Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-32630 | |
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, $0.0001 par value | |
Trading Symbol | FNF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 280,703,586 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001331875 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturity securities available for sale, at fair value, at March 31, 2022 and December 31, 2021, at an amortized cost of $32,508 and $30,705, respectively, net of allowance for credit losses of $11 and $8, respectively, and includes pledged fixed maturity securities of $450 and $460, respectively, related to secured trust deposits | $ 31,478 | $ 31,990 |
Derivative investments | 487 | 816 |
Mortgage loans, net of allowance for credit losses of $32 and $31 at March 31, 2022 and December 31, 2021, respectively | 4,217 | 3,749 |
Investments in unconsolidated affiliates | 2,849 | 2,486 |
Other long-term investments | 606 | 579 |
Short-term investments, at March 31, 2022 and December 31, 2021 includes pledged short-term investments of $1 related to secured trust deposits | 1,746 | 491 |
Total investments | 43,727 | 42,775 |
Cash and cash equivalents, at March 31, 2022 and December 31, 2021 includes $521 and $480, respectively, of pledged cash related to secured trust deposits | 2,793 | 4,360 |
Trade and notes receivables, net of allowance of $32 at March 31, 2022 and December 31, 2021 | 529 | 557 |
Reinsurance recoverable, net of allowance for credit losses of $20 at March 31, 2022 and December 31, 2021 | 3,918 | 3,738 |
Goodwill | 4,539 | 4,539 |
Prepaid expenses and other assets | 1,357 | 1,203 |
Lease assets | 373 | 376 |
Other intangible assets, net | 3,034 | 2,557 |
Title plants | 400 | 400 |
Property and equipment, net | 187 | 185 |
Total assets | 60,857 | 60,690 |
Liabilities: | ||
Contractholder funds | 36,237 | 35,525 |
Future policy benefits | 5,217 | 4,732 |
Accounts payable and accrued liabilities | 2,769 | 2,696 |
Outstanding debt | 3,095 | 3,096 |
Reserve for title claim losses | 1,912 | 1,883 |
Funds withheld for reinsurance liabilities | 1,852 | 1,676 |
Secured trust deposits | 970 | 934 |
Lease liabilities | 410 | 414 |
Income taxes payable | 179 | 72 |
Deferred tax liability | 98 | 205 |
Total liabilities | 52,739 | 51,233 |
Equity: | ||
FNF common stock, $0.0001 par value; authorized 600,000,000 shares as of March 31, 2022 and December 31, 2021; outstanding of 281,117,483 and 283,778,574 as of March 31, 2022 and December 31, 2021, respectively, and issued of 325,573,748 and 325,486,429 as of March 31, 2022 and December 31, 2021, respectively | 0 | 0 |
Preferred stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding, none | 0 | 0 |
Additional paid-in capital | 5,826 | 5,811 |
Retained earnings | 4,642 | 4,369 |
Accumulated other comprehensive (loss) earnings | (712) | 779 |
Less: Treasury stock, 44,456,265 shares and 41,707,855 shares as of March 31, 2022 and December 31, 2021, respectively, at cost | (1,679) | (1,545) |
Total Fidelity National Financial, Inc. shareholders’ equity | 8,077 | 9,414 |
Non-controlling interests | 41 | 43 |
Total equity | 8,118 | 9,457 |
Total liabilities and equity | 60,857 | 60,690 |
Preferred securities | ||
Investments: | ||
Securities, at fair value | 1,283 | 1,401 |
Equity securities | ||
Investments: | ||
Securities, at fair value | $ 1,061 | $ 1,263 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturity securities, available-for-sale, amortized cost | $ 32,508 | $ 30,705 |
Available for sale securities, allowance for credit losses | 11 | 8 |
Available-for-sale securities, pledged securities, secured trust deposits | 450 | 460 |
Allowance for credit loss | 32 | 31 |
Short-term investments, pledged, secured trust deposits | 1 | 1 |
Cash, pledged, secured trust deposits | 521 | 480 |
Allowance for doubtful accounts, premiums and other receivables | 32 | 32 |
Expected credit losses on reinsurance recoverable | $ 20 | $ 20 |
Common stock, par or stated 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) | 281,117,483 | 283,778,574 |
Common stock, shares, issued (in shares) | 325,573,748 | 325,486,429 |
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) | 44,456,265 | 41,707,855 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Direct title insurance premiums | $ 767 | $ 746 |
Agency title insurance premiums | 1,099 | 1,058 |
Escrow, title-related and other fees | 1,290 | 851 |
Interest and investment income | 478 | 402 |
Recognized gains and losses, net | (469) | 43 |
Total revenues | 3,165 | 3,100 |
Expenses: | ||
Personnel costs | 823 | 812 |
Agent commissions | 844 | 807 |
Other operating expenses | 442 | 458 |
Benefits and other changes in policy reserves | 208 | (26) |
Depreciation and amortization | 182 | 183 |
Provision for title claim losses | 84 | 81 |
Interest expense | 30 | 28 |
Total expenses | 2,613 | 2,343 |
Earnings from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 552 | 757 |
Income tax expense | 155 | 166 |
Earnings before equity in earnings of unconsolidated affiliates | 397 | 591 |
Equity in earnings of unconsolidated affiliates | 2 | 13 |
Net earnings from continuing operations | 399 | 604 |
Net earnings from discontinued operations, net of tax | 0 | 5 |
Net earnings | 399 | 609 |
Less: Net earnings attributable to non-controlling interests | 2 | 4 |
Net earnings attributable to Fidelity National Financial, Inc. common shareholders | $ 397 | $ 605 |
Basic | ||
Net earnings per share from continuing operations attributable to common shareholders (in usd per share) | $ 1.41 | $ 2.07 |
Net earnings per share from discontinued operations attributable to common shareholders (in usd per share) | 0 | 0.02 |
Net earnings per share attributable to common shareholders, basic (in usd per share) | 1.41 | 2.09 |
Diluted | ||
Net earnings per share from continuing operations attributable to common shareholders (in usd per share) | 1.40 | 2.06 |
Net earnings per share from discontinued operations attributable to common shareholders (in usd per share) | 0 | 0.02 |
Net earnings per share attributable to common shareholders, diluted (in usd per share) | $ 1.40 | $ 2.08 |
Weighted average common shares outstanding - basic (in shares) | 281 | 289 |
Weighted average common shares outstanding - diluted (in shares) | 283 | 291 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 399 | $ 609 | |
Other comprehensive (loss) earnings: | |||
Unrealized loss on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | [1] | (1,528) | (545) |
Unrealized gain on investments in unconsolidated affiliates | [2] | 6 | 9 |
Unrealized gain (loss) on foreign currency translation | [3] | (2) | (2) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings | [4] | 33 | (46) |
Other comprehensive loss | (1,491) | (584) | |
Comprehensive (loss) earnings | (1,092) | 25 | |
Less: Comprehensive earnings attributable to non-controlling interests | 2 | 4 | |
Comprehensive (loss) earnings attributable to Fidelity National Financial, Inc. common shareholders | $ (1,094) | $ 21 | |
[1] | Net of income tax benefit of $291 million and $146 million for the three months ended March 31, 2022 and 2021, respectively. | ||
[2] | Net of income tax expense of $2 million and $3 million for the three months ended March 31, 2022 and 2021, respectively. | ||
[3] | Net of income tax benefit of less than $1 million for the three months ended March 31, 2022 and 2021. | ||
[4] | Net of income tax (benefit) expense of $(9) million and $12 million for the three months ended March 31, 2022 and 2021, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized loss on investments and other financial instruments, tax benefit | $ 291 | $ 146 |
Unrealized gain on investments in unconsolidated affiliates, tax expense | 2 | 3 |
Unrealized loss on foreign currency translation, tax benefit (less than $1 million) | 1 | 1 |
Reclassification adjustments for change in unrealized gains and losses included in net earnings, tax (benefit) expense | $ (9) | $ 12 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) | Treasury Stock | Non-controlling Interest | |
Beginning balance (in shares) at Dec. 31, 2020 | 322 | 31 | ||||||
Beginning balance at Dec. 31, 2020 | $ 8,392 | $ 0 | $ 5,720 | $ 2,394 | $ 1,304 | $ (1,067) | $ 41 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (in shares) | 1 | |||||||
Exercise of stock options | 21 | 21 | ||||||
Treasury stock repurchased (in shares) | 3 | |||||||
Treasury stock repurchased | (112) | $ (112) | ||||||
Other comprehensive loss - unrealized loss on investments and other financial instruments | (545) | (545) | ||||||
Other comprehensive earnings - unrealized gain on investments in unconsolidated affiliates | 9 | [1] | 9 | |||||
Other comprehensive loss - unrealized loss on foreign currency translation | (2) | [2] | (2) | |||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | (46) | [3] | (46) | |||||
Stock-based compensation | 11 | 11 | ||||||
Dividends declared, per common share | (106) | (106) | ||||||
Subsidiary dividends declared to non-controlling interests | (5) | (5) | ||||||
Net earnings | 609 | 605 | 4 | |||||
Ending balance (in shares) at Mar. 31, 2021 | 323 | 34 | ||||||
Ending balance at Mar. 31, 2021 | 8,226 | $ 0 | 5,752 | 2,893 | 720 | $ (1,179) | 40 | |
Beginning balance (in shares) at Dec. 31, 2021 | 325 | 42 | ||||||
Beginning balance at Dec. 31, 2021 | 9,457 | $ 0 | 5,811 | 4,369 | 779 | $ (1,545) | 43 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (in shares) | 1 | |||||||
Exercise of stock options | 2 | 2 | ||||||
Treasury stock repurchased (in shares) | 3 | |||||||
Treasury stock repurchased | (134) | $ (134) | ||||||
Other comprehensive loss - unrealized loss on investments and other financial instruments | (1,528) | |||||||
Other comprehensive earnings - unrealized gain on investments in unconsolidated affiliates | 6 | [1] | 6 | |||||
Other comprehensive loss - unrealized loss on foreign currency translation | (2) | [2] | (2) | |||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 33 | [3] | 33 | |||||
Stock-based compensation | 13 | 13 | ||||||
Dividends declared, per common share | (124) | (124) | ||||||
Subsidiary dividends declared to non-controlling interests | (4) | (4) | ||||||
Net earnings | 399 | 397 | 2 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 326 | 45 | ||||||
Ending balance at Mar. 31, 2022 | $ 8,118 | $ 0 | $ 5,826 | $ 4,642 | $ (712) | $ (1,679) | $ 41 | |
[1] | Net of income tax expense of $2 million and $3 million for the three months ended March 31, 2022 and 2021, respectively. | |||||||
[2] | Net of income tax benefit of less than $1 million for the three months ended March 31, 2022 and 2021. | |||||||
[3] | Net of income tax (benefit) expense of $(9) million and $12 million for the three months ended March 31, 2022 and 2021, respectively. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend per common share (in dollars per share) | $ 0.44 | $ 0.36 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 399 | $ 609 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 182 | 183 |
Equity in earnings of unconsolidated affiliates | (2) | (13) |
Gain on sales of investments and other assets and asset impairments, net | (30) | (71) |
Change in NAV of limited partnerships, net | (112) | 0 |
Interest credited/index credits to contractholder account balances | (380) | (62) |
Deferred policy acquisition costs and deferred sales inducements | (169) | (134) |
Charges assessed to contractholders for mortality and admin | (49) | (41) |
Non-cash lease costs | 35 | 34 |
Operating lease payments | (37) | (38) |
Distributions from unconsolidated affiliates, return on investment | 25 | 7 |
Stock-based compensation cost | 13 | 11 |
Change in valuation of derivatives, equity and preferred securities, net | 499 | (18) |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Change in insurance recoverable | (12) | (38) |
Change in future policy benefits | 485 | (51) |
Change in funds withheld from reinsurers | 181 | 217 |
Net decrease in trade receivables | 27 | 14 |
Net increase in reserve for title claim losses | 30 | 60 |
Net change in income taxes | 142 | 144 |
Net change in other assets and other liabilities | (560) | (148) |
Net cash provided by operating activities | 667 | 665 |
Cash flows from investing activities: | ||
Proceeds from sales, calls and maturities of investment securities | 1,984 | 1,586 |
Proceeds from sales of property and equipment | 5 | 0 |
Additions to property and equipment and capitalized software | (43) | (22) |
Purchases of investment securities | (3,810) | (3,283) |
Net (purchases of) proceeds from sales and maturities of short-term investment securities | (1,255) | 645 |
Additions to notes receivable | (4) | 0 |
Collections of notes receivable | 3 | 0 |
Acquisitions and dispositions | (20) | (5) |
Additional investments in unconsolidated affiliates | (309) | (1) |
Distributions from unconsolidated affiliates, return of investment | 34 | 24 |
Net other investing activities | 1 | (4) |
Net cash used in investing activities | (3,414) | (1,060) |
Cash flows from financing activities: | ||
Dividends paid | (124) | (104) |
Subsidiary dividends paid to non-controlling interest shareholders | (4) | (5) |
Exercise of stock options | 2 | 21 |
Net change in secured trust deposits | 36 | 23 |
Payment of contingent consideration for prior period acquisitions | (1) | (2) |
Contractholder account deposits | 2,123 | 1,522 |
Contractholder account withdrawals | (723) | (641) |
Purchases of treasury stock | (129) | (112) |
Net cash provided by financing activities | 1,180 | 702 |
Net (decrease) increase in cash and cash equivalents | (1,567) | 307 |
Cash and cash equivalents at beginning of period | 4,360 | 2,719 |
Cash and cash equivalents at end of period | $ 2,793 | $ 3,026 |
Basis of Financial Statements
Basis of Financial Statements | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | Basis of Financial Statements The financial information in this report presented for interim periods is unaudited and includes the accounts of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” the "Company" or “FNF”) prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2021. Description of the Business We are a leading provider of (i) title insurance, escrow and other title-related services, including loan sub-servicing, valuations, default services and home warranty products, (ii) technology 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 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 leading provider of insurance solutions serving retail annuity and life customers and institutional clients through our wholly-owned subsidiary, F&G Annuities & Life ("F&G"). For information about our reportable segments refe r to Note H Segment Information . Recent Developments F&G Distribution On March 14, 2022, our Board of Directors approved a dividend to our shareholders, on a pro rata basis, of 15% of the common stock of F&G (the "F&G Distribution"). We intend to retain control of F&G through our 85% ownership stake. The proposed F&G Distribution is subject to various conditions including the final approval of our Board of Directors, the effectiveness of appropriate filings with the U.S Securities and Exchange Commission (the "SEC"), and any applicable regulatory approvals. The record date and distribution settlement date will be determined by our Board of Directors prior to the distribution. Upon completion of the F&G Distribution, our shareholders as of the record date are expected to own stock in both publicly traded companies. The proposed F&G Distribution is intended to be structured as a taxable dividend to our shareholders and is targeted to be completed in late third quarter or early fourth quarter of 2022. However, there can be no assurance regarding the timeframe for completing the F&G Distribution or that the conditions of the F&G Distribution will be met. Income Tax Income tax expense was $155 million and $166 million in the three months ended March 31, 2022 and 2021, respectively. Income tax expense as a percentage of earnings before income taxes was 28% and 22% in the three months ended March 31, 2022 and 2021, respectively. The increase in income tax expense as a percentage of earnings before taxes in the three months ended March 31, 2022 as compared to the corresponding period in 2021 is primarily attributable to the recording of a valuation allowance in the 2022 period for tax benefits associated with deferred tax assets, related to realized losses on the past sales of discontinued operations, for which it is more likely than not that we will not be able to realize for tax purposes. Earnings Per Share Basic earnings per share, as presented on the Condensed Consolidated Statement of Earnings, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such 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 assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted loss per share is equal to basic loss 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 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. Options or other instruments, which provide the ability to purchase shares of our common stock that are antidilutive, are excluded from the computation of diluted earnings per share. There were fewer than 1 million antidilutive instruments outstanding during the three months ended March 31, 2022 and 2021. Recent Accounting Pronouncements Pronouncements Not Yet Adopted 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. 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 no longer required to be amortized in proportion to premiums, gross profits, or gross margins; instead, 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 will not early adopt this standard. We have identified specific areas that will be impacted by the new guidance. This guidance will bring significant changes to how we account for certain insurance and annuity products within our business. As we continue to make progress on adopting this new guidance, we will be able to provide a better assessment of the specific impacts to our consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this update eliminate the Troubled Debt Restructuring ("TDR") recognition and measurement guidance for creditors and, instead, require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, these amendments require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. The guidance is effective for entities that have adopted ASU 2016-13 Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, though early adoption is permitted. We do not currently expect to early adopt this standard and are in the process of assessing this standard and its impact on our accounting and disclosures. |
