Value of Financial Instruments . Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations, requires an acquirer to recognize, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree, and to measure these items generally at their acquisition date fair values. Goodwill is recorded as the residual amount by which the purchase price exceeds the fair value of the net assets acquired. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we are required to report provisional amounts in the financial statements for the items for which the accounting is incomplete. Adjustments to provisional amounts initially recorded that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we are also required to recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the acquisition date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. Contingent consideration liabilities or receivables recorded in connection with business acquisitions must also be adjusted for changes in fair value until settled. Goodwill Goodwill represents the excess of cost over fair value of identifiable net assets acquired and assumed in a business combination. Goodwill and other intangible assets with indefinite useful lives are reviewed for impairment at the reporting unit level on an annual basis or more frequently if circumstances indicate potential impairment, through a comparison of fair value to the carrying amount. In evaluating the recoverability of goodwill, we perform an annual goodwill impairment analysis based on a review of qualitative factors to determine if events and circumstances exist, which will lead to a determination that the fair value of a reporting unit is greater than its carrying amount, prior to performing a full fair-value assessment. We completed annual goodwill impairment analyses in the fourth quarter of each period presented using a September 30 measurement date. For the years ended December 31, 2020 and 2019, we determined there were no events or circumstances which indicated that the carrying value of a reporting unit exceeded the fair value. We recorded $3 million of goodwill impairment related to a real estate brokerage reporting unit in our Corporate and other segment in the year ended December 31, 2018. VOBA, VODA, DAC and DSI Our intangible assets include an intangible asset reflecting the value of insurance and reinsurance contracts acquired (hereafter referred to as the value of business acquired (“VOBA”), deferred acquisition costs (“DAC”), deferred sales inducements (“DSI”), internally developed software, trademarks and state licenses. VOBA is an intangible asset that reflects the amount recorded as insurance contract liabilities less the estimated fair value of in-force contracts (“VIF”) in a life insurance company acquisition. It represents the portion of the purchase price that is allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. VOBA is a function of the VIF, current GAAP reserves, GAAP assets, and deferred tax liability. The VIF is determined by the present value of statutory distributable earnings less opening required capital, and is sensitive to assumptions including the discount rate, surrender rates, partial withdrawals, utilization rates, projected investment spreads, mortality, and expenses. DAC consists principally of commissions that are related directly to the successful sale of new or renewal insurance contracts, which may be deferred to the extent recoverable. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and vesting bonuses to policyholder account values, which may be deferred to the extent recoverable. The methodology for determining the amortization of DAC, DSI and VOBA varies by product type. For all insurance contracts accounted for under long-duration contract deposit accounting, amortization is based on assumptions consistent with those used in the development of the underlying contract liabilities adjusted for emerging experience and expected trends. For all of the insurance intangibles (DAC, DSI and VOBA), the balances are generally amortized over the lives of the policies in relation to the expected emergence of estimated gross profits (“EGPs”) from investment income, surrender charges and other product fees, less policy benefits, maintenance expenses, mortality, and expense margins. Recognized gains (losses) on investments and changes in fair value of the embedded derivative on our FIA and IUL products are included in actual gross profits in the period realized as described further below. Amortization is reported within Depreciation and amortization in the accompanying Consolidated Statements of Earnings. Changes in assumptions, including our earned rate (i.e., long term assumptions of the Company’s expected earnings on related investments), budgeted option costs (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature) and surrender rates can have a significant impact on VOBA, DAC and DSI balances and amortization rates. Due to the relative size and sensitivity to minor changes in underlying assumptions of those intangible balances, we perform quarterly and annual analyses of the VOBA, DAC and DSI balances for recoverability to ensure that the unamortized portion does not exceed the expected recoverable amounts. At each evaluation date, actual historical gross profits are reflected with the impact on the intangibles reported as “unlocking” as a component of amortization expense, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated future gross profits requires that the amortization rate be revised (“unlocking”) retroactively to the date of the policy or contract issuance. The cumulative unlocking adjustment is recognized as a component of current period amortization. Amortization expense of VOBA, DAC and DSI reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we perform a retrospective unlocking of amortization for those intangibles as actual margins vary from expected margins. This unlocking is reflected in the accompanying Consolidated Statements of Earnings. For investment-type products, the VOBA, DAC and DSI assets are adjusted for the impact of unrealized gains (losses) on AFS investments as if these gains (losses) had been realized, with corresponding credits or charges included in AOCI ("shadow adjustments"). Other Intangible Assets We have other intangible assets, not including goodwill, VOBA, DAC or DSI, which consist primarily of customer relationships and contracts, the value of distribution network acquired ("VODA"), trademarks and tradenames, and computer software, which are generally recorded in connection with acquisitions at their fair value. Intangible assets with estimable lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In general, customer relationships are amortized over their estimated useful lives, generally ten years, using an accelerated method, which takes into consideration expected customer attrition rates. VODA is an intangible asset that represents the value of an acquired distribution network and is amortized using the sum of years digits method. Contractual relationships are generally amortized over their contractual life. Trademarks and tradenames are generally amortized over ten years. Capitalized software includes the fair value of software acquired in business combinations, purchased software and capitalized software development costs. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life. Software acquired in business combinations is recorded at its fair value and amortized using straight-line or accelerated methods over its estimated useful life, ranging from five to ten years. For internal-use computer software products, internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Internal and external costs incurred during the application development stage are capitalized and amortized on a product by product basis commencing on the date the software is ready for its intended use. We do not capitalize any costs once the software is ready for its intended use. We recorded no impairment expense to other intangible assets during the years ended December 31, 2020 or 2019. We recorded $3 million in impairment expense to other intangible assets during the year ended December 31, 2018, which pri |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions F&G On June 1, 2020, we acquired 100% of the outstanding equity of F&G for approximately $2.7 billion. In connection with the Merger, we issued approximately 24 million shares of FNF common stock and paid approximately $1.8 billion in cash to former holders of F&G ordinary and preferred shares. On August 26, 2020, we issued an additional 1 million shares of FNF common stock and paid approximately $100 million in cash to Kingfishers, LP., Kingstown Partners Master, LTD., Kingstown Partners II, LP., Kingstown 1740 Fund, LP. and Ktown, LP. (collectively the "Kingstown Dissenters"), who are former owners of F&G common stock. For more information related to the Kingstown Dissenters, refer to Note H Commitments and Contingencies . At closing, all outstanding shares of F&G common stock, excluding shares associated with the liability to former owners, were converted into the right to receive the Merger Consideration (as defined in the Merger Agreement). Additionally, each outstanding F&G Option and F&G Phantom unit was cancelled and converted into options to purchase FNF common stock and phantom units denominated in FNF common stock, and each outstanding warrant to purchase F&G common stock was converted into the right to purchase and receive upon exercise $8.18 in cash and .0833 shares of FNF common stock. At closing, our subsidiaries' ownership of F&G common and preferred shares was converted into approximately 7 million shares of FNF common stock, which are reflected as treasury shares in the accompanying Consolidated Financial Statements. The initial purchase price is as follows (in millions): Cash paid for outstanding F&G shares $ 1,903 Less: Cash Acquired 827 Net cash paid for F&G 1,076 Value of FNF share consideration 806 Value of outstanding converted equity awards attributed to services already rendered 28 Total net consideration paid $ 1,910 The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations ("Topic 805").The purchase price has been allocated to F&G's assets acquired and liabilities assumed based on our best estimates of their fair values as of the acquisition date. The fair value of assets acquired and liabilities assumed represents a preliminary allocation as our evaluation of facts and circumstances available as of June 1, 2020 is ongoing. As of December 31, 2020, the preliminary allocation of purchase price primarily relates to the valuation of identifiable intangible assets. Goodwill has been recorded based on the amount that the purchase price exceeds the fair value of the net assets acquired. Goodwill consists primarily of intangible assets that do not qualify for separate recognition. The goodwill recorded is not expected to be deductible for tax purposes, except for $16 million related to a prior F&G transaction. Pursuant to Topic 805, the financial statements will not be retrospectively adjusted for any provisional amount changes that occur in subsequent periods. Rather, we will recognize any provisional adjustments as we obtain information not available as of the completion of this preliminary fair value calculation as determined within the measurement period. We will also be required to record, in the same period as the financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of any change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. We expect to finalize the purchase price allocation as soon as practicable, but no later than one year from the acquisition date. The following table summarizes the preliminary fair value amounts recognized for the assets acquired and liabilities assumed as of the acquisition date (dollars in millions): Fair Value Fixed maturity securities $ 22,389 Preferred securities 876 Equity securities 52 Derivative instruments 313 Mortgage loans 1,755 Investments in unconsolidated affiliates 1,049 Other long-term investments 430 Short-term investments 37 Trade and notes receivable 1 Reinsurance recoverable 3,287 Goodwill 1,751 Prepaid expenses and other assets 353 Lease assets 8 Other intangible assets 2,046 Income taxes receivable 27 Deferred tax asset 268 Assets of discontinued operations 2,392 Total assets acquired 37,034 Contractholder funds 26,451 Future policy benefits 4,098 Accounts payable and accrued liabilities 893 Notes payable 589 Funds withheld for reinsurance liabilities 816 Lease liabilities 9 Liabilities of discontinued operations 2,268 Total liabilities assumed 35,124 Net assets acquired $ 1,910 The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the F&G acquisition consist of the following (dollars in millions): Gross Carrying Value Estimated Useful Life Other intangible assets: Value of business acquired $ 1,847 Various Value of distribution network acquired 140 15 Trademarks and licenses 38 10 Software 21 2 Total Other intangible assets $ 2,046 During the period from June 1, 2020 to December 31, 2020, we adjusted the provisional amounts as of June 1, 2020 that were recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition dates that, if known, would have affected the measurement of the amounts recognized as of the acquisition date. Such adjustments resulted in an increase in Investments in unconsolidated affiliates of approximately $31 million, an increase in Reinsurance recoverable of approximately $46 million, an increase in Goodwill of approximately $26 million, a decrease in Other intangible assets of approximately $93 million, an increase in Deferred tax assets of approximately $13 million, an increase in Accounts payable and other accrued liabilities of $35 million and various other, individually immaterial items. Unaudited Supplemental Pro-forma Financial Results F&G's financial results since the acquisition date are reflected in our Consolidated Financial Statements. F&G's revenues and net earnings for the period from June 1, 2020 through December 31, 2020 of $1,233 million and $136 million, respectively, are included in the Consolidated Statements of Earnings for the year ended December 31, 2020. For comparative purposes, selected unaudited pro-forma consolidated results of operations of FNF for the years ended December 31, 2020 and 2019 are presented below. Unaudited pro-forma results presented assume the consolidation of F&G occurred as of January 1, 2019. Year Ended December 31, 2020 2019 (In millions) Total revenues $ 10,897 $ 10,386 Net earnings attributable to FNF common shareholders 1,233 1,419 Amounts reflect certain pro forma adjustments to revenue and net earnings that were directly attributable to the acquisition, and for the elimination of historical activity between FNF and F&G prior to the acquisition. These adjustments include the following: • elimination of valuation changes on FNF's investment in F&G common and preferred shares prior to the acquisition; • elimination of dividends received by FNF related to its holdings of F&G's common and preferred shares prior to the acquisition; • elimination of advisory fees F&G paid to FNF; • elimination of transaction costs paid by F&G; • adjustment to record interest expense related to financing associated with the acquisition; • adjustment to reflect the elimination of historical amortization of F&G intangibles and the additional amortization of F&G intangibles measured at fair value as of the acquisition date; and • adjustment to reflect the prospective reclassification from accumulated other comprehensive earnings of the unrealized gains on available-for-sale securities to a premium, which will be amortized into income based on the expected life of the investment securities. |
Summary of Reserve for Claim Lo
Summary of Reserve for Claim Losses | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Summary of Reserve for Title Claim Losses | Summary of Reserve for Title Claim Losses A summary of the reserve for title claim losses follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Beginning balance $ 1,509 $ 1,488 $ 1,490 Change in insurance recoverable 34 1 — Claim loss provision related to: Current year 283 240 221 Prior years — — — Total title claim loss provision 283 240 221 Claims paid, net of recoupments related to: Current year (11) (11) (10) Prior years (192) (209) (213) Total title claims paid, net of recoupments (203) (220) (223) Ending balance of claim loss reserve for title insurance $ 1,623 $ 1,509 $ 1,488 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % 4.5 % Several lawsuits have been filed by various parties against Chicago Title Company and Chicago Title Insurance Company as its alter ego (collectively, the “Named Companies”), among others. Generally, plaintiffs claim they are investors who were solicited by Gina Champion-Cain to provide funds that purportedly were to be used for high-interest, short-term loans to parties seeking to acquire California alcoholic beverage licenses. Plaintiffs contend that under California state law, alcoholic beverage license applicants are required to escrow an amount equal to the license purchase price while their applications remain pending with the State. Plaintiffs further alleged that employees of Chicago Title Company participated with Ms. Champion-Cain and her entities in a fraud scheme involving an escrow account maintained by Chicago Title Company into which the plaintiffs’ funds were deposited. The Named Companies have settled or are planning mediations and/or settlement discussions with a majority of both the individual and group investors in the alleged scheme in the coming months. The following lawsuits were filed in the Superior Court of San Diego County for the State of California. While they have not been consolidated into one action, they have been deemed by the court to be related and are assigned to the same judge for purposes of judicial economy. The Named Companies filed an omnibus motion to dismiss the complaints in the related cases on several grounds. On January 13, 2021, the court entered an order dismissing several of the counts with leave to amend, another without leave to amend, and denied the motion as to the remaining counts. Unless otherwise noted as resolved, plaintiffs have recently filed or are expected to file amended complaints in these cases, and the Named Companies will file responses on or before the respective due dates. On Decem ber 13, 2019, a lawsuit styled, Kim Funding, LLC, Kim H. Peterson, Joseph J. Cohen, and ABC Funding Strategies, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $250 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. On March 6, 2020, a lawsuit styled, Wakefield Capital, LLC, Wakefield Investments, LLC, 2Budz Holding, LLC, Doug and Kristine Heidrich, and Jeff and Heidi Orr v. Chicago Title Co. and Chicago Title Ins. Co. , was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $7 million as a result of the alleged fraud scheme, and also seek punitive damages, recovery of attorneys’ fees, and disgorgement. On March 16, 2020, a lawsuit styled, Randolph L. Levin, et al., v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, Betty Elixman, et al. , was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $38 million as a result of the alleged fraud scheme, and also seek punitive damages and the recovery of attorneys’ fees. This matter recently settled under confidential terms following mediation. On May 29, 2020, a lawsuit styled, Mark Atherton, et al., v. Chicago Title Co. and Chicago Title Ins. Co. , was filed in was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $30 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages, as well as the recovery of attorneys’ fees. On June 29, 2020, a lawsuit styled, Susan Heller Fenley Separate Property Trust, DTD 03/04/2010, Susan Heller Fenley Inherited Roth IRA, Shelley Lynn Tarditi Trust and ROJ, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $6 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. On June 29, 2020, a lawsuit styled, Yuan Yu and Polly Yu v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $1 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. On July 7, 2020, a cross-claim styled, Laurie Peterson v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in an existing lawsuit styled, Banc of California, National Association v. Laurie Peterson , which is pending in San Diego County Superior Court. Cross-complaint plaintiff was sued by a bank to recover in excess of $35 million that she allegedly guaranteed to repay for certain investments made by the Banc of California in the alcoholic beverage license scheme. Cross-complaint plaintiff has, in turn, sued the Named Companies in that action seeking in excess of $250 million in monetary losses as well as exemplary damages and attorneys’ fees. On Septemb er 3, 2020, a cross-claim styled, Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in an existing lawsuit styled, CalPrivate Bank v. Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 , which is pending in Superior Court of San Diego County for the State of California. Cross-complaint plaintiff was sued by a bank to recover in excess of $12 million that the trustee allegedly guaranteed to repay for certain investments made by CalPrivate Bank in the alcoholic beverage license scheme. Cross-complaint plaintiff has, in turn, sued the Named Companies in that action seeking in excess of $250 million in monetary losses as well as exemplary damages and attorneys’ fees. On Octo ber 1, 2020, a lawsuit styled, Ovation Fin. Holdings 2 LLC, Ovation Fund Mgmt. II, LLC, Banc of California, N.A. v. Chicago Title Ins. Co. , was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $100 million, as well as consequential and punitive damages. The Named Companies are defending and filed a motion to dismiss the complaint on several grounds On November 2, 2020, a lawsuit styled, C alPrivate Bank v. Chicago Title Co. and Chicago Title Ins. Co. , was also filed in the Superior Court of San Diego County for the State of California. Plaintiff claims losses in excess of $12 million based upon business loan advances made in the alcoholic beverage license scheme, and also seeks punitive damages and the recovery of attorneys’ fees. This case was only recently deemed by the court to be related to the above San Diego County Superior Court lawsuits, and it has now been transferred to the same judge. On November 5, 2019, a putative class action lawsuit styled, Blake E. Allred and Melissa M. Allred v. Chicago Title Co., Chicago Title Ins. Co., Adelle E. Ducharme, Betty Elixman, Gina Champion-Cain, Joelle Hanson, Cris Torres, and Rachel Bond , was filed in the United States District Court for the Southern District of California. The Named Companies filed a motion to dismiss the complaint on several grounds, or alternatively, to stay the case. The court entered an order dismissing the federal law counts against the Named Companies without leave to amend, dismissing other counts with leave to amend, and denied the motion as to the remaining counts. Following the court’s dismissal of certain counts, Plaintiffs voluntarily dismissed the entire federal action and refiled a similar action in the Superior Court of San Diego County for the State of California. The new state court putative class action lawsuit, filed February 24, 2021, is styled, Blake E. Allred and Melissa M. Allred v. Chicago Title Co., Chicago Title Ins. Co. , and plaintiffs are seeking compensatory, statutory, treble, and punitive damages. The court has been notified that this matter is related to the other lawsuits filed in San Diego County Superior Court. On October 23, 2020, a lawsuit styled, DH Claims LLC v. Chicago Title Co., Chicago Title Ins. Co., and Della Ducharme , was filed in the Superior Court of Orange County for the State of California. Plaintiff claims losses in excess of $2 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages, as well as the recovery of attorneys’ fees. The parties have asked the court to transfer this case to San Diego County Superior Court, where the Named Companies have already informed the court of this additional related matter. In addition, Chicago Title Company resolved claims from both individual investors and a group of alleged investors under confidential terms during pre-suit mediations. As of December 31, 2020, the Company has recorded an incurred claim loss reserve for legal fees and any remaining unpaid amounts relating to losses on the matters resolved confidentially mentioned above which is included in its consolidated reserve for title claim losses. The Company has also recorded an insurance recoverable for amounts that will be recovered from its insurance carriers relating to these matters At this time, the Company is unable to ascertain its liability, if any, and is unable to make an estimate of a reasonably possible claim loss for any of the unresolved claims due to the complex nature of the claims and litigation, the early procedural status of each claim (involving unresolved questions of fact without any rulings on the merits or determinations of liability), the extent of discovery not yet conducted, potential insurance coverage, and an incomplete evaluation of possible defenses, counterclaims, crossclaims or third-party claims that may exist. Moreover, it is likely that in some instances, the claims listed above are duplicative. As further information becomes available, the Company will continue to evaluate the adequacy of its consolidated reserve for title claim losses. As of December 31, 2020, the Company believes that its reserves are adequate to cover losses related to this matter and other claims. We continually update loss reserve estimates as new information becomes known, new loss patterns emerge or as other contributing factors are considered and incorporated into the analysis of reserve for claim losses. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims and other factors. Due to the uncertainty inherent in the process and to the judgment used by management, the ultimate liability may be greater or less than our current reserves. If actual claims loss development varies from what is currently expected and is not offset by other factors, it is possible that additional reserve adjustments may be required in future periods in order to maintain our recorded reserve within a reasonable range of our actuary's central estimate. Regulation Title Our insurance subsidiaries, including title insurers, underwritten title companies and insurance agencies, are subject to extensive regulation under applicable state laws. Each of the insurance underwriters is subject to a holding company act in its state of domicile that regulates, among other matters, the ability to pay dividends and enter into transactions with affiliates. The laws of most states in which we transact business establish supervisory agencies with broad administrative powers relating to issuing and revoking licenses to transact business, regulating trade practices, licensing agents, approving policy forms, accounting practices, financial practices, establishing reserve and capital and surplus as regards policyholders (“capital and surplus”) requirements, defining suitable investments for reserves and capital and surplus and approving rate schedules. The process of state regulation of changes in rates ranges from states that set rates, to states where individual companies or associations of companies prepare rate filings that are submitted for approval, to a few states in which rate changes do not need to be filed for approval. Since we are regulated by both state and federal governments and the applicable insurance laws and regulations are constantly subject to change, it is not possible to predict the potential effects on our insurance operations, particularly the Title segment, of any laws or regulations that may become more restrictive in the future or if new restrictive laws will be enacted. Statutory-basis financial statements are prepared in accordance with accounting practices prescribed or permitted by the various state insurance regulatory authorities. The National Association of Insurance Commissioners' (“NAIC” ) Accounting Practices and Procedures manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by each of the states that regulate us. Each of our states of domicile for our title insurance underwriter subsidiaries have adopted a material prescribed accounting practice that differs from that found in NAIC SAP. Specifically, in both years, the timing of amounts released from the statutory unearned premium reserve under NAIC SAP differs from the states' required practice. Statutory surplus at December 31, 2020 and 2019 was lower by approximately $28 million and $33 million than if we had reported such amounts in accordance with NAIC SAP. Pursuant to statutory accounting requirements of the various states in which our insurers are domiciled, these insurers must defer a portion of premiums earned as an unearned premium reserve for the protection of policyholders and must maintain qualified assets in an amount equal to the statutory requirements. The level of unearned premium reserve required to be maintained at any time is determined by statutory formula based upon either the age, number of policies and dollar amount of policy liabilities underwritten, or the age and dollar amount of statutory premiums written. As of December 31, 2020, the combined statutory unearned premium reserve required and reported for our title insurers was $1,532 million. In addition to statutory unearned premium reserves, each of our insurers maintains reserves for known claims and surplus funds for policyholder protection and business operations. Each of our insurance subsidiaries is regulated by the insurance regulatory authority in its respective state of domicile, as well as that of each state in which it is licensed. The insurance commissioners of their respective states of domicile are the primary regulators of our title insurance subsidiaries. Each of the insurers is subject to periodic regulatory financial examination by regulatory authorities. Our insurance subsidiaries are subject to regulations that restrict their ability to pay dividends or make other distributions of cash or property to their immediate parent company without prior approval from the Department of Insurance of their respective states of domicile. As of December 31, 2020 , $2,559 million of our net assets are restricted from dividend payments without prior approval from the Departments of Insurance. During 2021, our title insurers can pay or make distributions to us of approximately $551 million, without prior approval. The combined statutory capital and surplus of our title insurers was approximately $1,699 million and $1,581 million as of December 31, 2020 and 2019, respectively. The combined statutory net earnings of our title insurance subsidiaries were $629 million, $583 million, and $625 million for the years ended December 31, 2020 , 2019, and 2018, respectively. As a condition to continued authority to underwrite policies in the states in which our insurers conduct their business, the insurers are required to pay certain fees and file information regarding their officers, directors and financial condition. In addition, our escrow and trust business is subject to regulation by various state banking authorities. Pursuant to statutory requirements of the various states in which our insurers are domiciled, such insurers must maintain certain levels of minimum capital and surplus. Required levels of minimum capital and surplus are not significant to the insurers individually or in the aggregate. Each of our insurers has complied with the minimum statutory requirements as of December 31, 2020. Our underwritten title companies, primarily those domiciled in California, are also subject to certain regulation by insurance regulatory or banking authorities relating to their net worth and working capital. Minimum net worth and working capital requirements for each underwritten title company is less than $1 million. These companies were in compliance with their respective minimum net worth and working capital requirements at December 31, 2020. There are no restrictions on our retained earnings regarding our ability to pay dividends to shareholders although there are limits on the ability of certain subsidiaries to pay dividends to us, as described above. F&G Through our wholly owned F&G subsidiary, our U.S. insurance subsidiaries, FGL Insurance, Fidelity & Guaranty Life Insurance Company of New York ("FGL NY Insurance"), and Raven Re, file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect DAC, DSI and VOBA, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. Our principal insurance subsidiaries' statutory (SAP and GAAP) financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of the Company's wholly owned insurance subsidiaries were as follows (in millions): Subsidiary (state/country of domicile) (a) FGL Insurance (IA) FGL NY Insurance (NY) Raven Re (VT) Statutory Net Income (loss): Year ended December 31, 2020 $ (46) $ (2) $ 12 Statutory Capital and Surplus: December 31, 2020 $ 1,249 $ 93 $ 84 (a) FGL NY Insurance and Raven Re are subsidiaries of FGL Insurance, and the columns should not be added together. FGL insurance, FGL NY Insurance and Raven Re's respective statutory capital and surplus satisfies the applicable minimum regulatory requirements. Life insurance companies domiciled in the U.S. are subject to certain Risk-Based Capital (“RBC”) requirements as specified by the NAIC. The RBC is used to evaluate the adequacy of capital and surplus maintained by an insurance company in relation to risks associated with: (i) asset risk, (ii) insurance risk, (iii) interest rate risk and (iv) business risk. We monitor the RBC of FGLH’s insurance subsidiaries. As of December 31, 2020, each of FGLH's insurance subsidiaries had exceeded the minimum RBC requirements. Our insurance subsidiaries domiciled in the U.S. are restricted by state laws and regulations as to the amount of dividends they may pay to their parent, our wholly owned F&G subsidiary, without regulatory approval in any year, the purpose of which is to protect affected insurance policyholders, depositors or investors. Any dividends in excess of limits are deemed “extraordinary” and require regulatory approval. In addition, and pursuant to an order issued by the Iowa Commissioner on November 28, 2017, FGL Insurance shall not pay any dividend or other distribution to shareholders prior to November 28, 2020 without the prior approval of the Iowa Commissioner. As of December 31, 2020, upon approval by the Iowa Commissioner, FGL Insurance declared and paid extraordinary dividends of $151 to its parent. FGL Insurance applies Iowa-prescribed accounting practices that permit Iowa-domiciled insurers to report equity call options used to economically hedge FIA index credits at amortized cost for statutory accounting purposes and to calculate FIA statutory reserves such that index credit returns will be included in the reserve only after crediting to the annuity contract. This resulted in a $204 million decrease to statutory capital and surplus at December 31, 2020. FGL Insurance’s statutory carrying value of Raven Re reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset, which increased Raven Re’s statutory capital and surplus by $85 million at December 31, 2020. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance, which increased Raven Re’s statutory capital and surplus by $5 million at December 31, 2020. Without such permitted statutory accounting practices Raven Re’s statutory capital and surplus (deficit) would be $(6) million as of December 31, 2020, and its risk-based capital would fall below the minimum regulatory requirements. The letter of credit facility is collateralized by NAIC 1 rated debt securities. If the permitted practice was revoked, the letter of credit could be replaced by the collateral assets with Nomura’s consent as discussed in Note P F&G Reinsurance . FGL Insurance’s statutory carrying value of Raven Re at December 31, 2020 was $84 million. As of December 31, 2020, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. The prescribed and permitted statutory accounting practices have no impact on our Consolidated Financial Statements, which are prepared in accordance with GAAP. Equity three |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or non-performance risk, which may include our own credit risk. We estimate an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market for that asset or liability in the absence of a principal market as opposed to the price that would be paid to acquire the asset or assume a liability (“entry price”). We categorize financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 - Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads, and yield curves. Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. In addition to the unobservable inputs, Level 3 fair value investments may include observable components, which are components that are actively quoted or can be validated to market-based sources. The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt, which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows (in millions): December 31, 2020 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 2,719 $ — $ — $ 2,719 $ 2,719 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,916 1,350 6,266 6,266 Commercial mortgage-backed securities — 2,803 26 2,829 2,829 Corporates 25 13,421 1,289 14,735 14,735 Hybrids 175 815 4 994 994 Municipals — 1,360 43 1,403 1,403 Residential mortgage-backed securities — 342 483 825 825 U.S. Government 342 — — 342 342 Foreign Governments — 176 17 193 193 Equity securities 791 — 5 796 796 Preferred securities 490 851 — 1,341 1,341 Subscription agreements (1) — 199 — 199 199 Derivative investments — 548 — 548 548 Short term investments 769 — — 769 769 Other long-term investments — — 50 50 50 Total financial assets at fair value $ 5,311 $ 25,431 $ 3,267 $ 34,009 $ 34,009 Liabilities Fair value of future policy benefits — — 5 5 5 Derivatives: FIA embedded derivatives, included in contractholder funds — — 3,404 3,404 3,404 Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities — 101 — 101 101 Total financial liabilities at fair value $ — $ 101 $ 3,409 $ 3,510 $ 3,510 (1) Included within equity securities in the accompanying Consolidated Balance Sheets as of December 31, 2020. December 31, 2019 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 1,376 $ — $ — $ 1,376 $ 1,376 Fixed maturity securities, available-for-sale: Commercial mortgage-backed securities — 22 — 22 22 Corporates — 1,540 17 1,557 1,557 Hybrids — 30 — 30 30 Municipals — 93 — 93 93 Residential mortgage-backed securities — 40 — 40 40 U.S. Government — 288 — 288 288 Foreign Governments — 60 — 60 60 Preferred securities 65 258 — 323 323 Equity securities 810 — 1 811 811 Short term investments 876 — — 876 876 Other long-term investments — — 120 120 120 Total financial assets at fair value $ 3,127 $ 2,331 $ 138 $ 5,596 $ 5,596 Valuation Methodologies Fixed Maturity, Preferred and Equity Securities We measure the fair value of our securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and we will then consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations, or pricing matrices. We use observable and unobservable inputs in our valuation methodologies. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. In addition, market indicators and industry and economic events are monitored and further market data will be acquired when certain thresholds are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. The significant input used in the fair value measurement of equity securities for which the market approach valuation technique is employed is yield for comparable securities. Increases or decreases in the yields would result in lower or higher, respectively, fair value measurements. For broker-quoted only securities, quotes from market makers or broker-dealers are obtained from sources recognized to be market participants. We believe the broker quotes are prices at which trades could be executed based on historical trades executed at broker-quoted or slightly higher prices. We analyze the third-party valuation methodologies and related inputs to perform assessments to determine the appropriate level within the fair value hierarchy. However, we did not adjust prices received from third parties as of December 31, 2020 or December 31, 2019. Derivative Financial Instruments The fair value of call options is based upon valuation pricing models, which represents what we would expect to receive or pay at the balance sheet date if we canceled the options, entered into offsetting positions, or exercised the options. Fair values for these instruments are determined internally, based on industry accepted valuation pricing models, which use market-observable inputs, including interest rates, yield curve volatilities, and other factors. The fair value of futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements), which represents what we would expect to receive or pay at the balance sheet date if we canceled the contracts or entered into offsetting positions. These contracts are classified as Level 1. The fair value measurement of the FIA embedded derivatives included in contractholder funds is determined through a combination of market observable information and significant unobservable inputs using the option budget method. The market observable inputs are the market value of option and treasury rates. The significant unobservable inputs are the budgeted option cost (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature), surrender rates, mortality multiplier and non-performance spread. The mortality multiplier at December 31, 2020 was applied to the Annuity 2000 mortality tables. Increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. Increases or decreases in treasury rates, mortality multiplier, surrender rates, or non-performance spread in isolation would result in a lower or higher fair value measurement, respectively. Generally, a change in any one unobservable input would not directly result in a change in any other unobservable input. The fair value of the reinsurance-related embedded derivative in the funds withheld reinsurance agreement with Kubera Insurance (SAC) Ltd. ("Kubera") is estimated based upon the fair value of the assets supporting the funds withheld from reinsurance liabilities. The fair value of the assets is based on a quoted market price of similar assets (Level 2), and therefore the fair value of the embedded derivative is based on market-observable inputs and classified as Level 2. Please see Note P Reinsurance for further discussion on F&G reinsurance agreements. Other long-term investments We hold a fund-linked note which provides for an additional payment at maturity based on the value of an embedded derivative based on the actual return of a dedicated return fund. Fair value of the available-for-sale embedded derivative is based on an unobservable input, the net asset value of the fund at the balance sheet date. The embedded derivative is similar to a call option on the net asset value of the fund with a strike price of zero since Fidelity & Guaranty Life Insurance Company ("FGL Insurance") will not be required to make any additional payments at maturity of the fund-linked note in order to receive the net asset value of the fund on the maturity date. A Black-Scholes model determines the net asset value of the fund as the fair value of the call option regardless of the values used for the other inputs to the option pricing model. The net asset value of the fund is provided by the fund manager at the end of each calendar month and represents the value an investor would receive if it withdrew its investment on the balance sheet date. Therefore, the key unobservable input used in the Black-Scholes model is the value of the fund. As the value of the fund increases or decreases, the fair value of the embedded derivative will increase or decrease. See further discussion on the available-for-sale embedded derivative in Note F Derivative Financial Instruments . The fair value of the credit-linked note is based on a weighted average of a broker quote and a discounted cash flow analysis. The discounted cash flow approach is based on the expected portfolio cash flows and amortization schedule reflecting investment expectations, adjusted for assumptions on the portfolio's default and recovery rates, and the note's discount rate. The fair value of the note is provided by the fund manager at the end of each quarter. Subscription Agreements for Forward Purchases of Equity of Special Purpose Acquisition Companies Our FTAC II Subscription Agreements are accounted for at fair value pursuant to ASC Topic 321, Investments - Equity Securities and considered to be a Level 2 fair value measurement. Fair value is determined using observable inputs including stock prices, volatility assumptions and a discount for the lack of marketability determined using the Finnerty Model at 7.5%. Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of December 31, 2020 are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2020 (in millions) December 31, 2020 Assets Asset-backed securities $ 1,175 Broker-quoted Offered quotes 85% - 126.15% 103.96% Asset-backed securities 175 Third-Party Valuation Offered quotes 0.00% - 107.25% 79.87% Commercial mortgage-backed securities 26 Broker-quoted Offered quotes 131.59% - 131.59% 131.59% Corporates 388 Broker-quoted Offered quotes 75.20% - 114.68% 103.36% Corporates 901 Third-Party Valuation Offered quotes 88.42% - 125.83% 109.47% Hybrids 4 Third-Party Valuation Offered quotes 112.06% - 112.06% 112.06% Municipals 43 Third-Party Valuation Offered quotes 133.53% - 133.53% 133.53% Residential mortgage-backed securities 483 Broker-quoted Offered quotes 112.58% - 112.58% 112.58% Foreign governments 17 Third-Party Valuation Offered quotes 107.87% - 113.80% 109.72% Equity securities 1 Income-Approach Yield —% Equity securities 1 Black Scholes model Risk Free Rate 0.29% - 0.29% (0.29%) Strike Price $1.50 - $1.50 ($1.50) Volatility 1.00% - 1.00% (1.00%) Dividend Yield 0.00% - 0.00% (0.00%) Equity securities 3 Discounted Cash Flow Discount rate 10.60% - 10.60% (10.60%) Market Comparable Company Analysis EBITDA multiple 6.6x - 6.6x (6.6x) Other long-term assets: Available-for-sale embedded derivative 27 Third-Party Valuation Market value of fund 100.00% Credit Linked Note 23 Broker-quoted Offered quotes 100.00% Total financial assets at fair value $ 3,267 Liabilities Future policy benefits 5 Discounted cash flow Non-performance spread 0.00% Risk margin to reflect uncertainty 0.50% Derivatives: FIA embedded derivatives, included in contractholder funds 3,404 Discounted cash flow Market value of option 0.00% - 67.65% 2.25% Treasury rates 0.08% - 1.65% 0.87% Mortality multiplier 100.00% - 100.00% 100.00% Surrender rates 0.25% - 55.00% 5.24% Partial withdrawals 2.00% - 3.50% 2.58% Non-performance spread 0.74% - 0.74% 0.74% Option cost 0.05% - 16.61% 2.25% Total financial liabilities at fair value $ 3,409 The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2020 and 2019, respectively. F&G related activit y for the year ended December 31, 2020 in the table below is comprised of the period from June 1, 2020 through December 31, 2020 only. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2020 (in millions) Balance at Beginning F&G Acquisition Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ — $ 854 $ (1) $ 21 $ 633 $ (1) $ (133) $ (23) $ 1,350 $ 10 Commercial mortgage-backed securities — 26 — — — — — — 26 — Corporates 17 1,238 (3) 59 110 — (87) (45) 1,289 43 Hybrids — 4 — — — — — — 4 — Municipals — 38 — 5 — — — — 43 5 Residential mortgage-backed securities — 534 — 7 11 — (62) (7) 483 — Foreign Governments — 16 — 1 — — — — 17 1 Equity securities 1 1 1 — 2 — — — 5 — Other long-term assets: Available-for-sale embedded derivative — 20 7 — — — — — 27 — Credit linked note — 23 — — — — — — 23 — Other long-term investment 120 — (61) — — — — (59) — — Total assets at Level 3 fair value $ 138 $ 2,754 $ (57) $ 93 $ 756 $ (1) $ (282) $ (134) $ 3,267 $ 59 Liabilities Future policy benefits $ — $ 5 $ — $ — $ — $ — $ — $ — $ 5 $ — FIA embedded derivatives, included in contractholder funds — 2,852 552 — — — — — 3,404 — Total liabilities at Level 3 fair value $ — $ 2,857 $ 552 $ — $ — $ — $ — $ — $ 3,409 $ — ( a) The net transfers out of Level 3 during the twelve months ended December 31, 2020 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. Year ended December 31, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Corporates $ 17 $ 1 $ (1) $ 6 $ (1) $ — $ (5) $ 17 Equity securities — 1 — — — — — 1 Other invested assets: Other long-term investment 101 19 — — — — — 120 Total assets at Level 3 fair value $ 118 $ 21 $ (1) $ 6 $ (1) $ — $ (5) $ 138 ( a) The net transfers out of Level 3 during the twelve months ended December 31, 2019 were to Level 2. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans The fair value of mortgage loans is established using a discounted cash flow method based on internal credit rating, maturity and future income. This yield-based approach is sourced from our third-party vendor. The internal ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan-to-value, quality of tenancy, borrower, and payment record. The inputs used to measure the fair value of our mortgage loans are classified as Level 3 within the fair value hierarchy. Policy Loans (included within Other long-term investments) Fair values for policy loans represent their cash value. Company Owned Life Insurance Company owned life insurance (COLI) is a life insurance program used to finance certain employee benefit expenses. The fair value of COLI is based on net realizable value, which is generally cash surrender value. COLI is classified as Level 3 within the fair value hierarchy. Other Invested Assets (included within Other long-term investments) The fair value of the bank loan is estimated using a discounted cash flow method with the discount rate based on weighted average cost of capital ("WACC"). This yield-based approach is sourced from a third-party vendor and the WACC establishes a market participant discount rate by determining the hypothetical capital structure for the asset should it be underwritten as of each period end. Other invested assets are classified as Level 3 within the fair value hierarchy. Investment Contracts Investment contracts include deferred annuities, FIAs, indexed universal life policies ("IULs") and immediate annuities. The fair value of deferred annuity, FIA, and IUL contracts is based on their cash surrender value (i.e. the cost the Company would incur to extinguish the liability) as these contracts are generally issued without an annuitization date. The fair value of immediate annuities contracts is derived by calculating a new fair value interest rate using the updated yield curve and treasury spreads as of the respective reporting date. The Company is not required to, and has not, estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Other FHLB common stock, Accounts receivable and Notes receivable are carried at cost, which approximates fair value. FHLB common stock is classified as Level 2 within the fair value hierarchy. Accounts receivable and Notes receivable are classified as Level 3 within the fair value hierarchy. Debt The fair value of debt is based on quoted market prices. The inputs used to measure the fair value of our outstanding debt are classified as Level 2 within the fair value hierarchy. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the accompanying Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. December 31, 2020 (in millions) Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 66 $ — $ 66 $ 66 Commercial mortgage loans — — 926 926 903 Residential mortgage loans — — 1,123 1,123 1,128 Policy loans — — 33 33 33 Other invested assets — — 28 28 28 Company-owned life insurance — — 305 305 305 Trade and notes receivables, net of allowance — — 437 437 437 Total $ — $ 66 $ 2,852 $ 2,918 $ 2,900 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 21,719 $ 21,719 $ 25,199 Debt — 2,896 — 2,896 2,662 Total $ — $ 2,896 $ 21,719 $ 24,615 $ 27,861 The following table includes assets that have not been classified in the fair value hierarchy as the value of these investments are measured using the equity method of accounting or the net asset value ("NAV") per share practical expedient (in millions): December 31, 2020 December 31, 2019 Investments in unconsolidated affiliates (equity method of accounting) $ 146 $ 131 Investments in unconsolidated affiliates (NAV) 1,148 — $ 1,294 $ 131 For investments for which NAV is used as a practical expedient for fair value, we do not have any significant restrictions in our ability to liquidate our positions in these investments, other than obtaining general partner approval, nor do we believe it is probable a price less than NAV would be received in the event of a liquidation. Equity method investments are reported on a lag of up to three months for investee information not received timely. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.25 1.00 - 1.25 December 31, 2020 LTV Ratios: Less than 50% $ 520 $ 18 $ 538 60 % $ 557 60 % 50% to 60% 237 9 246 27 251 27 60% to 75% 121 — 121 13 119 13 Commercial mortgage loans $ 878 $ 27 $ 905 100 % $ 927 100 % We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At December 31, 2020, we had no CMLs that were delinquent in principal or interest payments. Allowance for Expected Credit Loss We estimate expected credit losses for our commercial loan portfolio using a probability of default/loss given default model. Significant inputs to this model include the loans current performance, underlying collateral type, location, contractual life, LTV, and DSC. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on commercial mortgage loans are recognized in Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as we have a process to write-off interest on loans that enter into non-accrual status (over 90 days past due). Residential Mortgage Loans Residential mortgage loans ("RMLs") represented approximately 3% of our total investments as of December 31, 2020. Our residential mortgage loans are closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables (dollars in millions): December 31, 2020 U.S. State: Unpaid Principal Balance % of Total California $ 164 15 % Florida 188 16 New Jersey 96 8 All Other States (1) 704 61 Total mortgage loans $ 1,152 100 % (1) The individual concentration of each state is less than 8% as of December 31, 2020. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing residential mortgage loans as those that are 90 or more days past due or in nonaccrual status, which is assessed monthly. The credit quality of RMLs as at December 31, 2020, was as follows (dollars in millions): December 31, 2020 Performance indicators: Carrying Value % of Total Performing $ 1,059 91 % Non-performing 106 9 Total residential mortgage loans, gross of valuation allowance $ 1,165 100 % Allowance for expected loan loss (37) — Total residential mortgage loans $ 1,128 100 % Loans segregated by risk rating exposure as of December 31, 2020, were as follows (in millions): December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Residential mortgages Current (less than 30 days past due) $ 311 $ 545 $ 68 $ 42 $ 62 $ 2 $ 1,030 30-89 days past due 2 22 2 — — — 26 Over 90 days past due 26 74 3 — — — 103 Total residential mortgages $ 339 $ 641 $ 73 $ 42 $ 62 $ 2 $ 1,159 Commercial mortgages Current (less than 30 days past due) $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Commercial mortgages LTV Less than 50% $ 228 $ — $ 6 $ — $ — $ 303 $ 537 50% to 60% 192 — — — 11 43 246 60% to 75% 122 — — — — — 122 Total commercial mortgages $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 Commercial mortgages DSCR Greater than 1.25x $ 542 $ — $ 6 $ — $ 11 $ 319 $ 878 1.00x - 1.25x — — — — — 27 27 Less than 1.00x — — — — — — — Total commercial mortgages $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 Non-accrual loans by amortized cost as of December 31, 2020, was as follows (in millions): Amortized cost of loans on non-accrual December 31, 2020 Residential mortgage: $ 99 Commercial mortgage: — Total non-accrual loans $ 99 Allowance for Expected Credit Loss We estimate expected credit losses for our mortgage loan portfolio using a probability of default/loss given default model. Significant inputs to this model include the loans' current performance, underlying collateral type, location, contractual life, LTV, and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. Credit losses on purchase credit deteriorated (“PCD”) financial assets were recognized on the opening balance sheet and PCD amounts as of December 31, 2020 are shown in the table below (in millions): December 31, 2020 Credit Losses on PCD Financial Assets Residential Mortgage Commercial Mortgage Total Provision for loan losses $ 30 $ 2 $ 32 For initial credit losses on purchased loans accounted for as PCD financial assets 7 — 7 $ 37 $ 2 $ 39 An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as we have a process to write-off interest on loans that enter into non-accrual status (over 90 days past due). Allowances for expected credit losses are measured on accrued interest income for residential mortgage loans as seen in the tables below (in millions). December 31, 2020 Residential Mortgage $ 1 Commercial Mortgage — Total interest income recognized during the period on nonaccrual loans $ 1 December 31, 2020 Residential Mortgage $ 3 Commercial Mortgage — Total loans that are 90 days past due and still accruing $ 3 Interest and Investment Income The major sources of Interest and investment income reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Fixed maturity securities, available-for-sale $ 708 $ 70 $ 55 Equity securities 19 10 10 Preferred securities 59 24 24 Mortgage loans 50 — — Invested cash and short-term investments 8 34 19 Limited partnerships 76 — — Tax deferred property exchange income 33 72 65 Other investments 25 19 9 Gross investment income 978 229 182 Investment expense (78) (4) (5) Interest and investment income $ 900 $ 225 $ 177 Recognized Gains and Losses, net Details underlying Recognized gains and losses, net reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Net realized gains (losses) on fixed maturity available-for-sale securities $ 102 $ (6) $ 2 Net realized/unrealized gains (losses) on equity securities (2)(3) 241 309 (87) Net realized/unrealized gains (losses) on preferred securities (4) 15 28 (26) Realized gains (losses) on other invested assets (25) (13) 2 Change in allowance for expected credit losses (37) — — Derivatives and embedded derivatives: Realized gains on certain derivative instruments 76 — — Unrealized gains on certain derivative instruments 161 — — Change in fair value of reinsurance related embedded derivatives (1) (53) — — Change in fair value of other derivatives and embedded derivatives 8 — — Realized gains on derivatives and embedded derivatives 192 — — Recognized gains and losses, net $ 488 $ 318 $ (109) (1) Change in fair value of reinsurance related embedded derivatives is due to held for sale unaffiliated third party business under the fair value option election, and activity related to the FGL Insurance and Kubera reinsurance treaty. (2) Includes unrealized gain on Forward Purchase Agreements of $199 million as of December 31, 2020. (3) Includes valuation gains (losses) of $248 million, $299 million and $(71) million for the year ended December 31, 2020, 2019 and 2018. (4) Includes valuation gains (losses) of $(40) million, $17 million and $(24) million for the year ended December 31, 2020, 2019 and 2018, respectively. The impact of ASU 2016-13 adoption on the P&L was as follows (in millions): (Dollars in millions) December 31, 2020 Total ASU 2016-13 adoption impact on P&L $ (19) The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Proceeds $ 1,946 $ 614 $ 838 Gross gains 116 4 6 Gross losses (12) (9) (4) Unconsolidated Variable Interest Entities The Company owns investments in VIEs that are not consolidated within our financial statements, and one investment in a VIE that is consolidated within our financial statements. VIEs do not have sufficient equity to finance their own activities without additional financial support and certain of its investors lack certain characteristics of a controlling financial interest. VIEs are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While the Company participates in the benefits from VIEs in which it invests, but does not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under common control with the Company. It is for this reason that the Company is not considered the primary beneficiary for the VIE investments that are not consolidated. We previously executed a commitment of $83 million to purchase common shares in an unaffiliated private business development company ("BDC"). The BDC invests in secured and unsecured fixed maturity and equity securities of middle market companies in the United States. Due to the voting structure of the transaction, the Company does not have voting power. As of December 31, 2020, the BDC was listed on the NASDAQ. We invest in various limited partnerships as a passive investor. These investments are in credit funds with a bias towards current income, real assets, or private equity. Limited partnership interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our Consolidated Balance Sheets. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our Consolidated Balance Sheets in addition to any required unfunded commitments. As of December 31, 2020, our maximum exposure to loss was $1,107 million in recorded carrying value and $394 million in unfunded commitments. Investment with Related Party Included in equity securities as of December 31, 2020 and December 31, 2019 are 5,706,134 shares of Cannae common stock (NYSE: CNNE), which were purchased during the fourth quarter of 2017 in connection with the split-off of our former portfolio company investments to Cannae. The fair value of our related party investment based on quoted market prices is $253 million and $212 million as of December 31, 2020 and December 31, 2019, respectively." id="sjs-B4">Investments Our fixed maturity securities investments have been designated as available-for-sale and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included in AOCI, net of associated adjustments for DAC, VOBA, DSI, UREV, SOP 03-1 reserves, and deferred income taxes. Our preferred and equity securities investments are carried at fair value with unrealized gains and losses included in net income (loss). The Company’s consolidated investments at December 31, 2020 and December 31, 2019 are summarized as follows (in millions): December 31, 2020 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 5,941 $ — $ 343 $ (18) $ 6,266 $ 6,266 Commercial mortgage-backed securities 2,490 — 342 (3) 2,829 2,829 Corporates 13,582 (16) 1,184 (15) 14,735 14,735 Hybrids 914 — 80 — 994 994 Municipals 1,333 — 72 (2) 1,403 1,403 Residential mortgage-backed securities 806 (3) 23 (1) 825 825 U.S. Government 332 — 10 — 342 342 Foreign Governments 179 — 14 — 193 193 Total available-for-sale securities $ 25,577 $ (19) $ 2,068 $ (39) $ 27,587 $ 27,587 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Commercial mortgage-backed/asset-backed securities $ 22 $ — $ — $ 22 $ 22 Corporates 1,510 50 (3) 1,557 1,557 Hybrids 26 4 — 30 30 Municipals 90 3 — 93 93 Residential mortgage-backed securities 38 2 — 40 40 U.S. Government 282 7 (1) 288 288 Foreign Governments 61 1 (2) 60 60 Total available-for-sale securities $ 2,029 $ 67 $ (6) $ 2,090 $ 2,090 Securities held on deposit with various state regulatory authorities had a fair value of $16,714 million and $94 million at December 31, 2020 and December 31, 2019, respectively. At December 31, 2020 and December 31, 2019, the Company held no material investments that were non-income producing for a period greater than twelve months. At December 31, 2020 and December 31, 2019, the Company's accrued interest receivable balance was $235 million and $16 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the Consolidated Balance Sheets. In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to the Company for general purposes. The collateral investments had a fair value of $1,622 million at December 31, 2020. The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. December 31, 2020 (in millions) Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 466 $ 463 Due after one year through five years 2,171 2,295 Due after five years through ten years 2,116 2,255 Due after ten years 11,560 12,624 16,313 17,637 Other securities, which provide for periodic payments: Asset-backed securities 5,941 6,266 Commercial mortgage-backed securities 2,490 2,829 Structured hybrids 27 30 Residential mortgage-backed securities 806 825 9,264 9,950 Total fixed maturity available-for-sale securities $ 25,577 $ 27,587 Allowance for Current Expected Credit Loss Following the adoption of ASU 2016-13 and the related targeted improvements and transition relief amendments (see Note Y Recent Accounting Pronouncements for further details) effective January 1, 2020, we regularly review AFS securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss: • The extent to which the fair value is less than the amortized cost basis; • The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); • The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength); • Current delinquencies and nonperforming assets of underlying collateral; • Expected future default rates; • Collateral value by vintage, geographic region, industry concentration or property type; • Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and • Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. We recognize an allowance for current expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e. the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and losses, net in the Consolidated Statements of Earnings, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through to Interest and investment income when collectability concerns arise. We consider the following in determining whether write-offs of a security’s amortized cost is necessary: • We believe amounts related to securities have become uncollectible; or • We intend to sell a security; or • It is more likely than not that we will be required to sell a security prior to recovery. If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible (generally based on proximity to expected credit loss), an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI. The activity in the allowance for expected credit losses of available-for-sale securities aggregated by investment category were as follows for the twelve months ended December 31, 2020 (in millions): Twelve Months Ended December 31, 2020 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (1) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Balance at End of Period Available-for-sale securities Asset-backed securities $ — $ 7 $ (9) $ 2 $ — $ — $ — $ — Corporates — (16) (16) 7 3 4 2 (16) Hybrids — — (3) — 3 — — — Residential mortgage-backed securities — 2 (7) 1 1 — — (3) Total available-for-sale securities $ — $ (7) $ (35) $ 10 $ 7 $ 4 $ 2 $ (19) (1) Purchased credit deteriorated financial assets ("PCD") Purchased credit-deteriorated available-for-sale debt securities ("PCD"s) are AFS securities purchased at a discount, where part of that discount is attributable to credit. Credit loss allowances are calculated for these securities as of the date of their acquisition, with the initial allowance serving to increase amortized cost. The following table summarizes year to date PCD AFS security purchases (in millions). Purchased credit-deteriorated available-for-sale debt securities December 31, 2020 Purchase price $ 265 Allowance for credit losses at acquisition 35 Discount (or premiums) attributable to other factors 84 AFS purchased credit-deteriorated par value $ 384 The fair value and gross unrealized losses of available-for-sale securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of December 31, 2020, and December 31, 2019 were as follows (dollars in millions): December 31, 2020 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities Asset-backed securities $ 477 $ (18) $ — $ — $ 477 $ (18) Commercial mortgage-backed securities 51 (3) — — 51 (3) Corporates 865 (15) 36 — 901 (15) Hybrids 1 — — — 1 — Municipals 115 (2) — — 115 (2) Residential mortgage-backed securities 30 (1) — — 30 (1) U.S. Government 11 — — — 11 — Total available-for-sale securities $ 1,550 $ (39) $ 36 $ — $ 1,586 $ (39) Total number of available-for-sale securities in an unrealized loss position less than twelve months 222 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 11 Total number of available-for-sale securities in an unrealized loss position 233 December 31, 2019 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities Corporates $ 98 $ (2) $ 51 $ (1) $ 149 $ (3) U.S. Government 62 (1) — — 62 (1) Foreign Government — — 33 (2) 33 (2) Total available-for-sale securities $ 160 $ (3) $ 84 $ (3) $ 244 $ (6) Total number of available-for-sale securities in an unrealized loss position less than twelve months 19 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 10 Total number of available-for-sale securities in an unrealized loss position 29 We determined the increase in unrealized losses was caused by widening spreads, which in most cases was driven by market illiquidity and perceived increases in credit risk. For securities in an unrealized loss position as of December 31, 2020 and an expected credit loss was not determined, we believe that the unrealized loss is being driven by near-term illiquidity and uncertainty of the impact of COVID-19 on the economy as opposed to issuer specific credit concerns. Specific to asset-backed and mortgage-backed securities for which an expected credit loss was not determined, the effect of any increased expectations of underlying collateral defaults have not risen to the level of impacting the tranches of those securities. Mortgage Loans Our mortgage loans are collateralized by commercial and residential properties. All mortgages were acquired in the F&G acquisition, which is why no 2019 data is presented. Commercial Mortgage Loans Commercial mortgage loans ("CMLs") represented approximately 3% of our total investments as of December 31, 2020. We primarily invest in mortgage loans on income producing properties including hotels, industrial properties, retail buildings, multifamily properties and office buildings. We diversify our CML portfolio by geographic region and property type to attempt to reduce concentration risk. We continuously evaluate CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables (dollars in millions): December 31, 2020 Gross Carrying Value % of Total Property Type: Hotel $ 19 2 % Industrial - General 302 33 % Industrial - Warehouse 12 1 % Multifamily 165 18 % Office 140 15 % Retail 142 17 % Other 125 14 % Total commercial mortgage loans, gross of valuation allowance $ 905 100 % Allowance for expected credit loss (2) Total commercial mortgage loans $ 903 U.S. Region: East North Central $ 61 7 % East South Central 80 9 % Middle Atlantic 100 11 % Mountain 48 5 % New England 79 9 % Pacific 333 37 % South Atlantic 133 15 % West North Central 13 1 % West South Central 58 6 % Total commercial mortgage loans, gross of valuation allowance $ 905 100 % Allowance for expected credit loss (2) Total commercial mortgage loans $ 903 LTV and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25-year amortization period for purposes of our general loan allowance evaluation. All of our investments in CMLs had a loan-to-value ("LTV") ratio of less than 75% at December 31, 2020, as measured at inception of the loans unless otherwise updated. The following table presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios at December 31, 2020 (dollars in millions) : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 December 31, 2020 LTV Ratios: Less than 50% $ 520 $ 18 $ 538 60 % $ 557 60 % 50% to 60% 237 9 246 27 251 27 60% to 75% 121 — 121 13 119 13 Commercial mortgage loans $ 878 $ 27 $ 905 100 % $ 927 100 % We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At December 31, 2020, we had no CMLs that were delinquent in principal or interest payments. Allowance for Expected Credit Loss We estimate expected credit losses for our commercial loan portfolio using a probability of default/loss given default model. Significant inputs to this model include the loans current performance, underlying collateral type, location, contractual life, LTV, and DSC. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on commercial mortgage loans are recognized in Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as we have a process to write-off interest on loans that enter into non-accrual status (over 90 days past due). Residential Mortgage Loans Residential mortgage loans ("RMLs") represented approximately 3% of our total investments as of December 31, 2020. Our residential mortgage loans are closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables (dollars in millions): December 31, 2020 U.S. State: Unpaid Principal Balance % of Total California $ 164 15 % Florida 188 16 New Jersey 96 8 All Other States (1) 704 61 Total mortgage loans $ 1,152 100 % (1) The individual concentration of each state is less than 8% as of December 31, 2020. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing residential mortgage loans as those that are 90 or more days past due or in nonaccrual status, which is assessed monthly. The credit quality of RMLs as at December 31, 2020, was as follows (dollars in millions): December 31, 2020 Performance indicators: Carrying Value % of Total Performing $ 1,059 91 % Non-performing 106 9 Total residential mortgage loans, gross of valuation allowance $ 1,165 100 % Allowance for expected loan loss (37) — Total residential mortgage loans $ 1,128 100 % Loans segregated by risk rating exposure as of December 31, 2020, were as follows (in millions): December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Residential mortgages Current (less than 30 days past due) $ 311 $ 545 $ 68 $ 42 $ 62 $ 2 $ 1,030 30-89 days past due 2 22 2 — — — 26 Over 90 days past due 26 74 3 — — — 103 Total residential mortgages $ 339 $ 641 $ 73 $ 42 $ 62 $ 2 $ 1,159 Commercial mortgages Current (less than 30 days past due) $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Commercial mortgages LTV Less than 50% $ 228 $ — $ 6 $ — $ — $ 303 $ 537 50% to 60% 192 — — — 11 43 246 60% to 75% 122 — — — — — 122 Total commercial mortgages $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 Commercial mortgages DSCR Greater than 1.25x $ 542 $ — $ 6 $ — $ 11 $ 319 $ 878 1.00x - 1.25x — — — — — 27 27 Less than 1.00x — — — — — — — Total commercial mortgages $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 Non-accrual loans by amortized cost as of December 31, 2020, was as follows (in millions): Amortized cost of loans on non-accrual December 31, 2020 Residential mortgage: $ 99 Commercial mortgage: — Total non-accrual loans $ 99 Allowance for Expected Credit Loss We estimate expected credit losses for our mortgage loan portfolio using a probability of default/loss given default model. Significant inputs to this model include the loans' current performance, underlying collateral type, location, contractual life, LTV, and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. Credit losses on purchase credit deteriorated (“PCD”) financial assets were recognized on the opening balance sheet and PCD amounts as of December 31, 2020 are shown in the table below (in millions): December 31, 2020 Credit Losses on PCD Financial Assets Residential Mortgage Commercial Mortgage Total Provision for loan losses $ 30 $ 2 $ 32 For initial credit losses on purchased loans accounted for as PCD financial assets 7 — 7 $ 37 $ 2 $ 39 An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as we have a process to write-off interest on loans that enter into non-accrual status (over 90 days past due). Allowances for expected credit losses are measured on accrued interest income for residential mortgage loans as seen in the tables below (in millions). December 31, 2020 Residential Mortgage $ 1 Commercial Mortgage — Total interest income recognized during the period on nonaccrual loans $ 1 December 31, 2020 Residential Mortgage $ 3 Commercial Mortgage — Total loans that are 90 days past due and still accruing $ 3 Interest and Investment Income The major sources of Interest and investment income reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Fixed maturity securities, available-for-sale $ 708 $ 70 $ 55 Equity securities 19 10 10 Preferred securities 59 24 24 Mortgage loans 50 — — Invested cash and short-term investments 8 34 19 Limited partnerships 76 — — Tax deferred property exchange income 33 72 65 Other investments 25 19 9 Gross investment income 978 229 182 Investment expense (78) (4) (5) Interest and investment income $ 900 $ 225 $ 177 Recognized Gains and Losses, net Details underlying Recognized gains and losses, net reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Net realized gains (losses) on fixed maturity available-for-sale securities $ 102 $ (6) $ 2 Net realized/unrealized gains (losses) on equity securities (2)(3) 241 309 (87) Net realized/unrealized gains (losses) on preferred securities (4) 15 28 (26) Realized gains (losses) on other invested assets (25) (13) 2 Change in allowance for expected credit losses (37) — — Derivatives and embedded derivatives: Realized gains on certain derivative instruments 76 — — Unrealized gains on certain derivative instruments 161 — — Change in fair value of reinsurance related embedded derivatives (1) (53) — — Change in fair value of other derivatives and embedded derivatives 8 — — Realized gains on derivatives and embedded derivatives 192 — — Recognized gains and losses, net $ 488 $ 318 $ (109) (1) Change in fair value of reinsurance related embedded derivatives is due to held for sale unaffiliated third party business under the fair value option election, and activity related to the FGL Insurance and Kubera reinsurance treaty. (2) Includes unrealized gain on Forward Purchase Agreements of $199 million as of December 31, 2020. (3) Includes valuation gains (losses) of $248 million, $299 million and $(71) million for the year ended December 31, 2020, 2019 and 2018. (4) Includes valuation gains (losses) of $(40) million, $17 million and $(24) million for the year ended December 31, 2020, 2019 and 2018, respectively. The impact of ASU 2016-13 adoption on the P&L was as follows (in millions): (Dollars in millions) December 31, 2020 Total ASU 2016-13 adoption impact on P&L $ (19) The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Proceeds $ 1,946 $ 614 $ 838 Gross gains 116 4 6 Gross losses (12) (9) (4) Unconsolidated Variable Interest Entities The Company owns investments in VIEs that are not consolidated within our financial statements, and one investment in a VIE that is consolidated within our financial statements. VIEs do not have sufficient equity to finance their own activities without additional financial support and certain of its investors lack certain characteristics of a controlling financial interest. VIEs are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While the Company participates in the benefits from VIEs in which it invests, but does not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under common control with the Company. It is for this reason that the Company is not considered the primary beneficiary for the VIE investments that are not consolidated. We previously executed a commitment of $83 million to purchase common shares in an unaffiliated private business development company ("BDC"). The BDC invests in secured and unsecured fixed maturity and equity securities of middle market companies in the United States. Due to the voting structure of the transaction, the Company does not have voting power. As of December 31, 2020, the BDC was listed on the NASDAQ. We invest in various limited partnerships as a passive investor. These investments are in credit funds with a bias towards current income, real assets, or private equity. Limited partnership interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our Consolidated Balance Sheets. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our Consolidated Balance Sheets in addition to any required unfunded commitments. As of December 31, 2020, our maximum exposure to loss was $1,107 million in recorded carrying value and $394 million in unfunded commitments. Investment with Related Party Included in equity securities as of December 31, 2020 and December 31, 2019 are 5,706,134 shares of Cannae common stock (NYSE: CNNE), which were purchased during the fourth quarter of 2017 in connection with the split-off of our former portfolio company investments to Cannae. The fair value of our related party investment based on quoted market prices is $253 million and $212 million as of December 31, 2020 and December 31, 2019, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The carrying amounts of derivative instruments, including derivative instruments embedded in FIA contracts, and reinsurance as of December 31, 2020 is as follows (in millions): December 31, 2020 Assets: Derivative investments: Call options $ 548 Other long-term investments: Other embedded derivatives 27 $ 575 Liabilities: Contractholder funds: FIA embedded derivative $ 3,404 Other liabilities: Reinsurance related embedded derivative 101 $ 3,505 The change in fair value of derivative instruments included in the accompanying Consolidated Statements of Earnings is as follows (in millions): Period from June 1 to December 31, 2020 Net investment gains (losses): Call options $ 229 Futures contracts 15 Foreign currency forward (7) Other derivatives and embedded derivatives 8 Reinsurance related embedded derivatives (53) Total net investment gains $ 192 Benefits and other changes in policy reserves: FIA embedded derivatives $ 552 Additional Disclosures FIA Embedded Derivative and Call Options and Futures We have FIA Contracts that permit the holder to elect an interest rate return or an equity index linked component, where interest credited to the contracts is linked to the performance of various equity indices, primarily the S&P 500 Index. This feature represents an embedded derivative under GAAP. The FIA embedded derivative is valued at fair value and included in the liability for contractholder funds in the accompanying Consolidated Balance Sheets with changes in fair value included as a component of Benefits and other changes in policy reserves in the Consolidated Statements of Earnings. See a description of the fair value methodology used in Note E Fair Value of Financial Instruments . We purchase derivatives consisting of a combination of call options and futures contracts on the applicable market indices to fund the index credits due to FIA contractholders. The call options are one two three five one two three five index credit. We manage the cost of these purchases through the terms of our FIA contracts, which permit us to change caps, spreads or participation rates, subject to guaranteed minimums, on each contract’s anniversary date. The change in the fair value of the call options and futures contracts is generally designed to offset the portion of the change in the fair value of the FIA embedded derivative related to index performance through the current credit period. The call options and futures contracts are marked to fair value with the change in fair value included as a component of Recognized gains and losses, net. The change in fair value of the call options and futures contracts includes the gains and losses recognized at the expiration of the instrument term or upon early termination and the changes in fair value of open positions. Other market exposures are hedged periodically depending on market conditions and our risk tolerance. Our FIA hedging strategy economically hedges the equity returns and exposes us to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging assets. We use a variety of techniques, including direct estimation of market sensitivities, to monitor this risk daily. We intend to continue to adjust the hedging strategy as market conditions and our risk tolerance changes. Credit Risk We are exposed to credit loss in the event of non-performance by our counterparties on the call options and reflect assumptions regarding this non-performance risk in the fair value of the call options. The non-performance risk is the net counterparty exposure based on the fair value of the open contracts less collateral held. We maintain a policy of requiring all derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. Information regarding our exposure to credit loss on the call options we hold as of December 31, 2020, is presented in the following table (in millions): December 31, 2020 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA-/*/A+ $ 1,932 $ 75 $ 32 $ 43 Morgan Stanley A/A2/BBB+ 1,503 40 41 — Barclay's Bank A+/A1/A 4,639 180 169 11 Canadian Imperial Bank of Commerce AA/Aa2/A+ 2,276 86 85 1 Wells Fargo A+/A2/BBB+ 2,900 106 105 1 Goldman Sachs A/A3/BBB+ 634 15 15 — Credit Suisse A/Aa3/A+ 1,373 27 25 2 Truist A+/A2/A 652 19 19 — Total $ 15,909 $ 548 $ 491 $ 58 (1) An * represents credit ratings that were not available. Collateral Agreements The Company is required to maintain minimum ratings as a matter of routine practice as part of its over-the-counter derivative agreements on ISDA forms. Under some ISDA agreements, the Company has agreed to maintain certain financial strength ratings. A downgrade below these levels provides the counterparty under the agreement the right to terminate the open option contracts between the parties, at which time any amounts payable by the Company or the counterparty would be dependent on the market value of the underlying option contracts. The Company's current rating doesn't allow any counterparty the right to terminate ISDA agreements. In certain transactions, the Company and the counterparty have entered into a collateral support agreement requiring either party to post collateral when the net exposures exceed pre-determined thresholds. For all counterparties, except Merrill Lynch, this threshold is set to zero. As of December 31, 2020, counterparties posted $491 million of collateral of which $415 million is included in cash and cash equivalents with an associated payable for this collateral included in accounts payable and accrued liabilities on the Consolidated Balance Sheet. Accordingly, the maximum amount of loss due to credit risk that the Company would incur if parties to the call options failed completely to perform according to the terms of the contracts was $58 million at December 31, 2020. The Company is required to pay counterparties the effective federal funds rate each day for cash collateral posted to F&G for daily mark to market margin changes. The Company reinvests derivative cash collateral to reduce the interest cost. Cash collateral is invested in overnight investment sweep products, which are included in cash and cash equivalents in the accompanying Consolidated Balance Sheets. The Company held 384 futures contracts at December 31, 2020. The fair value of the futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements). The Company provides cash collateral to the counterparties for the initial and variation margin on the futures contracts, which is included in cash and cash equivalents in the accompanying Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $4 million at December 31, 2020. Reinsurance Related Embedded Derivatives FGL Insurance entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain MYGA and deferred annuity statutory reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. Fair value movements in the funds withheld balances associated with this arrangement creates an obligation for FGL Insurance to pay Kubera at a later date, which results in an embedded derivative. This embedded derivative is considered a total return swap with contractual returns that are attributable to the assets and liabilities associated with this reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, were passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. The reinsurance related embedded derivative is reported in prepaid expenses and other assets if in a net gain position, or accounts payable and accrued liabilities, if in a net loss position, on the Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains and losses, net on the Consolidated Statements of Earnings. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable consists of the following: December 31, 2020 December 31, 2019 (In millions) 4.50% Notes, net of discount $ 443 $ 443 5.50% Notes, net of discount 399 398 3.40% Notes, net of discount 643 — 2.45% Notes, net of discount 592 — Revolving Credit Facility (4) (3) 5.50% F&G Notes, net of discount 589 — $ 2,662 $ 838 On October 29, 2020, we entered into the Fifth Restated Credit Agreement for our Amended Revolving Credit Facility with Bank of America, N.A., as administrative agent and the other agents party thereto. Among other changes, the Fifth Restated Credit Agreement amends the Fourth Restated Credit Agreement to extend the maturity date from April 27, 2022 to October 29, 2025.The material terms of the Fourth Restated Credit Agreement are set forth in our Annual Report for the year ended December 31, 2019. As of December 31, 2020, there was no principal outstanding, $2 million of unamortized debt issuance costs, and $800 million of available borrowing capacity under the Revolving Credit Facility. On September 15, 2020, we completed our underwritten public offering of $600 million aggregate principal amount of our 2.45% Notes due March 15, 2031 (the "2.45% Notes") pursuant to an effective registration statement filed with the Securities and Exchange Commission ("SEC"). The net proceeds from the registered offering of the 2.45% Notes were approximately $593 million, after deducting underwriting discounts and commissions and offering expenses. We used the net proceeds from the offering (i) to repay the remaining $260 million outstanding indebtedness under the Term Loan, and (ii) for general corporate purposes. On June 12, 2020, we completed our underwritten public offering of $650 million aggregate principal amount of the 3.40% Notes due June 15, 2030 (the “3.40% Notes”) pursuant to an effective registration statement filed with the SEC. The net proceeds from the registered offering of the 3.40% Notes were approximately $642 million, after deducting underwriting discounts, and commissions and offering expenses. We used the net proceeds from the offering (i) to repay $640 million of the outstanding principal amount under the Term Loan, and (ii) for general corporate purposes. On June 1, 2020, as a result of the F&G acquisition, we assumed $550 million aggregate principal amount of 5.50% senior notes due 2025 (the "5.50% F&G Notes"), originally issued on April 20, 2018 at 99.5% of face value for proceeds of $547 million. In connection with the acquisition of F&G, on April 22, 2020, we entered into the Term Loan, which provided for an aggregate principal borrowing of $1.0 billion with Bank of America, N.A, as the Administrative Agent, JPMorgan Chase Bank, N.A., as syndication agent, and the other lenders party thereto from time to time (the “Term Lenders”), pursuant to which the Term Lenders provided the $1.0 billion Term Loan. The Term Loan matures on April 21, 2021 and generally accrues interest based on a fluctuating rate per annum based on either (i) the base rate (which is equal to the highest of (a) the federal funds rate plus 0.5% of 1%, (b) the Administrative Agent’s "prime rate," and (c) LIBOR plus 1% (with a floor of 1.75%)), plus a margin of between 1% and 2% depending on the FNF Debt Rating or (ii) LIBOR (with a floor of 0.75%) plus a margin of between 2% and 0.03 depending on the FNF Debt Rating. On June 1, 2020, we drew down the full $1.0 billion in aggregate principal to fund a portion of the acquisition of F&G. On June 12, 2020, we repaid $640 million of principal on the Term Loan and an additional $100 million of principal on July 31, 2020. On September 15, 2020, we repaid the remaining $260 million in principal on the Term Loan. As of December 31, 2020, we had no principal outstanding under the Term Loan. On August 13, 2018, we completed an offering of $450 million in aggregate principal amount of 4.50% notes due August 2028 (the "4.50% Notes"), pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The 4.50% Notes were priced at 99.252% of par to yield 4.594% annual interest. We pay interest on the 4.50% Notes semi-annually on the 15th of February and August, beginning February 15, 2019. The 4.50% Notes contain customary covenants and events of default for investment grade public debt, which primarily relate to failure to make principal or interest payments. On May 16, 2019, we completed an offering to exchange the 4.50% Notes for substantially identical notes registered pursuant to Rule 424 under the Securities Act of 1933 (the "4.50% Notes Exchange"). There were no material changes to the terms of the 4.50% Notes as a result of the 4.50% Notes Exchange and all holders of the 4.50% Notes accepted the offer to exchange. On August 28, 2012, we completed an offering of $400 million in aggregate principal amount of 5.50% notes due September 2022 (the "5.50% Notes"), pursuant to an effective registration statement previously filed with the SEC. The notes were priced at 99.513% of par to yield 5.564% annual interest. We pay interest on the 5.50% semi-annually on the 1st of March and September, beginning March 1, 2013. These notes contain customary covenants and events of default for investment grade public debt. These events of default include a cross default provision, with respect to any other debt of the Company in an aggregate amount exceeding $100 million for all such debt, arising from (i) failure to make a principal payment when due or (ii) the occurrence of an event, which results in such debt being due and payable prior to its scheduled maturity. Gross principal maturities of notes payable at December 31, 2020 are as follows (in millions): 2021 $ — 2022 400 2023 — 2024 — 2025 550 Thereafter 1,700 $ 2,650 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Regulatory Contingencies In the ordinary course of business, we are involved in various pending and threatened litigation matters related to our operations, some of which include claims for punitive or exemplary damages. With respect to our title insurance operations, this customary litigation includes but is not limited to a wide variety of cases arising out of or related to title and escrow claims, for which we make provisions through our loss reserves. See Note C Summary of Reserve for Title Claim Losses . Additionally, like other companies, our ordinary course litigation includes a number of class action and purported class action lawsuits, which make allegations related to aspects of our operations. We believe that no actions, other than the matters discussed below, if any, depart from customary litigation incidental to our business. We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and represents our best estimate has been recorded. Our accrual for legal and regulatory matters was $13 million and $22 million a s of December 31, 2020 and December 31, 2019, respectively. None of the amounts we have currently recorded are considered to be material to our financial condition individually or in the aggregate. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending legal proceedings is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period if an unfavorable outcome results, at present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. Two lawsuits have been filed related to FNF’s acquisition of F&G. On August 4, 2020, a stockholder derivative lawsuit styled, City of Miami General Employees’ and Sanitation Employees’ Retirement Trust v. Fidelity National Financial, et al. , was filed in the Court of Chancery of the State of Delaware against the Company, its Board of Directors and others alleging breach of fiduciary duties as directors and officers relating to FNF’s acquisition of F&G. The Company’s Board of Directors (“Board”) has designated a Special Litigation Committee (the “SLC”) consisting of two of the Board’s Directors, and has authorized the SLC, among other things, to investigate and evaluate the claims and allegations asserted in the lawsuit. The Board has also given the SLC the sole authority and power to consider and determine whether or not prosecution of the claims asserted in the lawsuit is in the best interest of the Company and its shareholders, and what action the Company should take with respect to the lawsuit. The parties have agreed to stay the action until June 2021, to allow sufficient time for the SLC to investigate the allegations and provide its evaluation. On August 17, 2020, a lawsuit styled, In the Matter of FGL Holdings , was filed in the Grand Court of the Cayman Islands where dissenting shareholders, Kingfishers LP, Kingstown 1740 Fund LP, Kingstown Partners II LP, Kingstown Partners Master Ltd., and Ktown LP, have asserted statutory appraisal rights relative to their ownership of 12,000,000 shares of F&G stock in connection with the acquisition. They seek a judicial determination of the fair value of their shares of F&G stock under the law of the Cayman Islands, together with interest. The Company is defending and is appealing a recent discovery ruling related to the scope of dissenting shareholder disclosures. Expert discovery is in process. We do not believe the result in either case will have a material adverse effect on our financial condition. From time to time we receive inquiries and requests for information from state insurance departments, attorneys general and other regulatory agencies about various matters relating to our business. Sometimes these take the form of civil investigative demands or subpoenas. We cooperate with all such inquiries and we have responded to or are currently responding to inquiries from multiple governmental agencies. Also, regulators and courts have been dealing with issues arising from foreclosures and related processes and documentation. Various governmental entities are studying the title insurance product, market, pricing, and business practices, and potential regulatory and legislative changes, which may materially affect our business and operations. From time to time, we are assessed fines for violations of regulations or other matters or enter into settlements with such authorities, which may require us to pay fines or claims or take other actions. We do not anticipate such fines and settlements, either individually or in the aggregate, will have a material adverse effect on our financial condition. Acquired Contingencies - F&G We have received inquiries from a number of state regulatory authorities regarding our use of the U.S. Social Security Administration’s Death Master File (“Death Master File”) and compliance with state claims practices regulations and unclaimed property or escheatment laws. We have established procedures to periodically compare our in-force life insurance and annuity policies against the Death Master File or similar databases; investigate any identified potential matches to confirm the death of the insured; and determine whether benefits are due and attempt to locate the beneficiaries of any benefits due or, if no beneficiary can be located, escheat the benefit to the state as unclaimed property. We believe we have established sufficient reserves with respect to these matters; however, it is possible that third parties could dispute these amounts and additional payments or additional unreported claims or liabilities could be identified, which could be significant and could have a material adverse effect on our results of operations. Escrow Balances In conducting our operations, we routinely hold customers’ assets in escrow, pending completion of real estate transactions, and are respon sible for the proper disposition of these balances for our customers. Certain of these amounts are maintained in segregated bank accounts and have not been included in the accompanying Consolidated Balance Sheets, consistent with GAAP and industry practice. These balances amounted t o $26.5 billion a t December 31, 2020. As a result of holding these customers’ assets in escrow, we have ongoing programs for realizing economic benefits during the year through favorable borrowing and vendor arrangements with various banks. There were no investments or loans outstanding as of December 31, 2020 and 2019 related to these arrangements. Subscription Agreements for Forward Purchases of Equity On December 7, 2020, certain of our wholly-owned subsidiaries entered into the FTAC II Subscription Agreements to purchase in the aggregate $500 million of common shares of Paysafe upon the closing of the transactions contemplated by the Agreement and Plan of Merger, dated December 7, 2020, by and among Paysafe, FTAC II, PGHL and other parties thereto. The closing of the transactions are expected to occur in the first half of 2021. For further information related to the FTAC II Subscription Agreements, refer to Note A Basis of Presentation , Note D Fair Value of Financial Instruments and Note E Investments . F&G Commitments The Company has unfunded investment commitments as of December 31, 2020 based upon the timing of when investments are executed compared to when the actual investments are funded, as some investments require that funding occur over a period of months or years. A summary of unfunded commitments by invested asset class as of December 31, 2020 is included below (in millions): December 31, 2020 Asset Type Other invested assets $ 394 Equity securities 50 Fixed maturity securities, available-for-sale 432 Other assets 85 Commercial mortgage loans — Residential mortgage loans 6 Total $ 967 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Dividends | DividendsOn February 17, 2021, our Board of Directors declared cash dividends of 0.36 per share, payable on March 31, 2021, to FNF common shareholders of record as of March 17, 2021.Net Income Attributable to FNF Common Shareholders and Change in Total Equity On July 29, 2020, we purchased for $90 million the outstanding Class A units of ServiceLink held by its minority owners. As of the purchase date, ServiceLink is a wholly owned subsidiary of FNF. The following table presents the effect of the change in our ownership percentage in ServiceLink on equity attributable to FNF (in millions): Year ended December 31, 2020 2019 2018 Net earnings attributable to FNF common shareholders $ 1,427 $ 1,062 $ 628 Increase in additional paid-in capital for increase in ownership percentage in ServiceLink 211 — — Decrease in noncontrolling interests resulting from increased ownership percentage 47 — — Net increase in total equity 258 — — Net income attributable to FNF common shareholders and change in total equity $ 1,685 $ 1,062 $ 628 The following table presents the changes in our redeemable non-controlling interest during the years ended December 31, 2020 and 2019. Year ended December 31, 2020 2019 2018 Beginning balance $ 344 $ 344 $ 344 Redemption of ServiceLink non-controlling interest (344) — — Ending balance $ — $ 344 $ 344 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Summarized financial information concerning our reportable segments is shown in the following tables. On June 1, 2020, we completed our acquisition of F&G. As a result we have a new segment as of and for the year ended December 31, 2020, F&G, which contains our fixed annuity and life insurance businesses. As of and for the year ended December 31, 2020: Title F&G Corporate and Other Total (In millions) Title premiums $ 6,298 $ — $ — $ 6,298 Other revenues 2,782 138 172 3,092 Revenues from external customers 9,080 138 172 9,390 Interest and investment income, including recognized gains and losses 294 1,095 (1) 1,388 Total revenues 9,374 1,233 171 10,778 Depreciation and amortization 149 123 24 296 Interest expense 1 18 71 90 Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates 1,878 86 (180) 1,784 Income tax expense (benefit) 432 (75) (35) 322 Earnings (loss) before equity in earnings (loss) of unconsolidated affiliates 1,446 161 (145) 1,462 Equity in earnings of unconsolidated affiliates 14 — 1 15 Net earnings (loss) from continuing operations $ 1,460 $ 161 $ (144) $ 1,477 Assets $ 9,211 $ 39,714 $ 1,530 $ 50,455 Goodwill 2,478 1,751 266 4,495 As of and for the year ended December 31, 2019: Title Corporate and Other Total (In millions) Title premiums $ 5,342 $ — $ 5,342 Other revenues 2,389 195 2,584 Revenues from external customers 7,731 195 7,926 Interest and investment income, including recognized gains and losses 528 15 543 Total revenues 8,259 210 8,469 Depreciation and amortization 154 24 178 Interest expense — 47 47 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 1,536 (167) 1,369 Income tax expense (benefit) 363 (55) 308 Earnings (loss) before equity in earnings of unconsolidated affiliates 1,173 (112) 1,061 Equity in earnings of unconsolidated affiliates 13 2 15 Net earnings (loss) $ 1,186 $ (110) $ 1,076 Assets $ 9,071 $ 1,606 $ 10,677 Goodwill 2,462 265 2,727 As of and for the year ended December 31, 2018: Title Corporate and Other Total (In millions) Title premiums $ 4,911 $ — $ 4,911 Other revenues 2,204 411 2,615 Revenues from external customers 7,115 411 7,526 Interest and investment income, including recognized gains and losses 60 8 68 Total revenues 7,175 419 7,594 Depreciation and amortization 154 28 182 Interest expense — 43 43 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 876 (126) 750 Income tax expense (benefit) 163 (43) 120 Earnings (loss) before equity in earnings of unconsolidated affiliates 713 (83) 630 Equity in earnings of unconsolidated affiliates 4 1 5 Net earnings (loss) $ 717 $ (82) $ 635 Assets $ 8,391 $ 910 $ 9,301 Goodwill 2,462 264 2,726 The activities in our segments include the following: • Title. This segment consists of the operations of our title insurance underwriters and related businesses. This segment provides core title insurance and escrow and other title-related services including trust activities, trustee sales guarantees, and home warranty products. This segment also includes our transaction services business, which includes other title-related services used in the production and management of mortgage loans, including mortgage loans that experience default. • F&G . This segment consists of operations of our annuities and life insurance related businesses. This segment issues a broad portfolio of deferred annuities (fixed indexed and fixed rate annuities), immediate annuities and indexed universal life insurance. Premiums and annuity deposits (net of reinsurance), which are not included as revenues (except for traditional premiums) in the accompany Consolidated Statements of Operations, collected by product type were as follows: Year ended December 31, 2020 Product Type Fixed indexed annuities $ 1,966 Fixed rate annuities 631 Single premium immediate annuities 10 Life insurance (a) 146 Total $ 2,753 (a) Life insurance includes Universal Life (“UL”) and traditional life insurance products for FGL Insurance and FGL NY Insurance. • Corporate and Other. This segment consists of the operations of the parent holding company, our real estate technology subsidiaries and our remaining real estate brokerage businesses. This segment also includes certain other unallocated corporate overhead expenses and eliminations of revenues and expenses between it and our Title segment. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities. Year Ended December 31, 2020 2019 2018 (In millions) Cash paid for: Interest $ 73 $ 44 $ 34 Income taxes 315 251 204 Deferred sales inducements 46 — — Non-cash investing and financing activities: Equity financing associated with the acquisition of F&G $ 609 $ — $ — Change in proceeds of sales of investments available for sale receivable in period (4) 1 (3) Change in purchases of investments available for sale payable in period 14 (1) (2) Change in treasury stock purchases payable in period 8 (1) 1 Change in accrued dividends payable in period 1 2 2 Lease liabilities recognized in exchange for lease right-of-use assets 44 36 — Remeasurement of lease liabilities 48 101 — Liabilities assumed in connection with acquisitions (excluding F&G)(1) Fair value of assets acquired 32 1 50 Less: Total Purchase price 24 1 33 Liabilities and noncontrolling interests assumed $ 8 $ — $ 17 (1) For further information related to the acquisition of F&G, refer to Note B Acquisitions |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue Our revenue consists of: Year Ended December 31, 2020 2019 2018 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (in millions) Direct title insurance premiums Direct title insurance premiums Title $ 2,699 $ 2,381 $ 2,221 Agency title insurance premiums Agency title insurance premiums Title 3,599 2,961 2,690 Life insurance premiums, insurance and investment product fees, and other Escrow, title-related and other fees F&G 138 — — Home warranty Escrow, title-related and other fees Title 181 177 182 Total revenue from insurance contracts 6,617 5,519 5,093 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 1,170 899 826 Other title-related fees and income Escrow, title-related and other fees Title 791 639 600 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 301 389 379 Real estate technology Escrow, title-related and other fees Corporate and other 112 110 101 Real estate brokerage Escrow, title-related and other fees Corporate and other 25 39 316 Other Escrow, title-related and other fees Corporate and other 36 46 (6) Total revenue from contracts with customers 2,435 2,122 2,216 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 338 285 217 Interest and investment income Interest and investment income Various 900 225 177 Recognized gains and losses, net Recognized gains and losses, net Various 488 318 (109) Total revenues Total revenues $ 10,778 $ 8,469 $ 7,594 Our Direct title insurance premiums are recognized as revenue at the time of closing of the underlying transaction as the earnings process is then considered complete. Regulation of title insurance rates varies by state. Premiums are charged to customers based on rates predetermined in coordination with each states' respective Department of Insurance. Cash associated with such revenue is typically collected at closing of the underlying real estate transaction. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete. Revenues from our home warranty business are generated from contracts with customers to provide warranty for major home appliances. Substantially all of our home warranty contracts are one year in length and revenue is recognized ratably over the term of the contract. Escrow fees and Other title-related fees and income in our Title segment are closely related to Direct title insurance premiums and are primarily associated with managing the closing of real estate transactions including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, providing notary and home inspection services, and other real estate or title-related activities. Revenue is primarily recognized upon closing of the underlying real estate transaction or completion of services. Cash associated with such revenue is typically collected at closing. Revenues from ServiceLink, excluding its title premiums, escrow fees and loan subservicing fees primarily include revenues from real estate appraisal services and foreclosure processing and facilitation services. Revenues from real estate appraisal services are recognized when all appraisal work is complete, a final report is issued to the client and the client is billed. Revenues from foreclosure processing and facilitation services are primarily recognized upon completion of the services and when billing to the client is complete. Life insurance premiums in our F&G segment reflect premiums for traditional life insurance products and life-contingent immediate annuity products which are recognized as revenue when due from the policyholder. We have ceded the majority of our traditional life business to unaffiliated third party reinsurers. While the base contract has been reinsured, we continue to retain the return of premium rider. Insurance and investment product fees and other consist primarily of the cost of insurance on IUL policies, unearned revenue ("UREV") on IUL policies, policy rider fees primarily on FIA policies and surrender charges assessed against policy withdrawals in excess of the policyholder's allowable penalty-free amounts. Real estate technology revenues are primarily comprised of subscription fees for use of software provided to real estate professionals. Subscriptions are only offered on a month-by-month basis and fees are billed monthly. Revenue is recognized in the month services are provided. Real estate brokerage revenues are primarily comprised of commission revenues earned in association with the facilitation of real estate transactions and are recognized upon closing of the sale of the underlying real estate transaction. Loan subservicing revenues are generated by certain subsidiaries of ServiceLink and are associated with the servicing of mortgage loans on behalf of its customers. Revenue is recognized when the underlying work is performed and billed. Loan subservicing revenues are subject to the recognition requirements of ASC Topic 860. Interest and investment income consists primarily of interest payments received on fixed maturity security holdings and dividends received on equity and preferred security holdings. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, primarily related to revenue from our home warranty business, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Contract Balances The following table provides information about trade receivables and deferred revenue: December 31, 2020 December 31, 2019 (In millions) Trade receivables $ 404 $ 321 Deferred revenue (contract liabilities) 117 111 Deferred revenue is recorded primarily for our home warranty contracts. Revenues from home warranty products are recognized over the life of the policy, which is primarily one year. The unrecognized portion is recorded as deferred revenue in accounts payable and other accrued liabilities in the Consolidated Balance Sheets. During the years ended December 31, 2020 and 2019, we recognized $103 million and $103 million of revenue, respectively, which was included in deferred revenue at the beginning of the period. |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles A summary of the changes in the carrying amounts of the Company's VOBA, DAC and DSI intangible assets are as follows (in millions): VOBA DAC DSI Total Balance at Balance at December 31, 2019 $ — $ — $ — $ — F&G acquisition 1,847 — — 1,847 Deferrals — 251 46 297 Amortization (120) (6) (5) (131) Interest 20 2 — 22 Unlocking 2 — — 2 Adjustment for net unrealized investment (gains) losses (283) (25) (5) (313) Balance at December 31, 2020 $ 1,466 $ 222 $ 36 $ 1,724 Amortization of VOBA, DAC, and DSI is based on the current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rate utilized to calculate the accretion of interest on VOBA ranged from 0% to 4.71%. The adjustment for unrealized net investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI rather than the Consolidated Statements of Earnings. As of December 31, 2020, the VOBA balances included cumulative adjustments for net unrealized investment gains of $283 million, the DAC balances included cumulative adjustments for net unrealized investment gains of $25 million, and the DSI balance included net unrealized investment gains of $5 million. For the in-force liabilities as of December 31, 2020, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions): Estimated Amortization Expense Fiscal Year 2021 $ 144 2022 190 2023 189 2024 170 2025 164 Thereafter 892 Our F&G segment had an unearned revenue liability balance of $2 million as of December 31, 2020, including deferrals of $31 million, amortization of $4 million, interest of $0 million, unlocking of $0 million and adjustment for net unrealized investment gains (losses) of $25 million. Definite and Indefinite Lived Other Intangible Assets Other intangible assets as of December 31, 2020 consist of the following (in millions): Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Customer relationships and contracts $ 783 $ (596) $ 187 10 Computer software 416 (262) 154 2 to 10 Value of Distribution Asset (VODA) 140 (10) 130 15 Definite lived trademarks, tradenames, and other 73 (39) 34 10 Indefinite lived tradenames and other 35 N/A 35 Indefinite Total $ 540 Amortization expense for amortizable intangible assets, which consist primarily of VODA, customer relationships and computer software, was $138 million, $131 million, and $119 million for the years ended December 31, 2020, 2019 and 2018, respectively. Estimated amortization expense for the next five years for assets owned at December 31, 2020, is $123 million in 2021, $98 million in 2022, $76 million in 2023, $45 million in 2024 and $31 million in 2025. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goo dwill consists of the following: Title F&G Corporate and Other Total (In millions) Balance, December 31, 2018 $ 2,462 $ — $ 264 $ 2,726 Adjustments to prior year acquisitions — — 1 1 Balance, December 31, 2019 $ 2,462 $ — $ 265 $ 2,727 Goodwill associated with acquisitions 16 1,751 1 1,768 Balance, December 31, 2020 $ 2,478 $ 1,751 $ 266 $ 4,495 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In connection with the F&G acquisition, certain third party offshore reinsurance businesses acquired were deemed discontinued operations and are presented as such within our Consolidated Statements of Earnings for the period from June 1, 2020 through December 31, 2020. As of December 31, 2020, we have sold F&G Reinsurance Ltd (“F&G Re”) to Aspida Holdings Ltd (“Aspida”). The closing of the transaction occurred on December 18, 2020. The transaction did not have a material impact to our GAAP financial results. F&G and Aspida entered into a funds withheld reinsurance agreement, as of January 1, 2021, wherein F&G agreed to cede a quota share of MYGA sales occurring after the closing date of the sale. |
F&G Reinsurance
F&G Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
F&G Reinsurance | F&G Reinsurance F&G reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding F&G's retention limit is reinsured. F&G primarily seeks reinsurance coverage in order to limit its exposure to mortality losses and enhance capital management. F&G follows reinsurance accounting when there is adequate risk transfer. If the underlying policy being reinsured is an investment contract or there is inadequate risk transfer, deposit accounting is followed. F&G also assumes policy risks from other insurance companies. The effect of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the seven months ended December 31, 2020 were as follows (in millions): Seven months ended December 31, 2020 Net Premiums Earned Net Benefits Incurred Direct $ 108 $ 976 Assumed — 1 Ceded (85) (111) Net $ 23 $ 866 Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. F&G did not write off any significant reinsurance balances during the seven months ended December 31, 2020. F&G did not commute any ceded reinsurance treaties during the seven months ended December 31, 2020. Following the adoption of ASC 326, F&G estimates expected credit losses on reinsurance recoverables using a probability of default/loss given default model. Significant inputs to the model include the reinsurers credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. As of the acquisition of F&G, due to purchase accounting adjustments, our expected credit loss reserve was valued at $0. During the seven months ended December 31, 2020, the expected credit loss reserve was increased to $21 million. No policies issued by F&G have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. F&G has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues. FGL Insurance has an indemnity reinsurance agreement with Hannover Re, a third party reinsurer, to cede a quota share percentage of the net retention of guarantee payments in excess of account value for guaranteed minimum withdrawal benefits ("GMWB") and Guaranteed Minimum Death Benefit (“GMDB”) guarantees associated with an in-force block of its FIA and fixed deferred annuity contracts. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP, since it is not “reasonably possible” that the reinsurer may realize significant loss from assuming the insurance risk. FGL Insurance incurred risk charge fees of $12 million during the seven months ended December 31, 2020, respectively, in relation to this reinsurance agreement. FGL Insurance has a reinsurance agreement with Kubera Insurance (SAC) Ltd. ("Kubera"), a third party reinsurer, to initially cede approximately $943 million of certain MYGA and deferred annuity GAAP reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, FGL Insurance cedes a quota share percentage of MYGA and deferred annuity policies for certain issue years to Kubera. As the policies ceded to Kubera are investment contracts, there is no significant insurance risk present and therefore deposit accounting is applied. The application of deposit accounting for this agreement, however, results in accounting for and presentation similar to other reinsurance agreements that apply reinsurance accounting. FGL Insurance has a reinsurance agreement with Kubera to initially cede approximately $5.0 billion of certain FIA statutory reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, FGL Insurance cedes a quota share percentage of FIA policies for certain issue years to Kubera. As the policies ceded to Kubera are investment contracts, there is no significant insurance risk present and therefore deposit accounting is applied. For financial statement presentation, we net the deposit asset with the funds withheld liability. FGL Insurance incurred risk charge fees of $4 million during the seven months ended December 31, 2020, respectively, in relation to this reinsurance agreement. Effective May 1, 2020, FGL Insurance entered into an indemnity reinsurance agreement with Canada Life Assurance Company United States Branch, a third party reinsurer, to reinsure FIA policies with guaranteed minimum withdrawal benefits ("GMWB"). In accordance with the terms of this agreement, FGL Insurance cedes a quota share percentage of the net retention of guarantee payments in excess of account value for GMWB. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP, since it is not “reasonably possible” that the reinsurer may realize significant loss from assuming the insurance risk. FGL Insurance incurred risk charge fees of $1 million during the seven months ended December 31, 2020, respectively, in relation to this reinsurance agreement. Concentration of Reinsurance Risk F&G has a significant concentration of reinsurance risk with third party reinsurers, Wilton Reassurance Company (“Wilton Re”) and Kubera that could have a material impact on the Company’s financial position in the event that either Wilton Re or Kubera fail to perform their obligations under the various reinsurance treaties. Wilton Re is a wholly-owned subsidiary of Canada Pension Plan Investment Board ("CPPIB"). CPPIB has an AAA issuer credit rating from Standard & Poor's Ratings Services ("S&P") as of December 31, 2020. Kubera is not rated; however, management has attempted to mitigate the risk of non-performance through the funds withheld arrangement. As of December 31, 2020, the net amount recoverable from Wilton Re was $1,481 million and the net amount recoverable from Kubera was $810 million. The Company monitors both the financial condition of individual reinsurers and risk concentration arising from similar activities and economic characteristics of reinsurers to attempt to reduce the risk of default by such reinsurers. The Company believes that all amounts due from Wilton Re and Kubera for periodic treaty settlements are collectible as of December 31, 2020. On March 6, 2019, Scottish Re (U.S.), Inc. (“SRUS”), a Delaware domestic life and health reinsurer of FGL Insurance, was ordered into receivership for purposes of rehabilitation. As of December 31, 2020, the net amount recoverable from SRUS was $50 million. The financial exposure related to these ceded reserves are substantially mitigated via a reinsurance agreement whereby Wilton Re assumes treaty non-performance including credit risk for this business. On July 9, 2019, Pavonia Life Insurance Company of Michigan ("Pavonia"), a Michigan domiciled life, accident, and health insurance company, was placed into rehabilitation. While the court order indicated that Pavonia had a stable financial condition and lack of non-insurance affiliated investments, the Director of the Michigan Department of Insurance and Financial Services ("MDIFS") has concerns relating to Pavonia's parent company. To insulate Pavonia from its parent until a pending acquisition transaction could be consummated, MDIFS placed Pavonia under supervision and rehabilitation. As of December 31, 2020, the net amount recoverable from Pavonia was $94 million. The financial exposure related to these ceded reserves are substantially mitigated via a reinsurance agreement whereby Wilton Re assumes treaty non-performance including credit risk for this business. Intercompany Reinsurance Agreements F&G entered has a reinsurance treaty with Raven Reinsurance Company ("Raven Re"), its wholly-owned captive reinsurance company, to cede the Commissioners Annuity Reserve Valuation Method (CARVM) liability for annuity benefits where surrender charges are waived. In connection with the CARVM reinsurance agreement, FGL Insurance and Raven Re entered into an agreement with Nomura Bank International plc (“NBI”) to establish a reserve financing facility in the form of a letter of credit issued by NBI. The financing facility has $85 million available to draw on as of December 31, 2020. The facility may terminate earlier, in accordance with the terms of the Reimbursement Agreement. Under the terms of the reimbursement agreement, in the event the letter of credit is drawn upon, Raven Re is required to repay the amounts utilized, and FGLH is obligated to repay the amounts utilized if Raven Re fails to make the required reimbursement. FGLH also is required to make capital contributions to Raven Re in the event that Raven Re’s statutory capital and surplus falls below certain defined levels. As of December 31, 2020 and 2019, Raven Re’s statutory capital and surplus was $29 million and $33 million, respectively, in excess of the minimum level required under the Reimbursement Agreement. As this letter of credit is provided by an unaffiliated financial institution, Raven Re is permitted to carry the letter of credit as an admitted asset on the Raven Re statutory balance sheet. FGL Insurance entered into a reinsurance treaty with FSRC, an affiliated reinsurer, whereby FGL Insurance ceded 10% of its June 30, 2012 in-force annuity block of business not already reinsured on a funds withheld basis. FGL Insurance later entered into a second reinsurance treaty with FSRC whereby FGL Insurance ceded 30% of any new business of its MYGA issued on a funds withheld basis. The second treaty was subsequently terminated as to new business, but will remain in effect for policies ceded to FSRC with an effective date between September 17, 2014 and April 30, 2015. Accordingly, MYGA policies issued with an effective date of May 1, 2015 and later will not be ceded to FSRC. Effective December 31, 2020, FGL Insurance executed a Coinsurance Agreement with F&G Life Re Ltd. ("Reinsurer"), an affiliated Bermuda reinsurer, to reinsure a quota share of FIA policies to the Reinsurer. Concurrently, the Reinsurer and F&G Cayman Re Ltd., an affiliated reinsurer of both FGL Insurance and the Reinsurer, entered into a Retrocession Agreement. The cession from FGL Insurance to the Reinsurer is on a 100% quota share basis, net of applicable existing reinsurance and the retrocession to F&G Cayman Re Ltd. from the Reinsurer is on a 45% quota share basis. Additionally, both treaties are maintained on a funds withheld basis. FGL Insurance ceded and the Reinsurer retroceded approximately $5.0 billion and $2.2 billion, respectively, in certain FIA Statutory Reserves and Interest Maintenance Reserve. |
Regulatory and Equity
Regulatory and Equity | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Regulatory and Equity | Summary of Reserve for Title Claim Losses A summary of the reserve for title claim losses follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Beginning balance $ 1,509 $ 1,488 $ 1,490 Change in insurance recoverable 34 1 — Claim loss provision related to: Current year 283 240 221 Prior years — — — Total title claim loss provision 283 240 221 Claims paid, net of recoupments related to: Current year (11) (11) (10) Prior years (192) (209) (213) Total title claims paid, net of recoupments (203) (220) (223) Ending balance of claim loss reserve for title insurance $ 1,623 $ 1,509 $ 1,488 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % 4.5 % Several lawsuits have been filed by various parties against Chicago Title Company and Chicago Title Insurance Company as its alter ego (collectively, the “Named Companies”), among others. Generally, plaintiffs claim they are investors who were solicited by Gina Champion-Cain to provide funds that purportedly were to be used for high-interest, short-term loans to parties seeking to acquire California alcoholic beverage licenses. Plaintiffs contend that under California state law, alcoholic beverage license applicants are required to escrow an amount equal to the license purchase price while their applications remain pending with the State. Plaintiffs further alleged that employees of Chicago Title Company participated with Ms. Champion-Cain and her entities in a fraud scheme involving an escrow account maintained by Chicago Title Company into which the plaintiffs’ funds were deposited. The Named Companies have settled or are planning mediations and/or settlement discussions with a majority of both the individual and group investors in the alleged scheme in the coming months. The following lawsuits were filed in the Superior Court of San Diego County for the State of California. While they have not been consolidated into one action, they have been deemed by the court to be related and are assigned to the same judge for purposes of judicial economy. The Named Companies filed an omnibus motion to dismiss the complaints in the related cases on several grounds. On January 13, 2021, the court entered an order dismissing several of the counts with leave to amend, another without leave to amend, and denied the motion as to the remaining counts. Unless otherwise noted as resolved, plaintiffs have recently filed or are expected to file amended complaints in these cases, and the Named Companies will file responses on or before the respective due dates. On Decem ber 13, 2019, a lawsuit styled, Kim Funding, LLC, Kim H. Peterson, Joseph J. Cohen, and ABC Funding Strategies, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $250 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. On March 6, 2020, a lawsuit styled, Wakefield Capital, LLC, Wakefield Investments, LLC, 2Budz Holding, LLC, Doug and Kristine Heidrich, and Jeff and Heidi Orr v. Chicago Title Co. and Chicago Title Ins. Co. , was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $7 million as a result of the alleged fraud scheme, and also seek punitive damages, recovery of attorneys’ fees, and disgorgement. On March 16, 2020, a lawsuit styled, Randolph L. Levin, et al., v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, Betty Elixman, et al. , was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $38 million as a result of the alleged fraud scheme, and also seek punitive damages and the recovery of attorneys’ fees. This matter recently settled under confidential terms following mediation. On May 29, 2020, a lawsuit styled, Mark Atherton, et al., v. Chicago Title Co. and Chicago Title Ins. Co. , was filed in was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $30 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages, as well as the recovery of attorneys’ fees. On June 29, 2020, a lawsuit styled, Susan Heller Fenley Separate Property Trust, DTD 03/04/2010, Susan Heller Fenley Inherited Roth IRA, Shelley Lynn Tarditi Trust and ROJ, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $6 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. On June 29, 2020, a lawsuit styled, Yuan Yu and Polly Yu v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in San Diego County Superior Court. Plaintiffs claim losses in excess of $1 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages. On July 7, 2020, a cross-claim styled, Laurie Peterson v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in an existing lawsuit styled, Banc of California, National Association v. Laurie Peterson , which is pending in San Diego County Superior Court. Cross-complaint plaintiff was sued by a bank to recover in excess of $35 million that she allegedly guaranteed to repay for certain investments made by the Banc of California in the alcoholic beverage license scheme. Cross-complaint plaintiff has, in turn, sued the Named Companies in that action seeking in excess of $250 million in monetary losses as well as exemplary damages and attorneys’ fees. On Septemb er 3, 2020, a cross-claim styled, Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in an existing lawsuit styled, CalPrivate Bank v. Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 , which is pending in Superior Court of San Diego County for the State of California. Cross-complaint plaintiff was sued by a bank to recover in excess of $12 million that the trustee allegedly guaranteed to repay for certain investments made by CalPrivate Bank in the alcoholic beverage license scheme. Cross-complaint plaintiff has, in turn, sued the Named Companies in that action seeking in excess of $250 million in monetary losses as well as exemplary damages and attorneys’ fees. On Octo ber 1, 2020, a lawsuit styled, Ovation Fin. Holdings 2 LLC, Ovation Fund Mgmt. II, LLC, Banc of California, N.A. v. Chicago Title Ins. Co. , was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $100 million, as well as consequential and punitive damages. The Named Companies are defending and filed a motion to dismiss the complaint on several grounds On November 2, 2020, a lawsuit styled, C alPrivate Bank v. Chicago Title Co. and Chicago Title Ins. Co. , was also filed in the Superior Court of San Diego County for the State of California. Plaintiff claims losses in excess of $12 million based upon business loan advances made in the alcoholic beverage license scheme, and also seeks punitive damages and the recovery of attorneys’ fees. This case was only recently deemed by the court to be related to the above San Diego County Superior Court lawsuits, and it has now been transferred to the same judge. On November 5, 2019, a putative class action lawsuit styled, Blake E. Allred and Melissa M. Allred v. Chicago Title Co., Chicago Title Ins. Co., Adelle E. Ducharme, Betty Elixman, Gina Champion-Cain, Joelle Hanson, Cris Torres, and Rachel Bond , was filed in the United States District Court for the Southern District of California. The Named Companies filed a motion to dismiss the complaint on several grounds, or alternatively, to stay the case. The court entered an order dismissing the federal law counts against the Named Companies without leave to amend, dismissing other counts with leave to amend, and denied the motion as to the remaining counts. Following the court’s dismissal of certain counts, Plaintiffs voluntarily dismissed the entire federal action and refiled a similar action in the Superior Court of San Diego County for the State of California. The new state court putative class action lawsuit, filed February 24, 2021, is styled, Blake E. Allred and Melissa M. Allred v. Chicago Title Co., Chicago Title Ins. Co. , and plaintiffs are seeking compensatory, statutory, treble, and punitive damages. The court has been notified that this matter is related to the other lawsuits filed in San Diego County Superior Court. On October 23, 2020, a lawsuit styled, DH Claims LLC v. Chicago Title Co., Chicago Title Ins. Co., and Della Ducharme , was filed in the Superior Court of Orange County for the State of California. Plaintiff claims losses in excess of $2 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages, as well as the recovery of attorneys’ fees. The parties have asked the court to transfer this case to San Diego County Superior Court, where the Named Companies have already informed the court of this additional related matter. In addition, Chicago Title Company resolved claims from both individual investors and a group of alleged investors under confidential terms during pre-suit mediations. As of December 31, 2020, the Company has recorded an incurred claim loss reserve for legal fees and any remaining unpaid amounts relating to losses on the matters resolved confidentially mentioned above which is included in its consolidated reserve for title claim losses. The Company has also recorded an insurance recoverable for amounts that will be recovered from its insurance carriers relating to these matters At this time, the Company is unable to ascertain its liability, if any, and is unable to make an estimate of a reasonably possible claim loss for any of the unresolved claims due to the complex nature of the claims and litigation, the early procedural status of each claim (involving unresolved questions of fact without any rulings on the merits or determinations of liability), the extent of discovery not yet conducted, potential insurance coverage, and an incomplete evaluation of possible defenses, counterclaims, crossclaims or third-party claims that may exist. Moreover, it is likely that in some instances, the claims listed above are duplicative. As further information becomes available, the Company will continue to evaluate the adequacy of its consolidated reserve for title claim losses. As of December 31, 2020, the Company believes that its reserves are adequate to cover losses related to this matter and other claims. We continually update loss reserve estimates as new information becomes known, new loss patterns emerge or as other contributing factors are considered and incorporated into the analysis of reserve for claim losses. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims and other factors. Due to the uncertainty inherent in the process and to the judgment used by management, the ultimate liability may be greater or less than our current reserves. If actual claims loss development varies from what is currently expected and is not offset by other factors, it is possible that additional reserve adjustments may be required in future periods in order to maintain our recorded reserve within a reasonable range of our actuary's central estimate. Regulation Title Our insurance subsidiaries, including title insurers, underwritten title companies and insurance agencies, are subject to extensive regulation under applicable state laws. Each of the insurance underwriters is subject to a holding company act in its state of domicile that regulates, among other matters, the ability to pay dividends and enter into transactions with affiliates. The laws of most states in which we transact business establish supervisory agencies with broad administrative powers relating to issuing and revoking licenses to transact business, regulating trade practices, licensing agents, approving policy forms, accounting practices, financial practices, establishing reserve and capital and surplus as regards policyholders (“capital and surplus”) requirements, defining suitable investments for reserves and capital and surplus and approving rate schedules. The process of state regulation of changes in rates ranges from states that set rates, to states where individual companies or associations of companies prepare rate filings that are submitted for approval, to a few states in which rate changes do not need to be filed for approval. Since we are regulated by both state and federal governments and the applicable insurance laws and regulations are constantly subject to change, it is not possible to predict the potential effects on our insurance operations, particularly the Title segment, of any laws or regulations that may become more restrictive in the future or if new restrictive laws will be enacted. Statutory-basis financial statements are prepared in accordance with accounting practices prescribed or permitted by the various state insurance regulatory authorities. The National Association of Insurance Commissioners' (“NAIC” ) Accounting Practices and Procedures manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by each of the states that regulate us. Each of our states of domicile for our title insurance underwriter subsidiaries have adopted a material prescribed accounting practice that differs from that found in NAIC SAP. Specifically, in both years, the timing of amounts released from the statutory unearned premium reserve under NAIC SAP differs from the states' required practice. Statutory surplus at December 31, 2020 and 2019 was lower by approximately $28 million and $33 million than if we had reported such amounts in accordance with NAIC SAP. Pursuant to statutory accounting requirements of the various states in which our insurers are domiciled, these insurers must defer a portion of premiums earned as an unearned premium reserve for the protection of policyholders and must maintain qualified assets in an amount equal to the statutory requirements. The level of unearned premium reserve required to be maintained at any time is determined by statutory formula based upon either the age, number of policies and dollar amount of policy liabilities underwritten, or the age and dollar amount of statutory premiums written. As of December 31, 2020, the combined statutory unearned premium reserve required and reported for our title insurers was $1,532 million. In addition to statutory unearned premium reserves, each of our insurers maintains reserves for known claims and surplus funds for policyholder protection and business operations. Each of our insurance subsidiaries is regulated by the insurance regulatory authority in its respective state of domicile, as well as that of each state in which it is licensed. The insurance commissioners of their respective states of domicile are the primary regulators of our title insurance subsidiaries. Each of the insurers is subject to periodic regulatory financial examination by regulatory authorities. Our insurance subsidiaries are subject to regulations that restrict their ability to pay dividends or make other distributions of cash or property to their immediate parent company without prior approval from the Department of Insurance of their respective states of domicile. As of December 31, 2020 , $2,559 million of our net assets are restricted from dividend payments without prior approval from the Departments of Insurance. During 2021, our title insurers can pay or make distributions to us of approximately $551 million, without prior approval. The combined statutory capital and surplus of our title insurers was approximately $1,699 million and $1,581 million as of December 31, 2020 and 2019, respectively. The combined statutory net earnings of our title insurance subsidiaries were $629 million, $583 million, and $625 million for the years ended December 31, 2020 , 2019, and 2018, respectively. As a condition to continued authority to underwrite policies in the states in which our insurers conduct their business, the insurers are required to pay certain fees and file information regarding their officers, directors and financial condition. In addition, our escrow and trust business is subject to regulation by various state banking authorities. Pursuant to statutory requirements of the various states in which our insurers are domiciled, such insurers must maintain certain levels of minimum capital and surplus. Required levels of minimum capital and surplus are not significant to the insurers individually or in the aggregate. Each of our insurers has complied with the minimum statutory requirements as of December 31, 2020. Our underwritten title companies, primarily those domiciled in California, are also subject to certain regulation by insurance regulatory or banking authorities relating to their net worth and working capital. Minimum net worth and working capital requirements for each underwritten title company is less than $1 million. These companies were in compliance with their respective minimum net worth and working capital requirements at December 31, 2020. There are no restrictions on our retained earnings regarding our ability to pay dividends to shareholders although there are limits on the ability of certain subsidiaries to pay dividends to us, as described above. F&G Through our wholly owned F&G subsidiary, our U.S. insurance subsidiaries, FGL Insurance, Fidelity & Guaranty Life Insurance Company of New York ("FGL NY Insurance"), and Raven Re, file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect DAC, DSI and VOBA, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. Our principal insurance subsidiaries' statutory (SAP and GAAP) financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of the Company's wholly owned insurance subsidiaries were as follows (in millions): Subsidiary (state/country of domicile) (a) FGL Insurance (IA) FGL NY Insurance (NY) Raven Re (VT) Statutory Net Income (loss): Year ended December 31, 2020 $ (46) $ (2) $ 12 Statutory Capital and Surplus: December 31, 2020 $ 1,249 $ 93 $ 84 (a) FGL NY Insurance and Raven Re are subsidiaries of FGL Insurance, and the columns should not be added together. FGL insurance, FGL NY Insurance and Raven Re's respective statutory capital and surplus satisfies the applicable minimum regulatory requirements. Life insurance companies domiciled in the U.S. are subject to certain Risk-Based Capital (“RBC”) requirements as specified by the NAIC. The RBC is used to evaluate the adequacy of capital and surplus maintained by an insurance company in relation to risks associated with: (i) asset risk, (ii) insurance risk, (iii) interest rate risk and (iv) business risk. We monitor the RBC of FGLH’s insurance subsidiaries. As of December 31, 2020, each of FGLH's insurance subsidiaries had exceeded the minimum RBC requirements. Our insurance subsidiaries domiciled in the U.S. are restricted by state laws and regulations as to the amount of dividends they may pay to their parent, our wholly owned F&G subsidiary, without regulatory approval in any year, the purpose of which is to protect affected insurance policyholders, depositors or investors. Any dividends in excess of limits are deemed “extraordinary” and require regulatory approval. In addition, and pursuant to an order issued by the Iowa Commissioner on November 28, 2017, FGL Insurance shall not pay any dividend or other distribution to shareholders prior to November 28, 2020 without the prior approval of the Iowa Commissioner. As of December 31, 2020, upon approval by the Iowa Commissioner, FGL Insurance declared and paid extraordinary dividends of $151 to its parent. FGL Insurance applies Iowa-prescribed accounting practices that permit Iowa-domiciled insurers to report equity call options used to economically hedge FIA index credits at amortized cost for statutory accounting purposes and to calculate FIA statutory reserves such that index credit returns will be included in the reserve only after crediting to the annuity contract. This resulted in a $204 million decrease to statutory capital and surplus at December 31, 2020. FGL Insurance’s statutory carrying value of Raven Re reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset, which increased Raven Re’s statutory capital and surplus by $85 million at December 31, 2020. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance, which increased Raven Re’s statutory capital and surplus by $5 million at December 31, 2020. Without such permitted statutory accounting practices Raven Re’s statutory capital and surplus (deficit) would be $(6) million as of December 31, 2020, and its risk-based capital would fall below the minimum regulatory requirements. The letter of credit facility is collateralized by NAIC 1 rated debt securities. If the permitted practice was revoked, the letter of credit could be replaced by the collateral assets with Nomura’s consent as discussed in Note P F&G Reinsurance . FGL Insurance’s statutory carrying value of Raven Re at December 31, 2020 was $84 million. As of December 31, 2020, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. The prescribed and permitted statutory accounting practices have no impact on our Consolidated Financial Statements, which are prepared in accordance with GAAP. Equity three |