Summary of Reserve for Title Cl
Summary of Reserve for Title Claim Losses | 3 Months Ended |
Mar. 31, 2022 | |
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: Three months ended March 31, 2022 2021 (Dollars in millions) Beginning balance $ 1,883 $ 1,623 Change in insurance recoverable (1) 25 Claim loss provision related to: Current year 84 81 Total title claim loss provision 84 81 Claims paid, net of recoupments related to: Current year (1) — Prior years (53) (46) Total title claims paid, net of recoupments (54) (46) Ending balance of claim loss reserve for title insurance $ 1,912 $ 1,683 Provision for title insurance claim losses as a percentage of title insurance premiums 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 through her former company, ANI Development LLC ("ANI"), or other affiliates 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 they were told that under California state law, alcoholic beverage license applicants are required to deposit into 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 following lawsuits are pending in the Superior Court of San Diego County for the State of California and have been set for jury trial on December 2, 2022. 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. On December 13, 2019, a lawsuit styled, Kim Funding, LLC, Kim H. Peterson, Joseph J. Cohen, ABC Funding Strategies, LLC,Payson R. Stevens; Kamaljit K. Kapur and The Payson R. Stevens & Kamaljit Kaur Kapur Trust Dated March 28, 2014 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, as well as the recovery of attorneys fees. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, and others. The Named Companies have reached a conditional settlement with members of ABC Funding Strategies, LLC plaintiffs under confidential terms. 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 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. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, and others. 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. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, and others. On September 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 November 2, 2020, a lawsuit styled, CalPrivate 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 seeks punitive damages and the recovery of attorneys’ fees. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, and others. The following matters pending in the Superior Court of San Diego County for the State of California have conditionally settled under confidential terms: Yuan Yu and Polly Yu v. Chicago Title Co., et al., Ovation Fin. Holdings 2 LLC, Ovation Fund Mgmt. II, LLC, Banc of California, N.A. v. Chicago Title Ins. Co., and Blake E. Allred and Melissa M. Allred v. Chicago Title Co., et al. Additionally, in connection with the alcoholic beverage license scheme, the SEC filed a lawsuit in the United States District Court for the Southern District of California against Ms. Champion-Cain and certain of her affiliated entities asserting claims for securities fraud. A receiver was appointed by the court to preserve the assets of the defendant affiliated entities (the “receivership entities”), pay their debts, operate the businesses and pursue any claims they may have against third-parties. Pursuant to the authority granted to her by the federal court on the SEC action, on January 7, 2022, a lawsuit styled, Krista Freitag v. Chicago Title Co. and Chicago Title Ins. Co. , was filed in San Diego County Superior Court by the receiver on behalf of the receivership entities against the Named Companies. The receiver seeks compensatory, incidental, consequential, and punitive damages, and seeks the recovery of attorneys’ fees. The Named Companies have filed a demurrer seeking dismissal of the receiver’s complaint. The Named Companies also filed a motion in the SEC action seeking permission to sue ANI, via the receiver, to pursue indemnity and other claims against the receivership entities as joint tortfeasors in the state court actions. On February 28, 2022, the Named Companies’ motion was granted permitting them to sue ANI in the pending state court actions. On April 26, 2022, the Named Companies reached a conditional settlement with the receiver, which is subject to court approval. Chicago Title Company has also resolved a number of other pre-suit claims and previously-disclosed lawsuits from both individual and groups of alleged investors under confidential terms. Based on the facts and circumstances of the remaining claims, including the settlements already reached, we have recorded reserves included in our reserve for title claim losses which we believe are adequate to cover losses related to this matter, and we believe that our reserves for title claim losses are adequate. We continually upda te 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. Our U.S. insurance subsidiaries, FGL Insurance, 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, contractholder 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. F&G Cayman Re Ltd and F&G Life Re Ltd (Bermuda) file financial statements with their respective regulators that are based on U.S. GAAP. 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 $135 million and $106 million decrease to statutory capital and surplus at March 31, 2022 and December 31, 2021, respectively. FGL Insurance’s statutory carrying value of Raven Reinsurance Company ("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 $65 million and $85 million at March 31, 2022 and December 31, 2021, respectively. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance. Without such permitted statutory accounting practices, Raven Re’s statutory capital and surplus (deficit) and its risk-based capital would not 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. FGL Insurance’s statutory carrying value of Raven Re was $95 million and $115 million at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 2,793 $ — $ — $ 2,793 $ 2,793 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,897 4,161 9,058 9,058 Commercial mortgage-backed securities — 3,012 40 3,052 3,052 Corporates 35 14,365 1,141 15,541 15,541 Hybrids 126 723 — 849 849 Municipals — 1,335 37 1,372 1,372 Residential mortgage-backed securities — 761 — 761 761 U.S. Government 587 — — 587 587 Foreign Governments — 241 17 258 258 Short term investments 1,403 324 19 1,746 1,746 Preferred securities 449 833 1 1,283 1,283 Equity securities 1,004 — 10 1,014 1,014 Derivative investments — 487 — 487 487 Reinsurance related embedded derivative, included in other assets — 50 — 50 50 Other long-term investments — — 70 70 70 Total financial assets at fair value $ 6,397 $ 27,028 $ 5,496 $ 38,921 $ 38,921 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,395 3,395 3,395 Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities — 1 — 1 1 Total financial liabilities at fair value $ — $ 1 $ 3,395 $ 3,396 $ 3,396 December 31, 2021 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 4,360 $ — $ — $ 4,360 $ 4,360 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,736 3,959 8,695 8,695 Commercial mortgage-backed securities — 2,944 35 2,979 2,979 Corporates 37 15,322 1,135 16,494 16,494 Hybrids 132 780 — 912 912 Municipals — 1,458 43 1,501 1,501 Residential mortgage-backed securities — 731 — 731 731 U.S. Government 394 — — 394 394 Foreign Governments — 266 18 284 284 Short term investments 168 2 321 491 491 Preferred securities 506 893 2 1,401 1,401 Equity securities 1,206 — 9 1,215 1,215 Derivative investments — 816 — 816 816 Other long-term investments — — 78 78 78 Total financial assets at fair value $ 6,803 $ 27,948 $ 5,600 $ 40,351 $ 40,351 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,883 3,883 3,883 Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities — 73 — 73 73 Total financial liabilities at fair value $ — $ 73 $ 3,883 $ 3,956 $ 3,956 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 March 31, 2022 or December 31, 2021. 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 (specifically for FIA 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/IUL 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 March 31, 2022 was applied to the 2012 Individual Annuity 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 derivatives in the funds withheld reinsurance agreements with Kubera Insurance (SAC) Ltd. ("Kubera") (effective October 31, 2021, this agreement was novated from Kubera to Somerset Reinsurance Ltd. ("Somerset"), a certified third party reinsurer) and ASPIDA Life Re Ltd ("Aspida Re") are 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. See Note L F&G 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 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 F&G 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 E 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. Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of March 31, 2022 and December 31, 2021 are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) March 31, 2022 (in millions) March 31, 2022 Assets Asset-backed securities $ 4,064 Broker-quoted Offered quotes 44.79% - 728.00% (94.48%) Asset-backed securities 97 Third-Party Valuation Offered quotes 86.52% - 103.47% (101.78%) Commercial mortgage-backed securities 23 Broker-quoted Offered quotes 120.24% - 120.24% (120.24%) Commercial mortgage-backed securities 17 Third Party Valuation Offered quotes 77.78% - 92.37% (86.30%) Corporates 456 Broker-quoted Offered quotes 0.00% - 124.44% (94.94%) Corporates 14 Discounted Cash Flow Discount Rate 44.00% - 100.00% (77.00%) Corporates 671 Third-Party Valuation Offered quotes 81.09% - 113.62% (99.17%) Municipals 37 Third-Party Valuation Offered quotes 118.69% - 118.69% (118.69%) Foreign Governments 17 Third-Party Valuation Offered quotes 104.86% - 113.31% (107.50%) Short term investments 19 Third-Party Valuation Offered quotes 94.33% - 95.49% (94.91%) Preferred securities 1 Income-Approach Yield 2.43% Equity securities 2 Black Scholes model Risk Free Rate 1.00% - 1.00% (1.00%) Strike Price $1.50 - $1.50 ($1.50) Volatility 81.00% - 81.00% (81.00%) Dividend Yield 0.00% - 0.00% (0.00%) Equity securities 4 Broker Quoted Offered quotes $50.00 - $55.00 ($52.50) Equity securities 4 Discounted Cash Flow Discount rate 11.10% - 11.10% (11.10%) Market Comparable Company Analysis EBITDA multiple 4.8x - 4.8x (4.8x) Other long-term investments: Available-for-sale embedded derivative 30 Black Scholes model Market value of fund 100.00% Credit Linked Note 19 Broker-quoted Offered quotes 100.00% Investment in affiliate 21 Market Comparable Company Analysis EBITDA multiple 8x-8x Total financial assets at fair value $ 5,496 Liabilities Derivative investments: FIA/ IUL embedded derivatives, included in contractholder funds $ 3,395 Discounted cash flow Market value of option 0.00% - 26.75% (1.74%) Swap rates 0.17% - 2.59% (1.38%) Mortality multiplier 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 70.00% (6.24%) Partial withdrawals 2.00% - 23.26% (2.73%) Non-performance spread 0.49% - 1.23% (1.01%) Option cost 0.00% - 4.97% (1.82%) Total financial liabilities at fair value $ 3,395 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2021 (in millions) December 31, 2021 Assets Asset-backed securities $ 3,844 Broker-quoted Offered quotes 52.56% - 260.70% (97.06%) Asset-backed securities 115 Third-Party Valuation Offered quotes 93.02% - 108.45% (104.95%) Commercial mortgage-backed securities 24 Broker-quoted Offered quotes 126.70% - 126.70% (126.70%) Commercial mortgage-backed securities 11 Third Party Valuation Offered quotes 97.91% - 97.91% (97.91%) Corporates 380 Broker-quoted Offered quotes 0.00% - 109.69% (100.91%) Corporates 741 Third-Party Valuation Offered quotes 85.71% - 119.57% (107.72%) Corporates 14 Discounted Cash Flow Discount Rate 44.00% - 100.00% (62.00%) Municipals 43 Third-Party Valuation Offered quotes 135.09% - 135.09% (135.09%) Foreign Governments 18 Third-Party Valuation Offered quotes 107.23% - 116.44% (110.11%) Short term investments 321 Broker-quoted Offered quotes 100.00% - 100.00% (100.00%) Preferred securities 2 Income-Approach Yield 2.43% Equity securities 3 Broker Quoted Offered quotes $6.23 - $6.23 ($6.23) Equity securities 2 Black Scholes model Risk Free Rate 1.00% -1.00% (1.00%) Strike Price $1.50 - $1.50 ($1.50) Volatility 81.00% - 81.00% (81.00%) Dividend Yield 0.00% - 0.00% (0.00%) Equity securities 4 Discounted Cash Flow Discount rate 12.70% - 12.70% (12.70%) Market Comparable Company Analysis EBITDA multiple 5.9x - 5.9x (5.9x) Other long-term investments: Available-for-sale embedded derivative 34 Black Scholes model Market value of fund 100.00% Credit Linked Note 23 Broker-quoted Offered quotes 100.00% Investment in affiliate 21 Market Comparable Company Analysis EBITDA multiple 8x-8x Total financial assets at fair value $ 5,600 Liabilities Future policy benefits — Discounted cash flow Non-performance spread 0.50% Derivative investments: FIA/ IUL embedded derivatives, included in contractholder funds 3,883 Discounted cash flow Market value of option 0.00% - 38.72% (3.16%) Swap rates 0.05% - 1.94% (1.00%) Mortality multiplier 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 70.00% (6.26%) Partial withdrawals 2.00% - 23.26% (2.72%) Non-performance spread 0.43% - 1.01% (0.68%) Option cost 0.07% - 4.97% (1.83%) Total financial liabilities at fair value $ 3,883 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 three months ended March 31, 2022 and 2021. This summary excludes any impact of amortization of value of business acquired (“VOBA”), deferred acquisition cost (“DAC”), and deferred sales inducements (“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. Three months ended March 31, 2022 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ — $ (130) $ 400 $ — $ (152) $ 84 $ 4,161 $ (138) Commercial mortgage-backed securities 35 — (2) — — — 7 40 (2) Corporates 1,135 — (74) 80 — (26) 26 1,141 (73) Municipals 43 — (6) — — — — 37 (5) Residential mortgage-backed securities — — — — — — — — — Foreign Governments 18 — (1) — — — — 17 (1) Short term investments 321 — (1) 20 — — (321) 19 (1) Preferred securities 2 — (1) — — — — 1 (1) Equity securities 9 — — 1 — — — 10 — Other long-term investments: Available-for-sale embedded derivative 34 (4) — — — — — 30 — Investment in affiliate 21 — — — — — — 21 — Credit linked note 23 — (3) — — (1) — 19 — Total Level 3 assets at fair value $ 5,600 $ (4) $ (218) $ 501 $ — $ (179) $ (204) $ 5,496 $ (221) Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,883 (488) — — — — — 3,395 — Total Level 3 liabilities at fair value $ 3,883 $ (488) $ — $ — $ — $ — $ — $ 3,395 $ — (a) The net transfers out of Level 3 during the three months ended March 31, 2022 were exclusively to Level 2. Three months ended March 31, 2021 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 1,350 $ — $ (23) $ 358 $ — $ (92) $ — $ 1,593 $ (4) Commercial mortgage-backed securities 26 — (1) — — — — 25 1 Corporates 1,289 6 (39) 40 (5) (31) (14) 1,246 19 Hybrids 4 — — — — (4) — — — Municipals 43 — (2) — — — — 41 4 Residential mortgage-backed securities 483 — 12 5 — (13) — 487 27 Foreign Governments 17 — — — — — — 17 2 Equity securities 5 1 — 3 — — — 9 — Other long-term investments: Available-for-sale embedded derivative 27 2 — — — — — 29 — Credit linked note 23 — (4) — — — — 19 — Total Level 3 assets at fair value $ 3,267 $ 9 $ (57) $ 406 $ (5) $ (140) $ (14) $ 3,466 $ 49 Liabilities Future policy benefits $ 5 $ — $ — $ — $ — $ (1) $ — $ 4 $ — FIA/IUL embedded derivatives, included in contractholder funds 3,404 (111) — — — — — 3,293 — Total Level 3 liabilities at fair value $ 3,409 $ (111) $ — $ — $ — $ (1) $ — $ 3,297 $ — (a) The net transfers out of Level 3 during the three months ended March 31, 2021 were exclusively 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 are estimated from a discounted cash flow analysis, using interest rates currently being offered for loans with similar credit risk. Loans with similar characteristics are aggregated for purposes of the calculations. 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 and fixed rate annuities), indexed universal life policies ("IULs"), funding agreements and PRT and immediate annuity contracts without life contingencies. The FIA/ IUL embedded derivatives, included in contractholder funds, are excluded as they are carried at fair value. The fair value of the FIA, fixed rate annuity 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 funding agreements and PRT and immediate annuities contracts without life contingencies 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 Federal Home Loan Bank of Atlanta ("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 unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. March 31, 2022 (in millions) Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 79 $ — $ 79 $ 79 Commercial mortgage loans — — 2,147 2,147 2,231 Residential mortgage loans — — 1,904 1,904 1,986 Policy loans — — 40 40 40 Other invested assets — — 67 67 67 Company-owned life insurance — — 350 350 350 Trade and notes receivables, net of allowance — — 529 529 529 Total $ — $ 79 $ 5,037 $ 5,116 $ 5,282 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 29,031 $ 29,031 $ 32,903 Debt — 2,929 — 2,929 3,095 Total $ — $ 2,929 $ 29,031 $ 31,960 $ 35,998 December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 72 $ — $ 72 $ 72 Commercial mortgage loans — — 2,265 2,265 2,168 Residential mortgage loans — — 1,549 1,549 1,581 Policy loans — — 39 39 39 Other invested assets — — 57 57 57 Company-owned life insurance — — 333 333 333 Trade and notes receivables, net of allowance — — 557 557 557 Total $ — $ 72 $ 4,800 $ 4,872 $ 4,807 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 27,448 $ 27,448 $ 31,529 Debt — 3,218 — 3,218 3,096 Total $ — $ 3,218 $ 27,448 $ 30,666 $ 34,625 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 net asset value ("NAV") is used as a practical expedient in determining fair value: Carrying Amount March 31, 2022 December 31, 2021 Investments in unconsolidated affiliates $ 153 $ 136 Equity securities (NAV) 47 48 Investments in unconsolidated affiliates (a) 2,696 2,350 $ 2,896 $ 2,534 (a) The fair value of these investments using the NAV practical expedient and their carrying amount are generally equal. 