Net Income Attributable to FNF
Net Income Attributable to FNF Common Shareholders and Change in Total Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Net Income Attributable to FNF Common Shareholders and Change in Total Equity | DividendsOn February 17, 2021, our Board of Directors declared cash dividends of 0.36 per share, payable on March 31, 2021, to FNF common shareholders of record as of March 17, 2021.Net Income Attributable to FNF Common Shareholders and Change in Total Equity On July 29, 2020, we purchased for $90 million the outstanding Class A units of ServiceLink held by its minority owners. As of the purchase date, ServiceLink is a wholly owned subsidiary of FNF. The following table presents the effect of the change in our ownership percentage in ServiceLink on equity attributable to FNF (in millions): Year ended December 31, 2020 2019 2018 Net earnings attributable to FNF common shareholders $ 1,427 $ 1,062 $ 628 Increase in additional paid-in capital for increase in ownership percentage in ServiceLink 211 — — Decrease in noncontrolling interests resulting from increased ownership percentage 47 — — Net increase in total equity 258 — — Net income attributable to FNF common shareholders and change in total equity $ 1,685 $ 1,062 $ 628 The following table presents the changes in our redeemable non-controlling interest during the years ended December 31, 2020 and 2019. Year ended December 31, 2020 2019 2018 Beginning balance $ 344 $ 344 $ 344 Redemption of ServiceLink non-controlling interest (344) — — Ending balance $ — $ 344 $ 344 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We adopted ASC Topic 842 on January 1, 2019 using a modified retrospective approach. Prior year periods continue to be reported under ASC Topic 840. Right-of-use assets and lease liabilities related to operating leases under ASC Topic 842 are recorded when we are party to a contract, which conveys the right for the Company to control an asset for a specified period of time. Substantially all of our operating lease arrangements relate to rented office space and real estate for our title operations. We generally are not a party to any material contracts considered finance leases. Right-of-use assets and lease liabilities under ASC Topic 842 are recorded as Lease assets and Lease liabilities, respectively, on the Consolidated Balance Sheet as of December 31, 2020. Our operating leases range in term from one Our lease agreements do not contain material variable lease payments, buyout options, residual value guarantees or restrictive covenants. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term by varying amounts. The exercise of lease renewal options is at our sole discretion. We do not include options to renew in our measurement of lease assets and lease liabilities as they are not considered reasonably assured of exercise. Our operating lease liability is determined by discounting future lease payments using a discount rate based on the Company's incremental borrowing rate for similar collateralized borrowing. The discount rate is calculated as an average of the current yield on our unsecured notes payable and 140 basis points in excess of the current five year LIBOR swap rate. As of December 31, 2020 the weighted-average discount rate used to determine our operating lease liability was 3.8%. We do not separate lease components from non-lease components for any of our right-of-use assets. Our lease costs are included in Other operating expenses on the Consolidated Statements of Income and was $150 million and $146 million for the years ended December 31, 2020 and 2019, respectively. We do not have any material short term lease costs, variable lease costs, or sublease income. Rent expense incurred for operating leases under ASC Topic 840 during the year ended December 31, 2018 was $150 million. Future payments under operating lease arrangements accounted for under ASC Topic 842 as of December 31, 2020 are as follows (in millions): 2021 $ 147 2022 113 2023 82 2024 53 2025 21 Thereafter 31 Total operating lease payments, undiscounted $ 447 Less: present value discount 33 Lease liability, at present value $ 414 See Note K. Supplementary Cash Flow Information for certain information on noncash investing and financing activities related to our operating lease arrangements. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following: December 31, 2020 2019 (In millions) Furniture, fixtures and equipment $ 230 $ 222 Data processing equipment 186 174 Leasehold improvements 115 102 Buildings 78 85 Land 14 16 Other 5 5 Total property and equipment, gross 628 604 Accumulated depreciation and amortization (448) (428) Total property and equipment, net $ 180 $ 176 Depreciation expense on property and equipment was $48 million, $42 million, and $46 million for the years ended December 31, 2020, 2019 , and 2018 , respectively. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | Accounts Payable and Other Accrued Liabilities Accounts payable and other accrued liabilities consist of the following: December 31, 2020 2019 (In millions) Salaries and incentives $ 519 $ 341 Accrued benefits 373 289 Deferred revenue 117 111 Contingent consideration - acquisitions 11 17 Trade accounts payable 115 44 Accrued recording fees and transfer taxes 21 10 Accrued premium taxes 36 26 Liability for policy and contract claims 88 — Retained asset account 144 — Remittances and items not allocated 158 — Option collateral liabilities 415 — Funds withheld embedded derivative 101 — Other accrued liabilities 304 256 $ 2,402 $ 1,094 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) on continuing operations consists of the following: Year Ended December 31, 2020 2019 2018 (In millions) Current $ 379 $ 268 $ 64 Deferred (57) 40 56 $ 322 $ 308 $ 120 Total income tax expense was allocated as follows: Year Ended December 31, 2020 2019 2018 (In millions) Net earnings from continuing operations $ 322 $ 308 $ 120 Tax expense attributable to net earnings from discontinued operations — — — Other comprehensive earnings (loss): Unrealized gain (loss) on investments and other financial instruments 332 16 (3) Unrealized gain (loss) on foreign currency translation and cash flow hedging 1 1 (2) Minimum pension liability adjustment 4 — — Total income tax expense (benefit) allocated to other comprehensive earnings 337 17 (5) Total income taxes $ 659 $ 325 $ 115 A reconciliation of the federal statutory rate to our effective tax rate is as follows: Year Ended December 31, 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.5 1.7 3.1 Stock compensation (0.3) (0.8) (0.5) Tax credits (0.4) (0.1) (0.2) Consolidated partnerships (0.3) (0.2) (0.2) Tax reform — — (7.1) Valuation allowance for deferred tax assets (3.0) — — Change in tax status benefit (2.0) — — Non-deductible expenses and other, net 0.5 0.9 (0.1) Effective tax rate 18.0 % 22.5 % 16.0 % The significant components of deferred tax assets and liabilities at December 31, 2020 and 2019 consist of the following: December 31, 2020 2019 (In millions) Deferred Tax Assets: Employee benefit accruals $ 94 $ 71 Net operating loss carryforwards 17 3 Accrued liabilities 12 3 Allowance for uncollectible accounts receivable 5 4 Pension plan — 3 Tax credits 59 39 State income taxes 4 3 Capital loss carryover 35 — Basis difference held-for-sale 19 — Life insurance and claim related adjustments 861 — Funds held under reinsurance agreements 85 — Other 13 9 Total gross deferred tax asset 1,204 135 Less: valuation allowance 45 25 Total deferred tax asset $ 1,159 $ 110 Deferred Tax Liabilities: Title plant $ (56) $ (55) Amortization of goodwill and intangible assets (148) (113) Other investments (7) (6) Other (23) (11) Investment securities (601) (75) Depreciation (17) (12) Partnerships (83) (54) Value of business acquired (308) — Derivatives (38) — Deferred acquisition costs (6) — Transition reserve on new reserve method (43) — Funds held under reinsurance agreements (58) — Title Insurance reserve discounting (63) (68) Total deferred tax liability $ (1,451) $ (394) Net deferred tax liability $ (292) $ (284) Our net deferred tax liability was $292 million and $284 million as of December 31, 2020, and 2019, respectively. The significant changes in the deferred taxes are as follows: the deferred tax liability for investment securities increased by $526 million primarily due to unrealized gains recorded for investment securities and the acquisition of F&G ($68 million was related to unrealized gains in our title business, $383 million was related to unrealized gains of F&G and $75 million was related to F&G mortgage loans and other investment related deferreds). The deferred tax liability relating to partnerships and amortization increased by $29 million and $35 million, respectively, primarily related to the acquisition of F&G related deferred tax items. The increase in the deferred tax asset relating to employee benefits of $23 million is also primarily related to the acquisition of F&G. Other notable deferred assets solely related to the F&G acquisition are the deferred tax assets for: life insurance and claim related adjustments of $861 million, capital loss carryover of $35 million, funds held under reinsurance agreements of $85 million and basis differences in held for sale assets of $19 million. Other notable deferred tax liabilities solely related to the F&G acquisition are the deferred tax liabilities for: value of business acquired of $308 million, derivatives of $38 million, funds withheld under reinsurance agreements of $58 million and transition reserve on new reserve method of $43 million. As of December 31, 2020, we have net operating losses ("NOL") on a pretax basis of $82 million available to carryforward and offset future federal taxable income. The net operating losses are US federal net operating losses arising from acquisitions made since 2012, including Buyers Protection Group, Inc., Digital Insurance Holdings, Inc., ServiceLink, THL Corporations and F&G. Most of the NOLs are subject to an annual Internal Revenue Code Section 382 limitation. These losses will begin to expire in year 2023 and we fully anticipate utilizing these losses prior to expiration with the exception of $42 million of gross net operating losses that are offset by a $42 million valuation allowance. As of December 31, 2020 and 2019, we had $59 million and $39 million of tax credits, respectively, which expire between 2032 and 2040. The credits primarily consist of general business credits from historical acquisitions, including $20 million associated with the acquisition of F&G. We anticipate that these credits will be utilized prior to expiration after a valuation allowance of $24 million on the general business credits. As of December 31, 2020 and 2019, the balance of unrecognized tax benefits which would, if recognized, favorably affect our effective tax rate was $28 million and $6 million, respectively. Interest and penalties accrued on income tax uncertainties are recorded as a component of income tax expense and were $1 million and $2 million as of December 31, 2020, and 2019, respectively. It is reasonably possible that as a result of the carryback request and approval of the Joint Committee of Taxation, unrecognized tax benefits could decrease as much as $58 million within the next 12 months. This reserve relates to a timing difference. A reconciliation of the beginning and ending unrecognized tax benefits is as follows (in millions): Year ended December 31, 2020 Beginning balance $ 7 Additions based on positions taken in current year 58 Reductions related to statute of limitation lapses (1) Ending balance $ 64 F&G's life insurance subsidiaries, as well as certain F&G non-life subsidiaries file separate tax returns from the FNF consolidated group. Prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of December 31, 2020 includes $20 million of tax receivables and $8 million of deferred tax assets related to F&G subsidiaries who file separate tax returns. The Internal Revenue Service (“IRS”) has selected us to participate in the Compliance Assurance Program that is a real-time audit. We are currently under audit by the IRS for the 2020 through 2021 tax years. We file income tax returns in various foreign and US state jurisdictions. Our state income tax returns for the 2016 through 2020 tax years remain subject to examination by state jurisdictions. The F&G life insurance group files a separate consolidated return with the IRS. F&G is not currently under examination by the IRS. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Stock Purchase Plan During the three-year period ended December 31, 2020, our eligible employees could voluntarily participate in our employee stock purchase plan (“ESPP”) sponsored by us. Pursuant to the ESPP, employees may contribute an amount between 3% and 15% of their base salary and certain commissions. We contribute varying amounts as specified in the ESPP. We contributed $30 million, $28 million, and $25 million to the ESPP in the years ended December 31, 2020 , 2019, and 2018, respectively, in accordance with our matching contribution. 401(k) Profit Sharing Plan During the three-year period ended December 31, 2020 , we have offered our employees the opportunity to participate in our 401(k) profit sharing plan (the “401(k) Plan”), a qualified voluntary contributory savings plan that is available to substantially all of our employees. Eligible employees may contribute up to 40% of their pre-tax annual compensation, up to the amount allowed pursuant to the Internal Revenue Code. We make an employer match on the 401(k) Plan of $0.375 on each $1.00 contributed up to the first 6% of eligible earnings contributed to the 401(k) Plan by employees. The employer match was $31 million, $29 million, and $30 million for the years ended December 31, 2020, 2019, and 2018, respectively, and was credited based on the participant's individual investment elections in the FNF 401(k) Plan. Omnibus Incentive Plan In 2005, we established the FNT 2005 Omnibus Incentive Plan (as amended and restated, the “Omnibus Plan”) authorizing the issuance of up to 8 million shares of common stock, subject to the terms of the Omnibus Plan. On October 23, 2006; May 29, 2008; May 25, 2011; May 22, 2013; and June 15, 2016 the shareholders of FNF approved amendments to increase the number of shares for issuance under the Omnibus Plan by 16 million, 11 million, 6 million, 6 million and 10 million shares, respectively. The primary purpose of the increases were to assure that we had adequate means to provide equity incentive compensation to our employees on a going-forward basis. The Omnibus Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units and performance shares, performance units, other cash and stock-based awards and dividend equivalents. As of December 31, 2020, there were 1,716,555 shares of restricted stock and 2,321,413 stock options outstanding under the Omnibus Plan. Awards granted are approved by the Compensation Committee of the Board of Directors. Options vest over a 3 year period and have a contractual life o f 7 years. The exercise price for options granted equals the market price of the underlying stock on the grant date. Stock option grants vest according to certain time based and operating performance criteria. Option exercises by participants are settled on the open market. F&G Omnibus Incentive Plan On June 1, 2020, in connection with the acquisition of F&G, we assumed the shares that remained available for future awards under the FGL Holdings 2017 Omnibus Incentive Plan, as amended and restated (the “F&G Omnibus Plan”) and converted such shares into 2,096,429 shares of common stock that may be issued pursuant to future awards granted under the F&G Omnibus Plan and 2,411,585 shares of common stock that may be issued pursuant to outstanding stock options under the F&G Omnibus Plan. Each unvested stock option assumed under the F&G Omnibus Plan was converted into an FNF stock option and vests solely on the passage of time without any ongoing performance-vesting conditions. The options vest over a 3 year period, based on the option's initial grant date, and have a contractual life of 7 years. As of December 31, 2020, there were 449,870 shares of restricted stock and 2,002,690 stock options outstanding under the Omnibus Plan. FNF stock option transactions under the Omnibus Plan for 2020 , 2019, and 2018 are as follows: Options Weighted Average Exercisable Balance, December 31, 2017 8,529,427 $ 20.38 7,648,837 Exercised (985,640) 19.09 Balance, December 31, 2018 7,543,787 $ 20.55 7,530,137 Exercised (2,009,112) 19.61 Canceled (4,550) 25.34 Balance, December 31, 2019 5,530,125 $ 20.88 5,530,125 Exercised (3,208,712) 18.45 Balance, December 31, 2020 2,321,413 $ 24.24 2,321,413 FNF stock options transactions under the F&G Omnibus Incentive Plan for 2020 are as follows: Options Weighted Average Exercisable Balance, December 31, 2019 — $ — — Options assumed in connection with the F&G acquisition 2,411,585 36.04 Exercised (109,159) 27.64 Canceled (299,736) 38.41 Balance, December 31, 2020 2,002,690 $ 36.14 1,021,671 FNF restricted stock transactions under the Omnibus Plan in 2020 , 2019, and 2018 are as follows: Shares Weighted Average Grant Date Fair Value Balance, December 31, 2017 1,839,061 $ 30.58 Granted 912,694 32.32 Canceled (15,201) 29.49 Vested (915,316) 28.80 Balance, December 31, 2018 1,821,238 $ 32.35 Granted 640,698 45.84 Canceled (14,937) 31.94 Vested (929,823) 30.98 Balance, December 31, 2019 1,517,176 $ 38.90 Granted 1,006,058 33.40 Canceled (11,604) 38.93 Vested (795,075) 37.60 Balance, December 31, 2020 1,716,555 $ 36.26 FNF restricted stock transactions under the F&G Omnibus Plan in 2020 are as follows: Shares Weighted Average Grant Date Fair Value Balance, December 31, 2019 — $ — Granted 474,025 34.13 Canceled (24,155) 34.47 Balance, December 31, 2020 449,870 $ 34.11 The following table summarizes information related to stock options outstanding and exercisable as of December 31, 2020 : Options Outstanding Options Exercisable Weighted Weighted Average Weighted Average Weighted Remaining Average Remaining Average Range of Number of Contractual Exercise Intrinsic Number of Contractual Exercise Intrinsic Exercise Prices Options Life Price Value Options Life Price Value (In years) (In millions) (In years) (In millions) $0.00 - $21.84 809,116 0.84 $ 21.84 $ 14 809,116 0.84 $ 21.84 $ 14 $21.85 - $25.53 1,512,297 1.82 25.53 21 1,512,297 1.82 25.53 21 $25.54 - $27.53 443,909 4.98 27.53 5 224,692 4.98 27.53 3 $27.54 - $28.00 61,084 5.60 28.00 1 19,323 5.60 28.00 — $28.01 - $35.89 34,106 5.87 35.89 — 3,410 5.87 35.89 — $35.90 - $39.10 1,463,591 4.75 39.10 — 774,246 4.29 39.10 — 4,324,103 $ 41 3,343,084 $ 38 We account for stock-based compensation plans in accordance with GAAP on share-based payments, which requires that compensation cost relating to share-based payments be recognized in the consolidated financial statements based on the fair value of each award. Using the fair value method of accounting, compensation cost is measured based on the fair value of the award at the grant date and recognized over the service period. Fair value of restricted stock awards and units is based on the grant date value of the underlying stock derived from quoted market prices. The total fair value of restricted stock awards granted in the years ended December 31, 2020 , 2019 and 2018 was $50 million, $29 million, and $31 million, respectively. The total fair value of restricted stock awards, which vested in the years ended December 31, 2020 , 2019 and 2018 was $25 million, $42 million, and $29 million, respectively. Option awards are measured at fair value on the grant date using the Black Scholes Option Pricing Model. The intrinsic value of options exercised in the years ended December 31, 2020 , 2019 and 2018 was $50 million, $48 million, and $19 million, respectively. Net earnings attributable to FNF Shareholders reflects stock-based compensation expense amounts of $39 million for the year ended December 31, 2020, $38 million for the year ended December 31, 2019 , and $31 million for the year ended December 31, 2018 , which are included in personnel costs in the reported financial results of each period. At December 31, 2020 Pension Plan In 2000, FNF merged with Chicago Title Corporation ("CTC"). In connection with the merger, we assumed CTC’s noncontributory defined contribution plan and noncontributory defined benefit pension plan (the “Pension Plan”). The Pension Plan covers certain CTC employees. The benefits are based on years of service and the employee’s average monthly compensation in the highest 60 consecutive calendar months during the 120 months ending at retirement or termination. Effective December 31, 2000, the Pension Plan was frozen and there will be no future credit given for years of service or changes in salary. The accumulated benefit obligation is the same as the projected benefit obligation due to the pension plan being frozen as of December 31, 2000. Pursuant to GAAP on employers’ accounting for defined benefit pension and other post retirement plans, the measurement date is December 31. The discount rate used to determine the benefit obligation as of the years ended December 31, 2020 and 2019 wa s 1.85% and 2.79%, respectively. As of the years ended December 31, 2020 and 2019, the projected benefit obligation was |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk and Concentration of Risk | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk and Concentration of Risk | Financial Instruments with Off-Balance Sheet Risk and Concentration of Risk In the normal course of business, we and certain of our subsidiaries enter into off-balance sheet credit arrangements associated with certain aspects of the title insurance business and other activities. We generate a significant amount of title insurance premiums in Texas, California, Florida and New York. Title insurance premiums as a percentage of the total title insurance premiums written from those four states are detailed as follows: 2020 2019 2018 California 15.2 % 14.3 % 13.9 % Texas 12.3 % 13.8 % 14.4 % Florida 8.6 % 9.2 % 8.8 % New York 4.2 % 5.8 % 6.3 % Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, short-term investments, and trade receivables. We place cash equivalents and short-term investments with high credit quality financial institutions and, by policy, limit the amount of credit exposure with any one financial institution. Investments in commercial paper of industrial firms and financial institutions are rated investment grade by nationally recognized rating agencies. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up our customer base, thus spreading the trade receivables credit risk. We control credit risk through monitoring procedures. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information | SCHEDULE II FIDELITY NATIONAL FINANCIAL, INC. (Parent Company) BALANCE SHEETS December 31, 2020 2019 (In millions, except share data) ASSETS Cash $ 975 $ 565 Short term investments — 564 Equity securities, at fair value 1 1 Investment in unconsolidated affiliates 10 8 Notes receivable 416 498 Investments in and amounts due from subsidiaries 9,646 4,916 Property and equipment, net 2 2 Prepaid expenses and other assets 256 235 Income taxes receivable — — Total assets $ 11,306 $ 6,789 LIABILITIES AND EQUITY Liabilities: Accounts payable and other accrued liabilities $ 310 $ 275 Income taxes payable 56 10 Deferred tax liability 300 284 Notes payable 2,072 838 Total liabilities 2,738 1,407 Equity: FNF common stock, $0.0001 par value; authorized 600,000,000 shares as of December 31, 2020 and December 31, 2019; outstanding of 298,203,194 and 275,563,436 as of December 31, 2020 and December 31, 2019, respectively, and issued of 322,622,948 and 292,236,476 as of December 31, 2020 and December 31, 2019, respectively — — Preferred stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding, none — — Additional paid-in capital 5,720 4,581 Retained earnings 2,394 1,356 Accumulated other comprehensive earnings (loss) 1,304 43 Less: Treasury stock, 24,419,754 shares and 16,673,040 shares as of December 31, 2020 and December 31, 2019, respectively, at cost (850) (598) Total equity of Fidelity National Financial, Inc. common shareholders 8,568 5,382 Total liabilities and equity $ 11,306 $ 6,789 SCHEDULE II FIDELITY NATIONAL FINANCIAL, INC. (Parent Company) STATEMENTS OF EARNINGS AND RETAINED EARNINGS Year Ended December 31, 2020 2019 2018 (In millions, except per share data) Revenues: Other fees and revenue $ 32 $ 38 $ — Interest and investment income and realized gains 25 54 40 Realized gains and losses, net (6) (4) 4 Total revenues 51 88 44 Expenses: Personnel expenses 58 80 35 Other operating expenses 60 62 20 Interest expense 71 48 43 Total expenses 189 190 98 Losses before income tax benefit and equity in earnings of subsidiaries (138) (102) (54) Income tax benefit (33) (23) (9) Losses before equity in earnings of subsidiaries (105) (79) (45) Equity in earnings of subsidiaries 1,557 1,141 673 Earnings from continuing operations 1,452 1,062 628 Equity in earnings of discontinued operations (25) — — Net earnings attributable to Fidelity National Financial, Inc. common shareholders $ 1,427 $ 1,062 $ 628 Retained earnings, beginning of year $ 1,356 $ 641 $ 217 Dividends declared (389) (347) (330) Cumulative effect of adoption of accounting standards — — 128 Other equity activity — — (2) Net earnings attributable to Fidelity National Financial, Inc. common shareholders 1,427 1,062 628 Retained earnings, end of year $ 2,394 $ 1,356 $ 641 SCHEDULE II FIDELITY NATIONAL FINANCIAL, INC. (Parent Company) STATEMENTS OF CASH FLOWS Year Ended December 31, 2020 2019 2018 (In millions) Cash Flows From Operating Activities: Net earnings $ 1,427 $ 1,062 $ 628 Adjustments to reconcile net earnings to net cash provided by operating activities: Equity in earnings of unconsolidated affiliates (1) (2) (2) Gain on Pacific Union Sale — — (4) Impairment of assets 1 4 — Equity in earnings of subsidiaries (1,742) (1,141) (673) Depreciation and amortization 1 1 — Stock-based compensation 39 38 31 Net change in income taxes (1) 53 (81) Net (increase) decrease in prepaid expenses and other assets (15) (185) (10) Net increase in accounts payable and other accrued liabilities 26 211 2 Net cash provided by (used in) operating activities (265) 41 (109) Cash Flows From Investing Activities: Purchases of investments available for sale — — — Net purchases of short-term investment activities 564 (362) (117) Acquisition of F&G (net of cash acquired) (1,076) — 33 Additions to notes receivable (3) (200) — Collection of notes receivable 89 209 33 Distributions from unconsolidated affiliates — 2 2 Additional investments in unconsolidated affiliates (1) — — Net cash used in investing activities (427) (351) (49) Cash Flows From Financing Activities: Borrowings 2,246 — 442 Debt service payments (1,000) — (368) Equity portion of debt conversions paid in cash — — (142) Debt issuance costs (22) — — Dividends paid (389) (344) (328) Purchases of treasury stock (236) (86) (20) Exercise of stock options 62 39 19 Payment for shares withheld for taxes and in treasury (9) (15) (9) Additional investments in non-controlling interests (90) — — Other financing activity 1 5 (2) Net dividends from subsidiaries 539 927 685 Net cash provided by financing activities 1,102 526 277 Net change in cash and cash equivalents 410 216 119 Cash at beginning of year 565 349 230 Cash at end of year $ 975 $ 565 $ 349 See Notes to Financial Statements SCHEDULE II FIDELITY NATIONAL FINANCIAL, INC. (Parent Company) NOTES TO FINANCIAL STATEMENTS A. Summary of Significant Accounting Policies Fidelity National Financial, Inc. transacts substantially all of its business through its subsidiaries. The Parent Company Financial Statements should be read in connection with the aforementioned Consolidated Financial Statements and Notes thereto included elsewhere herein. B. Notes Payable Notes payable consist of the following: December 31, 2020 2019 (In millions) 4.50% Notes, net of discount $ 443 $ 443 5.50% Notes, net of discount 399 398 3.40% Notes, net of discount 643 — 2.45% Notes, net of discount 592 — Revolving credit facility (5) (3) $ 2,072 $ 838 C. Supplemental Cash Flow Information Year Ended December 31, 2020 2019 2018 (In millions) Cash paid during the year: Interest paid $ 58 $ 44 $ 34 Income tax payments 317 251 204 D. Cash Dividends Received We have received cash dividends from subsidiaries and affiliates of $0.5 billion , $0.5 billion, and $0.4 billion during the years ended December 31, 2020, 2019, and 2018, respectively. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | FIDELITY NATIONAL FINANCIAL, INC. F&G Supplementary Insurance Information (in millions) Seven months ended December 31, 2020 Life Insurance (single segment): Deferred acquisition costs $ 222 Future policy benefits, losses, claims and loss expenses 4,010 Other policy claims and benefits payable 88 Life insurance premiums and other fees 138 Interest and investment income 743 Benefits, claims, losses and settlement expenses (866) Amortization, interest, and unlocking of deferred acquisition costs (4) Acquisition and operating expenses, net of deferrals (158) |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | FIDELITY NATIONAL FINANCIAL, INC. F&G Reinsurance (In millions) For the seven months ended December 31, 2020 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed of net Life insurance in force $ 3,892 $ (2,064) $ — $ 1,828 — % Premiums and other considerations: Traditional life insurance premiums 108 (85) — 23 — Annuity product charges 145 (30) — 115 — Total premiums and other considerations $ 253 $ (115) $ — $ 138 — % |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Pronouncements In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). The amendments in this ASU introduce broad changes to accounting for credit impairment of financial instruments. The primary updates include the introduction of a new current expected credit loss ("CECL") model that is based on expected rather than incurred losses and amendments to the accounting for impairment of fixed maturity securities available for sale. The method used to measure estimated credit losses for fixed maturity available-for-sale securities will be unchanged from current GAAP; however, the amendments require credit losses to be recognized through an allowance rather than as a reduction to the amortized cost of those securities. We adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting period beginning after December 15, 2019 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable Generally Accepted Accounting Principles. We adopted this standard using the prospective transition approach for debt securities for which other than temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of ASC 326. The effective interest rate on these debt securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 relating to improvements in cash flows expected to be collected will be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 will be recorded in earnings when received. See Note E Investments for further discussion of the adoption as it relates to our fixed maturity securities available for sale. In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The guidance simplifies the measurement of goodwill impairment by removing step 2 of the goodwill impairment test, which requires the determination of the fair value of individual assets and liabilities of a reporting unit. The new guidance requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying value exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We have adopted this standard as of January 1, 2020 and are applying this guidance on a prospective basis. The overall effect of Topic 350 had no impact to the Consolidated Financial Statements upon adoption. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. The new guidance introduces the following requirements: for investments in certain entities that calculate net asset value, investors are required to disclose the timing of liquidation of an investee's assets and the date when restrictions from redemption might lapse if the investee has communicated timing to the entity or announced timing publicly; entities should use the measurement uncertainty disclosure to communicate information about the uncertainty in measurement as of the reporting date; entities must disclose changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements, as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, or other quantitative information in lieu of weighted average if the entity determines such information would be more reasonable and rational; and entities are no longer required to disclose the amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. We adopted this standard on June 1, 2020 as a result of our acquisition of F&G, and the overall effect of Topic 820 on our Consolidated Financial Statements was not material upon adoption. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities, effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Under this update, entities must consider indirect interests held through related parties under common control on a proportional basis to determine whether a decision-making fee is a variable interest. We adopted this standard on June 1, 2020 as a result of our acquisition of F&G, and it did not have an impact on our Consolidated Financial Statements. Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740), which simplifies various aspects of the income tax accounting guidance and will be applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. We do not expect this guidance to have a material impact on our Consolidated Financial Statements and related disclosures upon adoption. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts, effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. In June of 2020, the FASB deferred the effective date of ASU 2018-12 for one-year in response to implementation challenges resulting from COVID-19. This update introduced the following requirements: assumptions used to measure cash flows for traditional and limited-payment contracts must be reviewed at least annually with the effect of changes in those assumptions being recognized in the statement of operations; the discount rate applied to measure the liability for future policy benefits and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in other comprehensive income; market risk benefits associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value attributable to a change in the instrument-specific credit risk being recognized in other comprehensive income; deferred acquisition costs are required to be amortized in proportion to premiums, gross profits, or gross margins and those balances must be amortized on a constant level basis over the expected term of the related contracts; deferred acquisition costs must be written off for unexpected contract terminations; and disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed. The amendments in this ASU may be early adopted as of the beginning of an annual reporting period for which financial statements have not yet been issued, including interim financial statements. We do not currently expect to early adopt this standard. We have identified specific areas that will be impacted by the new guidance and are in the process of assessing the accounting, reporting and/or process changes that will be required to comply as well as the impact of the new guidance on our consolidated financial statements. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Financial Statements | Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and include our accounts as well as our wholly-owned and majority-owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. Our investments in non-majority-owned partnerships and affiliates are accounted for using the equity method until such time that they become wholly or majority-owned. Earnings attributable to noncontrolling interests are recorded on the Consolidated Statements of Earnings relating to majority-owned subsidiaries with the appropriate noncontrolling interest that represents the portion of equity not related to our ownership interest recorded on the Consolidated Balance Sheets in each period. We are also involved in certain entities that are considered variable interest entities ("VIEs") as defined under GAAP. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our relationships to determine if we have the ability to direct the activities, or otherwise exert control, to evaluate if we are the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our Consolidated Financial Statements. See Note E Investments for additional information on our investments in VIEs. |
Investments | I nvestments Fixed Maturity Securities Available for Sale Fixed maturity securities are purchased to support our investment strategies, which are developed based on factors including rate of return, maturity, credit risk, duration, tax considerations and regulatory requirements. Our investments in fixed maturity securities have been designated as available-for-sale and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within accumulated other comprehensive income (loss) ("AOCI"), net of associated adjustments for deferred acquisition costs ("DAC"), value of business acquired ("VOBA"), deferred sales inducements ("DSI"), unearned revenue ("UREV"), SOP 03-1 reserves, and deferred income taxes. Fair values for fixed maturity securities are principally a function of current market conditions and are valued based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly. We recognize investment income on fixed maturities based on the interest method, which results in the recognition of a constant rate of return on the investment equal to the prevailing rate at the time of purchase or at the time of subsequent adjustments of book value. Changes in prepayment ass umptions are accounted for prospectively. In our title segment, Realized gains and losses on sales of our fixed maturity securitie s are determined on the basis of the cost of the specific investments sold and are credited or charged to income on a trade date basis. Our F&G segment uses FIFO cost basis and generally records security transactions on a trade date basis except for private placements, which are recorded on a settlement date basis. Realized gains and losses on sales of fixed maturity securities are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. For details on our policy around allowance for expected credit losses on available-for-sale securities, refer to Note E Investments. Preferred and Equity Securities Equity and prefer red securities held are carried at fair value as of the balance sheet dates. The fair values of our equity and preferred securities are based on quoted prices in active markets, or are valued based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly. Changes in fair value and realized gains and losses on sales of our preferred and equity securities are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. Recognized gains and losses on sales of our preferred and equity securities are credited or charged to income on a trade date basis, unless the security is a private placement in which case settlement date basis is used. |
Derivatives Financial Instruments | Derivative Financial Instruments In our F&G segment, we hedge certain portions of our exposure to product related equity market risk by entering into derivative transactions (primarily call options). All such derivative instruments are recognized as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. The changes in fair value are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. We purchase financial instruments and issue products that may contain embedded derivative instruments. If it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract for measurement purposes. The embedded derivative is carried at fair value, which is determined through a combination of market observable inputs such as market value of option and interest swap rates and unobservable inputs such as the mortality multiplier, surrender and withdrawal rates and non-performance spread. The changes in fair value are reported within Benefits and other changes in policy reserves in the accompanying Consolidated Statements of Earnings. See a description of the fair value methodology used in Note D Fair Value of Financial Instruments . Reinsurance Related Embedded Derivatives As discussed in Note P Reinsurance , F&G has a reinsurance agreement with Kubera, to cede certain MYGA and deferred annuity statutory reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. Funds withheld arrangements allow the Company to retain legal ownership of assets backing reinsurance arrangements until they are earned by the reinsurer while passing credit risk associated with the assets in the funds withheld account to the reinsurer. These arrangements create embedded derivatives considered to be total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, are passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. These total return swaps are not clearly and closely related to the underlying reinsurance contract and thus require bifurcation. The reinsurance related embedded derivative is |
Mortgage Loans | Mortgage Loans Our investment in mortgage loans consists of commercial and residential mortgage loans on real estate, which are reported at amortized cost, less allowance for expected credit losses. For details on our policy around allowance for expected credit losses on mortgage loans, refer to Note E Investments . Commercial mortgage loans are continuously monitored by reviewing appraisals, operating statements, rent revenues, annual inspection reports, loan specific credit quality, property characteristics, market trends and other factors. Commercial mortgage loans are rated for the purpose of quantifying the level of risk. Loans are placed on a watch list when the debt service coverage ("DSC") ratio falls below and the loan-to-value ("LTV") ratios exceeds certain thresholds. Loans on the watchlist are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. We define delinquent mortgage loans as 30 days past due, consistent with industry practice. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. We define nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status, which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. We consider residential mortgage loans that are 90 or more days past due and have an LTV greater than 90% to be foreclosure probable. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Loan origination fees and direct costs, as well as premiums and discounts, are amortized as level yield adjustments over the respective loan terms. Unamortized net fees or costs are recognized upon early repayment of the loans. Loan commitment fees are deferred and amortized on an effective yield basis over the term of the loan. |
Short-term Investments | Short-term investmentsShort-term investments consist primarily of money market instruments, which are carried at fair value, and commercial paper, which have an original maturity of one year or less and are carried at amortized cost, which approximates fair value. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated AffiliatesIn our F&G segment, we account for our investments in unconsolidated affiliates (primarily limited partnership interests) using the equity method and use net asset value ("NAV") as a practical expedient to determine the carrying value. Income from investments in unconsolidated affiliates is included within Interest and investment income in the accompanying Consolidated Statements of Earnings. Recognition of income is delayed due to the availability of the related financial statements, which are obtained from the general partner generally on a one to three-month delay. Management meets quarterly with the general partner to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. In our title business we account for our Investments in unconsolidated affiliates using the equity method of accounting, earnings on our investments in unconsolidated affiliates are recorded within Equity in earnings of unconsolidated affiliates within the Consolidated Statements of Earnings. |
Interest and Investment Income | Interest and investment income Dividends and interest income are recorded in Interest and investment income and recognized when earned. Income or losses upon call or prepayment of fixed maturity securities are recognized in Interest and investment income. Amortization of premiums and accretion of discounts on investments in fixed maturity securities are reflected in Interest and investment income over the contractual terms of the investments, and for callable investments at a premium, based on the earliest call date of the investments, in a manner that produces a constant effective yield. For mortgage-backed and asset-backed securities, included in the fixed maturity securities portfolios, we recognize income using a constant effective yield based on anticipated cash flows and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the effective yield is generally recalculated prospectively to reflect actual payments to date plus anticipated future payments. Any adjustments resulting from changes in effective yield are reflected in Interest and investment income. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid instruments purchased as part of cash management with original maturities of three months or less are considered cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair value. |
Trade and Notes Receivables | Trade and Notes Receivables The carrying values reported in the Consolidated Balance Sheets for trade and notes receivables approximate their fair value. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete and reported to us. Premium revenues from agency operations and related commissions include an accrual based on estimated historical transaction volume data for policies that have closed in a particular period in which premiums have not yet been reported to us. Historically, the time lag between the closing of these transactions by our agents and the reporting of these policies, or premiums, to us has been up to 15 months, with 74% - 89% reported within three months following closing, an additional 10% - 24% reported within the next three months and the remainder within seven fifteen |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair values of financial instruments presented in the Consolidated Financial Statements are estimates of the fair values at a specific point in time using available market information and appropriate valuation methodologies. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. See a description of the fair value methodology used in Note D Fair Value of Financial Instruments |