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. We account for our investment in unconsolidated affiliates using the equity method of accounting. Equity method investments are reported on a lag of up to three months for investee information not received timely. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.25 1.00 - 1.25 <1.00 March 31, 2022 LTV Ratios: Less than 50% $ 608 $ 21 $ 9 $ 638 29 % $ 631 29 % 50% to 60% 512 — — 512 23 % 494 23 % 60% to 75% 1,078 — — 1,078 48 % 1,016 47 % 75% to 85% $ — $ 9 $ — $ 9 1 % 6 1 % Commercial mortgage loans $ 2,198 $ 30 $ 9 $ 2,237 100 % $ 2,147 100 % December 31, 2021 LTV Ratios: Less than 50% $ 626 $ 33 $ 9 $ 668 31 % $ 745 33 % 50% to 60% 470 — — 470 22 % 481 21 % 60% to 75% 1,036 — — 1,036 47 % 1,039 46 % Commercial mortgage loans $ 2,132 $ 33 $ 9 $ 2,174 100 % $ 2,265 100 % We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At March 31, 2022 we had one CML that was delinquent in principal or interest payments as shown in the risk rating exposure table below. At December 31, 2021 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 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 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 unaudited Condensed 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 5% of our total investments as of March 31, 2022. 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): March 31, 2022 U.S. State: Gross Carrying Value % of Total Florida $ 288 14 % Texas 218 11 % New Jersey 170 8 % California 141 7 % Pennsylvania 134 7 % New York 131 7 % Georgia 115 6 % All Other States (1) 813 40 % Total residential mortgage loans $ 2,010 100 % (1) The individual concentration of each state is equal to or less than 5% as of March 31, 2022. December 31, 2021 U.S. State: Gross Carrying Value % of Total Florida $ 234 15 % Texas 170 10 % New Jersey 153 10 % All other states (1) 1,047 65 % Total residential mortgage loans $ 1,604 100 % (1) The individual concentration of each state is less than 9% as of December 31, 2021. 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 of March 31, 2022 and December 31, 2021, was as follows (dollars in millions): March 31, 2022 December 31, 2021 Performance indicators: Carrying Value % of Total Carrying Value % of Total Performing $ 1,947 97 % $ 1,533 95 % Non-performing 65 3 % 73 5 % Total residential mortgage loans, gross of valuation allowance $ 2,012 100 % $ 1,606 100 % Allowance for expected loan loss (26) — % (25) — % Total residential mortgage loans $ 1,986 100 % $ 1,581 100 % Loans segregated by risk rating exposure as of March 31, 2022 and December 31, 2021, were as follows (in millions): March 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Residential mortgages Current (less than 30 days past due) $ 377 $ 916 $ 264 $ 276 $ 38 $ 48 $ 1,919 30-89 days past due — 10 6 12 — — 28 Over 90 days past due — 1 15 45 2 — 63 Total residential mortgages $ 377 $ 927 $ 285 $ 333 $ 40 $ 48 $ 2,010 Commercial mortgages Current (less than 30 days past due) $ 89 $ 1,301 $ 543 $ — $ — $ 295 $ 2,228 30-89 days past due — — — — — 9 9 Over 90 days past due — — — — — — — Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Residential mortgages Current (less than 30 days past due) $ 795 $ 293 $ 323 $ 50 $ 36 $ 21 $ 1,518 30-89 days past due 5 4 6 1 — — 16 Over 90 days past due 1 23 46 2 — — 72 Total residential mortgages $ 801 $ 320 $ 375 $ 53 $ 36 $ 21 $ 1,606 Commercial mortgages Current (less than 30 days past due) $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 March 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Commercial mortgages LTV Less than 50% $ 4 $ 120 $ 229 $ — $ — $ 285 $ 638 50% to 60% 43 267 192 — — 10 512 60% to 75% 42 914 122 — — — 1,078 75% to 85% — — — — — 9 9 Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 Commercial mortgages DSCR Greater than 1.25x $ 89 $ 1,301 $ 543 $ — $ — $ 265 $ 2,198 1.00x - 1.25x — — — — — 30 30 Less than 1.00x — — — — — 9 9 Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Commercial mortgages LTV Less than 50% $ 120 $ 229 $ — $ 6 $ — $ 313 $ 668 50% to 60% 267 192 — — — 11 470 60% to 75% 914 122 — — — — 1,036 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 Commercial mortgages DSCR Greater than 1.25x $ 1,301 $ 543 $ — $ 4 $ — $ 284 $ 2,132 1.00x - 1.25x — — — 2 — 31 33 Less than 1.00x — — — — — 9 9 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 Non-accrual loans by amortized cost as of March 31, 2022 and December 31, 2021, were as follows (in millions): Amortized cost of loans on non-accrual March 31, 2022 December 31, 2021 Residential mortgage: $ 63 $ 72 Commercial mortgage: — — Total non-accrual loans $ 63 $ 72 Immaterial interest income was recognized on non-accrual financing receivables for the three months ended March 31, 2022 and 2021. It is our policy to cease to accrue interest on loans that are over 90 days delinquent. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes over 90 days delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of March 31, 2022 and December 31, 2021, we had $63 million and $72 million, respectively, of mortgage loans that were over 90 days past due, of which $39 million was in the process of foreclosure for both periods. We will continue to evaluate these policies with regard to the economic challenges for mortgage debtors related to COVID-19. Our ability to initiate foreclosure proceedings may be limited by legislation passed and executive orders issued in response to COVID-19. Allowance for Expected Credit Loss We estimate expected credit losses for our residential 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 unaudited Condensed Consolidated Statements of Earnings. The allowances for our mortgage loan portfolio is summarized as follows (in millions): Three months ended March 31, 2022 Residential Mortgage Commercial Mortgage Total Beginning Balance $ 25 $ 6 $ 31 Provision for loan losses 1 — 1 Ending Balance $ 26 $ 6 $ 32 Three months ended March 31, 2021 Residential Mortgage Commercial Mortgage Total Beginning Balance $ 37 $ 2 $ 39 Provision for loan losses (6) 3 (3) Ending Balance $ 31 $ 5 $ 36 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 and were immaterial as of March 31, 2022 and December 31, 2021. Interest and Investment Income The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows (in millions): Three months ended March 31, 2022 March 31, 2021 Fixed maturity securities, available-for-sale $ 332 $ 307 Equity securities 8 5 Preferred securities 15 14 Mortgage loans 39 23 Invested cash and short-term investments 5 — Limited partnerships 113 80 Tax deferred property exchange income 3 4 Other investments 9 8 Gross investment income 524 441 Investment expense (46) (39) Interest and investment income $ 478 $ 402 Recognized Gains and Losses, net Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows (in millions): Three months ended March 31, 2022 March 31, 2021 Net realized (losses) gains on fixed maturity available-for-sale securities $ (36) $ 40 Net realized/unrealized losses on equity securities (1) (148) (46) Net realized/unrealized losses on preferred securities (2) (91) (10) Realized losses on other invested assets (1) (3) Change in allowance for expected credit losses (4) 10 Derivatives and embedded derivatives: Realized gains on certain derivative instruments 50 60 Unrealized losses on certain derivative instruments (358) (35) Change in fair value of reinsurance related embedded derivatives (3) 122 27 Change in fair value of other derivatives and embedded derivatives (3) — Realized gains (losses) on derivatives and embedded derivatives (189) 52 Recognized gains and losses, net $ (469) $ 43 (1) Includes net valuation losses of $166 million and and $46 million for the three months ended March 31, 2022 and 2021, respectively. (2) Includes net valuation losses of $90 million and $3 million for the three months ended March 21, 2022 and 2021, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Kubera (novated from Kubera to Sommerset effective October 31, 2021) and Aspida Re. The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions): Three months ended March 31, 2022 March 31, 2021 Proceeds $ 1,032 $ 424 Gross gains 3 32 Gross losses (37) (8) Unconsolidated Variable Interest Entities We own investments in VIEs that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. 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 we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated. We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our unaudited Condensed Consolidated Balance Sheets. In addition, we invest in structured investments which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities included in fixed maturity securities available for sale on our unaudited Condensed Consolidated Balance Sheets. Our maximum exposure to loss with respect to these VIEs is limited to the investment carrying amounts reported in our unaudited Condensed Consolidated Balance Sheets for limited partnerships and the amortized costs of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies ). The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in limited partnerships $ 2,675 $ 3,751 $ 2,350 $ 3,496 Fixed maturity securities 12,849 13,591 12,382 12,802 Total unconsolidated VIE investments $ 15,524 $ 17,342 $ 14,732 $ 16,298 Investment in Cannae Holdings, Inc. ("Cannae") Included in equity securities as of March 31, 2022 and December 31, 2021 are 4,775,598 and 5,775,598 shares, respectively, of Cannae common stock (NYSE: CNNE). The fair value of this investment based on quoted market prices is $114 million and $203 million as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022, we sold 1 million shares of CNNE common stock back to Cannae for approximately $24 million in the aggregate. In order to maintain the tax-free treatment of the November 17, 2017 split-off of Cannae from us, we are obligated to dispose of our remaining shares of CNNE common stock by November 17, 2022." id="sjs-B4">Investments Our fixed maturity securities investments have been designated as available-for-sale ("AFS"), 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, unearned revenue ("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 earnings. The Company’s consolidated investments at March 31, 2022 and December 31, 2021 are summarized as follows (in millions): March 31, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 9,137 $ (1) $ 129 $ (207) $ 9,058 $ 9,058 Commercial mortgage-backed securities 2,951 (2) 170 (67) 3,052 3,052 Corporates 16,480 (3) 188 (1,124) 15,541 15,541 Hybrids 832 — 31 (14) 849 849 Municipals 1,444 — 17 (89) 1,372 1,372 Residential mortgage-backed securities 801 (5) 4 (39) 761 761 U.S. Government 594 — 3 (10) 587 587 Foreign Governments 269 — 3 (14) 258 258 Total available-for-sale securities $ 32,508 $ (11) $ 545 $ (1,564) $ 31,478 $ 31,478 December 31, 2021 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 8,516 $ (3) $ 220 $ (38) $ 8,695 $ 8,695 Commercial mortgage-backed/asset-backed securities 2,684 (2) 308 (11) 2,979 2,979 Corporates 15,822 — 830 (158) 16,494 16,494 Hybrids 838 — 74 — 912 912 Municipals 1,445 — 67 (11) 1,501 1,501 Residential mortgage-backed securities 731 (3) 7 (4) 731 731 U.S. Government 393 — 3 (2) 394 394 Foreign Governments 276 — 9 (1) 284 284 Total available-for-sale securities $ 30,705 $ (8) $ 1,518 $ (225) $ 31,990 $ 31,990 Securities held on deposit with various state regulatory authorities had a fair value of $15,578 million and $22,343 million at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company held no material investments that were non-income producing for a period greater than twelve months. As of March 31, 2022 and December 31, 2021, the Company's accrued interest receivable balance was $278 million and $253 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed 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 us for general purposes. The collateral investments had a fair value of $2,840 million and $2,469 million as of March 31, 2022 and December 31, 2021, respectively. 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. March 31, 2022 December 31, 2021 (in millions) (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 439 $ 444 $ 426 $ 431 Due after one year through five years 3,320 3,249 2,998 3,051 Due after five years through ten years 2,378 2,295 2,389 2,458 Due after ten years 13,456 12,590 12,930 13,608 Subtotal 19,593 18,578 18,743 19,548 Other securities which provide for periodic payments: Asset-backed securities 9,137 9,058 8,516 8,695 Commercial mortgage-backed securities 2,951 3,052 2,684 2,979 Structured hybrids 26 29 31 37 Residential mortgage-backed securities 801 761 731 731 Subtotal 12,915 12,900 11,962 12,442 Total fixed maturity available-for-sale securities $ 32,508 $ 31,478 $ 30,705 $ 31,990 Allowance for Expected Credit Loss 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 AFS securities aggregated by investment category were as follows for the three months ended March 31, 2022 and 2021 (in millions): Three Months Ended March 31, 2022 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 Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ (3) $ — $ — $ — $ 2 $ — $ — — $ (1) Commercial mortgage-backed securities (2) — — — — — — — (2) Corporates — (3) — — — — — — (3) Residential mortgage-backed securities (3) — — (2) — — — — (5) Total available-for-sale securities $ (8) $ (3) $ — $ (2) $ 2 $ — $ — $ — $ (11) Three Months Ended March 31, 2021 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 Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Commercial mortgage-backed securities $ — $ (1) $ — $ — $ — $ — $ — $ — $ (1) Corporates (16) — — 7 — — 3 3 $ (3) Residential mortgage-backed securities (3) — — — — — — — $ (3) Total available-for-sale securities $ (19) $ (1) $ — $ 7 $ — $ — $ 3 $ 3 $ (7) (1) Purchased credit deteriorated financial assets ("PCD") PCDs 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. There were no purchases of PCD AFS securities during the three months ended March 31, 2022 or 2021. The fair value and gross unrealized losses of AFS 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 March 31, 2022 and December 31, 2021 were as follows (dollars in millions): March 31, 2022 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 $ 5,910 $ (179) $ 348 $ (28) $ 6,258 $ (207) Commercial mortgage-backed securities 1,205 (62) 44 (5) 1,249 (67) Corporates 10,103 (817) 1,613 (307) 11,716 (1,124) Hybrids 407 (14) 2 — 409 (14) Municipals 954 (72) 131 (17) 1,085 (89) Residential mortgage-backed securities 609 (37) 19 (2) 628 (39) U.S. Government 327 (9) 30 (1) 357 (10) Foreign Government 152 (11) 12 (3) 164 (14) Total available-for-sale securities $ 19,667 $ (1,201) $ 2,199 $ (363) $ 21,866 $ (1,564) Total number of available-for-sale securities in an unrealized loss position less than twelve months 3,321 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 223 Total number of available-for-sale securities in an unrealized loss position 3,544 December 31, 2021 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 $ 4,410 $ (31) $ 146 $ (7) $ 4,556 $ (38) Commercial mortgage-backed securities 603 (11) 1 — 604 (11) Corporates 5,391 (132) 394 (26) 5,785 (158) Hybrids 3 — — — 3 — Municipals 410 (5) 85 (6) 495 (11) Residential mortgage-backed securities 325 (3) 11 (1) 336 (4) U.S. Government 219 (2) 4 — 223 (2) Foreign Government 82 (1) 5 — 87 (1) Total available-for-sale securities $ 11,443 $ (185) $ 646 $ (40) $ 12,089 $ (225) Total number of available-for-sale securities in an unrealized loss position less than twelve months 2,056 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 68 Total number of available-for-sale securities in an unrealized loss position 2,124 We determined the increase in unrealized losses as of March 31, 2022 was caused by higher treasury rates as well as wider spreads. This is in part due to the Federal Reserve's action to increase rates in efforts to combat inflation. Inflation in the first quarter of 2022 has been compounded by supply chain issues stemming from additional COVID-19 restrictions in China, as well as higher energy prices as a result of the Russian-Ukrainian conflict. For securities in an unrealized loss position as of March 31, 2022, our allowance for expected credit loss was $11 million. We believe that unrealized loss position for which we have not recorded an allowance for expected credit loss as of March 31, 2022 was primarily attributable to interest rate increases, near-term illiquidity, and uncertainty caused by Russia's invasion of Ukraine as opposed to issuer specific credit concerns. Mortgage Loans Our mortgage loans are collateralized by commercial and residential properties. Commercial Mortgage Loans Commercial mortgage loans ("CMLs") represented approximately 7% of our total investments as of March 31, 2022. 