Fair Value of Assets Acquired and Liabilities Assumed in Business Combination | Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations, requires an acquirer to recognize, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree, and to measure these items generally at their acquisition date fair values. Goodwill is recorded as the residual amount by which the purchase price exceeds the fair value of the net assets acquired. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we are required to report provisional amounts in the financial statements for the items for which the accounting is incomplete. Adjustments to provisional amounts initially recorded that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we are also required to recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the acquisition date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. Contingent consideration liabilities or receivables recorded in connection with business acquisitions must also be adjusted for changes in fair value until settled. |
Goodwill | Goodwill Goodwill represents the excess of cost over fair value of identifiable net assets acquired and assumed in a business combination. Goodwill and other intangible assets with indefinite useful lives are reviewed for impairment at the reporting unit level on an annual basis or more frequently if circumstances indicate potential impairment, through a comparison of fair value to the carrying amount. In evaluating the recoverability of goodwill, we perform an annual goodwill impairment analysis based on a review of qualitative factors to determine if events and circumstances exist, which will lead to a determination that the fair value of a reporting unit is greater than its carrying amount, prior to performing a full fair-value assessment. |
Intangible Assets | VOBA, VODA, DAC and DSI Our intangible assets include an intangible asset reflecting the value of insurance and reinsurance contracts acquired (hereafter referred to as the value of business acquired (“VOBA”), deferred acquisition costs (“DAC”), deferred sales inducements (“DSI”), internally developed software, trademarks and state licenses. VOBA is an intangible asset that reflects the amount recorded as insurance contract liabilities less the estimated fair value of in-force contracts (“VIF”) in a life insurance company acquisition. It represents the portion of the purchase price that is allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. VOBA is a function of the VIF, current GAAP reserves, GAAP assets, and deferred tax liability. The VIF is determined by the present value of statutory distributable earnings less opening required capital, and is sensitive to assumptions including the discount rate, surrender rates, partial withdrawals, utilization rates, projected investment spreads, mortality, and expenses. DAC consists principally of commissions that are related directly to the successful sale of new or renewal insurance contracts, which may be deferred to the extent recoverable. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and vesting bonuses to policyholder account values, which may be deferred to the extent recoverable. The methodology for determining the amortization of DAC, DSI and VOBA varies by product type. For all insurance contracts accounted for under long-duration contract deposit accounting, amortization is based on assumptions consistent with those used in the development of the underlying contract liabilities adjusted for emerging experience and expected trends. For all of the insurance intangibles (DAC, DSI and VOBA), the balances are generally amortized over the lives of the policies in relation to the expected emergence of estimated gross profits (“EGPs”) from investment income, surrender charges and other product fees, less policy benefits, maintenance expenses, mortality, and expense margins. Recognized gains (losses) on investments and changes in fair value of the embedded derivative on our FIA and IUL products are included in actual gross profits in the period realized as described further below. Amortization is reported within Depreciation and amortization in the accompanying Consolidated Statements of Earnings. Changes in assumptions, including our earned rate (i.e., long term assumptions of the Company’s expected earnings on related investments), budgeted option costs (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature) and surrender rates can have a significant impact on VOBA, DAC and DSI balances and amortization rates. Due to the relative size and sensitivity to minor changes in underlying assumptions of those intangible balances, we perform quarterly and annual analyses of the VOBA, DAC and DSI balances for recoverability to ensure that the unamortized portion does not exceed the expected recoverable amounts. At each evaluation date, actual historical gross profits are reflected with the impact on the intangibles reported as “unlocking” as a component of amortization expense, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated future gross profits requires that the amortization rate be revised (“unlocking”) retroactively to the date of the policy or contract issuance. The cumulative unlocking adjustment is recognized as a component of current period amortization. Amortization expense of VOBA, DAC and DSI reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we perform a retrospective unlocking of amortization for those intangibles as actual margins vary from expected margins. This unlocking is reflected in the accompanying Consolidated Statements of Earnings. For investment-type products, the VOBA, DAC and DSI assets are adjusted for the impact of unrealized gains (losses) on AFS investments as if these gains (losses) had been realized, with corresponding credits or charges included in AOCI ("shadow adjustments"). Other Intangible Assets We have other intangible assets, not including goodwill, VOBA, DAC or DSI, which consist primarily of customer relationships and contracts, the value of distribution network acquired ("VODA"), trademarks and tradenames, and computer software, which are generally recorded in connection with acquisitions at their fair value. Intangible assets with estimable lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In general, customer relationships are amortized over their estimated useful lives, generally ten years, using an accelerated method, which takes into consideration expected customer attrition rates. VODA is an intangible asset that represents the value of an acquired distribution network and is amortized using the sum of years digits method. Contractual relationships are generally amortized over their contractual life. Trademarks and tradenames are generally amortized over ten years. Capitalized software includes the fair value of software acquired in business combinations, purchased software and capitalized software development costs. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life. Software acquired in business combinations is recorded at its fair value and amortized using straight-line or accelerated methods over its estimated useful life, ranging from five to ten years. For internal-use computer software products, internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Internal and external costs incurred during the application development stage are capitalized and amortized on a product by product basis commencing on the date the software is ready for its intended use. We do not capitalize any costs once the software is ready for its intended use. We recorded no impairment expense to other intangible assets during the years ended December 31, 2020 or 2019. We recorded $3 million in impairment expense to other intangible assets during the year ended December 31, 2018, which primarily related to an acquired customer relationship asset in our Title segment. Title Plants |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is computed primarily using the straight-line method based on the estimated useful lives of the related assets: twenty to thirty years for buildings and three to twenty-five years for furniture, fixtures and equipment. Leasehold improvements are amortized on a straight-line basis over the lesser of the term of the applicable lease or the estimated useful lives of such assets. Property and equipment are reviewed for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. |
Contractholder Funds | Contractholder Funds The liabilities for contractholder funds for deferred annuities and IUL policies consist of contract account balances that accrue to the benefit of the contractholders. The liabilities for FIA policies consist of the value of the host contract plus the fair value of the indexed crediting feature of the policy, which is accounted for as an embedded derivative. The embedded derivative is carried at fair value in Contractholder funds in the accompanying Consolidated Balance Sheets with changes in fair value reported in Benefits and other changes in policy reserves in the accompanying Consolidated Statements of Earnings. See a description of the fair value methodology used in Note D Fair Value of Financial Instruments . Liabilities for the secondary guarantees on IUL-type products or Investment-type contracts are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. The benefit ratio is the ratio of the present value of future secondary guarantees to the present value of the assessments used to provide the secondary guarantees using the same assumptions as we use for our intangible assets. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, DSI and VOBA. The accounting for secondary guarantee benefits impact EGPs used to calculate amortization of DAC, DSI and VOBA. The related reserve is adjusted for the impact of unrealized gains (losses) on AFS investments as if these gains (losses) had been realized, with corresponding credits or charges included in AOCI ("shadow adjustments"). |
Future Policy Benefits | Future Policy Benefits The liabilities for future policy benefits and claim reserves for traditional life policies and life contingent pay-out annuity policies are computed using assumptions for investment yields, mortality and withdrawals based on generally accepted actuarial methods and assumptions at the time of acquisition or contract issue. Investment yield assumption for traditional direct life reserves for all contracts is 4.3%. The investment yield assumption for life contingent pay-out annuities ranges from 4.0% to 4.1%. Policies are terminated through surrenders and maturities, where surrenders represent the voluntary terminations of |
Reserve for Title Claims Losses | Reserve for Title Claim Losses Our reserve for title claim losses includes known claims as well as losses we expect to incur, net of recoupments. Each known claim is reserved based on our review as to the estimated amount of the claim and the costs required to settle the claim. Reserves for claims, which are incurred but not reported are established at the time premium revenue is recognized based on historical loss experience and also take into consideration other factors, including industry trends, claim loss history, current leg al environment, geographic considerations and the type of policy written. The reserve for title claim losses also includes reserves for losses arising from closing and disbursement functions due to frau d or operational error. If a loss is r elated to a policy issued by an independent agent, we may proceed against the independent agent pursuant to the terms of the agency agreement. In any event, we may proceed against third parties who are responsible for any loss under th e title insurance policy under rights of subrogation. |
Secured Trust Deposits | Secured Trust Deposits In the state of Illinois, a trust company is permitted to commingle and invest customers’ assets with its own assets, pending completion of real estate transactions. Accordingly, our Consolidated Balance Sheets reflect a secured trust deposit liability of $711 million and $791 million at December 31, 2020 and 2019, respectively, representing customers’ assets held by us and corresponding assets including cash and investments pledged as security for those trust balances. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities and expected benefits of utilizing net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred taxes of changes in tax rates and laws, if any, is applied to the years during which temporary differences are expected to be settled and reflected in the financial statements in the period enacted. |
Reinsurance | Reinsurance Title In our Title segment, in a limited number of situations, we limit our maximum loss exposure by reinsuring certain risks with other title insurers. We also earn a small amount of additional income, which is reflected in our direct premiums, by assuming reinsurance for certain risks of other title insurers. We cede a portion of certain policy and other liabilities under agent fidelity, excess of loss and case-by-case reinsurance agreements. Reinsurance agreements provide that in the event of a loss (including costs, attorneys’ fees and expenses) exceeding the retained amounts, the reinsurer is liable for the excess amount assumed. However, the ceding company remains primarily liable in the event the reinsurer does not meet its contractual obligations. F&G |
Stock-Based Compensation Plans | Stock-Based Compensation Plans We accou nt for stock-based compensation plans using the fair value method. Using the fair value method of accounting, compensation cost is measured based on the fair value of the award at the grant date, using the Black-Scholes Model, and recognized over the service period. |
Earnings Per Share | Earnings Per Share Basic earnings per share, as presented on the Consolidated Statement of Earnings, is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain stock options, shares of restricted stock, convertible debt instruments and certain other convertible share based payments, which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported. |
Comprehensive Earnings (Loss) | Comprehensive Earnings (Loss)We report Comprehensive earnings (loss) in accordance with GAAP on the Consolidated Statements of Comprehensive Earnings. Total comprehensive earnings are defined as all changes in shareholders' equity during a period, other than those resulting from investments by and distributions to shareholders. While total comprehensive earnings is the activity in a period and is largely driven by net earnings in that period, accumulated other comprehensive earnings or loss represents the cumulative balance of other comprehensive earnings, net of tax, as of the balance sheet date. Amounts reclassified to net earnings relate to the realized gains (losses) on our investments and other financial instruments, excluding investments in unconsolidated affiliates, and are included in Recognized gains and losses, net on the Consolidated Statements of Earnings. |
Redeemable Non-controlling Interest | Redeemable Non-controlling Interest Subsequent to our acquisition of Lender Processing Services, Inc. ("LPS") in January 2014, we issued a 35% ownership interest in ServiceLink to funds affiliated with Thomas H. Lee Partners ("THL" or "the minority interest holder"). THL had an option to put its ownership interests of ServiceLink to us if no public offering of the corresponding business was consummated after four years from the date of FNF's purchase of LPS. The Class A units owned by THL (the "redeemable noncontrolling interests") could have been settled in cash or common stock of FNF or a combination of both at our election. As of January 2018, no public offering was made and the redeemable noncontrolling interests were no longer subject to a holding requirement. The redeemable noncontrolling interests were settled at the current fair value at the time we received notice of THL's put election as determined by the parties or by a third party appraisal under the terms of the Unit Purchase Agreement. As a result of a recapitalization of ServiceLink in 2015, the ownership interest by the minority interest holder was reduced from 35% to 21%. The redeemable noncontrolling interests were recorded at their initial value of $344 million in our Consolidated Balance Sheets and would have been adjusted to fair value were such value to rise above the initial value. As these redeemable noncontrolling interests provided for redemption features not solely within our control, we classified the redeemable noncontrolling interests outside of permanent equity. Redeemable noncontrolling interests held by third parties in subsidiaries owned or controlled by FNF was reported on the Consolidated Balance Sheets outside of permanent equity as of December 31, 2019; and the Consolidated Statement of Earnings reflected the respective redeemable noncontrolling interests in Net earnings attributable to non-controlling interests for the years ended December 31, 2019 and 2018, the effect of which was removed from the net earnings attributable to FNF common shareholders. |
Management Estimates | Management Estimates The preparation of these Consolidated Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Our Direct title insurance premiums are recognized as revenue at the time of closing of the underlying transaction as the earnings process is then considered complete. Regulation of title insurance rates varies by state. Premiums are charged to customers based on rates predetermined in coordination with each states' respective Department of Insurance. Cash associated with such revenue is typically collected at closing of the underlying real estate transaction. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete.Revenues from our home warranty business are generated from contracts with customers to provide warranty for major home appliances. Substantially all of our home warranty contracts are one year in length and revenue is recognized ratably over the term of the contract. |
Revenue Recognition, Other | Interest and investment income consists primarily of interest payments received on fixed maturity security holdings and dividends received on equity and preferred security holdings. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, primarily related to revenue from our home warranty business, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Revenue Recognition, Services, Real Estate Transactions | Escrow fees and Other title-related fees and income in our Title segment are closely related to Direct title insurance premiums and are primarily associated with managing the closing of real estate transactions including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, providing notary and home inspection services, and other real estate or title-related activities. Revenue is primarily recognized upon closing of the underlying real estate transaction or completion of services. Cash associated with such revenue is typically collected at closing. Revenues from ServiceLink, excluding its title premiums, escrow fees and loan subservicing fees primarily include revenues from real estate appraisal services and foreclosure processing and facilitation services. Revenues from real estate appraisal services are recognized when all appraisal work is complete, a final report is issued to the client and the client is billed. Revenues from foreclosure processing and facilitation services are primarily recognized upon completion of the services and when billing to the client is complete. Life insurance premiums in our F&G segment reflect premiums for traditional life insurance products and life-contingent immediate annuity products which are recognized as revenue when due from the policyholder. We have ceded the majority of our traditional life business to unaffiliated third party reinsurers. While the base contract has been reinsured, we continue to retain the return of premium rider. Insurance and investment product fees and other consist primarily of the cost of insurance on IUL policies, unearned revenue ("UREV") on IUL policies, policy rider fees primarily on FIA policies and surrender charges assessed against policy withdrawals in excess of the policyholder's allowable penalty-free amounts. Real estate technology revenues are primarily comprised of subscription fees for use of software provided to real estate professionals. Subscriptions are only offered on a month-by-month basis and fees are billed monthly. Revenue is recognized in the month services are provided. Real estate brokerage revenues are primarily comprised of commission revenues earned in association with the facilitation of real estate transactions and are recognized upon closing of the sale of the underlying real estate transaction. Loan subservicing revenues are generated by certain subsidiaries of ServiceLink and are associated with the servicing of mortgage loans on behalf of its customers. Revenue is recognized when the underlying work is performed and billed. Loan subservicing revenues are subject to the recognition requirements of ASC Topic 860. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Other Comprehensive Earnings (Loss) | Changes in the balance of Other comprehensive earnings (loss) by component are as follows: Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) Unrealized gain (loss) relating to investments in unconsolidated affiliates Unrealized (loss) gain on foreign currency translation and cash flow hedging Minimum pension liability adjustment Total Accumulated Other Comprehensive Earnings (Loss) (In millions) Balance December 31, 2018 $ (5) $ 17 $ (15) $ (10) $ (13) Reclassification adjustments (5) (4) — — (9) Other comprehensive earnings 56 5 4 — 65 Balance December 31, 2019 46 18 (11) (10) 43 Reclassification adjustments (73) — — — (73) Other comprehensive earnings 1,307 3 10 14 1,334 Balance December 31, 2020 $ 1,280 $ 21 $ (1) $ 4 $ 1,304 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Initial Purchase Price | The initial purchase price is as follows (in millions): Cash paid for outstanding F&G shares $ 1,903 Less: Cash Acquired 827 Net cash paid for F&G 1,076 Value of FNF share consideration 806 Value of outstanding converted equity awards attributed to services already rendered 28 Total net consideration paid $ 1,910 |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair value amounts recognized for the assets acquired and liabilities assumed as of the acquisition date (dollars in millions): Fair Value Fixed maturity securities $ 22,389 Preferred securities 876 Equity securities 52 Derivative instruments 313 Mortgage loans 1,755 Investments in unconsolidated affiliates 1,049 Other long-term investments 430 Short-term investments 37 Trade and notes receivable 1 Reinsurance recoverable 3,287 Goodwill 1,751 Prepaid expenses and other assets 353 Lease assets 8 Other intangible assets 2,046 Income taxes receivable 27 Deferred tax asset 268 Assets of discontinued operations 2,392 Total assets acquired 37,034 Contractholder funds 26,451 Future policy benefits 4,098 Accounts payable and accrued liabilities 893 Notes payable 589 Funds withheld for reinsurance liabilities 816 Lease liabilities 9 Liabilities of discontinued operations 2,268 Total liabilities assumed 35,124 Net assets acquired $ 1,910 |
Gross Carrying Value and Weighted Average Useful Lives of Property and Equipment and Other Intangible Assets Acquired | The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the F&G acquisition consist of the following (dollars in millions): Gross Carrying Value Estimated Useful Life Other intangible assets: Value of business acquired $ 1,847 Various Value of distribution network acquired 140 15 Trademarks and licenses 38 10 Software 21 2 Total Other intangible assets $ 2,046 |
Unaudited Pro Forma Results | For comparative purposes, selected unaudited pro-forma consolidated results of operations of FNF for the years ended December 31, 2020 and 2019 are presented below. Unaudited pro-forma results presented assume the consolidation of F&G occurred as of January 1, 2019. Year Ended December 31, 2020 2019 (In millions) Total revenues $ 10,897 $ 10,386 Net earnings attributable to FNF common shareholders 1,233 1,419 |
Summary of Reserve for Title Cl
Summary of Reserve for Title Claim Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Summary of the Reserve for Title Claim Losses | A summary of the reserve for title claim losses follows: Year Ended December 31, 2020 2019 2018 (Dollars in millions) Beginning balance $ 1,509 $ 1,488 $ 1,490 Change in insurance recoverable 34 1 — Claim loss provision related to: Current year 283 240 221 Prior years — — — Total title claim loss provision 283 240 221 Claims paid, net of recoupments related to: Current year (11) (11) (10) Prior years (192) (209) (213) Total title claims paid, net of recoupments (203) (220) (223) Ending balance of claim loss reserve for title insurance $ 1,623 $ 1,509 $ 1,488 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % 4.5 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts of Assets and Liabilities and Estimated at Fair Value on Recurring Basis | The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt, which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows (in millions): December 31, 2020 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 2,719 $ — $ — $ 2,719 $ 2,719 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,916 1,350 6,266 6,266 Commercial mortgage-backed securities — 2,803 26 2,829 2,829 Corporates 25 13,421 1,289 14,735 14,735 Hybrids 175 815 4 994 994 Municipals — 1,360 43 1,403 1,403 Residential mortgage-backed securities — 342 483 825 825 U.S. Government 342 — — 342 342 Foreign Governments — 176 17 193 193 Equity securities 791 — 5 796 796 Preferred securities 490 851 — 1,341 1,341 Subscription agreements (1) — 199 — 199 199 Derivative investments — 548 — 548 548 Short term investments 769 — — 769 769 Other long-term investments — — 50 50 50 Total financial assets at fair value $ 5,311 $ 25,431 $ 3,267 $ 34,009 $ 34,009 Liabilities Fair value of future policy benefits — — 5 5 5 Derivatives: FIA embedded derivatives, included in contractholder funds — — 3,404 3,404 3,404 Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities — 101 — 101 101 Total financial liabilities at fair value $ — $ 101 $ 3,409 $ 3,510 $ 3,510 (1) Included within equity securities in the accompanying Consolidated Balance Sheets as of December 31, 2020. December 31, 2019 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 1,376 $ — $ — $ 1,376 $ 1,376 Fixed maturity securities, available-for-sale: Commercial mortgage-backed securities — 22 — 22 22 Corporates — 1,540 17 1,557 1,557 Hybrids — 30 — 30 30 Municipals — 93 — 93 93 Residential mortgage-backed securities — 40 — 40 40 U.S. Government — 288 — 288 288 Foreign Governments — 60 — 60 60 Preferred securities 65 258 — 323 323 Equity securities 810 — 1 811 811 Short term investments 876 — — 876 876 Other long-term investments — — 120 120 120 Total financial assets at fair value $ 3,127 $ 2,331 $ 138 $ 5,596 $ 5,596 The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the accompanying Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. December 31, 2020 (in millions) Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 66 $ — $ 66 $ 66 Commercial mortgage loans — — 926 926 903 Residential mortgage loans — — 1,123 1,123 1,128 Policy loans — — 33 33 33 Other invested assets — — 28 28 28 Company-owned life insurance — — 305 305 305 Trade and notes receivables, net of allowance — — 437 437 437 Total $ — $ 66 $ 2,852 $ 2,918 $ 2,900 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 21,719 $ 21,719 $ 25,199 Debt — 2,896 — 2,896 2,662 Total $ — $ 2,896 $ 21,719 $ 24,615 $ 27,861 |
Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis | Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of December 31, 2020 are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2020 (in millions) December 31, 2020 Assets Asset-backed securities $ 1,175 Broker-quoted Offered quotes 85% - 126.15% 103.96% Asset-backed securities 175 Third-Party Valuation Offered quotes 0.00% - 107.25% 79.87% Commercial mortgage-backed securities 26 Broker-quoted Offered quotes 131.59% - 131.59% 131.59% Corporates 388 Broker-quoted Offered quotes 75.20% - 114.68% 103.36% Corporates 901 Third-Party Valuation Offered quotes 88.42% - 125.83% 109.47% Hybrids 4 Third-Party Valuation Offered quotes 112.06% - 112.06% 112.06% Municipals 43 Third-Party Valuation Offered quotes 133.53% - 133.53% 133.53% Residential mortgage-backed securities 483 Broker-quoted Offered quotes 112.58% - 112.58% 112.58% Foreign governments 17 Third-Party Valuation Offered quotes 107.87% - 113.80% 109.72% Equity securities 1 Income-Approach Yield —% Equity securities 1 Black Scholes model Risk Free Rate 0.29% - 0.29% (0.29%) Strike Price $1.50 - $1.50 ($1.50) Volatility 1.00% - 1.00% (1.00%) Dividend Yield 0.00% - 0.00% (0.00%) Equity securities 3 Discounted Cash Flow Discount rate 10.60% - 10.60% (10.60%) Market Comparable Company Analysis EBITDA multiple 6.6x - 6.6x (6.6x) Other long-term assets: Available-for-sale embedded derivative 27 Third-Party Valuation Market value of fund 100.00% Credit Linked Note 23 Broker-quoted Offered quotes 100.00% Total financial assets at fair value $ 3,267 Liabilities Future policy benefits 5 Discounted cash flow Non-performance spread 0.00% Risk margin to reflect uncertainty 0.50% Derivatives: FIA embedded derivatives, included in contractholder funds 3,404 Discounted cash flow Market value of option 0.00% - 67.65% 2.25% Treasury rates 0.08% - 1.65% 0.87% Mortality multiplier 100.00% - 100.00% 100.00% Surrender rates 0.25% - 55.00% 5.24% Partial withdrawals 2.00% - 3.50% 2.58% Non-performance spread 0.74% - 0.74% 0.74% Option cost 0.05% - 16.61% 2.25% Total financial liabilities at fair value $ 3,409 |
Changes in Fair Value of Financial Instruments - Assets | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2020 and 2019, respectively. F&G related activit y for the year ended December 31, 2020 in the table below is comprised of the period from June 1, 2020 through December 31, 2020 only. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2020 (in millions) Balance at Beginning F&G Acquisition Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ — $ 854 $ (1) $ 21 $ 633 $ (1) $ (133) $ (23) $ 1,350 $ 10 Commercial mortgage-backed securities — 26 — — — — — — 26 — Corporates 17 1,238 (3) 59 110 — (87) (45) 1,289 43 Hybrids — 4 — — — — — — 4 — Municipals — 38 — 5 — — — — 43 5 Residential mortgage-backed securities — 534 — 7 11 — (62) (7) 483 — Foreign Governments — 16 — 1 — — — — 17 1 Equity securities 1 1 1 — 2 — — — 5 — Other long-term assets: Available-for-sale embedded derivative — 20 7 — — — — — 27 — Credit linked note — 23 — — — — — — 23 — Other long-term investment 120 — (61) — — — — (59) — — Total assets at Level 3 fair value $ 138 $ 2,754 $ (57) $ 93 $ 756 $ (1) $ (282) $ (134) $ 3,267 $ 59 Liabilities Future policy benefits $ — $ 5 $ — $ — $ — $ — $ — $ — $ 5 $ — FIA embedded derivatives, included in contractholder funds — 2,852 552 — — — — — 3,404 — Total liabilities at Level 3 fair value $ — $ 2,857 $ 552 $ — $ — $ — $ — $ — $ 3,409 $ — ( a) The net transfers out of Level 3 during the twelve months ended December 31, 2020 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. Year ended December 31, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Corporates $ 17 $ 1 $ (1) $ 6 $ (1) $ — $ (5) $ 17 Equity securities — 1 — — — — — 1 Other invested assets: Other long-term investment 101 19 — — — — — 120 Total assets at Level 3 fair value $ 118 $ 21 $ (1) $ 6 $ (1) $ — $ (5) $ 138 ( a) The net transfers out of Level 3 during the twelve months ended December 31, 2019 were to Level 2. |
Changes in Fair Value of Financial Instruments - Liabilities | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2020 and 2019, respectively. F&G related activit y for the year ended December 31, 2020 in the table below is comprised of the period from June 1, 2020 through December 31, 2020 only. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2020 (in millions) Balance at Beginning F&G Acquisition Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ — $ 854 $ (1) $ 21 $ 633 $ (1) $ (133) $ (23) $ 1,350 $ 10 Commercial mortgage-backed securities — 26 — — — — — — 26 — Corporates 17 1,238 (3) 59 110 — (87) (45) 1,289 43 Hybrids — 4 — — — — — — 4 — Municipals — 38 — 5 — — — — 43 5 Residential mortgage-backed securities — 534 — 7 11 — (62) (7) 483 — Foreign Governments — 16 — 1 — — — — 17 1 Equity securities 1 1 1 — 2 — — — 5 — Other long-term assets: Available-for-sale embedded derivative — 20 7 — — — — — 27 — Credit linked note — 23 — — — — — — 23 — Other long-term investment 120 — (61) — — — — (59) — — Total assets at Level 3 fair value $ 138 $ 2,754 $ (57) $ 93 $ 756 $ (1) $ (282) $ (134) $ 3,267 $ 59 Liabilities Future policy benefits $ — $ 5 $ — $ — $ — $ — $ — $ — $ 5 $ — FIA embedded derivatives, included in contractholder funds — 2,852 552 — — — — — 3,404 — Total liabilities at Level 3 fair value $ — $ 2,857 $ 552 $ — $ — $ — $ — $ — $ 3,409 $ — ( a) The net transfers out of Level 3 during the twelve months ended December 31, 2020 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. Year ended December 31, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Corporates $ 17 $ 1 $ (1) $ 6 $ (1) $ — $ (5) $ 17 Equity securities — 1 — — — — — 1 Other invested assets: Other long-term investment 101 19 — — — — — 120 Total assets at Level 3 fair value $ 118 $ 21 $ (1) $ 6 $ (1) $ — $ (5) $ 138 ( a) The net transfers out of Level 3 during the twelve months ended December 31, 2019 were to Level 2. |
Schedule of Equity Method Investments | The following table includes assets that have not been classified in the fair value hierarchy as the value of these investments are measured using the equity method of accounting or the net asset value ("NAV") per share practical expedient (in millions): December 31, 2020 December 31, 2019 Investments in unconsolidated affiliates (equity method of accounting) $ 146 $ 131 Investments in unconsolidated affiliates (NAV) 1,148 — $ 1,294 $ 131 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Consolidated Investments | The Company’s consolidated investments at December 31, 2020 and December 31, 2019 are summarized as follows (in millions): December 31, 2020 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 5,941 $ — $ 343 $ (18) $ 6,266 $ 6,266 Commercial mortgage-backed securities 2,490 — 342 (3) 2,829 2,829 Corporates 13,582 (16) 1,184 (15) 14,735 14,735 Hybrids 914 — 80 — 994 994 Municipals 1,333 — 72 (2) 1,403 1,403 Residential mortgage-backed securities 806 (3) 23 (1) 825 825 U.S. Government 332 — 10 — 342 342 Foreign Governments 179 — 14 — 193 193 Total available-for-sale securities $ 25,577 $ (19) $ 2,068 $ (39) $ 27,587 $ 27,587 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Commercial mortgage-backed/asset-backed securities $ 22 $ — $ — $ 22 $ 22 Corporates 1,510 50 (3) 1,557 1,557 Hybrids 26 4 — 30 30 Municipals 90 3 — 93 93 Residential mortgage-backed securities 38 2 — 40 40 U.S. Government 282 7 (1) 288 288 Foreign Governments 61 1 (2) 60 60 Total available-for-sale securities $ 2,029 $ 67 $ (6) $ 2,090 $ 2,090 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. December 31, 2020 (in millions) Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 466 $ 463 Due after one year through five years 2,171 2,295 Due after five years through ten years 2,116 2,255 Due after ten years 11,560 12,624 16,313 17,637 Other securities, which provide for periodic payments: Asset-backed securities 5,941 6,266 Commercial mortgage-backed securities 2,490 2,829 Structured hybrids 27 30 Residential mortgage-backed securities 806 825 9,264 9,950 Total fixed maturity available-for-sale securities $ 25,577 $ 27,587 |
Activity in Allowance for Credit Loses of Available-for-sale Securities Aggregated by Investment Category | The activity in the allowance for expected credit losses of available-for-sale securities aggregated by investment category were as follows for the twelve months ended December 31, 2020 (in millions): Twelve Months Ended December 31, 2020 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (1) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Balance at End of Period Available-for-sale securities Asset-backed securities $ — $ 7 $ (9) $ 2 $ — $ — $ — $ — Corporates — (16) (16) 7 3 4 2 (16) Hybrids — — (3) — 3 — — — Residential mortgage-backed securities — 2 (7) 1 1 — — (3) Total available-for-sale securities $ — $ (7) $ (35) $ 10 $ 7 $ 4 $ 2 $ (19) (1) Purchased credit deteriorated financial assets ("PCD") |
Debt Securities, Available-for-sale, Purchased with Credit Deterioration | Purchased credit-deteriorated available-for-sale debt securities ("PCD"s) are AFS securities purchased at a discount, where part of that discount is attributable to credit. Credit loss allowances are calculated for these securities as of the date of their acquisition, with the initial allowance serving to increase amortized cost. The following table summarizes year to date PCD AFS security purchases (in millions). Purchased credit-deteriorated available-for-sale debt securities December 31, 2020 Purchase price $ 265 Allowance for credit losses at acquisition 35 Discount (or premiums) attributable to other factors 84 AFS purchased credit-deteriorated par value $ 384 |
Fair Value and Gross Unrealized Losses of Available-for-sale Securities | The fair value and gross unrealized losses of available-for-sale securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of December 31, 2020, and December 31, 2019 were as follows (dollars in millions): December 31, 2020 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities Asset-backed securities $ 477 $ (18) $ — $ — $ 477 $ (18) Commercial mortgage-backed securities 51 (3) — — 51 (3) Corporates 865 (15) 36 — 901 (15) Hybrids 1 — — — 1 — Municipals 115 (2) — — 115 (2) Residential mortgage-backed securities 30 (1) — — 30 (1) U.S. Government 11 — — — 11 — Total available-for-sale securities $ 1,550 $ (39) $ 36 $ — $ 1,586 $ (39) Total number of available-for-sale securities in an unrealized loss position less than twelve months 222 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 11 Total number of available-for-sale securities in an unrealized loss position 233 December 31, 2019 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities Corporates $ 98 $ (2) $ 51 $ (1) $ 149 $ (3) U.S. Government 62 (1) — — 62 (1) Foreign Government — — 33 (2) 33 (2) Total available-for-sale securities $ 160 $ (3) $ 84 $ (3) $ 244 $ (6) Total number of available-for-sale securities in an unrealized loss position less than twelve months 19 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 10 Total number of available-for-sale securities in an unrealized loss position 29 |
Schedule of Distribution of CMLs, Gross Valuation by Property Type and Geographic Region | The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables (dollars in millions): December 31, 2020 Gross Carrying Value % of Total Property Type: Hotel $ 19 2 % Industrial - General 302 33 % Industrial - Warehouse 12 1 % Multifamily 165 18 % Office 140 15 % Retail 142 17 % Other 125 14 % Total commercial mortgage loans, gross of valuation allowance $ 905 100 % Allowance for expected credit loss (2) Total commercial mortgage loans $ 903 U.S. Region: East North Central $ 61 7 % East South Central 80 9 % Middle Atlantic 100 11 % Mountain 48 5 % New England 79 9 % Pacific 333 37 % South Atlantic 133 15 % West North Central 13 1 % West South Central 58 6 % Total commercial mortgage loans, gross of valuation allowance $ 905 100 % Allowance for expected credit loss (2) Total commercial mortgage loans $ 903 |
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | The following table presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios at December 31, 2020 (dollars in millions) : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 December 31, 2020 LTV Ratios: Less than 50% $ 520 $ 18 $ 538 60 % $ 557 60 % 50% to 60% 237 9 246 27 251 27 60% to 75% 121 — 121 13 119 13 Commercial mortgage loans $ 878 $ 27 $ 905 100 % $ 927 100 % |
Schedule of Residential Mortgage Loans by State | The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables (dollars in millions): December 31, 2020 U.S. State: Unpaid Principal Balance % of Total California $ 164 15 % Florida 188 16 New Jersey 96 8 All Other States (1) 704 61 Total mortgage loans $ 1,152 100 % (1) The individual concentration of each state is less than 8% as of December 31, 2020. |
Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming | The credit quality of RMLs as at December 31, 2020, was as follows (dollars in millions): December 31, 2020 Performance indicators: Carrying Value % of Total Performing $ 1,059 91 % Non-performing 106 9 Total residential mortgage loans, gross of valuation allowance $ 1,165 100 % Allowance for expected loan loss (37) — Total residential mortgage loans $ 1,128 100 % |
Loans Segregated by Risk Rating Exposure | Loans segregated by risk rating exposure as of December 31, 2020, were as follows (in millions): December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Residential mortgages Current (less than 30 days past due) $ 311 $ 545 $ 68 $ 42 $ 62 $ 2 $ 1,030 30-89 days past due 2 22 2 — — — 26 Over 90 days past due 26 74 3 — — — 103 Total residential mortgages $ 339 $ 641 $ 73 $ 42 $ 62 $ 2 $ 1,159 Commercial mortgages Current (less than 30 days past due) $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Commercial mortgages LTV Less than 50% $ 228 $ — $ 6 $ — $ — $ 303 $ 537 50% to 60% 192 — — — 11 43 246 60% to 75% 122 — — — — — 122 Total commercial mortgages $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 Commercial mortgages DSCR Greater than 1.25x $ 542 $ — $ 6 $ — $ 11 $ 319 $ 878 1.00x - 1.25x — — — — — 27 27 Less than 1.00x — — — — — — — Total commercial mortgages $ 542 $ — $ 6 $ — $ 11 $ 346 $ 905 |
Schedule of Nonaccrual Loans by Amortized Cost | Non-accrual loans by amortized cost as of December 31, 2020, was as follows (in millions): Amortized cost of loans on non-accrual December 31, 2020 Residential mortgage: $ 99 Commercial mortgage: — Total non-accrual loans $ 99 |
Changes in Allowance for Expected Credit Losses on Loans | Credit losses on purchase credit deteriorated (“PCD”) financial assets were recognized on the opening balance sheet and PCD amounts as of December 31, 2020 are shown in the table below (in millions): December 31, 2020 Credit Losses on PCD Financial Assets Residential Mortgage Commercial Mortgage Total Provision for loan losses $ 30 $ 2 $ 32 For initial credit losses on purchased loans accounted for as PCD financial assets 7 — 7 $ 37 $ 2 $ 39 December 31, 2020 Residential Mortgage $ 1 Commercial Mortgage — Total interest income recognized during the period on nonaccrual loans $ 1 December 31, 2020 Residential Mortgage $ 3 Commercial Mortgage — Total loans that are 90 days past due and still accruing $ 3 |
Schedule of Sources of Net Investment Income Reported | The major sources of Interest and investment income reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Fixed maturity securities, available-for-sale $ 708 $ 70 $ 55 Equity securities 19 10 10 Preferred securities 59 24 24 Mortgage loans 50 — — Invested cash and short-term investments 8 34 19 Limited partnerships 76 — — Tax deferred property exchange income 33 72 65 Other investments 25 19 9 Gross investment income 978 229 182 Investment expense (78) (4) (5) Interest and investment income $ 900 $ 225 $ 177 Recognized Gains and Losses, net Details underlying Recognized gains and losses, net reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Net realized gains (losses) on fixed maturity available-for-sale securities $ 102 $ (6) $ 2 Net realized/unrealized gains (losses) on equity securities (2)(3) 241 309 (87) Net realized/unrealized gains (losses) on preferred securities (4) 15 28 (26) Realized gains (losses) on other invested assets (25) (13) 2 Change in allowance for expected credit losses (37) — — Derivatives and embedded derivatives: Realized gains on certain derivative instruments 76 — — Unrealized gains on certain derivative instruments 161 — — Change in fair value of reinsurance related embedded derivatives (1) (53) — — Change in fair value of other derivatives and embedded derivatives 8 — — Realized gains on derivatives and embedded derivatives 192 — — Recognized gains and losses, net $ 488 $ 318 $ (109) (1) Change in fair value of reinsurance related embedded derivatives is due to held for sale unaffiliated third party business under the fair value option election, and activity related to the FGL Insurance and Kubera reinsurance treaty. (2) Includes unrealized gain on Forward Purchase Agreements of $199 million as of December 31, 2020. (3) Includes valuation gains (losses) of $248 million, $299 million and $(71) million for the year ended December 31, 2020, 2019 and 2018. |
Impact of Adoption of ASU on P&L | The impact of ASU 2016-13 adoption on the P&L was as follows (in millions): (Dollars in millions) December 31, 2020 Total ASU 2016-13 adoption impact on P&L $ (19) |
Proceeds from Sale of Fixed Maturity Available-for-sale Securities | The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions): Year ended December 31, 2020 December 31, 2019 December 31, 2018 Proceeds $ 1,946 $ 614 $ 838 Gross gains 116 4 6 Gross losses (12) (9) (4) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The carrying amounts of derivative instruments, including derivative instruments embedded in FIA contracts, and reinsurance as of December 31, 2020 is as follows (in millions): December 31, 2020 Assets: Derivative investments: Call options $ 548 Other long-term investments: Other embedded derivatives 27 $ 575 Liabilities: Contractholder funds: FIA embedded derivative $ 3,404 Other liabilities: Reinsurance related embedded derivative 101 $ 3,505 |
Derivative Instruments, Gain (Loss) | The change in fair value of derivative instruments included in the accompanying Consolidated Statements of Earnings is as follows (in millions): Period from June 1 to December 31, 2020 Net investment gains (losses): Call options $ 229 Futures contracts 15 Foreign currency forward (7) Other derivatives and embedded derivatives 8 Reinsurance related embedded derivatives (53) Total net investment gains $ 192 Benefits and other changes in policy reserves: FIA embedded derivatives $ 552 |
Information Regarding Exposure to Credit Loss on Call Options Held | Information regarding our exposure to credit loss on the call options we hold as of December 31, 2020, is presented in the following table (in millions): December 31, 2020 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA-/*/A+ $ 1,932 $ 75 $ 32 $ 43 Morgan Stanley A/A2/BBB+ 1,503 40 41 — Barclay's Bank A+/A1/A 4,639 180 169 11 Canadian Imperial Bank of Commerce AA/Aa2/A+ 2,276 86 85 1 Wells Fargo A+/A2/BBB+ 2,900 106 105 1 Goldman Sachs A/A3/BBB+ 634 15 15 — Credit Suisse A/Aa3/A+ 1,373 27 25 2 Truist A+/A2/A 652 19 19 — Total $ 15,909 $ 548 $ 491 $ 58 (1) An * represents credit ratings that were not available. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable consists of the following: December 31, 2020 December 31, 2019 (In millions) 4.50% Notes, net of discount $ 443 $ 443 5.50% Notes, net of discount 399 398 3.40% Notes, net of discount 643 — 2.45% Notes, net of discount 592 — Revolving Credit Facility (4) (3) 5.50% F&G Notes, net of discount 589 — $ 2,662 $ 838 B. Notes Payable Notes payable consist of the following: December 31, 2020 2019 (In millions) 4.50% Notes, net of discount $ 443 $ 443 5.50% Notes, net of discount 399 398 3.40% Notes, net of discount 643 — 2.45% Notes, net of discount 592 — Revolving credit facility (5) (3) $ 2,072 $ 838 |
Schedule of Principal Maturities of Notes Payable | Gross principal maturities of notes payable at December 31, 2020 are as follows (in millions): 2021 $ — 2022 400 2023 — 2024 — 2025 550 Thereafter 1,700 $ 2,650 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | A summary of unfunded commitments by invested asset class as of December 31, 2020 is included below (in millions): December 31, 2020 Asset Type Other invested assets $ 394 Equity securities 50 Fixed maturity securities, available-for-sale 432 Other assets 85 Commercial mortgage loans — Residential mortgage loans 6 Total $ 967 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Summarized financial information concerning our reportable segments is shown in the following tables. On June 1, 2020, we completed our acquisition of F&G. As a result we have a new segment as of and for the year ended December 31, 2020, F&G, which contains our fixed annuity and life insurance businesses. As of and for the year ended December 31, 2020: Title F&G Corporate and Other Total (In millions) Title premiums $ 6,298 $ — $ — $ 6,298 Other revenues 2,782 138 172 3,092 Revenues from external customers 9,080 138 172 9,390 Interest and investment income, including recognized gains and losses 294 1,095 (1) 1,388 Total revenues 9,374 1,233 171 10,778 Depreciation and amortization 149 123 24 296 Interest expense 1 18 71 90 Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates 1,878 86 (180) 1,784 Income tax expense (benefit) 432 (75) (35) 322 Earnings (loss) before equity in earnings (loss) of unconsolidated affiliates 1,446 161 (145) 1,462 Equity in earnings of unconsolidated affiliates 14 — 1 15 Net earnings (loss) from continuing operations $ 1,460 $ 161 $ (144) $ 1,477 Assets $ 9,211 $ 39,714 $ 1,530 $ 50,455 Goodwill 2,478 1,751 266 4,495 As of and for the year ended December 31, 2019: Title Corporate and Other Total (In millions) Title premiums $ 5,342 $ — $ 5,342 Other revenues 2,389 195 2,584 Revenues from external customers 7,731 195 7,926 Interest and investment income, including recognized gains and losses 528 15 543 Total revenues 8,259 210 8,469 Depreciation and amortization 154 24 178 Interest expense — 47 47 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 1,536 (167) 1,369 Income tax expense (benefit) 363 (55) 308 Earnings (loss) before equity in earnings of unconsolidated affiliates 1,173 (112) 1,061 Equity in earnings of unconsolidated affiliates 13 2 15 Net earnings (loss) $ 1,186 $ (110) $ 1,076 Assets $ 9,071 $ 1,606 $ 10,677 Goodwill 2,462 265 2,727 As of and for the year ended December 31, 2018: Title Corporate and Other Total (In millions) Title premiums $ 4,911 $ — $ 4,911 Other revenues 2,204 411 2,615 Revenues from external customers 7,115 411 7,526 Interest and investment income, including recognized gains and losses 60 8 68 Total revenues 7,175 419 7,594 Depreciation and amortization 154 28 182 Interest expense — 43 43 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 876 (126) 750 Income tax expense (benefit) 163 (43) 120 Earnings (loss) before equity in earnings of unconsolidated affiliates 713 (83) 630 Equity in earnings of unconsolidated affiliates 4 1 5 Net earnings (loss) $ 717 $ (82) $ 635 Assets $ 8,391 $ 910 $ 9,301 Goodwill 2,462 264 2,726 |
Premium and Annuity Deposits (Net of Reinsurance) By Type | Premiums and annuity deposits (net of reinsurance), which are not included as revenues (except for traditional premiums) in the accompany Consolidated Statements of Operations, collected by product type were as follows: Year ended December 31, 2020 Product Type Fixed indexed annuities $ 1,966 Fixed rate annuities 631 Single premium immediate annuities 10 Life insurance (a) 146 Total $ 2,753 (a) Life insurance includes Universal Life (“UL”) and traditional life insurance products for FGL Insurance and FGL NY Insurance. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow information | The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities. Year Ended December 31, 2020 2019 2018 (In millions) Cash paid for: Interest $ 73 $ 44 $ 34 Income taxes 315 251 204 Deferred sales inducements 46 — — Non-cash investing and financing activities: Equity financing associated with the acquisition of F&G $ 609 $ — $ — Change in proceeds of sales of investments available for sale receivable in period (4) 1 (3) Change in purchases of investments available for sale payable in period 14 (1) (2) Change in treasury stock purchases payable in period 8 (1) 1 Change in accrued dividends payable in period 1 2 2 Lease liabilities recognized in exchange for lease right-of-use assets 44 36 — Remeasurement of lease liabilities 48 101 — Liabilities assumed in connection with acquisitions (excluding F&G)(1) Fair value of assets acquired 32 1 50 Less: Total Purchase price 24 1 33 Liabilities and noncontrolling interests assumed $ 8 $ — $ 17 (1) For further information related to the acquisition of F&G, refer to Note B Acquisitions Year Ended December 31, 2020 2019 2018 (In millions) Cash paid during the year: Interest paid $ 58 $ 44 $ 34 Income tax payments 317 251 204 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenue consists of: Year Ended December 31, 2020 2019 2018 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (in millions) Direct title insurance premiums Direct title insurance premiums Title $ 2,699 $ 2,381 $ 2,221 Agency title insurance premiums Agency title insurance premiums Title 3,599 2,961 2,690 Life insurance premiums, insurance and investment product fees, and other Escrow, title-related and other fees F&G 138 — — Home warranty Escrow, title-related and other fees Title 181 177 182 Total revenue from insurance contracts 6,617 5,519 5,093 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 1,170 899 826 Other title-related fees and income Escrow, title-related and other fees Title 791 639 600 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 301 389 379 Real estate technology Escrow, title-related and other fees Corporate and other 112 110 101 Real estate brokerage Escrow, title-related and other fees Corporate and other 25 39 316 Other Escrow, title-related and other fees Corporate and other 36 46 (6) Total revenue from contracts with customers 2,435 2,122 2,216 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 338 285 217 Interest and investment income Interest and investment income Various 900 225 177 Recognized gains and losses, net Recognized gains and losses, net Various 488 318 (109) Total revenues Total revenues $ 10,778 $ 8,469 $ 7,594 |
Information about Trade Receivables and Deferred Revenue | The following table provides information about trade receivables and deferred revenue: December 31, 2020 December 31, 2019 (In millions) Trade receivables $ 404 $ 321 Deferred revenue (contract liabilities) 117 111 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes Intangible Assets, VOBA and DAC DSI | A summary of the changes in the carrying amounts of the Company's VOBA, DAC and DSI intangible assets are as follows (in millions): VOBA DAC DSI Total Balance at Balance at December 31, 2019 $ — $ — $ — $ — F&G acquisition 1,847 — — 1,847 Deferrals — 251 46 297 Amortization (120) (6) (5) (131) Interest 20 2 — 22 Unlocking 2 — — 2 Adjustment for net unrealized investment (gains) losses (283) (25) (5) (313) Balance at December 31, 2020 $ 1,466 $ 222 $ 36 $ 1,724 |
Estimated Amortization Expense for VOBA in Future Fiscal Periods | For the in-force liabilities as of December 31, 2020, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions): Estimated Amortization Expense Fiscal Year 2021 $ 144 2022 190 2023 189 2024 170 2025 164 Thereafter 892 |
Schedule of Other Indefinite-Lived Intangible Assets | Other intangible assets as of December 31, 2020 consist of the following (in millions): Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Customer relationships and contracts $ 783 $ (596) $ 187 10 Computer software 416 (262) 154 2 to 10 Value of Distribution Asset (VODA) 140 (10) 130 15 Definite lived trademarks, tradenames, and other 73 (39) 34 10 Indefinite lived tradenames and other 35 N/A 35 Indefinite Total $ 540 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goo dwill consists of the following: Title F&G Corporate and Other Total (In millions) Balance, December 31, 2018 $ 2,462 $ — $ 264 $ 2,726 Adjustments to prior year acquisitions — — 1 1 Balance, December 31, 2019 $ 2,462 $ — $ 265 $ 2,727 Goodwill associated with acquisitions 16 1,751 1 1,768 Balance, December 31, 2020 $ 2,478 $ 1,751 $ 266 $ 4,495 |
F&G Reinsurance (Tables)
F&G Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes | The effect of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the seven months ended December 31, 2020 were as follows (in millions): Seven months ended December 31, 2020 Net Premiums Earned Net Benefits Incurred Direct $ 108 $ 976 Assumed — 1 Ceded (85) (111) Net $ 23 $ 866 |
Regulatory and Equity (Tables)
Regulatory and Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure | Statutory net income and statutory capital and surplus of the Company's wholly owned insurance subsidiaries were as follows (in millions): Subsidiary (state/country of domicile) (a) FGL Insurance (IA) FGL NY Insurance (NY) Raven Re (VT) Statutory Net Income (loss): Year ended December 31, 2020 $ (46) $ (2) $ 12 Statutory Capital and Surplus: December 31, 2020 $ 1,249 $ 93 $ 84 (a) FGL NY Insurance and Raven Re are subsidiaries of FGL Insurance, and the columns should not be added together. |
Net Income Attributable to FN_2
Net Income Attributable to FNF Common Shareholders and Change in Total Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of the Effect of the Change in Ownership Percentage in ServiceLink | The following table presents the effect of the change in our ownership percentage in ServiceLink on equity attributable to FNF (in millions): Year ended December 31, 2020 2019 2018 Net earnings attributable to FNF common shareholders $ 1,427 $ 1,062 $ 628 Increase in additional paid-in capital for increase in ownership percentage in ServiceLink 211 — — Decrease in noncontrolling interests resulting from increased ownership percentage 47 — — Net increase in total equity 258 — — Net income attributable to FNF common shareholders and change in total equity $ 1,685 $ 1,062 $ 628 |
Changes In Redeemable Non-controlling Interest | The following table presents the changes in our redeemable non-controlling interest during the years ended December 31, 2020 and 2019. Year ended December 31, 2020 2019 2018 Beginning balance $ 344 $ 344 $ 344 Redemption of ServiceLink non-controlling interest (344) — — Ending balance $ — $ 344 $ 344 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Future Payments Under Operating Lease Arrangements | Future payments under operating lease arrangements accounted for under ASC Topic 842 as of December 31, 2020 are as follows (in millions): 2021 $ 147 2022 113 2023 82 2024 53 2025 21 Thereafter 31 Total operating lease payments, undiscounted $ 447 Less: present value discount 33 Lease liability, at present value $ 414 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following: December 31, 2020 2019 (In millions) Furniture, fixtures and equipment $ 230 $ 222 Data processing equipment 186 174 Leasehold improvements 115 102 Buildings 78 85 Land 14 16 Other 5 5 Total property and equipment, gross 628 604 Accumulated depreciation and amortization (448) (428) Total property and equipment, net $ 180 $ 176 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Accrued Liabilities | Accounts payable and other accrued liabilities consist of the following: December 31, 2020 2019 (In millions) Salaries and incentives $ 519 $ 341 Accrued benefits 373 289 Deferred revenue 117 111 Contingent consideration - acquisitions 11 17 Trade accounts payable 115 44 Accrued recording fees and transfer taxes 21 10 Accrued premium taxes 36 26 Liability for policy and contract claims 88 — Retained asset account 144 — Remittances and items not allocated 158 — Option collateral liabilities 415 — Funds withheld embedded derivative 101 — Other accrued liabilities 304 256 $ 2,402 $ 1,094 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income tax expense (benefit) on continuing operations consists of the following: Year Ended December 31, 2020 2019 2018 (In millions) Current $ 379 $ 268 $ 64 Deferred (57) 40 56 $ 322 $ 308 $ 120 |
Schedule of Components of Income Tax Expense (Benefit) | Total income tax expense was allocated as follows: Year Ended December 31, 2020 2019 2018 (In millions) Net earnings from continuing operations $ 322 $ 308 $ 120 Tax expense attributable to net earnings from discontinued operations — — — Other comprehensive earnings (loss): Unrealized gain (loss) on investments and other financial instruments 332 16 (3) Unrealized gain (loss) on foreign currency translation and cash flow hedging 1 1 (2) Minimum pension liability adjustment 4 — — Total income tax expense (benefit) allocated to other comprehensive earnings 337 17 (5) Total income taxes $ 659 $ 325 $ 115 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory rate to our effective tax rate is as follows: Year Ended December 31, 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.5 1.7 3.1 Stock compensation (0.3) (0.8) (0.5) Tax credits (0.4) (0.1) (0.2) Consolidated partnerships (0.3) (0.2) (0.2) Tax reform — — (7.1) Valuation allowance for deferred tax assets (3.0) — — Change in tax status benefit (2.0) — — Non-deductible expenses and other, net 0.5 0.9 (0.1) Effective tax rate 18.0 % 22.5 % 16.0 % |
Schedule of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities at December 31, 2020 and 2019 consist of the following: December 31, 2020 2019 (In millions) Deferred Tax Assets: Employee benefit accruals $ 94 $ 71 Net operating loss carryforwards 17 3 Accrued liabilities 12 3 Allowance for uncollectible accounts receivable 5 4 Pension plan — 3 Tax credits 59 39 State income taxes 4 3 Capital loss carryover 35 — Basis difference held-for-sale 19 — Life insurance and claim related adjustments 861 — Funds held under reinsurance agreements 85 — Other 13 9 Total gross deferred tax asset 1,204 135 Less: valuation allowance 45 25 Total deferred tax asset $ 1,159 $ 110 Deferred Tax Liabilities: Title plant $ (56) $ (55) Amortization of goodwill and intangible assets (148) (113) Other investments (7) (6) Other (23) (11) Investment securities (601) (75) Depreciation (17) (12) Partnerships (83) (54) Value of business acquired (308) — Derivatives (38) — Deferred acquisition costs (6) — Transition reserve on new reserve method (43) — Funds held under reinsurance agreements (58) — Title Insurance reserve discounting (63) (68) Total deferred tax liability $ (1,451) $ (394) Net deferred tax liability $ (292) $ (284) |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending unrecognized tax benefits is as follows (in millions): Year ended December 31, 2020 Beginning balance $ 7 Additions based on positions taken in current year 58 Reductions related to statute of limitation lapses (1) Ending balance $ 64 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Stock Options Transactions | FNF stock option transactions under the Omnibus Plan for 2020 , 2019, and 2018 are as follows: Options Weighted Average Exercisable Balance, December 31, 2017 8,529,427 $ 20.38 7,648,837 Exercised (985,640) 19.09 Balance, December 31, 2018 7,543,787 $ 20.55 7,530,137 Exercised (2,009,112) 19.61 Canceled (4,550) 25.34 Balance, December 31, 2019 5,530,125 $ 20.88 5,530,125 Exercised (3,208,712) 18.45 Balance, December 31, 2020 2,321,413 $ 24.24 2,321,413 FNF stock options transactions under the F&G Omnibus Incentive Plan for 2020 are as follows: Options Weighted Average Exercisable Balance, December 31, 2019 — $ — — Options assumed in connection with the F&G acquisition 2,411,585 36.04 Exercised (109,159) 27.64 Canceled (299,736) 38.41 Balance, December 31, 2020 2,002,690 $ 36.14 1,021,671 |
Schedule of Restricted Stock Transactions | FNF restricted stock transactions under the Omnibus Plan in 2020 , 2019, and 2018 are as follows: Shares Weighted Average Grant Date Fair Value Balance, December 31, 2017 1,839,061 $ 30.58 Granted 912,694 32.32 Canceled (15,201) 29.49 Vested (915,316) 28.80 Balance, December 31, 2018 1,821,238 $ 32.35 Granted 640,698 45.84 Canceled (14,937) 31.94 Vested (929,823) 30.98 Balance, December 31, 2019 1,517,176 $ 38.90 Granted 1,006,058 33.40 Canceled (11,604) 38.93 Vested (795,075) 37.60 Balance, December 31, 2020 1,716,555 $ 36.26 FNF restricted stock transactions under the F&G Omnibus Plan in 2020 are as follows: Shares Weighted Average Grant Date Fair Value Balance, December 31, 2019 — $ — Granted 474,025 34.13 Canceled (24,155) 34.47 Balance, December 31, 2020 449,870 $ 34.11 |
Schedule of Stock Options Outstanding and Exercisable | The following table summarizes information related to stock options outstanding and exercisable as of December 31, 2020 : Options Outstanding Options Exercisable Weighted Weighted Average Weighted Average Weighted Remaining Average Remaining Average Range of Number of Contractual Exercise Intrinsic Number of Contractual Exercise Intrinsic Exercise Prices Options Life Price Value Options Life Price Value (In years) (In millions) (In years) (In millions) $0.00 - $21.84 809,116 0.84 $ 21.84 $ 14 809,116 0.84 $ 21.84 $ 14 $21.85 - $25.53 1,512,297 1.82 25.53 21 1,512,297 1.82 25.53 21 $25.54 - $27.53 443,909 4.98 27.53 5 224,692 4.98 27.53 3 $27.54 - $28.00 61,084 5.60 28.00 1 19,323 5.60 28.00 — $28.01 - $35.89 34,106 5.87 35.89 — 3,410 5.87 35.89 — $35.90 - $39.10 1,463,591 4.75 39.10 — 774,246 4.29 39.10 — 4,324,103 $ 41 3,343,084 $ 38 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk and Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedules of Title Insurance Premiums as a Percentage of Total Title Insurance Premiums Written | Title insurance premiums as a percentage of the total title insurance premiums written from those four states are detailed as follows: 2020 2019 2018 California 15.2 % 14.3 % 13.9 % Texas 12.3 % 13.8 % 14.4 % Florida 8.6 % 9.2 % 8.8 % New York 4.2 % 5.8 % 6.3 % |
Schedule II- Condensed Financia
Schedule II- Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable consists of the following: December 31, 2020 December 31, 2019 (In millions) 4.50% Notes, net of discount $ 443 $ 443 5.50% Notes, net of discount 399 398 3.40% Notes, net of discount 643 — 2.45% Notes, net of discount 592 — Revolving Credit Facility (4) (3) 5.50% F&G Notes, net of discount 589 — $ 2,662 $ 838 B. Notes Payable Notes payable consist of the following: December 31, 2020 2019 (In millions) 4.50% Notes, net of discount $ 443 $ 443 5.50% Notes, net of discount 399 398 3.40% Notes, net of discount 643 — 2.45% Notes, net of discount 592 — Revolving credit facility (5) (3) $ 2,072 $ 838 |
Schedule of Supplemental Cash Flow information | The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities. Year Ended December 31, 2020 2019 2018 (In millions) Cash paid for: Interest $ 73 $ 44 $ 34 Income taxes 315 251 204 Deferred sales inducements 46 — — Non-cash investing and financing activities: Equity financing associated with the acquisition of F&G $ 609 $ — $ — Change in proceeds of sales of investments available for sale receivable in period (4) 1 (3) Change in purchases of investments available for sale payable in period 14 (1) (2) Change in treasury stock purchases payable in period 8 (1) 1 Change in accrued dividends payable in period 1 2 2 Lease liabilities recognized in exchange for lease right-of-use assets 44 36 — Remeasurement of lease liabilities 48 101 — Liabilities assumed in connection with acquisitions (excluding F&G)(1) Fair value of assets acquired 32 1 50 Less: Total Purchase price 24 1 33 Liabilities and noncontrolling interests assumed $ 8 $ — $ 17 (1) For further information related to the acquisition of F&G, refer to Note B Acquisitions Year Ended December 31, 2020 2019 2018 (In millions) Cash paid during the year: Interest paid $ 58 $ 44 $ 34 Income tax payments 317 251 204 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies - Recent Developments (Details) - USD ($) | Sep. 15, 2020 | Jul. 31, 2020 | Jun. 12, 2020 | Jun. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2021 | Dec. 07, 2020 | Oct. 29, 2020 | Apr. 22, 2020 |
Business Acquisition [Line Items] | |||||||||||
Unrealized gain | $ 488,000,000 | $ 318,000,000 | $ (109,000,000) | ||||||||
Repayment of principal borrowed | 1,000,000,000 | $ 0 | $ 370,000,000 | ||||||||
2.45% Senior Notes Due March 2031 | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 2.45% | ||||||||||
Aggregate principal amount | $ 600,000,000 | ||||||||||
Proceeds from issuance of senior notes | 593,000,000 | ||||||||||
Proceeds from issuance debt | 593,000,000 | ||||||||||
Term Loan Credit Agreement | Term Loan | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Line of credit facility | $ 1,000,000,000 | ||||||||||
Repayments of all outstanding indebtedness under term loan credit agreement | 260,000,000 | ||||||||||
Repayment of principal borrowed | $ 260,000,000 | $ 100,000,000 | $ 640,000,000 | ||||||||
3.40% Notes due June 15, 2030 | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 3.40% | ||||||||||
Aggregate principal amount | $ 650,000,000 | ||||||||||
Proceeds from issuance debt | $ 642,000,000 | ||||||||||
Revolving Credit Facility | Amended Revolving Credit Facility | Line of Credit | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Line of credit facility | $ 800,000,000 | ||||||||||
F&G | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Consideration transferred | $ 2,700,000,000 | ||||||||||
F&G | Revolving Credit Facility | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Terminated credit facility | $ 250,000,000 | ||||||||||
Subscription Agreements Subscription Agreements with Paysafe Limited and Foley Trasimene Acquisition Corp. II | Paysafe Limited | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Subscription Agreements, Investment Commitment | $ 500,000,000 | ||||||||||
Subscription agreement, stock purchase, par value (USD per share) | $ 0.001 | ||||||||||
Subscription agreement stock purchase price (USD per share) | $ 10 | ||||||||||
Subscription agreement, ownership interest expected, percent | 7.00% | ||||||||||
Subscriber fee, percentage | 1.60% | ||||||||||
Equity securities, fair value | 199,000,000 | ||||||||||
Unrealized gain | $ 199,000,000 | ||||||||||
Subsequent Event | Forecast | Subscription Agreements with Alight Holdings, Inc. and Foley Trasimene Acquisition Corp. | Alight | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Subscription Agreements, Investment Commitment | $ 150,000,000 | ||||||||||
Subscription agreement, stock purchase, par value (USD per share) | $ 0.001 | ||||||||||
Subscription agreement stock purchase price (USD per share) | $ 10 | ||||||||||
Subscription agreement, ownership interest expected, percent | 2.80% | ||||||||||
Subscriber fee, percentage | 2.50% |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies -Trade and Notes Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition, Milestone Method [Line Items] | |||
Insurance commissions as percentage of agent premiums | 76.40% | 76.30% | 76.50% |
Premium due from agents, net of accrued sales commissions | $ 65 | $ 46 | |
Minimum | |||
Revenue Recognition, Milestone Method [Line Items] | |||
Accrual for agency premiums, time lag period | 7 months | ||
Accrual for agency premiums reported within three Months, percent | 74.00% | ||
Accrual for agency premiums reported within next three months, percent | 10.00% | ||
Maximum | |||
Revenue Recognition, Milestone Method [Line Items] | |||
Accrual for agency premiums, time lag period | 15 months | ||
Accrual for agency premiums reported within three Months, percent | 89.00% | ||
Accrual for agency premiums reported within next three months, percent | 24.00% |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Goodwill , Intangible Assets and Property and Equipment (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)titlePlant | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | |||
Impairment of other intangible assets | $ 0 | $ 0 | $ 3,000,000 |
Number of title plants | titlePlant | 2 | ||
Minimum | Buildings | |||
Goodwill [Line Items] | |||
Property and equipment, estimated useful lives (years) | twenty | ||
Minimum | Furniture Fixture and Equipment | |||
Goodwill [Line Items] | |||
Property and equipment, estimated useful lives (years) | three | ||
Maximum | Buildings | |||
Goodwill [Line Items] | |||
Property and equipment, estimated useful lives (years) | thirty years | ||
Maximum | Furniture Fixture and Equipment | |||
Goodwill [Line Items] | |||
Property and equipment, estimated useful lives (years) | twenty-five years | ||
Title Plant | |||
Goodwill [Line Items] | |||
Impairment of indefinite-lived intangible asset | $ 0 | $ 1,000,000 | 0 |
Customer relationships | |||
Goodwill [Line Items] | |||
Finite-lived intangible asset, useful life (years) | 10 years | ||
Trademarks and Trade Names | |||
Goodwill [Line Items] | |||
Finite-lived intangible asset, useful life (years) | 10 years | ||
Software | |||
Goodwill [Line Items] | |||
Acquired finite-lived intangible assets, useful life (years) | 10 years | ||
Corporate and Other | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 3,000,000 |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Contract Holder Funds, Future Policy Benefits and Secured Trust Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Ceded Credit Risk [Line Items] | ||
Funds withheld for reinsurance liabilities | $ 806 | $ 0 |
Secured trust deposits | $ 711 | $ 791 |
Life and Annuity Insurance Product Line | ||
Ceded Credit Risk [Line Items] | ||
Investment yield assumptions | 4.30% | |
Life and Annuity Insurance Product Line | Maximum | ||
Ceded Credit Risk [Line Items] | ||
Investment yield assumptions | 4.10% | |
Life and Annuity Insurance Product Line | Minimum | ||
Ceded Credit Risk [Line Items] | ||
Investment yield assumptions | 4.00% | |
Federal Home Loan Bank of Atlanta | ||
Ceded Credit Risk [Line Items] | ||
Funds withheld for reinsurance liabilities | $ 1,203 | |
Collateral investments, fair value | $ 1,471 |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Benefits and Other Changes in Policy Reserves (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Annuities | Minimum | |
Ceded Credit Risk [Line Items] | |
Interest crediting rates for funds at subsidiaries | 0.50% |
Deferred Annuities | Maximum | |
Ceded Credit Risk [Line Items] | |
Interest crediting rates for funds at subsidiaries | 6.00% |
IUL's | Minimum | |
Ceded Credit Risk [Line Items] | |
Interest crediting rates for funds at subsidiaries | 3.00% |
IUL's | Maximum | |
Ceded Credit Risk [Line Items] | |
Interest crediting rates for funds at subsidiaries | 4.80% |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 1,000,000 | 0 | 0 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Schedule of Changes in Other Comprehensive Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity attributable to parent, beginning balance | $ 5,382 | |
Reclassification adjustments | (73) | $ (9) |
Other comprehensive earnings | 1,334 | 65 |
Stockholders' equity attributable to parent, ending balance | 8,351 | 5,382 |
Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity attributable to parent, beginning balance | 46 | (5) |
Reclassification adjustments | (73) | (5) |
Other comprehensive earnings | 1,307 | 56 |
Stockholders' equity attributable to parent, ending balance | 1,280 | 46 |
Unrealized gain (loss) relating to investments in unconsolidated affiliates | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity attributable to parent, beginning balance | 18 | 17 |
Reclassification adjustments | 0 | (4) |
Other comprehensive earnings | 3 | 5 |
Stockholders' equity attributable to parent, ending balance | 21 | 18 |
Unrealized (loss) gain on foreign currency translation and cash flow hedging | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity attributable to parent, beginning balance | (11) | (15) |
Reclassification adjustments | 0 | 0 |
Other comprehensive earnings | 10 | 4 |
Stockholders' equity attributable to parent, ending balance | (1) | (11) |
Minimum pension liability adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity attributable to parent, beginning balance | (10) | (10) |
Reclassification adjustments | 0 | 0 |
Other comprehensive earnings | 14 | 0 |
Stockholders' equity attributable to parent, ending balance | 4 | (10) |
Accumulated Other Comprehensive Earnings (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity attributable to parent, beginning balance | 43 | (13) |
Stockholders' equity attributable to parent, ending balance | $ 1,304 | $ 43 |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Redeemable Non-controlling Interest (Details) - USD ($) $ in Millions | Jul. 29, 2020 | Jan. 31, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | Dec. 31, 2014 |
Noncontrolling Interest [Line Items] | ||||||
Initial value | $ 344 | |||||
ServiceLink Holdings, LLC | ||||||
Noncontrolling Interest [Line Items] | ||||||
Redeemable non-controlling interest, ownership percentage | 21.00% | 21.00% | ||||
Thomas H. Lee Partners, LP and Affiliates [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Period with no public offering | 4 years | |||||
Thomas H. Lee Partners, LP and Affiliates [Member] | Black Knight Financial Services, Inc. | ServiceLink Holdings, LLC | ||||||
Noncontrolling Interest [Line Items] | ||||||
Redeemable non-controlling interest, ownership percentage | 35.00% | 21.00% | 35.00% | |||
ServiceLink Holdings, LLC | ||||||
Noncontrolling Interest [Line Items] | ||||||
Purchase of outstanding Class A units of minority owners | $ 90 |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Notes Receivable from Cannae (Details) - USD ($) | Sep. 11, 2019 | Jun. 12, 2019 | Nov. 30, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 05, 2019 | Feb. 07, 2019 |
Line of Credit Facility [Line Items] | ||||||||
Proceeds from repayments of Cannae Holdings Inc. note receivable | $ 0 | $ 200,000,000 | $ 0 | |||||
Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt, term | 5 years | |||||||
Revolving Credit Facility | Borrowing Under Line Of Credit | Affiliated Entity | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility | $ 100,000,000 | |||||||
Advances to Affiliate | $ 0 | $ 0 | $ 100,000,000 | $ 100,000,000 | ||||
Proceeds from repayments of Cannae Holdings Inc. note receivable | $ 100,000,000 | $ 100,000,000 | ||||||
Revolving Credit Facility | Borrowing Under Line Of Credit | Affiliated Entity | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Advances to Affiliate | $ 0.0450 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Aug. 26, 2020 | Jun. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Increase in goodwill | $ 1 | |||
F&G | ||||
Business Acquisition [Line Items] | ||||
Percentage of outstanding equity acquired | 100.00% | |||
Consideration transferred | $ 2,700 | |||
Consideration transferred (in shares) | 1 | 24 | ||
Cash paid for outstanding F&G shares | $ 100 | $ 1,800 | ||
Right to purchase and receive upon exercise in cash (in usd per share) | $ 8.18 | |||
Consideration, cash paid per acquiree share (in usd per share) | $ 0.0833 | |||
Shares converted, common and preferred (in shares) | 7 | |||
Goodwill expected to be tax deductible | $ 16 | |||
Increase in investments in unconsolidated affiliates | $ 31 | |||
Increase in reinsurance recoverable | 46 | |||
Increase in goodwill | 26 | |||
Decrease in other intangible assets | 93 | |||
Increase in deferred tax liability | 13 | |||
Decrease in accounts payable and accrued liabilities | $ 35 | |||
Pro forma revenues | 1,233 | |||
Pro forma net earning (loss) | $ 136 |
Acquisitions - Consideration Pa
Acquisitions - Consideration Paid (Details) - USD ($) $ in Millions | Jun. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Net cash paid for F&G | $ 1,076 | $ 0 | $ 0 | |
F&G | ||||
Business Acquisition [Line Items] | ||||
Cash paid for outstanding F&G shares | $ 1,903 | |||
Less: Cash Acquired | (827) | |||
Net cash paid for F&G | 1,076 | |||
Value of FNF share consideration | 806 | |||
Value of outstanding converted equity awards attributed to services already rendered | 28 | |||
Total net consideration paid | $ 1,910 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 4,495 | $ 2,727 | $ 2,726 | |
F&G | ||||
Business Acquisition [Line Items] | ||||
Derivative instruments | $ 313 | |||
Mortgage loans | 1,755 | |||
Investments in unconsolidated affiliates | 1,049 | |||
Other long-term investments | 430 | |||
Short-term investments | 37 | |||
Trade and notes receivable | 1 | |||
Reinsurance recoverable | 3,287 | |||
Goodwill | 1,751 | |||
Prepaid expenses and other assets | 353 | |||
Lease assets | 8 | |||
Other intangible assets | 2,046 | |||
Income taxes receivable | 27 | |||
Deferred tax asset | 268 | |||
Assets of discontinued operations | 2,392 | |||
Total assets acquired | 37,034 | |||
Contractholder funds | 26,451 | |||
Future policy benefits | 4,098 | |||
Accounts payable and accrued liabilities | 893 | |||
Notes payable | 589 | |||
Funds withheld for reinsurance liabilities | 816 | |||
Lease liabilities | 9 | |||
Liabilities of discontinued operations | 2,268 | |||
Total liabilities assumed | 35,124 | |||
Net assets acquired | 1,910 | |||
F&G | Fixed maturity securities | ||||
Business Acquisition [Line Items] | ||||
Securities | 22,389 | |||
F&G | Preferred securities | ||||
Business Acquisition [Line Items] | ||||
Securities | 876 | |||
F&G | Equity securities | ||||
Business Acquisition [Line Items] | ||||
Securities | $ 52 |
Acquisitions - Carrying Value a
Acquisitions - Carrying Value and Estimated Useful Lives (Details) - USD ($) $ in Millions | Jun. 01, 2020 | Dec. 31, 2020 |
Value of Distribution Asset (VODA) | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 15 years | |
F&G | ||
Property, Plant and Equipment [Line Items] | ||
Other intangible assets | $ 2,046 | |
F&G | PVFP | ||
Property, Plant and Equipment [Line Items] | ||
Other intangible assets | 1,847 | |
F&G | Value of Distribution Asset (VODA) | ||
Property, Plant and Equipment [Line Items] | ||
Other intangible assets | $ 140 | |
Estimated Useful Life (in years) | 15 years | |
F&G | Tradename | ||
Property, Plant and Equipment [Line Items] | ||
Other intangible assets | $ 38 | |
Estimated Useful Life (in years) | 10 years | |
F&G | Software | ||
Property, Plant and Equipment [Line Items] | ||
Other intangible assets | $ 21 | |
Estimated Useful Life (in years) | 2 years |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - F&G - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 10,897 | $ 10,386 |
Net earnings attributable to FNF common shareholders | $ 1,233 | $ 1,419 |
Summary of Reserve for Title _2
Summary of Reserve for Title Claim Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Change in insurance recoverable | $ (40) | $ 0 | $ 0 |
Title | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning balance | 1,509 | 1,488 | 1,490 |
Change in insurance recoverable | 34 | 1 | 0 |
Claim loss provision related to: | |||
Current year | 283 | 240 | 221 |
Prior years | 0 | 0 | 0 |
Total title claim loss provision | 283 | 240 | 221 |
Claims paid, net of recoupments related to: | |||
Current year | (11) | (11) | (10) |
Prior years | (192) | (209) | (213) |
Total title claims paid, net of recoupments | (203) | (220) | (223) |
Ending balance of claim loss reserve for title insurance | $ 1,623 | $ 1,509 | $ 1,488 |
Provision for title insurance claim losses as a percentage of title insurance premiums | 4.50% | 4.50% | 4.50% |
Summary of Reserve for Title _3
Summary of Reserve for Title Claim Losses - Narrative (Details) - Pending Litigation - USD ($) $ in Millions | Nov. 02, 2020 | Oct. 23, 2020 | Oct. 01, 2020 | Sep. 03, 2020 | Jul. 07, 2020 | Jun. 29, 2020 | May 29, 2020 | Mar. 16, 2020 | Mar. 06, 2020 | Dec. 13, 2019 |
Kim Funding, LLC, Kim H. Peterson, Joseph J. Cohen, and ABC Funding Strategies, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 250 | |||||||||
Wakefield Capital, LLC, Wakefield Investments, LLC, 2Budz Holding, LLC, Doug and Kristine Heidrich, and Jeff and Heidi Orr v. Chicago Title Co. and Chicago Title Ins. Co. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 7 | |||||||||
Randolph L. Levin, et al., v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, Betty Elixman, et al | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 38 | |||||||||
Mark Atherton, et al., v. Chicago Title Co. and Chicago Title Ins. Co. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 30 | |||||||||
Susan Heller Fenley Separate Property Trust, Susan Heller Fenley Inherited Roth IRA, Shelley Lynn Tarditi Trust and ROJ, LLC v. Chicago Title Co., Chicago Title Ins. Co. et al | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 6 | |||||||||
Yuan Yu and Polly Yu v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 1 | |||||||||
Banc of California, National Association v. Laurie Peterson | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 35 | |||||||||
Laurie Peterson v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 250 | |||||||||
CalPrivate Bank v. Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 12 | |||||||||
Kim H. Peterson Trustee of the Peterson Family Trust dated April 14 1992 v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 250 | |||||||||
Ovation Fin. Holdings 2 LLC, Ovation Fund Mgmt. II, LLC, Banc of California, N.A. v. Chicago Title Ins. Co., and plaintiffs | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 100 | |||||||||
CalPrivate Bank v. Chicago Title Co. and Chicago Title Ins. Co. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 12 | |||||||||
DH Claims LLC v. Chicago Title Co., Chicago Title Ins. Co., and Della Ducharme | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiffs claim losses amount | $ 2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Amounts of Assets and Liabilities at Estimated Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | $ 27,587 | $ 2,090 |
Derivative investments | 548 | 0 |
Total financial assets at fair value | 3,267 | |
Derivatives: | ||
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 437 | 346 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 2,719 | 1,376 |
Equity securities | 810 | |
Derivative investments | 0 | |
Short term investments | 769 | 876 |
Total financial assets at fair value | 5,311 | 3,127 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Fair value of future policy benefits | 0 | |
Derivatives: | ||
Total financial liabilities at fair value | 0 | |
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 0 | |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities | 0 | |
Derivative investments | 548 | |
Short term investments | 0 | 0 |
Total financial assets at fair value | 25,431 | 2,331 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Fair value of future policy benefits | 0 | |
Derivatives: | ||
Total financial liabilities at fair value | 101 | |
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 0 | |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities | 1 | |
Derivative investments | 0 | |
Short term investments | 0 | 0 |
Total financial assets at fair value | 3,267 | 138 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Fair value of future policy benefits | 5 | |
Derivatives: | ||
Total financial liabilities at fair value | 3,409 | |
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 437 | |
Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 2,719 | 1,376 |
Equity securities | 811 | |
Derivative investments | 548 | |
Short term investments | 769 | 876 |
Total financial assets at fair value | 34,009 | 5,596 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Fair value of future policy benefits | 5 | |
Derivatives: | ||
Total financial liabilities at fair value | 3,510 | |
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 437 | |
Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 2,719 | 1,376 |
Equity securities | 811 | |
Derivative investments | 548 | |
Short term investments | 769 | 876 |
Total financial assets at fair value | 34,009 | 5,596 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Fair value of future policy benefits | 5 | |
Derivatives: | ||
Total financial liabilities at fair value | 3,510 | |
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 437 | |
FIA embedded derivatives, included in contractholder funds | Level 1 | ||
Derivatives: | ||
Derivative liability | 0 | |
FIA embedded derivatives, included in contractholder funds | Level 2 | ||
Derivatives: | ||
Derivative liability | 0 | |
FIA embedded derivatives, included in contractholder funds | Level 3 | ||
Derivatives: | ||
Derivative liability | 3,404 | |
FIA embedded derivatives, included in contractholder funds | Fair Value | ||
Derivatives: | ||
Derivative liability | 3,404 | |
FIA embedded derivatives, included in contractholder funds | Carrying Value | ||
Derivatives: | ||
Derivative liability | 3,404 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 1 | ||
Derivatives: | ||
Derivative liability | 0 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 2 | ||
Derivatives: | ||
Derivative liability | 101 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 3 | ||
Derivatives: | ||
Derivative liability | 0 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Fair Value | ||
Derivatives: | ||
Derivative liability | 101 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Carrying Value | ||
Derivatives: | ||
Derivative liability | 101 | |
Asset-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 6,266 | |
Asset-backed securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 0 | |
Asset-backed securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 4,916 | |
Asset-backed securities | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 1,350 | |
Asset-backed securities | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 6,266 | |
Asset-backed securities | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 6,266 | |
Commercial mortgage-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 2,829 | 22 |
Commercial mortgage-backed securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 2,803 | 22 |
Commercial mortgage-backed securities | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 26 | 0 |
Commercial mortgage-backed securities | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 2,829 | 22 |
Commercial mortgage-backed securities | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 2,829 | 22 |
Corporates | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 14,735 | 1,557 |
Corporates | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 25 | 0 |
Corporates | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 13,421 | 1,540 |
Corporates | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 1,289 | 17 |
Corporates | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 14,735 | 1,557 |
Corporates | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 14,735 | 1,557 |
Hybrids | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 994 | 30 |
Hybrids | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 175 | 0 |
Hybrids | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 815 | 30 |
Hybrids | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 4 | 0 |
Hybrids | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 994 | 30 |
Hybrids | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 994 | 30 |
Municipals | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 0 | 0 |
Municipals | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 1,360 | 93 |
Municipals | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 43 | 0 |
Municipals | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 1,403 | 93 |
Municipals | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 1,403 | 93 |
Residential mortgage-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 825 | 40 |
Residential mortgage-backed securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 342 | 40 |
Residential mortgage-backed securities | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 483 | 0 |
Residential mortgage-backed securities | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 825 | 40 |
Residential mortgage-backed securities | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 825 | 40 |
U.S. Government | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 342 | 288 |
U.S. Government | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 342 | 0 |
U.S. Government | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 0 | 288 |
U.S. Government | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 0 | 0 |
U.S. Government | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 342 | 288 |
U.S. Government | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 342 | 288 |
Foreign Governments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 193 | 60 |
Foreign Governments | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 0 | 0 |
Foreign Governments | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 176 | 60 |
Foreign Governments | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 17 | 0 |
Foreign Governments | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 193 | 60 |
Foreign Governments | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fixed maturity securities, available for sale | 193 | 60 |
Equity securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 791 | |
Equity securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | |
Equity securities | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 5 | |
Equity securities | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 796 | |
Equity securities | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 796 | |
Preferred securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 1,341 | 323 |
Preferred securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 490 | 65 |
Preferred securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 851 | 258 |
Preferred securities | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Preferred securities | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 1,341 | 323 |
Preferred securities | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 1,341 | 323 |
Subscription agreements | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | |
Subscription agreements | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 199 | |
Subscription agreements | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | |
Subscription agreements | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 199 | |
Subscription agreements | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 199 | |
Other long-term investments | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | 50 | 120 |
Other long-term investments | Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | 50 | 120 |
Other long-term investments | Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | $ 50 | $ 120 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Detail) $ in Millions | Dec. 31, 2020USD ($)$ / Contract | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated affiliates | $ 1,294 | $ 131 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated affiliates | 146 | 131 |
Fair Value Measured at NAV | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated affiliates | $ 1,148 | $ 0 |
Other invested assets | Income-Approach | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, strike price | $ / Contract | 0 | |
Subscription agreements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subscription agreements, fair value percent | 7.50% |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 3,267 |
Liabilities, fair value | $ 3,409 |
Discounted cash flow | Minimum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.1060 |
Discounted cash flow | Maximum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.1060 |
Discounted cash flow | Weighted Average | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.1060 |
Discounted cash flow | Future policy benefits | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk margin to reflect uncertainty | 0.50% |
Discounted cash flow | Fixed indexed annuities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Liabilities, fair value | $ 3,404 |
Discounted cash flow | Fixed indexed annuities | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non-performance spread | 0.74% |
Market value of option | 0.00% |
Treasury rates | 0.08% |
Mortality multiplier | 100.00% |
Surrender rates | 0.25% |
Partial withdrawals | 2.00% |
Option cost | 0.05% |
Discounted cash flow | Fixed indexed annuities | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non-performance spread | 0.74% |
Market value of option | 67.65% |
Treasury rates | 1.65% |
Mortality multiplier | 100.00% |
Surrender rates | 55.00% |
Partial withdrawals | 3.50% |
Option cost | 16.61% |
Discounted cash flow | Fixed indexed annuities | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non-performance spread | 0.74% |
Market value of option | 2.25% |
Treasury rates | 0.87% |
Mortality multiplier | 100.00% |
Surrender rates | 5.24% |
Partial withdrawals | 2.58% |
Option cost | 2.25% |
Asset-backed securities | Broker-quoted | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 1,175 |
Asset-backed securities | Broker-quoted | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 85.00% |
Asset-backed securities | Broker-quoted | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 126.15% |
Asset-backed securities | Broker-quoted | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 103.96% |
Asset-backed securities | Third-Party Valuation | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 175 |
Asset-backed securities | Third-Party Valuation | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 0.00% |
Asset-backed securities | Third-Party Valuation | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 107.25% |
Asset-backed securities | Third-Party Valuation | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 79.87% |
Commercial mortgage-backed securities | Broker-quoted | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 26 |
Commercial mortgage-backed securities | Broker-quoted | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 131.59% |
Commercial mortgage-backed securities | Broker-quoted | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 131.59% |
Commercial mortgage-backed securities | Broker-quoted | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 131.59% |
Corporates | Broker-quoted | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 388 |
Corporates | Broker-quoted | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 75.20% |
Corporates | Broker-quoted | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 114.68% |
Corporates | Broker-quoted | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 103.36% |
Corporates | Third-Party Valuation | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 901 |
Corporates | Third-Party Valuation | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 88.42% |