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): March 31, 2022 December 31, 2021 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel $ 19 1 % $ 19 1 % Industrial - General 486 22 % 497 23 % Mixed Use 12 1 % 13 1 % Multifamily 979 43 % 894 41 % Office 342 15 % 343 16 % Retail 108 5 % 121 6 % Student Housing 83 4 % 83 4 % Other 208 9 % 204 8 % Total commercial mortgage loans, gross of valuation allowance $ 2,237 100 % $ 2,174 100 % Allowance for expected credit loss (6) (6) Total commercial mortgage loans $ 2,231 $ 2,168 U.S. Region: East North Central $ 134 6 % $ 137 6 % East South Central 76 3 % 79 4 % Middle Atlantic 293 13 % 293 13 % Mountain 289 13 % 236 11 % New England 149 7 % 149 7 % Pacific 648 29 % 649 30 % South Atlantic 492 22 % 459 21 % West North Central 4 — % 12 1 % West South Central 152 7 % 160 7 % Total commercial mortgage loans, gross of valuation allowance $ 2,237 100 % $ 2,174 100 % Allowance for expected credit loss (6) (6) Total commercial mortgage loans $ 2,231 $ 2,168 Loan-to-value ("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. 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 March 31, 2022 and December 31, 2021 (dollars in millions) : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 March 31, 2022 LTV Ratios: Less than 50% $ 608 $ 21 $ 9 $ 638 29 % $ 631 29 % 50% to 60% 512 — — 512 23 % 494 23 % 60% to 75% 1,078 — — 1,078 48 % 1,016 47 % 75% to 85% $ — $ 9 $ — $ 9 1 % 6 1 % Commercial mortgage loans $ 2,198 $ 30 $ 9 $ 2,237 100 % $ 2,147 100 % December 31, 2021 LTV Ratios: Less than 50% $ 626 $ 33 $ 9 $ 668 31 % $ 745 33 % 50% to 60% 470 — — 470 22 % 481 21 % 60% to 75% 1,036 — — 1,036 47 % 1,039 46 % Commercial mortgage loans $ 2,132 $ 33 $ 9 $ 2,174 100 % $ 2,265 100 % We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At March 31, 2022 we had one CML that was delinquent in principal or interest payments as shown in the risk rating exposure table below. At December 31, 2021 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 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 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 unaudited Condensed 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 5% of our total investments as of March 31, 2022. 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): March 31, 2022 U.S. State: Gross Carrying Value % of Total Florida $ 288 14 % Texas 218 11 % New Jersey 170 8 % California 141 7 % Pennsylvania 134 7 % New York 131 7 % Georgia 115 6 % All Other States (1) 813 40 % Total residential mortgage loans $ 2,010 100 % (1) The individual concentration of each state is equal to or less than 5% as of March 31, 2022. December 31, 2021 U.S. State: Gross Carrying Value % of Total Florida $ 234 15 % Texas 170 10 % New Jersey 153 10 % All other states (1) 1,047 65 % Total residential mortgage loans $ 1,604 100 % (1) The individual concentration of each state is less than 9% as of December 31, 2021. 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 of March 31, 2022 and December 31, 2021, was as follows (dollars in millions): March 31, 2022 December 31, 2021 Performance indicators: Carrying Value % of Total Carrying Value % of Total Performing $ 1,947 97 % $ 1,533 95 % Non-performing 65 3 % 73 5 % Total residential mortgage loans, gross of valuation allowance $ 2,012 100 % $ 1,606 100 % Allowance for expected loan loss (26) — % (25) — % Total residential mortgage loans $ 1,986 100 % $ 1,581 100 % Loans segregated by risk rating exposure as of March 31, 2022 and December 31, 2021, were as follows (in millions): March 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Residential mortgages Current (less than 30 days past due) $ 377 $ 916 $ 264 $ 276 $ 38 $ 48 $ 1,919 30-89 days past due — 10 6 12 — — 28 Over 90 days past due — 1 15 45 2 — 63 Total residential mortgages $ 377 $ 927 $ 285 $ 333 $ 40 $ 48 $ 2,010 Commercial mortgages Current (less than 30 days past due) $ 89 $ 1,301 $ 543 $ — $ — $ 295 $ 2,228 30-89 days past due — — — — — 9 9 Over 90 days past due — — — — — — — Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Residential mortgages Current (less than 30 days past due) $ 795 $ 293 $ 323 $ 50 $ 36 $ 21 $ 1,518 30-89 days past due 5 4 6 1 — — 16 Over 90 days past due 1 23 46 2 — — 72 Total residential mortgages $ 801 $ 320 $ 375 $ 53 $ 36 $ 21 $ 1,606 Commercial mortgages Current (less than 30 days past due) $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 March 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Commercial mortgages LTV Less than 50% $ 4 $ 120 $ 229 $ — $ — $ 285 $ 638 50% to 60% 43 267 192 — — 10 512 60% to 75% 42 914 122 — — — 1,078 75% to 85% — — — — — 9 9 Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 Commercial mortgages DSCR Greater than 1.25x $ 89 $ 1,301 $ 543 $ — $ — $ 265 $ 2,198 1.00x - 1.25x — — — — — 30 30 Less than 1.00x — — — — — 9 9 Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Commercial mortgages LTV Less than 50% $ 120 $ 229 $ — $ 6 $ — $ 313 $ 668 50% to 60% 267 192 — — — 11 470 60% to 75% 914 122 — — — — 1,036 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 Commercial mortgages DSCR Greater than 1.25x $ 1,301 $ 543 $ — $ 4 $ — $ 284 $ 2,132 1.00x - 1.25x — — — 2 — 31 33 Less than 1.00x — — — — — 9 9 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 Non-accrual loans by amortized cost as of March 31, 2022 and December 31, 2021, were as follows (in millions): Amortized cost of loans on non-accrual March 31, 2022 December 31, 2021 Residential mortgage: $ 63 $ 72 Commercial mortgage: — — Total non-accrual loans $ 63 $ 72 Immaterial interest income was recognized on non-accrual financing receivables for the three months ended March 31, 2022 and 2021. It is our policy to cease to accrue interest on loans that are over 90 days delinquent. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes over 90 days delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of March 31, 2022 and December 31, 2021, we had $63 million and $72 million, respectively, of mortgage loans that were over 90 days past due, of which $39 million was in the process of foreclosure for both periods. We will continue to evaluate these policies with regard to the economic challenges for mortgage debtors related to COVID-19. Our ability to initiate foreclosure proceedings may be limited by legislation passed and executive orders issued in response to COVID-19. Allowance for Expected Credit Loss We estimate expected credit losses for our residential 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 unaudited Condensed Consolidated Statements of Earnings. The allowances for our mortgage loan portfolio is summarized as follows (in millions): Three months ended March 31, 2022 Residential Mortgage Commercial Mortgage Total Beginning Balance $ 25 $ 6 $ 31 Provision for loan losses 1 — 1 Ending Balance $ 26 $ 6 $ 32 Three months ended March 31, 2021 Residential Mortgage Commercial Mortgage Total Beginning Balance $ 37 $ 2 $ 39 Provision for loan losses (6) 3 (3) Ending Balance $ 31 $ 5 $ 36 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 and were immaterial as of March 31, 2022 and December 31, 2021. Interest and Investment Income The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows (in millions): Three months ended March 31, 2022 March 31, 2021 Fixed maturity securities, available-for-sale $ 332 $ 307 Equity securities 8 5 Preferred securities 15 14 Mortgage loans 39 23 Invested cash and short-term investments 5 — Limited partnerships 113 80 Tax deferred property exchange income 3 4 Other investments 9 8 Gross investment income 524 441 Investment expense (46) (39) Interest and investment income $ 478 $ 402 Recognized Gains and Losses, net Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows (in millions): Three months ended March 31, 2022 March 31, 2021 Net realized (losses) gains on fixed maturity available-for-sale securities $ (36) $ 40 Net realized/unrealized losses on equity securities (1) (148) (46) Net realized/unrealized losses on preferred securities (2) (91) (10) Realized losses on other invested assets (1) (3) Change in allowance for expected credit losses (4) 10 Derivatives and embedded derivatives: Realized gains on certain derivative instruments 50 60 Unrealized losses on certain derivative instruments (358) (35) Change in fair value of reinsurance related embedded derivatives (3) 122 27 Change in fair value of other derivatives and embedded derivatives (3) — Realized gains (losses) on derivatives and embedded derivatives (189) 52 Recognized gains and losses, net $ (469) $ 43 (1) Includes net valuation losses of $166 million and and $46 million for the three months ended March 31, 2022 and 2021, respectively. (2) Includes net valuation losses of $90 million and $3 million for the three months ended March 21, 2022 and 2021, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Kubera (novated from Kubera to Sommerset effective October 31, 2021) and Aspida Re. The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions): Three months ended March 31, 2022 March 31, 2021 Proceeds $ 1,032 $ 424 Gross gains 3 32 Gross losses (37) (8) Unconsolidated Variable Interest Entities We own investments in VIEs that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. 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 we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated. We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our unaudited Condensed Consolidated Balance Sheets. In addition, we invest in structured investments which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities included in fixed maturity securities available for sale on our unaudited Condensed Consolidated Balance Sheets. Our maximum exposure to loss with respect to these VIEs is limited to the investment carrying amounts reported in our unaudited Condensed Consolidated Balance Sheets for limited partnerships and the amortized costs of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies ). The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in limited partnerships $ 2,675 $ 3,751 $ 2,350 $ 3,496 Fixed maturity securities 12,849 13,591 12,382 12,802 Total unconsolidated VIE investments $ 15,524 $ 17,342 $ 14,732 $ 16,298 Investment in Cannae Holdings, Inc. ("Cannae") Included in equity securities as of March 31, 2022 and December 31, 2021 are 4,775,598 and 5,775,598 shares, respectively, of Cannae common stock (NYSE: CNNE). The fair value of this investment based on quoted market prices is $114 million and $203 million as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022, we sold 1 million shares of CNNE common stock back to Cannae for approximately $24 million in the aggregate. In order to maintain the tax-free treatment of the November 17, 2017 split-off of Cannae from us, we are obligated to dispose of our remaining shares of CNNE common stock by November 17, 2022. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
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/IUL contracts, and reinsurance is as follows (in millions): March 31, 2022 December 31, 2021 Assets: Derivative investments: Call options $ 487 $ 816 Other long-term investments: Other embedded derivatives 30 33 Prepaid expenses and other assets: Reinsurance related embedded derivatives 50 — $ 567 $ 849 Liabilities: Contractholder funds: FIA/ IUL embedded derivatives $ 3,395 $ 3,883 Accounts payable and accrued liabilities: Reinsurance related embedded derivatives 1 73 $ 3,396 $ 3,956 The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Earnings is as follows (in millions): Three Months Ended March 31, 2022 March 31, 2021 Net investment gains (losses): Call options $ (314) $ 22 Futures contracts 3 — Foreign currency forwards 3 4 Other derivatives and embedded derivatives (3) — Reinsurance related embedded derivatives 122 27 Total net investment gains (losses) $ (189) $ 53 Benefits and other changes in policy reserves: FIA/ IUL embedded derivatives $ (488) $ (111) Additional Disclosures FIA/IUL Embedded Derivative and Call Options and Futures We have FIA and IUL 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/IUL embedded derivatives are valued at fair value and included in the liability for contractholder funds in the accompanying unaudited Condensed Consolidated Balance Sheets with changes in fair value included as a component of Benefits and other changes in policy reserves in the unaudited Condensed Consolidated Statements of Earnings. See a description of the fair value methodology used in Note C Fair Value of Financial Instruments . We purchase derivatives consisting of a combination of call options and futures contracts (specifically for FIA contracts) on the applicable market indices to fund the index credits due to FIA/IUL contractholders. The call options are one two three five Other market exposures are hedged periodically depending on market conditions and our risk tolerance. Our FIA/IUL 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 is presented in the following table (in millions): March 31, 2022 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,745 $ 79 $ 39 $ 40 Morgan Stanley */Aa3/A+ 1,679 14 17 — Barclay's Bank A+/A1/A 5,324 161 166 — Canadian Imperial Bank of Commerce AA/Aa2/A+ 3,178 84 93 — Wells Fargo A+/A1/BBB+ 2,535 73 77 — Goldman Sachs A/A2/BBB+ 410 11 11 — Credit Suisse A/A1/A+ 1,289 16 16 — Truist A+/A2/A 1,880 49 53 — Total $ 20,040 $ 487 $ 472 $ 40 December 31, 2021 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,307 $ 128 $ 86 $ 42 Morgan Stanley */Aa3/A+ 2,184 86 92 — Barclay's Bank A+/A1/A 5,197 231 233 — Canadian Imperial Bank of Commerce AA/Aa2/A+ 2,936 147 151 — Wells Fargo A+/A1/BBB+ 2,445 89 90 — Goldman Sachs A/A2/BBB+ 307 10 10 — Credit Suisse A/A1/A+ 1,485 74 75 — Truist A+/A2/A 1,543 51 53 — Total $ 19,404 $ 816 $ 790 $ 42 (1) An * represents credit ratings that were not available. Collateral Agreements We are required to maintain minimum ratings as a matter of routine practice as part of our over-the-counter derivative agreements on ISDA forms. Under some ISDA agreements, we have 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 us or the counterparty would be dependent on the market value of the underlying option contracts. Our current rating does not allow any counterparty the right to terminate ISDA agreements. In certain transactions, both us 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 March 31, 2022 and December 31, 2021 counterparties posted $472 million and $790 million, respectively, of collateral of which $364 million and $576 million, respectively, is included in cash and cash equivalents with an associated payable for this collateral included in accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheet. Accordingly, the maximum amount of loss due to credit risk that we would incur if parties to the call options failed completely to perform according to the terms of the contracts was $40 million at March 31, 2022 and $42 million at December 31, 2021. We are 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. We reinvest 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 unaudited Condensed Consolidated Balance Sheets. We held 309 and 329 futures contracts at March 31, 2022 and December 31, 2021, respectively. The fair value of the futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements). We provide 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 unaudited Condensed Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $3 million at March 31, 2022 and December 31, 2021. Reinsurance Related Embedded Derivatives F&G entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain multi-year guaranteed annuity ("MYGA") and deferred annuity business on a coinsurance funds withheld basis, net of applicable existing reinsurance. Effective October 31, 2021, this agreement was novated from Kubera to Somerset. Additionally, F&G entered into a reinsurance agreement with Aspida Re effective January 1, 2021, to cede a quota share of certain deferred annuity business on a funds withheld basis. Fair value movements in the funds withheld balances associated with these arrangements creates an obligation for F&G to pay Somerset and Aspida Re at a later date, which results in embedded derivatives. These embedded derivatives are considered total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangements. The fair value of the total return swap is based on the change in fair value of the |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
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 B Summary of Reserve for Title Claim Losses for further discussion. 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 that represents our best estimate has been recorded. Our accrual for legal and regulatory matters was $15 million and $12 million as of March 31, 2022 and December 31, 2021, 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”) designated a Special Litigation Committee (the “SLC”) consisting of three 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 gave 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 we should take with respect to the lawsuit. On January 24, 2022, the SLC, acting on behalf of FNF, and the other parties to the lawsuit reached an agreement in principle to settle the action subject to various terms and conditions. On April 1, 2022, the parties entered into a definitive settlement agreement, which was filed with the court. The settlement has been presented to the court for approval, with a hearing scheduled for June 21, 2022, and if approved, is expected to be finalized shortly thereafter. 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 parties have exchanged expert reports, and the matter is scheduled for trial during the second quarter of 2022. 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. F&G Commitments In our F&G segment, we have unfunded investment commitments as of March 31, 2022 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 March 31, 2022 is included below (in millions): March 31, 2022 Asset Type Unconsolidated VIEs: Limited partnerships $ 1,076 Whole loans 513 Fixed maturity securities, ABS 212 Other fixed maturity securities, AFS 101 Commercial mortgage loans 40 Other assets 146 Residential mortgage loans 1 Total $ 2,089 |