Corporates | Third-Party Valuation | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 125.83% |
Corporates | Third-Party Valuation | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 109.47% |
Hybrids | Third-Party Valuation | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 4 |
Hybrids | Third-Party Valuation | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 112.06% |
Hybrids | Third-Party Valuation | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 112.06% |
Hybrids | Third-Party Valuation | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 112.06% |
Municipals | Third-Party Valuation | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 43 |
Municipals | Third-Party Valuation | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 133.53% |
Municipals | Third-Party Valuation | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 133.53% |
Municipals | Third-Party Valuation | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 133.53% |
Residential mortgage-backed securities | Broker-quoted | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 483 |
Residential mortgage-backed securities | Broker-quoted | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 112.58% |
Residential mortgage-backed securities | Broker-quoted | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 112.58% |
Residential mortgage-backed securities | Broker-quoted | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 112.58% |
Foreign Governments | Third-Party Valuation | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 17 |
Foreign Governments | Third-Party Valuation | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 107.87% |
Foreign Governments | Third-Party Valuation | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 113.80% |
Foreign Governments | Third-Party Valuation | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Offered quotes | 109.72% |
Equity securities | Broker-quoted | Minimum | EBITDA Multiple | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 6.6 |
Equity securities | Broker-quoted | Maximum | EBITDA Multiple | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 6.6 |
Equity securities | Broker-quoted | Weighted Average | EBITDA Multiple | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 6.6 |
Equity securities | Income-Approach | Insurance Subsidiary | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 1 |
Yield | 0.00% |
Equity securities | Third-Party Valuation | Minimum | Risk Free Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.0029 |
Equity securities | Third-Party Valuation | Minimum | Strike Price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 1.50 |
Equity securities | Third-Party Valuation | Minimum | Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.0100 |
Equity securities | Third-Party Valuation | Minimum | Dividend Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0 |
Equity securities | Third-Party Valuation | Maximum | Risk Free Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.0029 |
Equity securities | Third-Party Valuation | Maximum | Strike Price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 1.50 |
Equity securities | Third-Party Valuation | Maximum | Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.0100 |
Equity securities | Third-Party Valuation | Maximum | Dividend Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0 |
Equity securities | Third-Party Valuation | Weighted Average | Risk Free Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.0029 |
Equity securities | Third-Party Valuation | Weighted Average | Strike Price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 1.50 |
Equity securities | Third-Party Valuation | Weighted Average | Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0.0100 |
Equity securities | Third-Party Valuation | Weighted Average | Dividend Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity securities | 0 |
Equity securities | Third-Party Valuation | Insurance Subsidiary | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 1 |
Equity securities | Discounted cash flow | Insurance Subsidiary | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | 3 |
Other invested assets | Third-Party Valuation | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 27 |
Market value of fund | 100.00% |
Credit Linked Note | Broker-quoted | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 23 |
Offered quotes | 100.00% |
Future policy benefits, nonperformance risk spread | Discounted cash flow | Future policy benefits | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Liabilities, fair value | $ 5 |
Future policy benefits, nonperformance risk spread | Discounted cash flow | Future policy benefits | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non-performance spread | 0.00% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | $ 138 | $ 118 |
F&G Acquisition | 2,754 | |
Assets, Total Gains (Losses) Included in Earnings | (57) | 21 |
Assets, Total Gains (Losses) Included in AOCI | 93 | (1) |
Assets, Purchases | 756 | 6 |
Assets, Sales | (1) | (1) |
Assets, Settlements | (282) | 0 |
Assets, Net transfer In (Out) of Level 3 | (134) | (5) |
Balance at End of Period | 3,267 | 138 |
Change in Unrealized Included in OCI | 59 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 2,857 | |
Liabilities, Total Gains (Losses) Included in Earnings | 552 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |
Liabilities, Purchases | 0 | |
Liabilities, Sales | 0 | |
Liabilities, Settlements | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 3,409 | 0 |
Change in Unrealized Included in OCI | 0 | |
Future policy benefits | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 5 | |
Liabilities, Total Gains (Losses) Included in Earnings | 0 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |
Liabilities, Purchases | 0 | |
Liabilities, Sales | 0 | |
Liabilities, Settlements | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 5 | 0 |
Change in Unrealized Included in OCI | 0 | |
FIA embedded derivatives, included in contractholder funds | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 2,852 | |
Liabilities, Total Gains (Losses) Included in Earnings | 552 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |
Liabilities, Purchases | 0 | |
Liabilities, Sales | 0 | |
Liabilities, Settlements | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 3,404 | 0 |
Change in Unrealized Included in OCI | 0 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 854 | |
Assets, Total Gains (Losses) Included in Earnings | (1) | |
Assets, Total Gains (Losses) Included in AOCI | 21 | |
Assets, Purchases | 633 | |
Assets, Sales | (1) | |
Assets, Settlements | (133) | |
Assets, Net transfer In (Out) of Level 3 | (23) | |
Balance at End of Period | 1,350 | 0 |
Change in Unrealized Included in OCI | 10 | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 26 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 26 | 0 |
Change in Unrealized Included in OCI | 0 | |
Corporates | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 17 | 17 |
F&G Acquisition | 1,238 | |
Assets, Total Gains (Losses) Included in Earnings | (3) | 1 |
Assets, Total Gains (Losses) Included in AOCI | 59 | (1) |
Assets, Purchases | 110 | 6 |
Assets, Sales | 0 | (1) |
Assets, Settlements | (87) | 0 |
Assets, Net transfer In (Out) of Level 3 | (45) | (5) |
Balance at End of Period | 1,289 | 17 |
Change in Unrealized Included in OCI | 43 | |
Hybrids | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 4 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 4 | 0 |
Change in Unrealized Included in OCI | 0 | |
Municipals | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 38 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 5 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 43 | 0 |
Change in Unrealized Included in OCI | 5 | |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 534 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 7 | |
Assets, Purchases | 11 | |
Assets, Sales | 0 | |
Assets, Settlements | (62) | |
Assets, Net transfer In (Out) of Level 3 | (7) | |
Balance at End of Period | 483 | 0 |
Change in Unrealized Included in OCI | 0 | |
Foreign Governments | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 16 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 1 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 17 | 0 |
Change in Unrealized Included in OCI | 1 | |
Equity securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 1 | |
F&G Acquisition | 1 | |
Assets, Total Gains (Losses) Included in Earnings | 1 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 2 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 5 | 1 |
Change in Unrealized Included in OCI | 0 | |
Available-for-sale embedded derivative | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 20 | |
Assets, Total Gains (Losses) Included in Earnings | 7 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 27 | 0 |
Change in Unrealized Included in OCI | 0 | |
Credit linked note | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 0 | |
F&G Acquisition | 23 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 23 | 0 |
Change in Unrealized Included in OCI | 0 | |
Other long-term investments | ||
Debt Securities, Available-for-sale [Abstract] | ||
Balance at Beginning of Period | 120 | 101 |
F&G Acquisition | 0 | |
Assets, Total Gains (Losses) Included in Earnings | (61) | 19 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | (59) | 0 |
Balance at End of Period | 0 | $ 120 |
Change in Unrealized Included in OCI | $ 0 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets, Fair Value Disclosure [Abstract] | ||
Trade and notes receivables, net of allowance | $ 437 | $ 346 |
Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
FHLB common stock | 66 | |
Commercial mortgage loans | 926 | |
Residential mortgage loans | 1,123 | |
Policy loans | 33 | |
Other invested assets | 28 | |
Company-owned life insurance | 305 | |
Trade and notes receivables, net of allowance | 437 | |
Total | 2,918 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Investment contracts, included in contractholder funds | 21,719 | |
Debt instrument | 2,896 | |
Total | 24,615 | |
Carrying Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
FHLB common stock | 66 | |
Commercial mortgage loans | 903 | |
Residential mortgage loans | 1,128 | |
Policy loans | 33 | |
Other invested assets | 28 | |
Company-owned life insurance | 305 | |
Trade and notes receivables, net of allowance | 437 | |
Total | 2,900 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Investment contracts, included in contractholder funds | 25,199 | |
Debt instrument | 2,662 | |
Total | 27,861 | |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
FHLB common stock | 0 | |
Commercial mortgage loans | 0 | |
Residential mortgage loans | 0 | |
Policy loans | 0 | |
Other invested assets | 0 | |
Company-owned life insurance | 0 | |
Trade and notes receivables, net of allowance | 0 | |
Total | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Investment contracts, included in contractholder funds | 0 | |
Debt instrument | 0 | |
Total | 0 | |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
FHLB common stock | 66 | |
Commercial mortgage loans | 0 | |
Residential mortgage loans | 0 | |
Policy loans | 0 | |
Other invested assets | 0 | |
Company-owned life insurance | 0 | |
Trade and notes receivables, net of allowance | 0 | |
Total | 66 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Investment contracts, included in contractholder funds | 0 | |
Debt instrument | 2,896 | |
Total | 2,896 | |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
FHLB common stock | 0 | |
Commercial mortgage loans | 926 | |
Residential mortgage loans | 1,123 | |
Policy loans | 33 | |
Other invested assets | 28 | |
Company-owned life insurance | 305 | |
Trade and notes receivables, net of allowance | 437 | |
Total | 2,852 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Investment contracts, included in contractholder funds | 21,719 | |
Debt instrument | 0 | |
Total | $ 21,719 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments- Equity Method Investments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in unconsolidated affiliates | $ 1,294 | $ 131 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in unconsolidated affiliates | 146 | 131 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Fair Value Measured at NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in unconsolidated affiliates | $ 1,148 | $ 0 |
Investments - Consolidated Inve
Investments - Consolidated Investments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities | ||
Amortized Cost | $ 25,577 | $ 2,029 |
Allowance for Expected Credit Losses | (19) | 0 |
Gross Unrealized Gains | 2,068 | 67 |
Gross Unrealized Losses | (39) | (6) |
FairValue/Carrying Value | 27,587 | 2,090 |
Asset-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 5,941 | |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 343 | |
Gross Unrealized Losses | (18) | |
FairValue/Carrying Value | 6,266 | |
Commercial mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 2,490 | 22 |
Allowance for Expected Credit Losses | 0 | |
Gross Unrealized Gains | 342 | 0 |
Gross Unrealized Losses | (3) | 0 |
FairValue/Carrying Value | 2,829 | 22 |
Corporates | ||
Available-for-sale securities | ||
Amortized Cost | 13,582 | 1,510 |
Allowance for Expected Credit Losses | (16) | 0 |
Gross Unrealized Gains | 1,184 | 50 |
Gross Unrealized Losses | (15) | (3) |
FairValue/Carrying Value | 14,735 | 1,557 |
Hybrids | ||
Available-for-sale securities | ||
Amortized Cost | 914 | 26 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 80 | 4 |
Gross Unrealized Losses | 0 | 0 |
FairValue/Carrying Value | 994 | 30 |
Municipals | ||
Available-for-sale securities | ||
Amortized Cost | 1,333 | 90 |
Allowance for Expected Credit Losses | 0 | |
Gross Unrealized Gains | 72 | 3 |
Gross Unrealized Losses | (2) | 0 |
FairValue/Carrying Value | 1,403 | 93 |
Residential mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 806 | 38 |
Allowance for Expected Credit Losses | (3) | 0 |
Gross Unrealized Gains | 23 | 2 |
Gross Unrealized Losses | (1) | 0 |
FairValue/Carrying Value | 825 | 40 |
U.S. Government | ||
Available-for-sale securities | ||
Amortized Cost | 332 | 282 |
Allowance for Expected Credit Losses | 0 | |
Gross Unrealized Gains | 10 | 7 |
Gross Unrealized Losses | 0 | (1) |
FairValue/Carrying Value | 342 | 288 |
Foreign Governments | ||
Available-for-sale securities | ||
Amortized Cost | 179 | 61 |
Allowance for Expected Credit Losses | 0 | |
Gross Unrealized Gains | 14 | 1 |
Gross Unrealized Losses | 0 | (2) |
FairValue/Carrying Value | $ 193 | $ 60 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||
Non-income producing investment fair value | $ 0 | $ 0 | |
Accrued interest receivable | 235 | $ 16 | |
FHLB collateral pledged | $ 1,622 | ||
Commercial mortgage loans, percentage of investments | 3.00% | ||
DSC ratio, amortization period | 25 years | ||
Cannae Holdings Inc. | Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment owned, (in shares) | 5,706,134 | 5,706,134 | |
Investment owned, at fair value | $ 253 | $ 212 | |
Commitment to Invest | |||
Debt Securities, Available-for-sale [Line Items] | |||
Unfunded investment commitment | 967 | ||
Crescent Capital BDC Inc. | Commitment to Invest | |||
Debt Securities, Available-for-sale [Line Items] | |||
Unfunded investment commitment | $ 83 | ||
Golub Capital Partners 10, L.P. | Commitment to Invest | |||
Debt Securities, Available-for-sale [Line Items] | |||
Unfunded investment commitment | 1,107 | ||
Other investments | $ 394 | ||
United States | |||
Debt Securities, Available-for-sale [Line Items] | |||
Residential mortgage loans, location percentage | 100.00% | ||
Commercial Mortgage Loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Loan to value, threshold (less than) | 75.00% | ||
Available-for-sale Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Assets held by insurance regulators | $ 16,714 | $ 94 | |
Residential mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of total investments | 3.00% |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 466 | |
Due after one year through five years, Amortized Cost | 2,171 | |
Due after five years through ten years, Amortized Cost | 2,116 | |
Due after ten years, Amortized Cost | 11,560 | |
Subtotal, Amortized Cost | 16,313 | |
Other securities which provide for periodic payments, Amortized Cost | 9,264 | |
Amortized Cost | 25,577 | $ 2,029 |
Due in one year or less, Fair Value | 463 | |
Due after one year through five years, Fair Value | 2,295 | |
Due after five years through ten years, Fair Value | 2,255 | |
Due after ten years, Fair Value | 12,624 | |
Subtotal, Fair Value | 17,637 | |
Other securities which provide for periodic payments, Fair Value | 9,950 | |
Total fixed maturity available-for-sale securities, Fair Value | 27,587 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 5,941 | |
Amortized Cost | 5,941 | |
Other securities which provide for periodic payments, Fair Value | 6,266 | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 2,490 | |
Amortized Cost | 2,490 | $ 22 |
Other securities which provide for periodic payments, Fair Value | 2,829 | |
Structured hybrids | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 27 | |
Other securities which provide for periodic payments, Fair Value | 30 | |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 806 | |
Other securities which provide for periodic payments, Fair Value | $ 825 |
Investments - Allowance for Cre
Investments - Allowance for Credit Loss Aggregated By Investment Category (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | $ 0 |
For credit losses on securities for which losses were not previously recorded | (7) |
For initial credit losses on purchased securities accounted for as PCD financial assets | (35) |
(Additions) reductions in allowance recorded on previously impaired securities | 10 |
For securities sold during the period | 7 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 4 |
Write offs charged against the allowance | 2 |
Balance at End of Period | (19) |
Asset-backed securities | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | 7 |
For initial credit losses on purchased securities accounted for as PCD financial assets | (9) |
(Additions) reductions in allowance recorded on previously impaired securities | 2 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Write offs charged against the allowance | 0 |
Balance at End of Period | 0 |
Corporates | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | (16) |
For initial credit losses on purchased securities accounted for as PCD financial assets | (16) |
(Additions) reductions in allowance recorded on previously impaired securities | 7 |
For securities sold during the period | 3 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 4 |
Write offs charged against the allowance | 2 |
Balance at End of Period | (16) |
Hybrids | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | (3) |
(Additions) reductions in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 3 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Write offs charged against the allowance | 0 |
Balance at End of Period | 0 |
Residential mortgage-backed securities | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | 2 |
For initial credit losses on purchased securities accounted for as PCD financial assets | (7) |
(Additions) reductions in allowance recorded on previously impaired securities | 1 |
For securities sold during the period | 1 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Write offs charged against the allowance | 0 |
Balance at End of Period | $ (3) |
Investments - Debt Securities,
Investments - Debt Securities, Available-for-sale, Purchased with Credit Deterioration (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Purchased credit-deteriorated available-for-sale debt securities | |
Purchase price | $ 265 |
Allowance for credit losses at acquisition | 35 |
Discount (or premiums) attributable to other factors | 84 |
AFS purchased credit-deteriorated par value | $ 384 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions | Dec. 31, 2020USD ($)securities | Dec. 31, 2019USD ($)securities |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 1,550 | $ 160 |
Gross Unrealized Losses Less than 12 months | (39) | (3) |
Fair Value, 12 Months or longer | 36 | 84 |
Gross Unrealized Losses, 12 months or longer | 0 | (3) |
Total Fair Value | 1,586 | 244 |
Total Gross Unrealized Losses | $ (39) | $ (6) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | securities | 222 | 19 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | securities | 11 | 10 |
Total number of available-for-sale securities in an unrealized loss position | securities | 233 | 29 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 477 | |
Gross Unrealized Losses Less than 12 months | (18) | |
Fair Value, 12 Months or longer | 0 | |
Gross Unrealized Losses, 12 months or longer | 0 | |
Total Fair Value | 477 | |
Total Gross Unrealized Losses | (18) | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 51 | |
Gross Unrealized Losses Less than 12 months | (3) | |
Fair Value, 12 Months or longer | 0 | |
Gross Unrealized Losses, 12 months or longer | 0 | |
Total Fair Value | 51 | |
Total Gross Unrealized Losses | (3) | |
Corporates | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 865 | $ 98 |
Gross Unrealized Losses Less than 12 months | (15) | (2) |
Fair Value, 12 Months or longer | 36 | 51 |
Gross Unrealized Losses, 12 months or longer | 0 | (1) |
Total Fair Value | 901 | 149 |
Total Gross Unrealized Losses | (15) | (3) |
Hybrids | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 1 | |
Gross Unrealized Losses Less than 12 months | 0 | |
Fair Value, 12 Months or longer | 0 | |
Gross Unrealized Losses, 12 months or longer | 0 | |
Total Fair Value | 1 | |
Total Gross Unrealized Losses | 0 | |
Municipals | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 115 | |
Gross Unrealized Losses Less than 12 months | (2) | |
Fair Value, 12 Months or longer | 0 | |
Gross Unrealized Losses, 12 months or longer | 0 | |
Total Fair Value | 115 | |
Total Gross Unrealized Losses | (2) | |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 30 | |
Gross Unrealized Losses Less than 12 months | (1) | |
Fair Value, 12 Months or longer | 0 | |
Gross Unrealized Losses, 12 months or longer | 0 | |
Total Fair Value | 30 | |
Total Gross Unrealized Losses | (1) | |
U.S. Government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 11 | 62 |
Gross Unrealized Losses Less than 12 months | 0 | (1) |
Fair Value, 12 Months or longer | 0 | 0 |
Gross Unrealized Losses, 12 months or longer | 0 | 0 |
Total Fair Value | 11 | 62 |
Total Gross Unrealized Losses | $ 0 | (1) |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 0 | |
Gross Unrealized Losses Less than 12 months | 0 | |
Fair Value, 12 Months or longer | 33 | |
Gross Unrealized Losses, 12 months or longer | (2) | |
Total Fair Value | 33 | |
Total Gross Unrealized Losses | $ (2) |
Investments - Schedule of Comme
Investments - Schedule of Commercial Mortgage Loan, Gross of Valuation Allowance, By Property Type and Region (Details) $ in Millions | Dec. 31, 2020USD ($) |
Commercial Mortgage | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 905 |
Allowance for expected credit loss | (2) |
Total commercial mortgage loans | $ 903 |
Commercial Mortgage Receivable, Percentage of Total | 100.00% |
East North Central | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 61 |
Commercial Mortgage Receivable, Percentage of Total | 7.00% |
East South Central | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 80 |
Commercial Mortgage Receivable, Percentage of Total | 9.00% |
Middle Atlantic | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 100 |
Commercial Mortgage Receivable, Percentage of Total | 11.00% |
Mountain | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 48 |
Commercial Mortgage Receivable, Percentage of Total | 5.00% |
New England | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 79 |
Commercial Mortgage Receivable, Percentage of Total | 9.00% |
Pacific | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 333 |
Commercial Mortgage Receivable, Percentage of Total | 37.00% |
South Atlantic | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 133 |
Commercial Mortgage Receivable, Percentage of Total | 15.00% |
West North Central | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 13 |
Commercial Mortgage Receivable, Percentage of Total | 1.00% |
West South Central | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 58 |
Commercial Mortgage Receivable, Percentage of Total | 6.00% |
Hotel | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 19 |
Commercial Mortgage Receivable, Percentage of Total | 2.00% |
Industrial - General | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 302 |
Commercial Mortgage Receivable, Percentage of Total | 33.00% |
Industrial - Warehouse | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 12 |
Commercial Mortgage Receivable, Percentage of Total | 1.00% |
Multifamily | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 165 |
Commercial Mortgage Receivable, Percentage of Total | 18.00% |
Office | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 140 |
Commercial Mortgage Receivable, Percentage of Total | 15.00% |
Retail | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 142 |
Commercial Mortgage Receivable, Percentage of Total | 17.00% |
Other | |
Schedule of Investments [Line Items] | |
Gross Carrying Value | $ 125 |
Commercial Mortgage Receivable, Percentage of Total | 14.00% |
Investments - Recorded Investme
Investments - Recorded Investment in CMLs by LTV and DSC Ratio Categories (Details) - Commercial Mortgage $ in Millions | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 905 |
Commercial Mortgage Loans, Percentage of Total | 100.00% |
Fair Value | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 927 |
Commercial Mortgage Loans, Percentage of Total | 100.00% |
Greater than 1.25 | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 878 |
Greater than 1.00 but less than 1.25 | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | 27 |
Less than 50% | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 538 |
Commercial Mortgage Loans, Percentage of Total | 60.00% |
Less than 50% | Fair Value | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 557 |
Commercial Mortgage Loans, Percentage of Total | 60.00% |
Less than 50% | Greater than 1.25 | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 520 |
Less than 50% | Greater than 1.00 but less than 1.25 | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | 18 |
LTV 50 to 60 Percent | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 246 |
Commercial Mortgage Loans, Percentage of Total | 27.00% |
LTV 50 to 60 Percent | Fair Value | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 251 |
Commercial Mortgage Loans, Percentage of Total | 27.00% |
LTV 50 to 60 Percent | Greater than 1.25 | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 237 |
LTV 50 to 60 Percent | Greater than 1.00 but less than 1.25 | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | 9 |
LTV 60 to 75 Percent | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 121 |
Commercial Mortgage Loans, Percentage of Total | 13.00% |
LTV 60 to 75 Percent | Fair Value | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 119 |
Commercial Mortgage Loans, Percentage of Total | 13.00% |
LTV 60 to 75 Percent | Greater than 1.25 | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 121 |
LTV 60 to 75 Percent | Greater than 1.00 but less than 1.25 | |
Debt Securities, Available-for-sale [Line Items] | |
Unpaid Principal Balance | $ 0 |
Investments - Schedule of Resid
Investments - Schedule of Residential Mortgage Loan by State (Details) $ in Millions | Dec. 31, 2020USD ($) |
Total Mortgage Loans | |
Unpaid Principal Balance | $ 1,152 |
% of Total | 100.00% |
California | |
Unpaid Principal Balance | $ 164 |
% of Total | 15.00% |
Florida | |
Unpaid Principal Balance | $ 188 |
% of Total | 16.00% |
New Jersey | |
Unpaid Principal Balance | $ 96 |
% of Total | 8.00% |
All Other States | |
Unpaid Principal Balance | $ 704 |
% of Total | 61.00% |
Investments - Credit Quality of
Investments - Credit Quality of RMLs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net | $ 2,031 | $ 0 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 1,059 | |
% of Total | 91.00% | |
Non-performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 106 | |
% of Total | 9.00% | |
Residential Mortgage | Over 90 days past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 1,165 | |
Allowance for expected credit loss | (37) | |
Loans, net | $ 1,128 | |
% of Total | 100.00% | |
Allowance % of Total | 0.00% |
Investments - Loans Segregated
Investments - Loans Segregated By Risk Rating and Non-accrual Loans by Amortized Cost (Details) $ in Millions | Dec. 31, 2020USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total non-accrual loans | $ 99 |
Residential Mortgage | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 339 |
2019 | 641 |
2018 | 73 |
2017 | 42 |
2016 | 62 |
Prior | 2 |
Total | 1,159 |
Total non-accrual loans | 99 |
Residential Mortgage | Current (less than 30 days past due) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 311 |
2019 | 545 |
2018 | 68 |
2017 | 42 |
2016 | 62 |
Prior | 2 |
Total | 1,030 |
Residential Mortgage | 30-89 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 2 |
2019 | 22 |
2018 | 2 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 26 |
Residential Mortgage | Over 90 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 26 |
2019 | 74 |
2018 | 3 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 103 |
Commercial Mortgage | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 542 |
2019 | 0 |
2018 | 6 |
2017 | 0 |
2016 | 11 |
Prior | 346 |
Total | 905 |
Total non-accrual loans | 0 |
Commercial Mortgage | Greater than 1.25 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 542 |
2019 | 0 |
2018 | 6 |
2017 | 0 |
2016 | 11 |
Prior | 319 |
Total | 878 |
Commercial Mortgage | Greater than 1.00 but less than 1.25 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 27 |
Total | 27 |
Commercial Mortgage | Less than 1.00 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 0 |
Commercial Mortgage | Less than 50% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 228 |
2019 | 0 |
2018 | 6 |
2017 | 0 |
2016 | 0 |
Prior | 303 |
Total | 537 |
Commercial Mortgage | LTV 50 to 60 Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 192 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 11 |
Prior | 43 |
Total | 246 |
Commercial Mortgage | LTV 60 to 75 Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 122 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 122 |
Commercial Mortgage | Current (less than 30 days past due) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 542 |
2019 | 0 |
2018 | 6 |
2017 | 0 |
2016 | 11 |
Prior | 346 |
Total | 905 |
Commercial Mortgage | 30-89 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 0 |
Commercial Mortgage | Over 90 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | $ 0 |
Investments - Allowance for C_2
Investments - Allowance for Credit Losses on PCD Loans and Accrued Interest Income on Mortgage Loans (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Provision for loan losses | $ 32 |
For initial credit losses on purchased loans accounted for as PCD financial assets | 7 |
Ending Balance | 39 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |
Total interest income recognized during the period on nonaccrual loans | 1 |
Total loans that are 90 days past due and still accruing | 3 |
Residential Mortgage | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Provision for loan losses | 30 |
For initial credit losses on purchased loans accounted for as PCD financial assets | 7 |
Ending Balance | 37 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |
Total interest income recognized during the period on nonaccrual loans | 1 |
Total loans that are 90 days past due and still accruing | 3 |
Commercial Mortgage | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Provision for loan losses | 2 |
For initial credit losses on purchased loans accounted for as PCD financial assets | 0 |
Ending Balance | 2 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |
Total interest income recognized during the period on nonaccrual loans | 0 |
Total loans that are 90 days past due and still accruing | $ 0 |
Investments - Major Sources of
Investments - Major Sources of Interest and Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Gross investment income | $ 978 | $ 229 | $ 182 |
Investment expense | (78) | (4) | (5) |
Interest and investment income | 900 | 225 | 177 |
Fixed maturity securities, available-for-sale | |||
Schedule of Investments [Line Items] | |||
Gross investment income | 708 | 70 | 55 |
Equity securities | |||
Schedule of Investments [Line Items] | |||
Gross investment income | 19 | 10 | 10 |
Preferred securities | |||
Schedule of Investments [Line Items] | |||
Gross investment income | 59 | 24 | 24 |
Commercial mortgage loans | |||
Schedule of Investments [Line Items] | |||
Gross investment income | 50 | 0 | 0 |
Invested cash and short-term investments | |||
Schedule of Investments [Line Items] | |||
Gross investment income | 8 | 34 | 19 |
Limited partnerships | |||
Schedule of Investments [Line Items] | |||
Gross investment income | 76 | 0 | 0 |
Tax deferred property exchange income | |||
Schedule of Investments [Line Items] | |||
Gross investment income | 33 | 72 | 65 |
Other investments | |||
Schedule of Investments [Line Items] | |||
Gross investment income | $ 25 | $ 19 | $ 9 |
Investments - Investment Gains
Investments - Investment Gains (Losses) Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | ||||
Net realized gains (losses) on fixed maturity available-for-sale securities | $ 102 | $ (6) | $ 2 | |
Realized gains (losses) on other invested assets | (25) | (13) | 2 | |
Change in allowance for expected credit losses | (37) | 0 | 0 | |
Realized gains on certain derivative instruments | 76 | 0 | 0 | |
Unrealized gains on certain derivative instruments | 161 | 0 | 0 | |
Change in fair value of reinsurance related embedded derivatives | (53) | 0 | 0 | |
Change in fair value of other derivatives and embedded derivatives | 8 | 0 | 0 | |
Realized gains on derivatives and embedded derivatives | 192 | 0 | 0 | |
Recognized gains and losses, net | 488 | 318 | (109) | |
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized gains (losses) on equity and preferred equity securities | 241 | 309 | (87) | |
Valuation gains (losses) | 248 | 299 | 71 | |
Preferred securities | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized gains (losses) on equity and preferred equity securities | 15 | 28 | (26) | |
Valuation gains (losses) | $ (40) | $ 17 | $ (24) | |
Forward Purchase Agreements | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized gains (losses) on equity and preferred equity securities | $ 199 |
Investments - Impact of Adoptio
Investments - Impact of Adoption of ASU (Details) $ in Millions | Dec. 31, 2020USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total ASU 2016-13 adoption impact on P&L | $ 39 |
Cumulative Effect, Period of Adoption, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total ASU 2016-13 adoption impact on P&L | $ (19) |
Investments - Proceeds From The
Investments - Proceeds From The Sale of Fixed-Maturity Available For-Sale-Securities (Details) - Total fixed maturities - Available-for-sale Securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from Sale, Maturity and Collection of Investments | $ 1,946 | $ 614 | $ 838 |
Gross gains | 116 | 4 | 6 |
Loss on sale of investments | $ (12) | $ (9) | $ (4) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amounts of Derivative Instruments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Derivative [Line Items] | |
Total asset derivatives | $ 575 |
Total liability derivatives | 3,505 |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | |
Derivative [Line Items] | |
Total liability derivatives | 101 |
Call options | |
Derivative [Line Items] | |
Total asset derivatives | 548 |
Other embedded derivatives | Other invested assets | |
Derivative [Line Items] | |
Total asset derivatives | 27 |
FIA embedded derivative | Contractholder funds | |
Derivative [Line Items] | |
Total liability derivatives | $ 3,404 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 7 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | $ (53) | $ 0 | $ 0 | |
Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | $ 192 | |||
Call options | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 229 | |||
Futures contracts | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 15 | |||
Foreign currency forward | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | (7) | |||
Other embedded derivatives | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 8 | |||
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | (53) | |||
FIA embedded derivative | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | $ 552 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)contract | |
Embedded derivatives | |
Derivative [Line Items] | |
Term of contract, term one | 1 year |
Term of contract, term two | 2 years |
Term of contract, term three | 3 years |
Term of contract, term five | 5 years |
Call options | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Collateral posted | $ 491 |
Maximum amount of loss due to credit risk | 58 |
Call options | Derivatives For Trading And Investment | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Collateral posted | 491 |
Maximum amount of loss due to credit risk | 58 |
Call options | Cash and Cash Equivalents | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Collateral posted | $ 415 |
Futures contracts | |
Derivative [Line Items] | |
Number of instruments held | contract | 384,000,000 |
Collateral held | $ 4 |
Derivative Financial Instrume_6
Derivative Financial Instruments - FGL's Exposure to Credit Loss on Call Options Held (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Derivatives, Fair Value [Line Items] | |
Fair Value | $ 575 |
Call options | |
Derivatives, Fair Value [Line Items] | |
Fair Value | 548 |
Not Designated as Hedging Instrument | Call options | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 15,909 |
Fair Value | 548 |
Collateral | 491 |
Maximum amount of loss due to credit risk | 58 |
Not Designated as Hedging Instrument | Call options | Merrill Lynch | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 1,932 |
Fair Value | 75 |
Collateral | 32 |
Maximum amount of loss due to credit risk | 43 |
Not Designated as Hedging Instrument | Call options | Morgan Stanley | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 1,503 |
Fair Value | 40 |
Collateral | 41 |
Maximum amount of loss due to credit risk | 0 |
Not Designated as Hedging Instrument | Call options | Barclay's Bank | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 4,639 |
Fair Value | 180 |
Collateral | 169 |
Maximum amount of loss due to credit risk | 11 |
Not Designated as Hedging Instrument | Call options | Canadian Imperial Bank of Commerce | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 2,276 |
Fair Value | 86 |
Collateral | 85 |
Maximum amount of loss due to credit risk | 1 |
Not Designated as Hedging Instrument | Call options | Wells Fargo | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 2,900 |
Fair Value | 106 |
Collateral | 105 |
Maximum amount of loss due to credit risk | 1 |
Not Designated as Hedging Instrument | Call options | Goldman Sachs | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 634 |
Fair Value | 15 |
Collateral | 15 |
Maximum amount of loss due to credit risk | 0 |
Not Designated as Hedging Instrument | Call options | Credit Suisse | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 1,373 |
Fair Value | 27 |
Collateral | 25 |
Maximum amount of loss due to credit risk | 2 |
Not Designated as Hedging Instrument | Call options | Truist | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 652 |
Fair Value | 19 |
Collateral | 19 |
Maximum amount of loss due to credit risk | $ 0 |
Notes Payable - Schedule of Lon
Notes Payable - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 13, 2018 | Aug. 28, 2012 |
Debt Instrument [Line Items] | ||||
Debt | $ 2,662 | $ 838 | ||
4.50% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.50% | |||
4.50% Notes, net of discount | Unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.50% | |||
Debt | $ 443 | 443 | ||
5.50% Notes, net of discount | Unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 5.50% | 5.50% | ||
Debt | $ 399 | 398 | ||
3.40% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.40% | |||
Debt | $ 643 | 0 | ||
2.45% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.45% | |||
Debt | $ 592 | 0 | ||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 4 | 3 | ||
5.50% F& G Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 5.50% | |||
Debt | $ 589 | $ 0 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) | Sep. 15, 2020USD ($) | Jul. 31, 2020USD ($) | Jun. 12, 2020USD ($) | Jun. 01, 2020USD ($) | Apr. 22, 2020USD ($) | Apr. 20, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 13, 2018USD ($) | Aug. 28, 2012USD ($) |
Debt Instrument [Line Items] | |||||||||||
Outstanding principal | $ 2,650,000,000 | ||||||||||
Repayment of principal borrowed | 1,000,000,000 | $ 0 | $ 370,000,000 | ||||||||
Draw on revolving credit facility | 1,000,000,000 | $ 0 | $ 442,000,000 | ||||||||
Term Loan | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Floor interest rate | 0.0075 | ||||||||||
Term Loan | LIBOR | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 2.00% | ||||||||||
Term Loan | LIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 0.03% | ||||||||||
Revolving Credit Facility Due April 2022 | Line of Credit | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding principal | 0 | ||||||||||
Debt issuance costs | 2,000,000 | ||||||||||
Remaining borrowing capacity | $ 800,000,000 | ||||||||||
Revolving Credit Facility Due April 2022 | Line of Credit | Revolving Credit Facility | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 1.40% | ||||||||||
2.45% Senior Notes Due March 2031 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 600,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 2.45% | ||||||||||
Proceeds from issuance debt | $ 593,000,000 | ||||||||||
Proceeds from issuance of senior notes | 593,000,000 | ||||||||||
Term Loan Credit Agreement | Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of all outstanding indebtedness under term loan credit agreement | 260,000,000 | ||||||||||
Repayment of principal borrowed | $ 260,000,000 | $ 100,000,000 | $ 640,000,000 | ||||||||
Line of credit facility | $ 1,000,000,000 | ||||||||||
Draw on revolving credit facility | $ 1,000,000,000 | ||||||||||
Term Loan Credit Agreement | Term Loan | Fed Funds Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 0.0005% | ||||||||||
Term Loan Credit Agreement | Term Loan | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 1.00% | ||||||||||
Floor interest rate | 0.0175 | ||||||||||
Term Loan Credit Agreement | Term Loan | LIBOR | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 1.00% | ||||||||||
Term Loan Credit Agreement | Term Loan | LIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 2.00% | ||||||||||
3.40% Notes due June 15, 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 650,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 3.40% | ||||||||||
Proceeds from issuance debt | $ 642,000,000 | ||||||||||
5.50% F&G Senior Notes due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of senior notes | $ 547,000,000 | ||||||||||
5.50% F&G Senior Notes due 2025 | F&G | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | ||||||||||
Price as percent of par on offering of unsecured Notes | 99.50% | ||||||||||
4.50 % Notes due August 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 450,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||||||
Price as percent of par on offering of unsecured Notes | 99.252% | ||||||||||
Annual interest rate | 4.594% | ||||||||||
4.50 % Notes due August 2028 | Unsecured notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||||||
5.50% Notes Due September 2022 | Unsecured notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 400,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | 5.50% | |||||||||
Price as percent of par on offering of unsecured Notes | 99.513% | ||||||||||
Annual interest rate | 5.564% |
Notes Payable - Principal Matur
Notes Payable - Principal Maturities of Notes Payable (Details) $ in Millions | Dec. 31, 2020USD ($) |
Maturities of Long-term Debt [Abstract] | |
2021 | $ 0 |
2022 | 400 |
2023 | 0 |
2024 | 0 |
2025 | 550 |
Thereafter | 1,700 |
Total long term debt | $ 2,650 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Aug. 17, 2020shares | Dec. 31, 2020USD ($)lawsuit | Dec. 07, 2020USD ($) | Dec. 31, 2019USD ($) |
Other Commitments [Line Items] | ||||
Estimated litigation liability | $ 13 | $ 22 | ||
Escrow balances | $ 26,500 | |||
Subscription Agreements Subscription Agreements with Paysafe Limited and Foley Trasimene Acquisition Corp. II | Paysafe Limited | ||||
Other Commitments [Line Items] | ||||
Investment commitment | $ 500 | |||
Matter of FGL Holdings | ||||
Other Commitments [Line Items] | ||||
Number of lawsuits filed | lawsuit | 2 | |||
Number of shares in which statutory appraisal rights have been claimed (in shares) | shares | 12,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Unfunded Commitments by Invested Asset Class (Details) - Commitment to Invest $ in Millions | Dec. 31, 2020USD ($) |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 967 |
Other invested assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 394 |
Equity securities | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 50 |
Fixed maturity securities, available-for-sale | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 432 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 85 |
Commercial mortgage-backed securities | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 0 |
Residential mortgage loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 6 |
Dividends (Details)
Dividends (Details) | Feb. 17, 2021$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Cash dividend per common share (in dollars per share) | $ 0.36 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Title premiums | $ 6,298 | $ 5,342 | $ 4,911 |
Escrow, title-related and other fees | 3,092 | 2,584 | 2,615 |
Revenues from external customers | 9,390 | 7,926 | 7,526 |
Interest and investment income, including recognized gains and losses | 1,388 | 543 | 68 |
Total revenues | 10,778 | 8,469 | 7,594 |
Depreciation and amortization | 296 | 178 | 182 |
Interest expense | 90 | 47 | 43 |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 1,784 | 1,369 | 750 |
Income tax expense (benefit) | 322 | 308 | 120 |
Earnings before equity in earnings of unconsolidated affiliates | 1,462 | 1,061 | 630 |
Equity in earnings (loss) of unconsolidated affiliates | 15 | 15 | 5 |
Earnings from continuing operations | 1,477 | 1,076 | 635 |
Assets | 50,455 | 10,677 | 9,301 |
Goodwill | 4,495 | 2,727 | 2,726 |
Title | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 6,298 | 5,342 | 4,911 |
Escrow, title-related and other fees | 2,782 | 2,389 | 2,204 |
Revenues from external customers | 9,080 | 7,731 | 7,115 |
Interest and investment income, including recognized gains and losses | 294 | 528 | 60 |
Total revenues | 9,374 | 8,259 | 7,175 |
Depreciation and amortization | 149 | 154 | 154 |
Interest expense | 1 | 0 | 0 |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 1,878 | 1,536 | 876 |
Income tax expense (benefit) | 432 | 363 | 163 |
Earnings before equity in earnings of unconsolidated affiliates | 1,446 | 1,173 | 713 |
Equity in earnings (loss) of unconsolidated affiliates | 14 | 13 | 4 |
Earnings from continuing operations | 1,460 | 1,186 | 717 |
Assets | 9,211 | 9,071 | 8,391 |
Goodwill | 2,478 | 2,462 | 2,462 |
F&G | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 0 | ||
Escrow, title-related and other fees | 138 | ||
Revenues from external customers | 138 | ||
Interest and investment income, including recognized gains and losses | 1,095 | ||
Total revenues | 1,233 | ||
Depreciation and amortization | 123 | ||
Interest expense | 18 | ||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 86 | ||
Income tax expense (benefit) | (75) | ||
Earnings before equity in earnings of unconsolidated affiliates | 161 | ||
Equity in earnings (loss) of unconsolidated affiliates | 0 | ||
Earnings from continuing operations | 161 | ||
Assets | 39,714 | ||
Goodwill | 1,751 | ||
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 0 | 0 | 0 |
Escrow, title-related and other fees | 172 | 195 | 411 |
Revenues from external customers | 172 | 195 | 411 |
Interest and investment income, including recognized gains and losses | (1) | 15 | 8 |
Total revenues | 171 | 210 | 419 |
Depreciation and amortization | 24 | 24 | 28 |
Interest expense | 71 | 47 | 43 |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | (180) | (167) | (126) |
Income tax expense (benefit) | (35) | (55) | (43) |
Earnings before equity in earnings of unconsolidated affiliates | (145) | (112) | (83) |
Equity in earnings (loss) of unconsolidated affiliates | 1 | 2 | 1 |
Earnings from continuing operations | (144) | (110) | (82) |
Assets | 1,530 | 1,606 | 910 |
Goodwill | $ 266 | $ 265 | $ 264 |
Segment Information - Premiums
Segment Information - Premiums and Annuity Deposits (Net of Reinsurance) by Type (Details) - F&G $ in Millions | Dec. 31, 2020USD ($) |
Segment Reporting Information [Line Items] | |
Premium and annuity deposits | $ 2,753 |
Fixed indexed annuities | |
Segment Reporting Information [Line Items] | |
Premium and annuity deposits | 1,966 |
Fixed rate annuities | |
Segment Reporting Information [Line Items] | |
Premium and annuity deposits | 631 |
Single premium immediate annuities | |
Segment Reporting Information [Line Items] | |
Premium and annuity deposits | 10 |
Life insurance | |
Segment Reporting Information [Line Items] | |
Premium and annuity deposits | $ 146 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for: | |||
Interest | $ 73 | $ 44 | $ 34 |
Income taxes | 315 | 251 | 204 |
Deferred sales inducements | 46 | 0 | 0 |
Non-cash investing and financing activities: | |||
Equity financing associated with the acquisition of F&G | 609 | 0 | 0 |
Change in proceeds of sales of investments available for sale receivable in period | (4) | 1 | (3) |
Change in purchases of investments available for sale payable in period | 14 | (1) | (2) |
Change in treasury stock purchases payable in period | 8 | (1) | 1 |
Change in accrued dividends payable in period | 1 | 2 | 2 |
Lease liabilities recognized in exchange for lease right-of-use assets | 44 | 36 | 0 |
Remeasurement of lease liabilities | 48 | 101 | 0 |
Liabilities assumed in connection with acquisitions (excluding F&G) | |||
Fair value of assets acquired | 32 | 1 | 50 |
Less: Total Purchase price | 24 | 1 | 33 |
Liabilities and noncontrolling interests assumed | $ 8 | $ 0 | $ 17 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 2,435 | $ 2,122 | $ 2,216 |
Interest and investment income | 900 | 225 | 177 |
Recognized gains and losses, net | 488 | 318 | (109) |
Total revenues | 10,778 | 8,469 | 7,594 |
Title | |||
Disaggregation of Revenue [Line Items] | |||
Loan subservicing revenue | 338 | 285 | 217 |
Total revenues | 9,374 | 8,259 | 7,175 |
Title | Direct title insurance premiums | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,699 | 2,381 | 2,221 |
Title | Agency title insurance premiums | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 3,599 | 2,961 | 2,690 |
Title | Home warranty | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 181 | 177 | 182 |
Title | Insurance contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 6,617 | 5,519 | 5,093 |
Title | Escrow fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,170 | 899 | 826 |
Title | Other title-related fees and income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 791 | 639 | 600 |
Title | ServiceLink, excluding title premiums, escrow fees, and subservicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 301 | 389 | 379 |
F&G | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,233 | ||
F&G | Life Insurance Premiums, Insurance and Investment Product Fees, Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 138 | 0 | 0 |
Corporate and other | Real estate technology | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 112 | 110 | 101 |
Corporate and other | Real estate brokerage | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 25 | 39 | 316 |
Corporate and other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 36 | $ 46 | $ (6) |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances, Information about Receivables and Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables | $ 404 | $ 321 |
Deferred revenue (contract liabilities) | $ 117 | 111 |
Policy period | 1 year | |
Revenue recognized | $ 103 | $ 103 |
Intangibles - Summary of Change
Intangibles - Summary of Changes in Carrying Amounts of Intangible Assets Including DAC, VOBA , and DSI (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Total | |
Balance at beginning of period | $ 0 |
F&G acquisition | 1,847 |
Deferrals | 297 |
Amortization | (131) |
Interest | 22 |
Unlocking | 2 |
Adjustment for net unrealized investment (gains) losses | (313) |
Balance at end of period | 1,724 |
VOBA | |
Total | |
Balance at beginning of period | 0 |
F&G acquisition | 1,847 |
Deferrals | 0 |
Amortization | (120) |
Interest | 20 |
Unlocking | 2 |
Adjustment for net unrealized investment (gains) losses | (283) |
Balance at end of period | 1,466 |
DAC | |
Total | |
Balance at beginning of period | 0 |
F&G acquisition | 0 |
Deferrals | 251 |
Amortization | (6) |
Interest | 2 |
Unlocking | 0 |
Adjustment for net unrealized investment (gains) losses | (25) |
Balance at end of period | 222 |
DSI | |
Total | |
Balance at beginning of period | 0 |
F&G acquisition | 0 |
Deferrals | 46 |
Amortization | (5) |
Interest | 0 |
Unlocking | 0 |
Adjustment for net unrealized investment (gains) losses | (5) |
Balance at end of period | $ 36 |
Intangibles - Narrative (Detail
Intangibles - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 138,000,000 | $ 131,000,000 | $ 119,000,000 |
Estimated amortization, 2021 | 123,000,000 | ||
Estimated amortization, 2022 | 98,000,000 | ||
Estimated amortization, 2023 | 76,000,000 | ||
Estimated amortization, 2024 | 45,000,000 | ||
Estimated amortization, 2025 | 31,000,000 | ||
F&G | |||
Finite-Lived Intangible Assets [Line Items] | |||
Unearned revenue liability | (2,000,000) | ||
Deferrals | (31,000,000) | ||
Amortization expense | 4,000,000 | ||
Interest | 0 | ||
Unlocking | 0 | ||
Unrealized investment gain (losses) | 25,000,000 | ||
VOBA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Adjustment for net unrealized investment gains | $ (283,000,000) | ||
VOBA | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Interest accrual rate utilized to calculate accretion of interest | 0.00% | ||
VOBA | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Interest accrual rate utilized to calculate accretion of interest | 4.71% | ||
DAC | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cumulative adjustments for net unrealized investment gains | $ 25,000,000 | ||
Deferred sales inducement, unrealized investment gain | $ 5,000,000 |
Intangibles - Estimated Amortiz
Intangibles - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 144 |
2022 | 190 |
2023 | 189 |
2024 | 170 |
2025 | 164 |
Thereafter | $ 892 |
Intangibles - Definite and Inde
Intangibles - Definite and Indefinite Lived Intangible Assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Customer relationships and contracts | |
Finite-Lived Intangible Assets [Line Items] | |
Cost | $ 783 |
Accumulated amortization | (596) |
Net carrying amount | $ 187 |
Weighted average useful life (years) | 10 years |
Software | |
Finite-Lived Intangible Assets [Line Items] | |
Cost | $ 416 |
Accumulated amortization | (262) |
Net carrying amount | $ 154 |
Software | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (years) | 2 years |
Software | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (years) | 10 years |
Value of Distribution Asset (VODA) | |
Finite-Lived Intangible Assets [Line Items] | |
Cost | $ 140 |
Accumulated amortization | (10) |
Net carrying amount | $ 130 |
Weighted average useful life (years) | 15 years |
FGL | |
Finite-Lived Intangible Assets [Line Items] | |
Intangibles, net | $ 540 |
FGL | Licensing Agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Indefinite-lived, cost | 35 |
FGL | Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Cost | 73 |
Accumulated amortization | (39) |
Net carrying amount | $ 34 |
Weighted average useful life (years) | 10 years |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 2,727 | $ 2,726 |
Adjustments to prior year acquisitions | 1 | |
Goodwill associated with acquisitions | 1,768 | |
Goodwill, ending balance | 4,495 | 2,727 |
Title | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,462 | 2,462 |
Adjustments to prior year acquisitions | 0 | |
Goodwill associated with acquisitions | 16 | |
Goodwill, ending balance | 2,478 | 2,462 |
F&G | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 0 |
Adjustments to prior year acquisitions | 0 | |
Goodwill associated with acquisitions | 1,751 | |
Goodwill, ending balance | 1,751 | 0 |
Corporate and Other | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 265 | 264 |
Adjustments to prior year acquisitions | 1 | |
Goodwill associated with acquisitions | 1 | |
Goodwill, ending balance | $ 266 | $ 265 |
F&G Reinsurance - Effect of Rei
F&G Reinsurance - Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes (Detail) $ in Millions | 7 Months Ended |
Dec. 31, 2020USD ($) | |
Premiums and other considerations: | |
Direct | $ 253 |
Assumed | 0 |
Ceded | (115) |
Net | 138 |
Traditional Life Insurance Premiums | |
Premiums and other considerations: | |
Direct | 108 |
Assumed | 0 |
Ceded | (85) |
Net | 23 |
Benefits and Other Changes in Insurance Policy Reserves: | |
Direct | 976 |
Assumed | 1 |
Ceded | (111) |
Net | $ 866 |
F&G Reinsurance - Narrative (De
F&G Reinsurance - Narrative (Details) - USD ($) | Sep. 17, 2014 | Jun. 30, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Jun. 01, 2020 | Dec. 31, 2019 |
Ceded Credit Risk [Line Items] | ||||||
Expected credit losses on reinsurance recoverable | $ 21,000,000 | $ 21,000,000 | $ 0 | |||
Statutory capital and surplus | 1,699,000,000 | $ 1,699,000,000 | $ 1,581,000,000 | |||
Reinsured risk | 10.00% | |||||
Retrocession, quota share basis, net, percentage | 100.00% | |||||
Retrocession, quota share basis, percentage | 45.00% | |||||
Hannover Re | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance risk charge fee | 12,000,000 | |||||
Kubera Reassurance Company | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance risk charge fee | 4,000,000 | |||||
Net amount recoverable | $ 810,000,000 | |||||
Kubera Reassurance Company | Life and Annuity Insurance Product Line | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance retention policy, amount retained | 943,000,000 | |||||
Kubera Reassurance Company | Fixed indexed annuities | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance retention policy, amount retained | 5,000,000,000 | |||||
Canada Life Assurance Company, US | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance risk charge fee | 1,000,000 | |||||
Wilton Reassurance Company | ||||||
Ceded Credit Risk [Line Items] | ||||||
Net amount recoverable | 1,481,000,000 | |||||
Scottish Re | ||||||
Ceded Credit Risk [Line Items] | ||||||
Net amount recoverable | 50,000,000 | |||||
Pavonia Life Insurance Company | ||||||
Ceded Credit Risk [Line Items] | ||||||
Net amount recoverable | 94,000,000 | |||||
Raven Re | ||||||
Ceded Credit Risk [Line Items] | ||||||
Remaining borrowing capacity | 85,000,000 | 85,000,000 | ||||
Statutory capital and surplus | $ 29,000,000 | 29,000,000 | $ 33,000,000 | |||
FRSC | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsured risk | 30.00% | |||||
FGL Insurance | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance retention policy, amount retained | 5,000,000,000 | |||||
F&G Life Re Ltd | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance retention policy, amount retained | $ 2,200,000,000 |
Regulatory and Equity - Narrati
Regulatory and Equity - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | |
Statutory Accounting Practices [Line Items] | ||||
Change in statutory capital surplus | $ 28 | $ 33 | ||
Combined statutory unearned premium reserve required | 1,532 | |||
Net assets restricted from dividend payments without prior approval | 2,559 | |||
Statutory capital and surplus | 1,699 | 1,581 | ||
Statutory net income | 629 | 583 | $ 625 | |
Minimum net worth required for compliance | 1 | |||
Dividends paid with approval of Iowa Commissioner | 151 | |||
Forecast | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory amount available for distributions without prior approval | $ 551 | |||
Raven Re | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory capital and surplus | 29 | $ 33 | ||
IOWA | ||||
Statutory Accounting Practices [Line Items] | ||||
Change in statutory capital surplus | 5 | |||
Statutory capital and surplus | 1,249 | |||
Statutory net income | (46) | |||
Increase (decrease) in statutory capital surplus | (204) | |||
Non-permitted statutory accounting practices | (6) | |||
IOWA | Raven Re | ||||
Statutory Accounting Practices [Line Items] | ||||
Change in statutory capital surplus | 85 | |||
VERMONT | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory capital and surplus | 84 | |||
Statutory net income | $ 12 |
Regulation and Equity - Equity
Regulation and Equity - Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 28, 2020 | Jul. 17, 2018 | Feb. 19, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 19, 2021 |
Class of Stock [Line Items] | |||||||
Stock repurchase program period (in years) | 3 years | ||||||
Treasury stock repurchased | $ 244 | $ 85 | $ 21 | ||||
FNF Common Stock | 2018 Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program number of shares authorized (in shares) | 500,000,000 | 25,000,000 | |||||
Stock repurchase, period | 12 months | ||||||
Treasury stock repurchased (in shares) | 7,450,000 | ||||||
Treasury stock repurchased | $ 244 | ||||||
Treasury stock acquired (in usd per share) | $ 32.75 | ||||||
FNF Common Stock | 2018 Repurchase Program | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock repurchased (in shares) | 400,000 | 10,630,000 | |||||
Treasury stock repurchased | $ 16 | $ 366 | |||||
Treasury stock acquired (in usd per share) | $ 40 | $ 34.43 |
F&G Insurance Subsidiary Financ
F&G Insurance Subsidiary Financial Information and Regulatory Matters - Statutory Income and Net Capital (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |||
Statutory net income | $ 629 | $ 583 | $ 625 |
Statutory capital and surplus | 1,699 | $ 1,581 | |
IOWA | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | (46) | ||
Statutory capital and surplus | 1,249 | ||
New York | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | (2) | ||
Statutory capital and surplus | 93 | ||
VERMONT | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 12 | ||
Statutory capital and surplus | $ 84 |
Net Income Attributable to FN_3
Net Income Attributable to FNF Common Shareholders and Change in Total Equity - Effect of Change in Ownership Percentage in ServiceLink (Details) - USD ($) $ in Millions | Jul. 29, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||
Net earnings attributable to FNF common shareholders | $ 1,427 | $ 1,062 | $ 628 | |
Net increase in total equity | 258 | 0 | 0 | |
Net income attributable to FNF common shareholders and change in total equity | 1,685 | 1,062 | 628 | |
Additional Paid-in Capital | ||||
Class of Stock [Line Items] | ||||
Increase in additional paid-in-capital and decrease in non controlling interest from increase in ownership percentage in ServiceLink | 211 | 0 | 0 | |
Non-controlling Interest | ||||
Class of Stock [Line Items] | ||||
Increase in additional paid-in-capital and decrease in non controlling interest from increase in ownership percentage in ServiceLink | $ 47 | $ 0 | $ 0 | |
ServiceLink Holdings, LLC | ||||
Class of Stock [Line Items] | ||||
Purchase of outstanding Class A units of minority owners | $ 90 |
Net Income Attributable to FN_4
Net Income Attributable to FNF Common Shareholders and Change in Total Equity - Changes in Redeemable Non-controlling Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning Balance | $ 344 | $ 344 | $ 344 |
Purchase of ServiceLink noncontrolling interest | (344) | 0 | 0 |
Ending Balance | $ 0 | $ 344 | $ 344 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)optionsToRenew | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||
Operating leases weighted average remaining lease term | 4 years 2 months 12 days | ||
Options to renew | optionsToRenew | 1 | ||
Weighted average discount rate, percent | 3.80% | ||
Operating lease costs | $ 150 | $ 146 | |
Operating leases, rent expense, under ASC Topic 840 | $ 150 | ||
LIBOR | Line of Credit | Revolving Credit Facility | Revolving Credit Facility, due April 2022 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as percent) | 1.40% | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Operating lease, term | 1 year | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Operating lease, term | 10 years |
Leases - Future Payments Under
Leases - Future Payments Under Operating Lease Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 147 | |
2022 | 113 | |
2023 | 82 | |
2024 | 53 | |
2025 | 21 | |
Thereafter | 31 | |
Total operating lease payments, undiscounted | 447 | |
Less: present value discount | 33 | |
Lease liability, at present value | $ 414 | $ 442 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 628 | $ 604 | |
Accumulated depreciation and amortization | (448) | (428) | |
Property and equipment, net | 180 | 176 | |
Depreciation | 48 | 42 | $ 46 |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 230 | 222 | |
Data processing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 186 | 174 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 115 | 102 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 78 | 85 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 14 | 16 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 5 | $ 5 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Salaries and incentives | $ 519 | $ 341 |
Accrued benefits | 373 | 289 |
Deferred revenue | 117 | 111 |
Contingent consideration - acquisitions | 11 | 17 |
Trade accounts payable | 115 | 44 |
Accrued recording fees and transfer taxes | 21 | 10 |
Accrued premium taxes | 36 | 26 |
Liability for policy and contract claims | 88 | 0 |
Retained asset account | 144 | 0 |
Remittances and items not allocated | 158 | 0 |
Option collateral liabilities | 415 | 0 |
Funds withheld embedded derivative | 101 | 0 |
Other accrued liabilities | 304 | 256 |
Accounts payable and accrued liabilities | $ 2,402 | $ 1,094 |
Income Taxes - Tax Expense on C
Income Taxes - Tax Expense on Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 379 | $ 268 | $ 64 |
Deferred | (57) | 40 | 56 |
Income tax expense on continuing operations | $ 322 | $ 308 | $ 120 |
Income Taxes - Tax Expense (Ben
Income Taxes - Tax Expense (Benefit) Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Tax Disclosure [Abstract] | ||||
Net earnings from continuing operations | $ 322 | $ 308 | $ 120 | |
Income tax expense | 0 | 0 | 0 | |
Other comprehensive earnings (loss): | ||||
Unrealized gain (loss) on investments and other financial instruments | 332 | 16 | (3) | |
Unrealized gain (loss) on foreign currency translation and cash flow hedging | [1] | 1 | 1 | (2) |
Minimum pension liability adjustment | 4 | 0 | 0 | |
Total income tax expense (benefit) allocated to other comprehensive earnings | 337 | 17 | (5) | |
Total income taxes | $ 659 | $ 325 | $ 115 | |
[1] | Net of income tax expense (benefit) of $1 million, $1 million, and $(2) million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 2.50% | 1.70% | 3.10% |
Stock compensation | (0.30%) | (0.80%) | (0.50%) |
Tax credits | (0.40%) | (0.10%) | (0.20%) |
Consolidated partnerships | (0.30%) | (0.20%) | (0.20%) |
Tax reform | 0 | 0 | (0.071) |
Valuation allowance for deferred tax assets | (3.00%) | 0.00% | 0.00% |
Change in tax status benefit | (2.00%) | 0.00% | 0.00% |
Non-deductible expenses and other, net | 0.50% | 0.90% | (0.10%) |
Effective tax rate | 18.00% | 22.50% | 16.00% |
Income Taxes - Components Defer
Income Taxes - Components Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets: | ||
Employee benefit accruals | $ 94 | $ 71 |
Net operating loss carryforwards | 17 | 3 |
Accrued liabilities | 12 | 3 |
Allowance for uncollectible accounts receivable | 5 | 4 |
Pension plan | 0 | 3 |
Tax credits | 59 | 39 |
State income taxes | 4 | 3 |
Capital loss carryover | 35 | 0 |
Basis difference held-for-sale | 19 | 0 |
Life insurance and claim related adjustments | 861 | 0 |
Funds held under reinsurance agreements | 85 | 0 |
Other | 13 | 9 |
Total gross deferred tax asset | 1,204 | 135 |
Less: valuation allowance | 45 | 25 |
Total deferred tax asset | 1,159 | 110 |
Deferred tax liabilities: | ||
Title plant | (56) | (55) |
Amortization of goodwill and intangible assets | (148) | (113) |
Other investments | (7) | (6) |
Other | (23) | (11) |
Investment securities | (601) | (75) |
Depreciation | (17) | (12) |
Partnerships | (83) | (54) |
Value of business acquired | (308) | 0 |
Derivatives | (38) | 0 |
Deferred acquisition costs | (6) | 0 |
Transition reserve on new reserve method | (43) | 0 |
Funds held under reinsurance agreements | (58) | 0 |
Title Insurance reserve discounting | (63) | (68) |
Total deferred tax liability | (1,451) | (394) |
Net deferred tax liability | $ (292) | $ (284) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Line Items] | ||
Deferred tax liabilities, net | $ 292 | $ 284 |
Increase for deferred tax liability related to investment securities | 526 | |
Increase in deferred tax liability due to other investment related items | 75 | |
Decrease in deferred tax liability relating to partnerships | 29 | (35) |
Increase in deferred tax assets related to employee benefits | 23 | |
Life insurance and claim related adjustments | 861 | 0 |
Capital loss carryover | 35 | 0 |
Funds held under reinsurance agreements | 85 | 0 |
Deferred tax asset, basis difference, held-for-sale | 19 | 0 |
Deferred tax liabilities, value of business acquired | 308 | 0 |
Deferred tax liabilities, derivatives | 38 | 0 |
Deferred tax liabilities, funds held under reinsurance agreements | 58 | 0 |
Transition reserve on new reserve method | 43 | 0 |
Operating loss carryforwards | 42 | |
Valuation allowance | 45 | 25 |
Tax credits | 59 | 39 |
Unrecognized tax benefits | 28 | 6 |
Income tax penalties and interest accrued | 1 | $ 2 |
Unrecognized tax benefits could decrease due to carryback request | 58 | |
Income taxes receivable | 20 | |
Deferred tax assets related to investment in subsidiaries | 8 | |
General Business Credit Carryforward | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 24 | |
General Business Credit Carryforward | ||
Valuation Allowance [Line Items] | ||
Tax credits | 20 | |
BPG Holdings, LLC | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 42 | |
Begin to expire in 2022 | ||
Valuation Allowance [Line Items] | ||
Operating loss carryforwards | 82 | |
Title | ||
Valuation Allowance [Line Items] | ||
Increase in deferred tax liability due to investments unrealized gains | 68 | |
F&G | ||
Valuation Allowance [Line Items] | ||
Increase in deferred tax liability due to investments unrealized gains | $ 383 |
Income Taxes- Reconciliation of
Income Taxes- Reconciliation of Beginning and Ending Unrecognized Tax Benefits (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | $ 7 |
Additions based on positions taken in current year | 58 |
Reductions related to statute of limitation lapses | (1) |
Ending balance | $ 64 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Purchase Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock compensation expense | $ 39 | $ 38 | $ 31 |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock compensation expense | $ 30 | $ 28 | $ 25 |
Minimum | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ESPP, annual contributions per employee, percent | 3.00% | ||
Maximum | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ESPP, annual contributions per employee, percent | 15.00% |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Profit Sharing Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Maximum annual contributions per employee, percent | 40.00% | ||
Employer matching contribution, percent of match, amount per dollar | 0.375 | ||
Employer matching contribution, percent of employees' gross pay | 6.00% | ||
Defined contribution plan, cost recognized | $ 31 | $ 29 | $ 30 |
Employee Benefit Plans - Omnibu
Employee Benefit Plans - Omnibus Incentive Plan (Details) - shares | Jun. 15, 2016 | May 22, 2013 | May 25, 2011 | May 29, 2008 | Oct. 23, 2006 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2005 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options outstanding (in shares) | 0 | |||||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock outstanding (in shares) | 1,716,555 | |||||||||
Stock options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options outstanding (in shares) | 2,321,413 | |||||||||
The Omnibus Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized for grant (in shares) | 8,000,000 | |||||||||
Number of additional shares authorized (in shares) | 10,000,000 | 6,000,000 | 6,000,000 | 11,000,000 | 16,000,000 | |||||
Options outstanding (in shares) | 2,321,413 | 5,530,125 | 7,543,787 | 8,529,427 | ||||||
The Omnibus Plan | Stock options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
Expiration period | 7 years |
Employee Benefit Plans - F&G Om
Employee Benefit Plans - F&G Omnibus Incentive Plan (Details) - shares | Jun. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (in shares) | 0 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (in shares) | 2,321,413 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock outstanding (in shares) | 1,716,555 | ||
F&G Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for grant (in shares) | 2,096,429 | ||
Options outstanding (in shares) | 2,002,690 | ||
F&G Omnibus Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for grant (in shares) | 2,411,585 | ||
Award vesting period | 3 years | ||
Expiration period | 7 years | ||
F&G Omnibus Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock outstanding (in shares) | 449,870 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options (in shares): | ||||
Stock options outstanding at beginning of period (in shares) | 0 | |||
Stock options outstanding at end (in shares) | 0 | |||
Weighted Average Exercise Price (in dollars per share): | ||||
Stock options outstanding at beginning of period (USD per share) | $ 0 | |||
Stock options outstanding at end of period (USD per share) | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options exercisable (in shares) | 0 | |||
The Omnibus Plan | ||||
Options (in shares): | ||||
Stock options outstanding at beginning of period (in shares) | 5,530,125 | 7,543,787 | 8,529,427 | |
Exercised (in shares) | (3,208,712) | (2,009,112) | (985,640) | |
Canceled (in shares) | (4,550) | |||
Stock options outstanding at end (in shares) | 2,321,413 | 5,530,125 | 7,543,787 | |
Weighted Average Exercise Price (in dollars per share): | ||||
Stock options outstanding at beginning of period (USD per share) | $ 20.88 | $ 20.55 | $ 20.38 | |
Exercised (USD per share) | 18.45 | 19.61 | 19.09 | |
Cancelled (USD per share) | 25.34 | |||
Stock options outstanding at end of period (USD per share) | $ 24.24 | $ 20.88 | $ 20.55 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options exercisable (in shares) | 2,321,413 | 5,530,125 | 7,530,137 | 7,648,837 |
F&G Omnibus Plan | ||||
Options (in shares): | ||||
Options assumed in connection with the F&G acquisition (in shares) | 2,411,585 | |||
Exercised (in shares) | (109,159) | |||
Canceled (in shares) | (299,736) | |||
Stock options outstanding at end (in shares) | 2,002,690 | |||
Weighted Average Exercise Price (in dollars per share): | ||||
Options assumed in connection with the F&G acquisition (USD per share) | $ 36.04 | |||
Exercised (USD per share) | 27.64 | |||
Cancelled (USD per share) | 38.41 | |||
Stock options outstanding at end of period (USD per share) | $ 36.14 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options exercisable (in shares) | 1,021,671 |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock Activity (Details) - Restricted Stock - FNF Common Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
The Omnibus Plan | |||
Shares: | |||
Restricted shares outstanding at beginning of period (in shares) | 1,517,176 | 1,821,238 | 1,839,061 |
Granted (in shares) | 1,006,058 | 640,698 | 912,694 |
Canceled (in shares) | (11,604) | (14,937) | (15,201) |
Vested (in shares) | (795,075) | (929,823) | (915,316) |
Restricted shares outstanding at end of period (in shares) | 1,716,555 | 1,517,176 | 1,821,238 |
Weighted Average Grant Date Fair Value (in dollars per share): | |||
Weighted average grant date fair value outstanding at beginning of period (USD per share) | $ 38.90 | $ 32.35 | $ 30.58 |
Granted (USD per share) | 33.40 | 45.84 | 32.32 |
Canceled (USD per share) | 38.93 | 31.94 | 29.49 |
Vested (USD per share) | 37.60 | 30.98 | 28.80 |
Weighted average grant date fair value outstanding at end of period (USD per share) | $ 36.26 | $ 38.90 | $ 32.35 |
F&G Omnibus Plan | |||
Shares: | |||
Restricted shares outstanding at beginning of period (in shares) | 0 | ||
Granted (in shares) | 474,025 | ||
Canceled (in shares) | (24,155) | ||
Restricted shares outstanding at end of period (in shares) | 449,870 | 0 | |
Weighted Average Grant Date Fair Value (in dollars per share): | |||
Weighted average grant date fair value outstanding at beginning of period (USD per share) | $ 0 | ||
Granted (USD per share) | 34.13 | ||
Canceled (USD per share) | 34.47 | ||
Weighted average grant date fair value outstanding at end of period (USD per share) | $ 34.11 | $ 0 |
Employee Benefit Plans - Option
Employee Benefit Plans - Options Outstanding and Exercisable by Exercise Price (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
$0.00 - $21.84 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ 0 |
Exercise price range, upper range limit (in dollars per share) | 21.84 |
$21.85 - $25.53 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | 21.85 |
Exercise price range, upper range limit (in dollars per share) | $ 25.53 |
The Omnibus Plan | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of outstanding options (in shares) | shares | 4,324,103 |
Outstanding options, intrinsic value | $ | $ 41 |
Number of exercisable options (in shares) | shares | 3,343,084 |
Exercisable options, intrinsic value | $ | $ 38 |
The Omnibus Plan | $0.00 - $21.84 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of outstanding options (in shares) | shares | 809,116 |
Outstanding options, weighted average remaining contractual term (in years) | 10 months 2 days |
Outstanding options, weighted average exercise price (in dollars per share) | $ 21.84 |
Outstanding options, intrinsic value | $ | $ 14 |
Number of exercisable options (in shares) | shares | 809,116 |
Exercisable options, weighted average remaining contractual term (in years) | 10 months 2 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 21.84 |
Exercisable options, intrinsic value | $ | $ 14 |
The Omnibus Plan | $21.85 - $25.53 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of outstanding options (in shares) | shares | 1,512,297 |
Outstanding options, weighted average remaining contractual term (in years) | 1 year 9 months 25 days |
Outstanding options, weighted average exercise price (in dollars per share) | $ 25.53 |
Outstanding options, intrinsic value | $ | $ 21 |
Number of exercisable options (in shares) | shares | 1,512,297 |
Exercisable options, weighted average remaining contractual term (in years) | 1 year 9 months 25 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 25.53 |
Exercisable options, intrinsic value | $ | $ 21 |
The Omnibus Plan | $25.54 - $27.53 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ 25.54 |
Exercise price range, upper range limit (in dollars per share) | $ 27.53 |
Number of outstanding options (in shares) | shares | 443,909 |
Outstanding options, weighted average remaining contractual term (in years) | 4 years 11 months 23 days |
Outstanding options, weighted average exercise price (in dollars per share) | $ 27.53 |
Outstanding options, intrinsic value | $ | $ 5 |
Number of exercisable options (in shares) | shares | 224,692 |
Exercisable options, weighted average remaining contractual term (in years) | 4 years 11 months 23 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 27.53 |
Exercisable options, intrinsic value | $ | $ 3 |
The Omnibus Plan | $27.54 - $28.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ 27.54 |
Exercise price range, upper range limit (in dollars per share) | $ 28 |
Number of outstanding options (in shares) | shares | 61,084 |
Outstanding options, weighted average remaining contractual term (in years) | 5 years 7 months 6 days |
Outstanding options, weighted average exercise price (in dollars per share) | $ 28 |
Outstanding options, intrinsic value | $ | $ 1 |
Number of exercisable options (in shares) | shares | 19,323 |
Exercisable options, weighted average remaining contractual term (in years) | 5 years 7 months 6 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 28 |
Exercisable options, intrinsic value | $ | $ 0 |
The Omnibus Plan | $28.01 - $35.89 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ 28.01 |
Exercise price range, upper range limit (in dollars per share) | $ 35.89 |
Number of outstanding options (in shares) | shares | 34,106 |
Outstanding options, weighted average remaining contractual term (in years) | 5 years 10 months 13 days |
Outstanding options, weighted average exercise price (in dollars per share) | $ 35.89 |
Outstanding options, intrinsic value | $ | $ 0 |
Number of exercisable options (in shares) | shares | 3,410 |
Exercisable options, weighted average remaining contractual term (in years) | 5 years 10 months 13 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 35.89 |
Exercisable options, intrinsic value | $ | $ 0 |
The Omnibus Plan | $35.90 - $39.10 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ 35.90 |
Exercise price range, upper range limit (in dollars per share) | $ 39.10 |
Number of outstanding options (in shares) | shares | 1,463,591 |
Outstanding options, weighted average remaining contractual term (in years) | 4 years 9 months |
Outstanding options, weighted average exercise price (in dollars per share) | $ 39.10 |
Outstanding options, intrinsic value | $ | $ 0 |
Number of exercisable options (in shares) | shares | 774,246 |
Exercisable options, weighted average remaining contractual term (in years) | 4 years 3 months 14 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 39.10 |
Exercisable options, intrinsic value | $ | $ 0 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 50 | $ 48 | $ 19 |
Total stock compensation expense | $ 39 | 38 | 31 |
Weighted average | 1 year 9 months 18 days | ||
The Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 62 | ||
The Omnibus Plan | Restricted Stock | FNF Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock awards granted | 50 | 29 | 31 |
Fair value of restricted stock awards vested | $ 25 | $ 42 | $ 29 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plans (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2000 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Consecutive months with highest compensation in which benefits are based | 60 months | ||
Months ending at retirement or termination in which benefits are based | 120 months | ||
Discount rate | 1.85% | 2.79% | |
Benefit obligation | $ 153 | $ 160 | |
Fair value of plan assets | $ 157 | $ 150 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk and Concentration of Risk (Details) - Geographic Concentration Risk - Title Insurance Premiums | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
California | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 15.20% | 14.30% | 13.90% |
Texas | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.30% | 13.80% | 14.40% |
Florida | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 8.60% | 9.20% | 8.80% |
New York | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 4.20% | 5.80% | 6.30% |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information - Balance Sheets -Parent Company (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||
Cash | $ 2,719 | $ 1,376 | |
Short term investments | 769 | 876 | |
Investments in unconsolidated affiliates | 1,294 | 131 | |
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 437 | 346 | |
Property and equipment, net | 180 | 176 | |
Prepaid expenses and other assets | 997 | 432 | |
Income taxes receivable | 20 | ||
Total assets | 50,455 | 10,677 | $ 9,301 |
Liabilities: | |||
Accounts payable and accrued liabilities | 2,402 | 1,094 | |
Income taxes payable | 56 | 10 | |
Deferred tax liability | 300 | 284 | |
Notes payable | 2,662 | 838 | |
Total liabilities | 42,063 | 4,968 | |
Equity [Abstract] | |||
FNF common stock, $0.0001 par value; authorized 600,000,000 shares as of December 31, 2020 and December 31, 2019; outstanding of 298,203,194 and 275,563,436 as of December 31, 2020 and December 31, 2019, respectively, and issued of 322,622,948 and 292,236,476 as of December 31, 2020 and December 31, 2019, respectively | 0 | 0 | |
Preferred stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding, none | 0 | 0 | |
Additional paid-in capital | 5,720 | 4,581 | |
Retained earnings | 2,394 | 1,356 | |
Accumulated other comprehensive earnings | 1,304 | 43 | |
Treasury stock | (1,067) | (598) | |
Total Fidelity National Financial, Inc. shareholders’ equity | 8,351 | 5,382 | |
Total liabilities, redeemable non-controlling interest and equity | 50,455 | 10,677 | |
Parent Company | |||
ASSETS | |||
Cash | 975 | 565 | |
Short term investments | 0 | 564 | |
Equity securities | 1 | 1 | |
Investments in unconsolidated affiliates | 10 | 8 | |
Trade and notes receivables, net of allowance of $28 and $20 at December 31, 2020 and December 31, 2019, respectively | 416 | 498 | |
Investments in and amounts due from subsidiaries | 9,646 | 4,916 | |
Property and equipment, net | 2 | 2 | |
Prepaid expenses and other assets | 256 | 235 | |
Income taxes receivable | 0 | 0 | |
Total assets | 11,306 | 6,789 | |
Liabilities: | |||
Accounts payable and accrued liabilities | 310 | 275 | |
Income taxes payable | 56 | 10 | |
Deferred tax liability | 300 | 284 | |
Notes payable | 2,072 | 838 | |
Total liabilities | 2,738 | 1,407 | |
Equity [Abstract] | |||
Preferred stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding, none | 0 | 0 | |
Additional paid-in capital | 5,720 | 4,581 | |
Retained earnings | 2,394 | 1,356 | |
Accumulated other comprehensive earnings | 1,304 | 43 | |
Treasury stock | (850) | (598) | |
Total Fidelity National Financial, Inc. shareholders’ equity | 8,568 | 5,382 | |
Total liabilities, redeemable non-controlling interest and equity | 11,306 | 6,789 | |
Parent Company | FNF Common Stock | |||
Equity [Abstract] | |||
FNF common stock, $0.0001 par value; authorized 600,000,000 shares as of December 31, 2020 and December 31, 2019; outstanding of 298,203,194 and 275,563,436 as of December 31, 2020 and December 31, 2019, respectively, and issued of 322,622,948 and 292,236,476 as of December 31, 2020 and December 31, 2019, respectively | $ 0 | $ 0 |
Schedule II- Condensed Financ_2
Schedule II- Condensed Financial Information -Balance Sheet- (Parent Company) (Parenthetical) (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares, outstanding (in shares) | 291,448,627 | 275,563,436 |
Common stock, shares, issued (in shares) | 322,622,948 | 292,236,476 |
Treasury stock (in shares) | 31,174,321 | 16,673,040 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, shares, outstanding (in shares) | 298,203,194 | |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 24,419,754 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information - Statement of Operations(Parent Company) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Other fees and revenue | $ 3,092 | $ 2,584 | $ 2,615 |
Interest and investment income and realized gains | 1,388 | 543 | 68 |
Realized gains and losses, net | 488 | 318 | (109) |
Total revenues | 10,778 | 8,469 | 7,594 |
Expenses: | |||
Personnel costs | 2,951 | 2,696 | 2,538 |
Other operating expenses | 1,759 | 1,681 | 1,801 |
Interest expense | 90 | 47 | 43 |
Total expenses | 8,994 | 7,100 | 6,844 |
Earnings from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 1,784 | 1,369 | 750 |
Income tax expense | 322 | 308 | 120 |
Earnings from continuing operations | 1,477 | 1,076 | 635 |
Equity in earnings of discontinued operations | (25) | 0 | 0 |
Net earnings attributable to Fidelity National Financial, Inc. common shareholders | 1,427 | 1,062 | 628 |
Beginning balance | 5,365 | 4,628 | 4,467 |
Dividends declared | (389) | (347) | (330) |
Other equity activity | (1) | ||
Net earnings attributable to FNF common shareholders | 1,427 | 1,062 | 628 |
Ending balance | 8,392 | 5,365 | 4,628 |
Retained Earnings | |||
Expenses: | |||
Beginning balance | 1,356 | 641 | 217 |
Dividends declared | (389) | (347) | (330) |
Other equity activity | (2) | ||
Ending balance | 2,394 | 1,356 | 641 |
Parent Company | |||
Revenues: | |||
Other fees and revenue | 32 | 38 | 0 |
Interest and investment income and realized gains | 25 | 54 | 40 |
Realized gains and losses, net | (6) | (4) | 4 |
Total revenues | 51 | 88 | 44 |
Expenses: | |||
Personnel costs | 58 | 80 | 35 |
Other operating expenses | 60 | 62 | 20 |
Interest expense | 71 | 48 | 43 |
Total expenses | 189 | 190 | 98 |
Earnings from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | (138) | (102) | (54) |
Income tax expense | (33) | (23) | (9) |
Losses before equity in earnings of subsidiaries | (105) | (79) | (45) |
Equity in earnings of subsidiaries | 1,557 | 1,141 | 673 |
Earnings from continuing operations | 1,452 | 1,062 | 628 |
Equity in earnings of discontinued operations | (25) | 0 | 0 |
Net earnings attributable to Fidelity National Financial, Inc. common shareholders | 1,427 | 1,062 | 628 |
Net earnings attributable to FNF common shareholders | 1,427 | 1,062 | 628 |
Parent Company | Retained Earnings | |||
Expenses: | |||
Net earnings attributable to Fidelity National Financial, Inc. common shareholders | 1,427 | 1,062 | 628 |
Beginning balance | 1,356 | 641 | 217 |
Dividends declared | (389) | (347) | (330) |
Other equity activity | 0 | 0 | (2) |
Net earnings attributable to FNF common shareholders | 1,427 | 1,062 | 628 |
Ending balance | 2,394 | 1,356 | 641 |
Parent Company | Retained Earnings | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Expenses: | |||
Beginning balance | 0 | 128 | |
Ending balance | $ 0 | $ 0 | $ 128 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information - Statement of Cash Flow (Parent Company) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net earnings attributable to FNF common shareholders | $ 1,427 | $ 1,062 | $ 628 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Equity in earnings of unconsolidated affiliates | (15) | (15) | (5) |
Gain on Pacific Union Sale | 9 | 0 | (4) |
Depreciation and amortization | 296 | 178 | 182 |
Net change in income taxes | 24 | 53 | (83) |
Net cash provided by (used in) operating activities | 1,578 | 1,121 | 943 |
Cash Flows From Investing Activities: | |||
Purchases of investments available for sale | (4,959) | (867) | (1,313) |
Net purchases of short-term investment activities | 145 | (395) | (185) |
Acquisition of F&G (net of cash acquired) | (1,076) | 0 | 0 |
Distributions from unconsolidated affiliates | 0 | 5 | 6 |
Additional investments in unconsolidated affiliates | (327) | (34) | (62) |
Net cash provided by (used in) investing activities | (2,331) | (520) | (354) |
Cash Flows From Financing Activities: | |||
Debt service payments | (1,000) | 0 | (370) |
Equity portion of debt conversions paid in cash | 0 | 0 | 142 |
Dividends paid | (389) | (344) | (328) |
Purchases of treasury stock | (236) | (86) | (20) |
Exercise of stock options | 62 | 39 | 19 |
Payment for shares withheld for taxes and in treasury | 8 | 15 | 9 |
Other financing activity | 0 | (10) | (3) |
Net cash provided by (used in) financing activities | 2,096 | (482) | (442) |
Net increase in cash and cash equivalents | 1,343 | 119 | 147 |
Cash and cash equivalents at beginning of period | 1,376 | 1,257 | 1,110 |
Cash and cash equivalents at end of period | 2,719 | 1,376 | 1,257 |
Parent Company | |||
Cash flows from operating activities: | |||
Net earnings attributable to FNF common shareholders | 1,427 | 1,062 | 628 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Equity in earnings of unconsolidated affiliates | (1) | (2) | (2) |
Gain on Pacific Union Sale | 0 | 0 | (4) |
Impairment of assets | 1 | 4 | 0 |
Equity in earnings of subsidiaries | (1,742) | (1,141) | (673) |
Depreciation and amortization | 1 | 1 | 0 |
Stock-based compensation cost | 39 | 38 | 31 |
Net change in income taxes | (1) | 53 | (81) |
Net (increase) in prepaid expenses and other assets | 15 | 185 | 10 |
Net increase in accounts payable and other accrued liabilities | 26 | 211 | 2 |
Net cash provided by (used in) operating activities | (265) | 41 | (109) |
Cash Flows From Investing Activities: | |||
Purchases of investments available for sale | 0 | 0 | 0 |
Net purchases of short-term investment activities | 564 | (362) | (117) |
Acquisition of F&G (net of cash acquired) | (1,076) | 0 | 33 |
Additions to notes receivable | (3) | (200) | 0 |
Collections of notes receivable | 89 | 209 | 33 |
Distributions from unconsolidated affiliates | 0 | 2 | 2 |
Additional investments in unconsolidated affiliates | 1 | ||
Net cash provided by (used in) investing activities | (427) | (351) | (49) |
Cash Flows From Financing Activities: | |||
Borrowings | 2,246 | 0 | 442 |
Debt service payments | (1,000) | 0 | (368) |
Equity portion of debt conversions paid in cash | 0 | 0 | 142 |
Debt issuance costs | (22) | 0 | 0 |
Dividends paid | (389) | (344) | (328) |
Purchases of treasury stock | (236) | (86) | (20) |
Exercise of stock options | 62 | 39 | 19 |
Payment for shares withheld for taxes and in treasury | 9 | 15 | 9 |
Additional investments in non-controlling interests | (90) | 0 | 0 |
Other financing activity | 1 | 5 | (2) |
Net dividends from subsidiaries | (539) | (927) | (685) |
Net cash provided by (used in) financing activities | 1,102 | 526 | 277 |
Net increase in cash and cash equivalents | 410 | 216 | 119 |
Cash and cash equivalents at beginning of period | 565 | 349 | 230 |
Cash and cash equivalents at end of period | $ 975 | $ 565 | $ 349 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information- Notes to Financial Statements (Parent Company) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 13, 2018 | |
Debt Instrument [Line Items] | ||||
Notes payable | $ 2,662 | $ 838 | ||
Interest | 73 | 44 | $ 34 | |
Income taxes | $ 315 | 251 | 204 | |
4.50% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.50% | |||
3.40% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.40% | |||
Notes payable | $ 643 | 0 | ||
2.45% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.45% | |||
Notes payable | $ 592 | 0 | ||
Parent Company | ||||
Debt Instrument [Line Items] | ||||
Notes payable | 2,072 | 838 | ||
Interest | 58 | 44 | 34 | |
Income taxes | 317 | 251 | 204 | |
Cash dividends from subsidiaries and affiliates | $ 500 | 500 | $ 400 | |
Parent Company | 4.50% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.50% | |||
Notes payable | $ 443 | 443 | ||
Parent Company | 5.50% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 5.50% | |||
Notes payable | $ 399 | 398 | ||
Parent Company | 3.40% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.40% | |||
Notes payable | $ 643 | 0 | ||
Parent Company | 2.45% Notes, net of discount | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.45% | |||
Notes payable | $ 592 | 0 | ||
Parent Company | Revolving Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ (5) | $ (3) |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) $ in Millions | 7 Months Ended |
Dec. 31, 2020USD ($) | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Deferred acquisition costs | $ 222 |
Future policy benefits, losses, claims and loss expenses | 4,010 |
Other policy claims and benefits payable | 88 |
Premium revenue | 138 |
Net investment income | 743 |
Benefits, claims, losses and settlement expenses | (866) |
Amortization of deferred acquisition costs | (4) |
Other operating expenses | $ (158) |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) $ in Millions | 7 Months Ended |
Dec. 31, 2020USD ($) | |
Life insurance in force | |
Gross Amount | $ 3,892 |
Ceded to other companies | (2,064) |
Assumed from other companies | 0 |
Net Amount | $ 1,828 |
Percentage of amount assumed of net | 0.00% |
Premiums and other considerations: | |
Gross Amount | $ 253 |
Ceded to other companies | (115) |
Assumed from other companies | 0 |
Net | $ 138 |
Percentage of amount assumed of net | 0.00% |
Traditional Life Insurance Premiums | |
Premiums and other considerations: | |
Gross Amount | $ 108 |
Ceded to other companies | (85) |
Assumed from other companies | 0 |
Net | $ 23 |
Percentage of amount assumed of net | 0.00% |
Annuity product charges | |
Premiums and other considerations: | |
Gross Amount | $ 145 |
Ceded to other companies | (30) |
Assumed from other companies | 0 |
Net | $ 115 |
Percentage of amount assumed of net | 0.00% |
Uncategorized Items - fnf-20201
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201601Member |