Dividends
Dividends | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Dividends | DividendsOn May 10, 2022, our Board of Directors declared cash dividends of $0.44 per share, payable on June 30, 2022, to FNF common shareholders of record as of June 16, 2022. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Summarized financial information concerning our reportable segments is shown in the following tables. As of and for the three months ended March 31, 2022: Title F&G Corporate and Other Total (In millions) Title premiums $ 1,866 $ — $ — $ 1,866 Other revenues 665 594 31 1,290 Revenues from external customers 2,531 594 31 3,156 Interest and investment income, including recognized gains and losses, net (148) 154 3 9 Total revenues 2,383 748 34 3,165 Depreciation and amortization 33 143 6 182 Interest expense — 8 22 30 Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates 249 341 (38) 552 Income tax expense (benefit) 57 105 (7) 155 Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates 192 236 (31) 397 Equity in earnings of unconsolidated affiliates 2 — — 2 Net earnings (loss) from continuing operations $ 194 $ 236 $ (31) $ 399 Assets $ 9,478 $ 49,107 $ 2,272 $ 60,857 Goodwill 2,517 1,756 266 4,539 As of and for the three months ended March 31, 2021: Title F&G Corporate and Other Total (In millions) Title premiums $ 1,804 $ — $ — $ 1,804 Other revenues 745 64 42 851 Revenues from external customers 2,549 64 42 2,655 Interest and investment income, including recognized gains and losses, net (30) 475 — 445 Total revenues 2,519 539 42 3,100 Depreciation and amortization 33 144 6 183 Interest expense — 8 20 28 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 439 356 (38) 757 Income tax expense (benefit) 103 72 (9) 166 Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates 336 284 (29) 591 Equity in earnings (loss) of unconsolidated affiliates 8 — 5 13 Net earnings (loss) from continuing operations $ 344 $ 284 $ (24) $ 604 Assets $ 9,389 $ 40,614 $ 1,486 $ 51,489 Goodwill 2,481 1,751 266 4,498 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 loan sub-servicing, valuations, default services, and home warranty products. • F&G . This segment primarily consists of the operations of our annuities and life insurance related businesses. This segment issues a broad portfolio of annuity and life products, including deferred annuities (fixed indexed and fixed rate annuities), immediate annuities and indexed universal life insurance. This segment also provides funding agreements and pension risk transfer solutions ("PRT"). • 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 | 3 Months Ended |
Mar. 31, 2022 | |
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. Three months ended March 31, 2022 2021 Cash paid for: Interest $ 36 $ 29 Income taxes 9 7 Deferred sales inducements 16 21 Non-cash investing and financing activities: Change in proceeds of sales of investments available for sale receivable in period 81 (9) Change in purchases of investments available for sale payable in period 277 164 Lease liabilities recognized in exchange for lease right-of-use assets 15 5 Remeasurement of lease liabilities 15 13 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue Our revenue consists of: Three months ended March 31, 2022 2021 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (in millions) Direct title insurance premiums Direct title insurance premiums Title $ 767 $ 746 Agency title insurance premiums Agency title insurance premiums Title 1,099 1,058 Life insurance premiums, insurance and investment product fees, and other Escrow, title-related and other fees F&G 594 64 Home warranty Escrow, title-related and other fees Title 34 39 Total revenue from insurance contracts 2,494 1,907 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 265 324 Other title-related fees and income Escrow, title-related and other fees Title 196 205 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 94 90 Real estate technology Escrow, title-related and other fees Corporate and other 38 32 Other Escrow, title-related and other fees Corporate and other (7) 10 Total revenue from contracts with customers 586 661 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 76 87 Interest and investment income Interest and investment income Various 478 402 Recognized gains and losses, net Recognized gains and losses, net Various (469) 43 Total revenues Total revenues $ 3,165 $ 3,100 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 life-contingent PRT, 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. Premium and annuity deposit collections for FIA, fixed rate annuities, immediate annuities and PRT without life contingency, and amounts received for funding agreements are reported in the financial statements as deposit liabilities (i.e., contractholder funds) instead of as sales or revenues. Similarly, cash payments to customers are reported as decreases in the liability for contractholder funds and not as expenses. Sources of revenues for products accounted for as deposit liabilities include net investment income, surrender, cost of insurance and other charges deducted from contractholder funds, and net realized gains (losses) on investments. Components of expenses for products accounted for as deposit liabilities are interest-sensitive and index product benefits (primarily interest credited to account balances or the hedging cost of providing index credits to the policyholder), amortization of DAC, DSI, and VOBA, other operating costs and expenses, and income taxes. 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. 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 along with the investment income of limited partnerships. 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: March 31, 2022 December 31, 2021 (In millions) Trade receivables $ 497 $ 524 Deferred revenue (contract liabilities) 231 144 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 unaudited Condensed Consolidated Balance Sheets. During the three months ended March 31, 2022 and March 31, 2021, we recognized $38 million and $41 million of revenue, respectively, which was included in deferred revenue at the beginning of the respective period. |
Value of Business Acquired, Def
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements | Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements A summary of the changes in the carrying amounts of our VOBA, DAC and DSI intangible assets is as follows (in millions): VOBA DAC DSI Total Balance at January 1, 2022 $ 1,185 $ 761 $ 88 $ 2,034 Deferrals — 154 16 170 Amortization (94) (39) (11) (144) Interest 7 6 — 13 Unlocking (6) (1) 2 (5) Adjustment for net unrealized investment (gains) losses 318 88 21 427 Balance at March 31, 2022 $ 1,410 $ 969 $ 116 $ 2,495 VOBA DAC DSI Total Balance at January 1, 2021 $ 1,466 $ 222 $ 36 $ 1,724 Deferrals — 133 21 154 Amortization (132) (8) (8) (148) Interest 8 2 — 10 Unlocking 1 — — 1 Adjustment for net unrealized investment (gains) losses 132 (5) — 127 Balance at March 31, 2021 $ 1,475 $ 344 $ 49 $ 1,868 Amortization of VO BA, 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 unaudited Condensed Consolidated Statements of Earnings. As of March 31, 2022 and March 31, 2021, the VOBA balances included cumulative adjustments for net unrealized investment gains (losses) of $(86) million and $152 million, respectively, the DAC balances included cumulative adjustments for net unrealized investment gains (losses) of $(49) million and $30 million, respectively, and the DSI balance included net unrealized investment gains (losses) of $(15) million and $4 million, respectively. For the in-force liabilities as of March 31, 2022, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions): Estimated Amortization Expense Fiscal Year 2022 $ (19) 2023 120 2024 157 2025 150 2026 138 Thereafter 778 |
F&G Reinsurance
F&G Reinsurance | 3 Months Ended |
Mar. 31, 2022 | |
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. If the underlying policy being reinsured is an insurance contract, F&G follows reinsurance accounting when there is adequate risk transfer or deposit accounting if there is inadequate risk transfer. If the underlying policy being reinsured is an investment contract, the effects of the agreement are accounted for as a separate investment contract. The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three months ended March 31, 2022 and March 31, 2021 were as follows (in millions): Three months ended Three months ended March 31, 2022 March 31, 2021 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct $ 567 $ 513 $ 44 $ 293 Ceded (32) (305) (33) (319) Net $ 535 $ 208 $ 11 $ (26) 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 three months ended March 31, 2022 and March 31, 2021. F&G did not commute any ceded reinsurance treaties during the three months ended March 31, 2022 and March 31, 2021. 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 reinsurer's credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. As of March 31, 2022 and March 31, 2021, the expected credit loss reserve was $20 million and $21 million, respectively. There were no changes in the expected credit loss reserve during the three months ended March 31, 2022 and March 31, 2021. 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. On January 15, 2021, F&G executed a Funds Withheld Coinsurance Agreement with ASPIDA Life Re Ltd ("Aspida Re"), a Bermuda reinsurer. In accordance with the terms of this agreement, F&G cedes to the reinsurer, on a fifty percent (50%) funds withheld coinsurance basis, certain multiyear guaranteed annuity business written effective January 1, 2021. The effects of this agreement are accounted for as a separate investment contract. F&G has an indemnity reinsurance agreement with Hannover Life Reassurance Company of America (Bermuda) Ltd. ("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 benefit ("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; therefore, deposit accounting is applied. F&G incurred risk charge fees of $5 million during the three months ended March 31, 2022 and March 31, 2021 in relation to this reinsurance agreement. F&G has a reinsurance agreement with Kubera to cede certain FIA statutory reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, F&G cedes a quota share percentage of FIA policies for certain issue years to Kubera. Effective October 31, 2021, this agreement was amended to increase the ceded reserves from approximately $4 billion to approximately $10 billion. As the policies ceded to Kubera are investment contracts, there is no significant insurance risk present and therefore the reinsurance agreement is accounted for as a separate investment contract. F&G incurred risk charge fees of $4 million and $1 million during the three months ended March 31, 2022 and March 31, 2021, respectively, in relation to this reinsurance agreement. Effective May 1, 2020, F&G entered into an indemnity reinsurance agreement with Canada Life Assurance Company United States Branch, a third party reinsurer, to reinsure FIA policies with GMWB. In accordance with the terms of this agreement, F&G cedes a quota share percentage of the net retention of guarantee payments in excess of account value for GMWB. This treaty was subsequently amended effective January 1, 2021 and January 1, 2022, and now covers FIA policies with GMWB issued from January 1, 2020 to December 31, 2023. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP; therefore, deposit accounting is applied. F&G incurred risk charge fees of $1 million and $0 million during the three months ended March 31, 2022 and March 31, 2021, 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”), Aspida Re, and Somerset that could have a material impact on our financial position in the event that any of these reinsurers fails to perform its 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 March 31, 2022. Aspida Re has an A- issuer credit rating from AM Best and a BBB issuer credit rating from Fitch as of March 31, 2022, and the risk of non-performance is further mitigated through the funds withheld arrangement. Somerset has an A- issuer credit rating from AM Best and a BBB+ issuer credit rating from S&P as of March 31, 2022, and the risk of non-performance is further mitigated through the funds withheld arrangement. At March 31, 2022, the net amounts recoverable from Wilton Re, Aspida Re, and Somerset were $1,279 million, $1,103 million, and $727 million, respectively. We monitor 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. We believe that all amounts due from Wilton Re, Aspida Re, and Somerset for periodic treaty settlements are collectible as of March 31, 2022. There have been no other material changes in the reinsurance and the intercompany reinsurance agreements described in our Annual Report on Form 10-K for the year ended December 31, 2021. |
F&G Insurance Subsidiary Financ
F&G Insurance Subsidiary Financial Information and Regulatory Matters | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
F&G Insurance Subsidiary Financial Information and Regulatory Matters | Summary of Reserve for Title Claim Losses A summary of the reserve for title claim losses follows: Three months ended March 31, 2022 2021 (Dollars in millions) Beginning balance $ 1,883 $ 1,623 Change in insurance recoverable (1) 25 Claim loss provision related to: Current year 84 81 Total title claim loss provision 84 81 Claims paid, net of recoupments related to: Current year (1) — Prior years (53) (46) Total title claims paid, net of recoupments (54) (46) Ending balance of claim loss reserve for title insurance $ 1,912 $ 1,683 Provision for title insurance claim losses as a percentage of title insurance premiums 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 through her former company, ANI Development LLC ("ANI"), or other affiliates 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 they were told that under California state law, alcoholic beverage license applicants are required to deposit into 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 following lawsuits are pending in the Superior Court of San Diego County for the State of California and have been set for jury trial on December 2, 2022. 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. On December 13, 2019, a lawsuit styled, Kim Funding, LLC, Kim H. Peterson, Joseph J. Cohen, ABC Funding Strategies, LLC,Payson R. Stevens; Kamaljit K. Kapur and The Payson R. Stevens & Kamaljit Kaur Kapur Trust Dated March 28, 2014 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, as well as the recovery of attorneys fees. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, and others. The Named Companies have reached a conditional settlement with members of ABC Funding Strategies, LLC plaintiffs under confidential terms. 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 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. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, and others. 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. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, and others. On September 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 November 2, 2020, a lawsuit styled, CalPrivate 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 seeks punitive damages and the recovery of attorneys’ fees. The Named Companies have filed a cross-complaint against Ms. Champion-Cain, and others. The following matters pending in the Superior Court of San Diego County for the State of California have conditionally settled under confidential terms: Yuan Yu and Polly Yu v. Chicago Title Co., et al., Ovation Fin. Holdings 2 LLC, Ovation Fund Mgmt. II, LLC, Banc of California, N.A. v. Chicago Title Ins. Co., and Blake E. Allred and Melissa M. Allred v. Chicago Title Co., et al. Additionally, in connection with the alcoholic beverage license scheme, the SEC filed a lawsuit in the United States District Court for the Southern District of California against Ms. Champion-Cain and certain of her affiliated entities asserting claims for securities fraud. A receiver was appointed by the court to preserve the assets of the defendant affiliated entities (the “receivership entities”), pay their debts, operate the businesses and pursue any claims they may have against third-parties. Pursuant to the authority granted to her by the federal court on the SEC action, on January 7, 2022, a lawsuit styled, Krista Freitag v. Chicago Title Co. and Chicago Title Ins. Co. , was filed in San Diego County Superior Court by the receiver on behalf of the receivership entities against the Named Companies. The receiver seeks compensatory, incidental, consequential, and punitive damages, and seeks the recovery of attorneys’ fees. The Named Companies have filed a demurrer seeking dismissal of the receiver’s complaint. The Named Companies also filed a motion in the SEC action seeking permission to sue ANI, via the receiver, to pursue indemnity and other claims against the receivership entities as joint tortfeasors in the state court actions. On February 28, 2022, the Named Companies’ motion was granted permitting them to sue ANI in the pending state court actions. On April 26, 2022, the Named Companies reached a conditional settlement with the receiver, which is subject to court approval. Chicago Title Company has also resolved a number of other pre-suit claims and previously-disclosed lawsuits from both individual and groups of alleged investors under confidential terms. Based on the facts and circumstances of the remaining claims, including the settlements already reached, we have recorded reserves included in our reserve for title claim losses which we believe are adequate to cover losses related to this matter, and we believe that our reserves for title claim losses are adequate. We continually upda te 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. Our U.S. insurance subsidiaries, FGL Insurance, 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, contractholder 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. F&G Cayman Re Ltd and F&G Life Re Ltd (Bermuda) file financial statements with their respective regulators that are based on U.S. GAAP. 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 $135 million and $106 million decrease to statutory capital and surplus at March 31, 2022 and December 31, 2021, respectively. FGL Insurance’s statutory carrying value of Raven Reinsurance Company ("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 $65 million and $85 million at March 31, 2022 and December 31, 2021, respectively. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance. Without such permitted statutory accounting practices, Raven Re’s statutory capital and surplus (deficit) and its risk-based capital would not 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. FGL Insurance’s statutory carrying value of Raven Re was $95 million and $115 million at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. |
Basis of Financial Statements (
Basis of Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | The financial information in this report presented for interim periods is unaudited and includes the accounts of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” the "Company" or “FNF”) prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2021. |
Earnings Per Share | Earnings Per Share Basic earnings per share, as presented on the Condensed Consolidated Statement of Earnings, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such 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 assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted loss per share is equal to basic loss per share as the impact of assumed conversions |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Not Yet Adopted 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. 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 no longer required to be amortized in proportion to premiums, gross profits, or gross margins; instead, 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 will not early adopt this standard. We have identified specific areas that will be impacted by the new guidance. This guidance will bring significant changes to how we account for certain insurance and annuity products within our business. As we continue to make progress on adopting this new guidance, we will be able to provide a better assessment of the specific impacts to our consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this update eliminate the Troubled Debt Restructuring ("TDR") recognition and measurement guidance for creditors and, instead, require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, these amendments require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. The guidance is effective for entities that have adopted ASU 2016-13 Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, though early adoption is permitted. We do not currently expect to early adopt this standard and are in the process of assessing this standard and its impact on our accounting and disclosures. |
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 | 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 life-contingent PRT, 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. Premium and annuity deposit collections for FIA, fixed rate annuities, immediate annuities and PRT without life contingency, and amounts received for funding agreements are reported in the financial statements as deposit liabilities (i.e., contractholder funds) instead of as sales or revenues. Similarly, cash payments to customers are reported as decreases in the liability for contractholder funds and not as expenses. Sources of revenues for products accounted for as deposit liabilities include net investment income, surrender, cost of insurance and other charges deducted from contractholder funds, and net realized gains (losses) on investments. Components of expenses for products accounted for as deposit liabilities are interest-sensitive and index product benefits (primarily interest credited to account balances or the hedging cost of providing index credits to the policyholder), amortization of DAC, DSI, and VOBA, other operating costs and expenses, and income taxes. 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. 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. |
Summary of Reserve for Title _2
Summary of Reserve for Title Claim Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Summary of the Reserve for Claim Losses | A summary of the reserve for title claim losses follows: Three months ended March 31, 2022 2021 (Dollars in millions) Beginning balance $ 1,883 $ 1,623 Change in insurance recoverable (1) 25 Claim loss provision related to: Current year 84 81 Total title claim loss provision 84 81 Claims paid, net of recoupments related to: Current year (1) — Prior years (53) (46) Total title claims paid, net of recoupments (54) (46) Ending balance of claim loss reserve for title insurance $ 1,912 $ 1,683 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Estimated Fair Value of Assets and Liabilities 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): March 31, 2022 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 2,793 $ — $ — $ 2,793 $ 2,793 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,897 4,161 9,058 9,058 Commercial mortgage-backed securities — 3,012 40 3,052 3,052 Corporates 35 14,365 1,141 15,541 15,541 Hybrids 126 723 — 849 849 Municipals — 1,335 37 1,372 1,372 Residential mortgage-backed securities — 761 — 761 761 U.S. Government 587 — — 587 587 Foreign Governments — 241 17 258 258 Short term investments 1,403 324 19 1,746 1,746 Preferred securities 449 833 1 1,283 1,283 Equity securities 1,004 — 10 1,014 1,014 Derivative investments — 487 — 487 487 Reinsurance related embedded derivative, included in other assets — 50 — 50 50 Other long-term investments — — 70 70 70 Total financial assets at fair value $ 6,397 $ 27,028 $ 5,496 $ 38,921 $ 38,921 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,395 3,395 3,395 Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities — 1 — 1 1 Total financial liabilities at fair value $ — $ 1 $ 3,395 $ 3,396 $ 3,396 December 31, 2021 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 4,360 $ — $ — $ 4,360 $ 4,360 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,736 3,959 8,695 8,695 Commercial mortgage-backed securities — 2,944 35 2,979 2,979 Corporates 37 15,322 1,135 16,494 16,494 Hybrids 132 780 — 912 912 Municipals — 1,458 43 1,501 1,501 Residential mortgage-backed securities — 731 — 731 731 U.S. Government 394 — — 394 394 Foreign Governments — 266 18 284 284 Short term investments 168 2 321 491 491 Preferred securities 506 893 2 1,401 1,401 Equity securities 1,206 — 9 1,215 1,215 Derivative investments — 816 — 816 816 Other long-term investments — — 78 78 78 Total financial assets at fair value $ 6,803 $ 27,948 $ 5,600 $ 40,351 $ 40,351 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,883 3,883 3,883 Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities — 73 — 73 73 Total financial liabilities at fair value $ — $ 73 $ 3,883 $ 3,956 $ 3,956 The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. March 31, 2022 (in millions) Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 79 $ — $ 79 $ 79 Commercial mortgage loans — — 2,147 2,147 2,231 Residential mortgage loans — — 1,904 1,904 1,986 Policy loans — — 40 40 40 Other invested assets — — 67 67 67 Company-owned life insurance — — 350 350 350 Trade and notes receivables, net of allowance — — 529 529 529 Total $ — $ 79 $ 5,037 $ 5,116 $ 5,282 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 29,031 $ 29,031 $ 32,903 Debt — 2,929 — 2,929 3,095 Total $ — $ 2,929 $ 29,031 $ 31,960 $ 35,998 December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 72 $ — $ 72 $ 72 Commercial mortgage loans — — 2,265 2,265 2,168 Residential mortgage loans — — 1,549 1,549 1,581 Policy loans — — 39 39 39 Other invested assets — — 57 57 57 Company-owned life insurance — — 333 333 333 Trade and notes receivables, net of allowance — — 557 557 557 Total $ — $ 72 $ 4,800 $ 4,872 $ 4,807 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 27,448 $ 27,448 $ 31,529 Debt — 3,218 — 3,218 3,096 Total $ — $ 3,218 $ 27,448 $ 30,666 $ 34,625 |
Quantitative Information Regarding Significant Unobservable Inputs Used for Recurring Level Three Fair Value Measurements of Financial Instruments | Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of March 31, 2022 and December 31, 2021 are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) March 31, 2022 (in millions) March 31, 2022 Assets Asset-backed securities $ 4,064 Broker-quoted Offered quotes 44.79% - 728.00% (94.48%) Asset-backed securities 97 Third-Party Valuation Offered quotes 86.52% - 103.47% (101.78%) Commercial mortgage-backed securities 23 Broker-quoted Offered quotes 120.24% - 120.24% (120.24%) Commercial mortgage-backed securities 17 Third Party Valuation Offered quotes 77.78% - 92.37% (86.30%) Corporates 456 Broker-quoted Offered quotes 0.00% - 124.44% (94.94%) Corporates 14 Discounted Cash Flow Discount Rate 44.00% - 100.00% (77.00%) Corporates 671 Third-Party Valuation Offered quotes 81.09% - 113.62% (99.17%) Municipals 37 Third-Party Valuation Offered quotes 118.69% - 118.69% (118.69%) Foreign Governments 17 Third-Party Valuation Offered quotes 104.86% - 113.31% (107.50%) Short term investments 19 Third-Party Valuation Offered quotes 94.33% - 95.49% (94.91%) Preferred securities 1 Income-Approach Yield 2.43% Equity securities 2 Black Scholes model Risk Free Rate 1.00% - 1.00% (1.00%) Strike Price $1.50 - $1.50 ($1.50) Volatility 81.00% - 81.00% (81.00%) Dividend Yield 0.00% - 0.00% (0.00%) Equity securities 4 Broker Quoted Offered quotes $50.00 - $55.00 ($52.50) Equity securities 4 Discounted Cash Flow Discount rate 11.10% - 11.10% (11.10%) Market Comparable Company Analysis EBITDA multiple 4.8x - 4.8x (4.8x) Other long-term investments: Available-for-sale embedded derivative 30 Black Scholes model Market value of fund 100.00% Credit Linked Note 19 Broker-quoted Offered quotes 100.00% Investment in affiliate 21 Market Comparable Company Analysis EBITDA multiple 8x-8x Total financial assets at fair value $ 5,496 Liabilities Derivative investments: FIA/ IUL embedded derivatives, included in contractholder funds $ 3,395 Discounted cash flow Market value of option 0.00% - 26.75% (1.74%) Swap rates 0.17% - 2.59% (1.38%) Mortality multiplier 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 70.00% (6.24%) Partial withdrawals 2.00% - 23.26% (2.73%) Non-performance spread 0.49% - 1.23% (1.01%) Option cost 0.00% - 4.97% (1.82%) Total financial liabilities at fair value $ 3,395 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2021 (in millions) December 31, 2021 Assets Asset-backed securities $ 3,844 Broker-quoted Offered quotes 52.56% - 260.70% (97.06%) Asset-backed securities 115 Third-Party Valuation Offered quotes 93.02% - 108.45% (104.95%) Commercial mortgage-backed securities 24 Broker-quoted Offered quotes 126.70% - 126.70% (126.70%) Commercial mortgage-backed securities 11 Third Party Valuation Offered quotes 97.91% - 97.91% (97.91%) Corporates 380 Broker-quoted Offered quotes 0.00% - 109.69% (100.91%) Corporates 741 Third-Party Valuation Offered quotes 85.71% - 119.57% (107.72%) Corporates 14 Discounted Cash Flow Discount Rate 44.00% - 100.00% (62.00%) Municipals 43 Third-Party Valuation Offered quotes 135.09% - 135.09% (135.09%) Foreign Governments 18 Third-Party Valuation Offered quotes 107.23% - 116.44% (110.11%) Short term investments 321 Broker-quoted Offered quotes 100.00% - 100.00% (100.00%) Preferred securities 2 Income-Approach Yield 2.43% Equity securities 3 Broker Quoted Offered quotes $6.23 - $6.23 ($6.23) Equity securities 2 Black Scholes model Risk Free Rate 1.00% -1.00% (1.00%) Strike Price $1.50 - $1.50 ($1.50) Volatility 81.00% - 81.00% (81.00%) Dividend Yield 0.00% - 0.00% (0.00%) Equity securities 4 Discounted Cash Flow Discount rate 12.70% - 12.70% (12.70%) Market Comparable Company Analysis EBITDA multiple 5.9x - 5.9x (5.9x) Other long-term investments: Available-for-sale embedded derivative 34 Black Scholes model Market value of fund 100.00% Credit Linked Note 23 Broker-quoted Offered quotes 100.00% Investment in affiliate 21 Market Comparable Company Analysis EBITDA multiple 8x-8x Total financial assets at fair value $ 5,600 Liabilities Future policy benefits — Discounted cash flow Non-performance spread 0.50% Derivative investments: FIA/ IUL embedded derivatives, included in contractholder funds 3,883 Discounted cash flow Market value of option 0.00% - 38.72% (3.16%) Swap rates 0.05% - 1.94% (1.00%) Mortality multiplier 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 70.00% (6.26%) Partial withdrawals 2.00% - 23.26% (2.72%) Non-performance spread 0.43% - 1.01% (0.68%) Option cost 0.07% - 4.97% (1.83%) Total financial liabilities at fair value $ 3,883 |
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 three months ended March 31, 2022 and 2021. This summary excludes any impact of amortization of value of business acquired (“VOBA”), deferred acquisition cost (“DAC”), and deferred sales inducements (“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. Three months ended March 31, 2022 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ — $ (130) $ 400 $ — $ (152) $ 84 $ 4,161 $ (138) Commercial mortgage-backed securities 35 — (2) — — — 7 40 (2) Corporates 1,135 — (74) 80 — (26) 26 1,141 (73) Municipals 43 — (6) — — — — 37 (5) Residential mortgage-backed securities — — — — — — — — — Foreign Governments 18 — (1) — — — — 17 (1) Short term investments 321 — (1) 20 — — (321) 19 (1) Preferred securities 2 — (1) — — — — 1 (1) Equity securities 9 — — 1 — — — 10 — Other long-term investments: Available-for-sale embedded derivative 34 (4) — — — — — 30 — Investment in affiliate 21 — — — — — — 21 — Credit linked note 23 — (3) — — (1) — 19 — Total Level 3 assets at fair value $ 5,600 $ (4) $ (218) $ 501 $ — $ (179) $ (204) $ 5,496 $ (221) Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,883 (488) — — — — — 3,395 — Total Level 3 liabilities at fair value $ 3,883 $ (488) $ — $ — $ — $ — $ — $ 3,395 $ — (a) The net transfers out of Level 3 during the three months ended March 31, 2022 were exclusively to Level 2. Three months ended March 31, 2021 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 1,350 $ — $ (23) $ 358 $ — $ (92) $ — $ 1,593 $ (4) Commercial mortgage-backed securities 26 — (1) — — — — 25 1 Corporates 1,289 6 (39) 40 (5) (31) (14) 1,246 19 Hybrids 4 — — — — (4) — — — Municipals 43 — (2) — — — — 41 4 Residential mortgage-backed securities 483 — 12 5 — (13) — 487 27 Foreign Governments 17 — — — — — — 17 2 Equity securities 5 1 — 3 — — — 9 — Other long-term investments: Available-for-sale embedded derivative 27 2 — — — — — 29 — Credit linked note 23 — (4) — — — — 19 — Total Level 3 assets at fair value $ 3,267 $ 9 $ (57) $ 406 $ (5) $ (140) $ (14) $ 3,466 $ 49 Liabilities Future policy benefits $ 5 $ — $ — $ — $ — $ (1) $ — $ 4 $ — FIA/IUL embedded derivatives, included in contractholder funds 3,404 (111) — — — — — 3,293 — Total Level 3 liabilities at fair value $ 3,409 $ (111) $ — $ — $ — $ (1) $ — $ 3,297 $ — |
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 three months ended March 31, 2022 and 2021. This summary excludes any impact of amortization of value of business acquired (“VOBA”), deferred acquisition cost (“DAC”), and deferred sales inducements (“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. Three months ended March 31, 2022 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ — $ (130) $ 400 $ — $ (152) $ 84 $ 4,161 $ (138) Commercial mortgage-backed securities 35 — (2) — — — 7 40 (2) Corporates 1,135 — (74) 80 — (26) 26 1,141 (73) Municipals 43 — (6) — — — — 37 (5) Residential mortgage-backed securities — — — — — — — — — Foreign Governments 18 — (1) — — — — 17 (1) Short term investments 321 — (1) 20 — — (321) 19 (1) Preferred securities 2 — (1) — — — — 1 (1) Equity securities 9 — — 1 — — — 10 — Other long-term investments: Available-for-sale embedded derivative 34 (4) — — — — — 30 — Investment in affiliate 21 — — — — — — 21 — Credit linked note 23 — (3) — — (1) — 19 — Total Level 3 assets at fair value $ 5,600 $ (4) $ (218) $ 501 $ — $ (179) $ (204) $ 5,496 $ (221) Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,883 (488) — — — — — 3,395 — Total Level 3 liabilities at fair value $ 3,883 $ (488) $ — $ — $ — $ — $ — $ 3,395 $ — (a) The net transfers out of Level 3 during the three months ended March 31, 2022 were exclusively to Level 2. Three months ended March 31, 2021 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 1,350 $ — $ (23) $ 358 $ — $ (92) $ — $ 1,593 $ (4) Commercial mortgage-backed securities 26 — (1) — — — — 25 1 Corporates 1,289 6 (39) 40 (5) (31) (14) 1,246 19 Hybrids 4 — — — — (4) — — — Municipals 43 — (2) — — — — 41 4 Residential mortgage-backed securities 483 — 12 5 — (13) — 487 27 Foreign Governments 17 — — — — — — 17 2 Equity securities 5 1 — 3 — — — 9 — Other long-term investments: Available-for-sale embedded derivative 27 2 — — — — — 29 — Credit linked note 23 — (4) — — — — 19 — Total Level 3 assets at fair value $ 3,267 $ 9 $ (57) $ 406 $ (5) $ (140) $ (14) $ 3,466 $ 49 Liabilities Future policy benefits $ 5 $ — $ — $ — $ — $ (1) $ — $ 4 $ — FIA/IUL embedded derivatives, included in contractholder funds 3,404 (111) — — — — — 3,293 — Total Level 3 liabilities at fair value $ 3,409 $ (111) $ — $ — $ — $ (1) $ — $ 3,297 $ — |
Schedule of Net Asset Value | 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 net asset value ("NAV") is used as a practical expedient in determining fair value: Carrying Amount March 31, 2022 December 31, 2021 Investments in unconsolidated affiliates $ 153 $ 136 Equity securities (NAV) 47 48 Investments in unconsolidated affiliates (a) 2,696 2,350 $ 2,896 $ 2,534 (a) The fair value of these investments using the NAV practical expedient and their carrying amount are generally equal. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Consolidated Investments | The Company’s consolidated investments at March 31, 2022 and December 31, 2021 are summarized as follows (in millions): March 31, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 9,137 $ (1) $ 129 $ (207) $ 9,058 $ 9,058 Commercial mortgage-backed securities 2,951 (2) 170 (67) 3,052 3,052 Corporates 16,480 (3) 188 (1,124) 15,541 15,541 Hybrids 832 — 31 (14) 849 849 Municipals 1,444 — 17 (89) 1,372 1,372 Residential mortgage-backed securities 801 (5) 4 (39) 761 761 U.S. Government 594 — 3 (10) 587 587 Foreign Governments 269 — 3 (14) 258 258 Total available-for-sale securities $ 32,508 $ (11) $ 545 $ (1,564) $ 31,478 $ 31,478 December 31, 2021 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 8,516 $ (3) $ 220 $ (38) $ 8,695 $ 8,695 Commercial mortgage-backed/asset-backed securities 2,684 (2) 308 (11) 2,979 2,979 Corporates 15,822 — 830 (158) 16,494 16,494 Hybrids 838 — 74 — 912 912 Municipals 1,445 — 67 (11) 1,501 1,501 Residential mortgage-backed securities 731 (3) 7 (4) 731 731 U.S. Government 393 — 3 (2) 394 394 Foreign Governments 276 — 9 (1) 284 284 Total available-for-sale securities $ 30,705 $ (8) $ 1,518 $ (225) $ 31,990 $ 31,990 |
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. March 31, 2022 December 31, 2021 (in millions) (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 439 $ 444 $ 426 $ 431 Due after one year through five years 3,320 3,249 2,998 3,051 Due after five years through ten years 2,378 2,295 2,389 2,458 Due after ten years 13,456 12,590 12,930 13,608 Subtotal 19,593 18,578 18,743 19,548 Other securities which provide for periodic payments: Asset-backed securities 9,137 9,058 8,516 8,695 Commercial mortgage-backed securities 2,951 3,052 2,684 2,979 Structured hybrids 26 29 31 37 Residential mortgage-backed securities 801 761 731 731 Subtotal 12,915 12,900 11,962 12,442 Total fixed maturity available-for-sale securities $ 32,508 $ 31,478 $ 30,705 $ 31,990 |
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 AFS securities aggregated by investment category were as follows for the three months ended March 31, 2022 and 2021 (in millions): Three Months Ended March 31, 2022 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 Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ (3) $ — $ — $ — $ 2 $ — $ — — $ (1) Commercial mortgage-backed securities (2) — — — — — — — (2) Corporates — (3) — — — — — — (3) Residential mortgage-backed securities (3) — — (2) — — — — (5) Total available-for-sale securities $ (8) $ (3) $ — $ (2) $ 2 $ — $ — $ — $ (11) Three Months Ended March 31, 2021 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 Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Commercial mortgage-backed securities $ — $ (1) $ — $ — $ — $ — $ — $ — $ (1) Corporates (16) — — 7 — — 3 3 $ (3) Residential mortgage-backed securities (3) — — — — — — — $ (3) Total available-for-sale securities $ (19) $ (1) $ — $ 7 $ — $ — $ 3 $ 3 $ (7) (1) Purchased credit deteriorated financial assets ("PCD") |
Fair Value and Gross Unrealized Losses of Available-for-sale Securities | The fair value and gross unrealized losses of AFS 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 March 31, 2022 and December 31, 2021 were as follows (dollars in millions): March 31, 2022 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 $ 5,910 $ (179) $ 348 $ (28) $ 6,258 $ (207) Commercial mortgage-backed securities 1,205 (62) 44 (5) 1,249 (67) Corporates 10,103 (817) 1,613 (307) 11,716 (1,124) Hybrids 407 (14) 2 — 409 (14) Municipals 954 (72) 131 (17) 1,085 (89) Residential mortgage-backed securities 609 (37) 19 (2) 628 (39) U.S. Government 327 (9) 30 (1) 357 (10) Foreign Government 152 (11) 12 (3) 164 (14) Total available-for-sale securities $ 19,667 $ (1,201) $ 2,199 $ (363) $ 21,866 $ (1,564) Total number of available-for-sale securities in an unrealized loss position less than twelve months 3,321 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 223 Total number of available-for-sale securities in an unrealized loss position 3,544 December 31, 2021 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 $ 4,410 $ (31) $ 146 $ (7) $ 4,556 $ (38) Commercial mortgage-backed securities 603 (11) 1 — 604 (11) Corporates 5,391 (132) 394 (26) 5,785 (158) Hybrids 3 — — — 3 — Municipals 410 (5) 85 (6) 495 (11) Residential mortgage-backed securities 325 (3) 11 (1) 336 (4) U.S. Government 219 (2) 4 — 223 (2) Foreign Government 82 (1) 5 — 87 (1) Total available-for-sale securities $ 11,443 $ (185) $ 646 $ (40) $ 12,089 $ (225) Total number of available-for-sale securities in an unrealized loss position less than twelve months 2,056 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 68 Total number of available-for-sale securities in an unrealized loss position 2,124 |
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): March 31, 2022 December 31, 2021 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel $ 19 1 % $ 19 1 % Industrial - General 486 22 % 497 23 % Mixed Use 12 1 % 13 1 % Multifamily 979 43 % 894 41 % Office 342 15 % 343 16 % Retail 108 5 % 121 6 % Student Housing 83 4 % 83 4 % Other 208 9 % 204 8 % Total commercial mortgage loans, gross of valuation allowance $ 2,237 100 % $ 2,174 100 % Allowance for expected credit loss (6) (6) Total commercial mortgage loans $ 2,231 $ 2,168 U.S. Region: East North Central $ 134 6 % $ 137 6 % East South Central 76 3 % 79 4 % Middle Atlantic 293 13 % 293 13 % Mountain 289 13 % 236 11 % New England 149 7 % 149 7 % Pacific 648 29 % 649 30 % South Atlantic 492 22 % 459 21 % West North Central 4 — % 12 1 % West South Central 152 7 % 160 7 % Total commercial mortgage loans, gross of valuation allowance $ 2,237 100 % $ 2,174 100 % Allowance for expected credit loss (6) (6) Total commercial mortgage loans $ 2,231 $ 2,168 |
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 March 31, 2022 and December 31, 2021 (dollars in millions) : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 March 31, 2022 LTV Ratios: Less than 50% $ 608 $ 21 $ 9 $ 638 29 % $ 631 29 % 50% to 60% 512 — — 512 23 % 494 23 % 60% to 75% 1,078 — — 1,078 48 % 1,016 47 % 75% to 85% $ — $ 9 $ — $ 9 1 % 6 1 % Commercial mortgage loans $ 2,198 $ 30 $ 9 $ 2,237 100 % $ 2,147 100 % December 31, 2021 LTV Ratios: Less than 50% $ 626 $ 33 $ 9 $ 668 31 % $ 745 33 % 50% to 60% 470 — — 470 22 % 481 21 % 60% to 75% 1,036 — — 1,036 47 % 1,039 46 % Commercial mortgage loans $ 2,132 $ 33 $ 9 $ 2,174 100 % $ 2,265 100 % |
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): March 31, 2022 U.S. State: Gross Carrying Value % of Total Florida $ 288 14 % Texas 218 11 % New Jersey 170 8 % California 141 7 % Pennsylvania 134 7 % New York 131 7 % Georgia 115 6 % All Other States (1) 813 40 % Total residential mortgage loans $ 2,010 100 % (1) The individual concentration of each state is equal to or less than 5% as of March 31, 2022. December 31, 2021 U.S. State: Gross Carrying Value % of Total Florida $ 234 15 % Texas 170 10 % New Jersey 153 10 % All other states (1) 1,047 65 % Total residential mortgage loans $ 1,604 100 % (1) The individual concentration of each state is less than 9% as of December 31, 2021. |
Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming | The credit quality of RMLs as of March 31, 2022 and December 31, 2021, was as follows (dollars in millions): March 31, 2022 December 31, 2021 Performance indicators: Carrying Value % of Total Carrying Value % of Total Performing $ 1,947 97 % $ 1,533 95 % Non-performing 65 3 % 73 5 % Total residential mortgage loans, gross of valuation allowance $ 2,012 100 % $ 1,606 100 % Allowance for expected loan loss (26) — % (25) — % Total residential mortgage loans $ 1,986 100 % $ 1,581 100 % |
Loans Segregated by Risk Rating Exposure | Loans segregated by risk rating exposure as of March 31, 2022 and December 31, 2021, were as follows (in millions): March 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Residential mortgages Current (less than 30 days past due) $ 377 $ 916 $ 264 $ 276 $ 38 $ 48 $ 1,919 30-89 days past due — 10 6 12 — — 28 Over 90 days past due — 1 15 45 2 — 63 Total residential mortgages $ 377 $ 927 $ 285 $ 333 $ 40 $ 48 $ 2,010 Commercial mortgages Current (less than 30 days past due) $ 89 $ 1,301 $ 543 $ — $ — $ 295 $ 2,228 30-89 days past due — — — — — 9 9 Over 90 days past due — — — — — — — Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Residential mortgages Current (less than 30 days past due) $ 795 $ 293 $ 323 $ 50 $ 36 $ 21 $ 1,518 30-89 days past due 5 4 6 1 — — 16 Over 90 days past due 1 23 46 2 — — 72 Total residential mortgages $ 801 $ 320 $ 375 $ 53 $ 36 $ 21 $ 1,606 Commercial mortgages Current (less than 30 days past due) $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 March 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Commercial mortgages LTV Less than 50% $ 4 $ 120 $ 229 $ — $ — $ 285 $ 638 50% to 60% 43 267 192 — — 10 512 60% to 75% 42 914 122 — — — 1,078 75% to 85% — — — — — 9 9 Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 Commercial mortgages DSCR Greater than 1.25x $ 89 $ 1,301 $ 543 $ — $ — $ 265 $ 2,198 1.00x - 1.25x — — — — — 30 30 Less than 1.00x — — — — — 9 9 Total commercial mortgages $ 89 $ 1,301 $ 543 $ — $ — $ 304 $ 2,237 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Commercial mortgages LTV Less than 50% $ 120 $ 229 $ — $ 6 $ — $ 313 $ 668 50% to 60% 267 192 — — — 11 470 60% to 75% 914 122 — — — — 1,036 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 Commercial mortgages DSCR Greater than 1.25x $ 1,301 $ 543 $ — $ 4 $ — $ 284 $ 2,132 1.00x - 1.25x — — — 2 — 31 33 Less than 1.00x — — — — — 9 9 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 |
Financing Receivable, Nonaccrual | Non-accrual loans by amortized cost as of March 31, 2022 and December 31, 2021, were as follows (in millions): Amortized cost of loans on non-accrual March 31, 2022 December 31, 2021 Residential mortgage: $ 63 $ 72 Commercial mortgage: — — Total non-accrual loans $ 63 $ 72 |
Allowance for Expected Credit Losses on Loans | Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. The allowances for our mortgage loan portfolio is summarized as follows (in millions): Three months ended March 31, 2022 Residential Mortgage Commercial Mortgage Total Beginning Balance $ 25 $ 6 $ 31 Provision for loan losses 1 — 1 Ending Balance $ 26 $ 6 $ 32 Three months ended March 31, 2021 Residential Mortgage Commercial Mortgage Total Beginning Balance $ 37 $ 2 $ 39 Provision for loan losses (6) 3 (3) Ending Balance $ 31 $ 5 $ 36 |
Schedule of Sources of Net Investment Income Reported | The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows (in millions): Three months ended March 31, 2022 March 31, 2021 Fixed maturity securities, available-for-sale $ 332 $ 307 Equity securities 8 5 Preferred securities 15 14 Mortgage loans 39 23 Invested cash and short-term investments 5 — Limited partnerships 113 80 Tax deferred property exchange income 3 4 Other investments 9 8 Gross investment income 524 441 Investment expense (46) (39) Interest and investment income $ 478 $ 402 Recognized Gains and Losses, net Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows (in millions): Three months ended March 31, 2022 March 31, 2021 Net realized (losses) gains on fixed maturity available-for-sale securities $ (36) $ 40 Net realized/unrealized losses on equity securities (1) (148) (46) Net realized/unrealized losses on preferred securities (2) (91) (10) Realized losses on other invested assets (1) (3) Change in allowance for expected credit losses (4) 10 Derivatives and embedded derivatives: Realized gains on certain derivative instruments 50 60 Unrealized losses on certain derivative instruments (358) (35) Change in fair value of reinsurance related embedded derivatives (3) 122 27 Change in fair value of other derivatives and embedded derivatives (3) — Realized gains (losses) on derivatives and embedded derivatives (189) 52 Recognized gains and losses, net $ (469) $ 43 (1) Includes net valuation losses of $166 million and and $46 million for the three months ended March 31, 2022 and 2021, respectively. (2) Includes net valuation losses of $90 million and $3 million for the three months ended March 21, 2022 and 2021, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Kubera (novated from Kubera to Sommerset effective October 31, 2021) and Aspida Re. |
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): Three months ended March 31, 2022 March 31, 2021 Proceeds $ 1,032 $ 424 Gross gains 3 32 Gross losses (37) (8) |
Schedule of Carrying Value and Maximum Loss Exposure, Unconsolidated VIEs | The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in limited partnerships $ 2,675 $ 3,751 $ 2,350 $ 3,496 Fixed maturity securities 12,849 13,591 12,382 12,802 Total unconsolidated VIE investments $ 15,524 $ 17,342 $ 14,732 $ 16,298 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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/IUL contracts, and reinsurance is as follows (in millions): March 31, 2022 December 31, 2021 Assets: Derivative investments: Call options $ 487 $ 816 Other long-term investments: Other embedded derivatives 30 33 Prepaid expenses and other assets: Reinsurance related embedded derivatives 50 — $ 567 $ 849 Liabilities: Contractholder funds: FIA/ IUL embedded derivatives $ 3,395 $ 3,883 Accounts payable and accrued liabilities: Reinsurance related embedded derivatives 1 73 $ 3,396 $ 3,956 |
Change in Fair Value of Derivative Instruments | The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Earnings is as follows (in millions): Three Months Ended March 31, 2022 March 31, 2021 Net investment gains (losses): Call options $ (314) $ 22 Futures contracts 3 — Foreign currency forwards 3 4 Other derivatives and embedded derivatives (3) — Reinsurance related embedded derivatives 122 27 Total net investment gains (losses) $ (189) $ 53 Benefits and other changes in policy reserves: FIA/ IUL embedded derivatives $ (488) $ (111) |
Exposure to Credit Loss on Call Options Held | Information regarding our exposure to credit loss on the call options we hold is presented in the following table (in millions): March 31, 2022 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,745 $ 79 $ 39 $ 40 Morgan Stanley */Aa3/A+ 1,679 14 17 — Barclay's Bank A+/A1/A 5,324 161 166 — Canadian Imperial Bank of Commerce AA/Aa2/A+ 3,178 84 93 — Wells Fargo A+/A1/BBB+ 2,535 73 77 — Goldman Sachs A/A2/BBB+ 410 11 11 — Credit Suisse A/A1/A+ 1,289 16 16 — Truist A+/A2/A 1,880 49 53 — Total $ 20,040 $ 487 $ 472 $ 40 December 31, 2021 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,307 $ 128 $ 86 $ 42 Morgan Stanley */Aa3/A+ 2,184 86 92 — Barclay's Bank A+/A1/A 5,197 231 233 — Canadian Imperial Bank of Commerce AA/Aa2/A+ 2,936 147 151 — Wells Fargo A+/A1/BBB+ 2,445 89 90 — Goldman Sachs A/A2/BBB+ 307 10 10 — Credit Suisse A/A1/A+ 1,485 74 75 — Truist A+/A2/A 1,543 51 53 — Total $ 19,404 $ 816 $ 790 $ 42 (1) An * represents credit ratings that were not available. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | A summary of unfunded commitments by invested asset class as of March 31, 2022 is included below (in millions): March 31, 2022 Asset Type Unconsolidated VIEs: Limited partnerships $ 1,076 Whole loans 513 Fixed maturity securities, ABS 212 Other fixed maturity securities, AFS 101 Commercial mortgage loans 40 Other assets 146 Residential mortgage loans 1 Total $ 2,089 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Summarized financial information concerning our reportable segments is shown in the following tables. As of and for the three months ended March 31, 2022: Title F&G Corporate and Other Total (In millions) Title premiums $ 1,866 $ — $ — $ 1,866 Other revenues 665 594 31 1,290 Revenues from external customers 2,531 594 31 3,156 Interest and investment income, including recognized gains and losses, net (148) 154 3 9 Total revenues 2,383 748 34 3,165 Depreciation and amortization 33 143 6 182 Interest expense — 8 22 30 Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates 249 341 (38) 552 Income tax expense (benefit) 57 105 (7) 155 Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates 192 236 (31) 397 Equity in earnings of unconsolidated affiliates 2 — — 2 Net earnings (loss) from continuing operations $ 194 $ 236 $ (31) $ 399 Assets $ 9,478 $ 49,107 $ 2,272 $ 60,857 Goodwill 2,517 1,756 266 4,539 As of and for the three months ended March 31, 2021: Title F&G Corporate and Other Total (In millions) Title premiums $ 1,804 $ — $ — $ 1,804 Other revenues 745 64 42 851 Revenues from external customers 2,549 64 42 2,655 Interest and investment income, including recognized gains and losses, net (30) 475 — 445 Total revenues 2,519 539 42 3,100 Depreciation and amortization 33 144 6 183 Interest expense — 8 20 28 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 439 356 (38) 757 Income tax expense (benefit) 103 72 (9) 166 Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates 336 284 (29) 591 Equity in earnings (loss) of unconsolidated affiliates 8 — 5 13 Net earnings (loss) from continuing operations $ 344 $ 284 $ (24) $ 604 Assets $ 9,389 $ 40,614 $ 1,486 $ 51,489 Goodwill 2,481 1,751 266 4,498 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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. Three months ended March 31, 2022 2021 Cash paid for: Interest $ 36 $ 29 Income taxes 9 7 Deferred sales inducements 16 21 Non-cash investing and financing activities: Change in proceeds of sales of investments available for sale receivable in period 81 (9) Change in purchases of investments available for sale payable in period 277 164 Lease liabilities recognized in exchange for lease right-of-use assets 15 5 Remeasurement of lease liabilities 15 13 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenue consists of: Three months ended March 31, 2022 2021 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (in millions) Direct title insurance premiums Direct title insurance premiums Title $ 767 $ 746 Agency title insurance premiums Agency title insurance premiums Title 1,099 1,058 Life insurance premiums, insurance and investment product fees, and other Escrow, title-related and other fees F&G 594 64 Home warranty Escrow, title-related and other fees Title 34 39 Total revenue from insurance contracts 2,494 1,907 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 265 324 Other title-related fees and income Escrow, title-related and other fees Title 196 205 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 94 90 Real estate technology Escrow, title-related and other fees Corporate and other 38 32 Other Escrow, title-related and other fees Corporate and other (7) 10 Total revenue from contracts with customers 586 661 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 76 87 Interest and investment income Interest and investment income Various 478 402 Recognized gains and losses, net Recognized gains and losses, net Various (469) 43 Total revenues Total revenues $ 3,165 $ 3,100 |
Information about Trade Receivables and Deferred Revenue | The following table provides information about trade receivables and deferred revenue: March 31, 2022 December 31, 2021 (In millions) Trade receivables $ 497 $ 524 Deferred revenue (contract liabilities) 231 144 |
Value of Business Acquired, D_2
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amounts of Intangible Assets, VOBA and DAC DSI | A summary of the changes in the carrying amounts of our VOBA, DAC and DSI intangible assets is as follows (in millions): VOBA DAC DSI Total Balance at January 1, 2022 $ 1,185 $ 761 $ 88 $ 2,034 Deferrals — 154 16 170 Amortization (94) (39) (11) (144) Interest 7 6 — 13 Unlocking (6) (1) 2 (5) Adjustment for net unrealized investment (gains) losses 318 88 21 427 Balance at March 31, 2022 $ 1,410 $ 969 $ 116 $ 2,495 VOBA DAC DSI Total Balance at January 1, 2021 $ 1,466 $ 222 $ 36 $ 1,724 Deferrals — 133 21 154 Amortization (132) (8) (8) (148) Interest 8 2 — 10 Unlocking 1 — — 1 Adjustment for net unrealized investment (gains) losses 132 (5) — 127 Balance at March 31, 2021 $ 1,475 $ 344 $ 49 $ 1,868 |
Estimated Amortization Expense for VOBA in Future Fiscal Periods | For the in-force liabilities as of March 31, 2022, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions): Estimated Amortization Expense Fiscal Year 2022 $ (19) 2023 120 2024 157 2025 150 2026 138 Thereafter 778 |
F&G Reinsurance (Tables)
F&G Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes | The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three months ended March 31, 2022 and March 31, 2021 were as follows (in millions): Three months ended Three months ended March 31, 2022 March 31, 2021 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct $ 567 $ 513 $ 44 $ 293 Ceded (32) (305) (33) (319) Net $ 535 $ 208 $ 11 $ (26) |
Basis of Financial Statements -
Basis of Financial Statements - Recent Developments (Details) - F&G - Fidelity National Financial Inc. | Dec. 31, 2022 | Mar. 14, 2022 |
Business Acquisition [Line Items] | ||
Dividend to shareholders, pro rata percentage of common stock | 15.00% | |
Forecast | Subsequent Event | ||
Business Acquisition [Line Items] | ||
Ownership percentage by parent | 85.00% |
Basis of Financial Statements_2
Basis of Financial Statements - Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Income tax expense | $ 155 | $ 166 |
Income tax expense as percentage of earnings before income taxes, percent | 28.00% | 22.00% |
Basis of Financial Statements_3
Basis of Financial Statements - Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Antidilutive securities excluded from computation of EPS, less than (in shares) | 1 | 1 |
Summary of Reserve for Title _3
Summary of Reserve for Title Claim Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Change in insurance recoverable | $ 12 | $ 38 |
Title | ||
Loss Contingencies [Line Items] | ||
Beginning balance | 1,883 | 1,623 |
Change in insurance recoverable | (1) | 25 |
Claim loss provision related to: | ||
Current year | 84 | 81 |
Total title claim loss provision | 84 | 81 |
Claims paid, net of recoupments related to: | ||
Current year | (1) | 0 |
Prior years | (53) | (46) |
Total title claims paid, net of recoupments | (54) | (46) |
Ending balance of claim loss reserve for title insurance | $ 1,912 | $ 1,683 |
Provision for title insurance claim losses as a percentage of title insurance premiums | 4.50% | 4.50% |
Summary of Reserve for Title _4
Summary of Reserve for Title Claim Losses - Narrative (Details) - Pending Litigation - USD ($) $ in Millions | Nov. 02, 2020 | Sep. 03, 2020 | Jul. 07, 2020 | Jun. 29, 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 | |||||
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 | |||||
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 | |||||
CalPrivate Bank v. Chicago Title Co. and Chicago Title Ins. Co. | ||||||
Loss Contingencies [Line Items] | ||||||
Plaintiffs claim losses amount | $ 12 |
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 | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | $ 31,478 | $ 31,990 | ||
Derivative investments | 487 | 816 | ||
Total financial assets at fair value | 5,496 | 5,600 | ||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 5,496 | $ 3,466 | 5,600 | $ 3,267 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (4) | 9 | ||
Assets, Total Gains (Losses) Included in AOCI | (218) | (57) | ||
Assets, Purchases | 501 | 406 | ||
Assets, Sales | 0 | (5) | ||
Assets, Settlements | (179) | (140) | ||
Assets, Net transfer In (Out) of Level 3 | (204) | (14) | ||
Change in Unrealized Gains (Losses) Incl in OCI | (221) | 49 | ||
Level 1 | ||||
Assets | ||||
Cash and cash equivalents | 2,793 | 4,360 | ||
Short term investments | 1,403 | 168 | ||
Derivative investments | 0 | 0 | ||
Total financial assets at fair value | 6,397 | 6,803 | ||
Derivatives: | ||||
Total financial liabilities at fair value | 0 | 0 | ||
Level 2 | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short term investments | 324 | 2 | ||
Derivative investments | 487 | 816 | ||
Total financial assets at fair value | 27,028 | 27,948 | ||
Derivatives: | ||||
Total financial liabilities at fair value | 1 | 73 | ||
Level 3 | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short term investments | 19 | 321 | ||
Derivative investments | 0 | 0 | ||
Total financial assets at fair value | 5,496 | 5,600 | ||
Derivatives: | ||||
Total financial liabilities at fair value | 3,395 | 3,883 | ||
Fair Value | ||||
Assets | ||||
Cash and cash equivalents | 2,793 | 4,360 | ||
Short term investments | 1,746 | 491 | ||
Derivative investments | 487 | 816 | ||
Total financial assets at fair value | 38,921 | 40,351 | ||
Derivatives: | ||||
Total financial liabilities at fair value | 3,396 | 3,956 | ||
Carrying Value | ||||
Assets | ||||
Cash and cash equivalents | 2,793 | 4,360 | ||
Short term investments | 1,746 | 491 | ||
Derivative investments | 487 | 816 | ||
Total financial assets at fair value | 38,921 | 40,351 | ||
Derivatives: | ||||
Total financial liabilities at fair value | 3,396 | 3,956 | ||
Reinsurance related embedded derivative, included in other assets | Level 1 | ||||
Assets | ||||
Derivative investments | 0 | |||
Reinsurance related embedded derivative, included in other assets | Level 2 | ||||
Assets | ||||
Derivative investments | 50 | |||
Reinsurance related embedded derivative, included in other assets | Level 3 | ||||
Assets | ||||
Derivative investments | 0 | |||
Reinsurance related embedded derivative, included in other assets | Fair Value | ||||
Assets | ||||
Derivative investments | 50 | |||
Reinsurance related embedded derivative, included in other assets | Carrying Value | ||||
Assets | ||||
Derivative investments | 50 | |||
FIA/ IUL embedded derivatives, included in contractholder funds | Level 1 | ||||
Derivatives: | ||||
Derivative liability | 0 | 0 | ||
FIA/ IUL embedded derivatives, included in contractholder funds | Level 2 | ||||
Derivatives: | ||||
Derivative liability | 0 | 0 | ||
FIA/ IUL embedded derivatives, included in contractholder funds | Level 3 | ||||
Derivatives: | ||||
Derivative liability | 3,395 | 3,883 | ||
FIA/ IUL embedded derivatives, included in contractholder funds | Fair Value | ||||
Derivatives: | ||||
Derivative liability | 3,395 | 3,883 | ||
FIA/ IUL embedded derivatives, included in contractholder funds | Carrying Value | ||||
Derivatives: | ||||
Derivative liability | 3,395 | 3,883 | ||
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 1 | ||||
Derivatives: | ||||
Derivative liability | 0 | 0 | ||
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 2 | ||||
Derivatives: | ||||
Derivative liability | 1 | 73 | ||
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 3 | ||||
Derivatives: | ||||
Derivative liability | 0 | 0 | ||
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Fair Value | ||||
Derivatives: | ||||
Derivative liability | 1 | 73 | ||
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Carrying Value | ||||
Derivatives: | ||||
Derivative liability | 1 | 73 | ||
Asset-backed securities | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 9,058 | 8,695 | ||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 4,161 | 1,593 | 3,959 | 1,350 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (130) | (23) | ||
Assets, Purchases | 400 | 358 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | (152) | (92) | ||
Assets, Net transfer In (Out) of Level 3 | 84 | 0 | ||
Change in Unrealized Gains (Losses) Incl in OCI | (138) | (4) | ||
Asset-backed securities | Level 1 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
Asset-backed securities | Level 2 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 4,897 | 4,736 | ||
Asset-backed securities | Level 3 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 4,161 | 3,959 | ||
Asset-backed securities | Fair Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 9,058 | 8,695 | ||
Asset-backed securities | Carrying Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 9,058 | 8,695 | ||
Commercial mortgage-backed securities | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 3,052 | 2,979 | ||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 40 | 25 | 35 | 26 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (2) | (1) | ||
Assets, Purchases | 0 | 0 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | 0 | 0 | ||
Assets, Net transfer In (Out) of Level 3 | 7 | 0 | ||
Change in Unrealized Gains (Losses) Incl in OCI | (2) | 1 | ||
Commercial mortgage-backed securities | Level 1 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
Commercial mortgage-backed securities | Level 2 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 3,012 | 2,944 | ||
Commercial mortgage-backed securities | Level 3 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 40 | 35 | ||
Commercial mortgage-backed securities | Fair Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 3,052 | 2,979 | ||
Commercial mortgage-backed securities | Carrying Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 3,052 | 2,979 | ||
Corporates | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 15,541 | 16,494 | ||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 1,141 | 1,246 | 1,135 | 1,289 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 6 | ||
Assets, Total Gains (Losses) Included in AOCI | (74) | (39) | ||
Assets, Purchases | 80 | 40 | ||
Assets, Sales | 0 | (5) | ||
Assets, Settlements | (26) | (31) | ||
Assets, Net transfer In (Out) of Level 3 | 26 | (14) | ||
Change in Unrealized Gains (Losses) Incl in OCI | (73) | 19 | ||
Corporates | Level 1 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 35 | 37 | ||
Corporates | Level 2 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 14,365 | 15,322 | ||
Corporates | Level 3 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 1,141 | 1,135 | ||
Corporates | Fair Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 15,541 | 16,494 | ||
Corporates | Carrying Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 15,541 | 16,494 | ||
Hybrids | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 849 | 912 | ||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 4 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | |||
Assets, Total Gains (Losses) Included in AOCI | 0 | |||
Assets, Purchases | 0 | |||
Assets, Sales | 0 | |||
Assets, Settlements | (4) | |||
Assets, Net transfer In (Out) of Level 3 | 0 | |||
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |||
Hybrids | Level 1 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 126 | 132 | ||
Hybrids | Level 2 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 723 | 780 | ||
Hybrids | Level 3 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
Hybrids | Fair Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 849 | 912 | ||
Hybrids | Carrying Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 849 | 912 | ||
Municipals | ||||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 37 | 41 | 43 | 43 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (6) | (2) | ||
Assets, Purchases | 0 | 0 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | 0 | 0 | ||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Change in Unrealized Gains (Losses) Incl in OCI | (5) | 4 | ||
Municipals | Level 1 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
Municipals | Level 2 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 1,335 | 1,458 | ||
Municipals | Level 3 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 37 | 43 | ||
Municipals | Fair Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 1,372 | 1,501 | ||
Municipals | Carrying Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 1,372 | 1,501 | ||
Residential mortgage-backed securities | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 761 | 731 | ||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 487 | 0 | 483 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | 0 | 12 | ||
Assets, Purchases | 0 | 5 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | 0 | (13) | ||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 27 | ||
Residential mortgage-backed securities | Level 1 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
Residential mortgage-backed securities | Level 2 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 761 | 731 | ||
Residential mortgage-backed securities | Level 3 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
Residential mortgage-backed securities | Fair Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 761 | 731 | ||
Residential mortgage-backed securities | Carrying Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 761 | 731 | ||
U.S. Government | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 587 | 394 | ||
U.S. Government | Level 1 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 587 | 394 | ||
U.S. Government | Level 2 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
U.S. Government | Level 3 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
U.S. Government | Fair Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 587 | 394 | ||
U.S. Government | Carrying Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 587 | 394 | ||
Foreign Governments | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 258 | 284 | ||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 17 | 17 | 18 | $ 17 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (1) | 0 | ||
Assets, Purchases | 0 | 0 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | 0 | 0 | ||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Change in Unrealized Gains (Losses) Incl in OCI | (1) | $ 2 | ||
Foreign Governments | Level 1 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 0 | 0 | ||
Foreign Governments | Level 2 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 241 | 266 | ||
Foreign Governments | Level 3 | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 17 | 18 | ||
Foreign Governments | Fair Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 258 | 284 | ||
Foreign Governments | Carrying Value | ||||
Assets | ||||
Fixed maturities securities, available-for-sale, at fair value | 258 | 284 | ||
Preferred securities | ||||
Assets | ||||
Equity and preferred securities | 1,283 | 1,401 | ||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 1 | 2 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) 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 | |||
Change in Unrealized Gains (Losses) Incl in OCI | (1) | |||
Preferred securities | Level 1 | ||||
Assets | ||||
Equity and preferred securities | 449 | 506 | ||
Preferred securities | Level 2 | ||||
Assets | ||||
Equity and preferred securities | 833 | 893 | ||
Preferred securities | Level 3 | ||||
Assets | ||||
Equity and preferred securities | 1 | 2 | ||
Preferred securities | Fair Value | ||||
Assets | ||||
Equity and preferred securities | 1,283 | 1,401 | ||
Preferred securities | Carrying Value | ||||
Assets | ||||
Equity and preferred securities | 1,283 | 1,401 | ||
Equity securities | Level 1 | ||||
Assets | ||||
Equity and preferred securities | 1,004 | 1,206 | ||
Equity securities | Level 2 | ||||
Assets | ||||
Equity and preferred securities | 0 | 0 | ||
Equity securities | Level 3 | ||||
Assets | ||||
Equity and preferred securities | 10 | 9 | ||
Equity securities | Fair Value | ||||
Assets | ||||
Equity and preferred securities | 1,014 | 1,215 | ||
Equity securities | Carrying Value | ||||
Assets | ||||
Equity and preferred securities | 1,014 | 1,215 | ||
Other long-term investments | Level 1 | ||||
Assets | ||||
Other long-term investments | 0 | 0 | ||
Other long-term investments | Level 2 | ||||
Assets | ||||
Other long-term investments | 0 | 0 | ||
Other long-term investments | Level 3 | ||||
Assets | ||||
Other long-term investments | 70 | 78 | ||
Other long-term investments | Fair Value | ||||
Assets | ||||
Other long-term investments | 70 | 78 | ||
Other long-term investments | Carrying Value | ||||
Assets | ||||
Other long-term investments | 70 | 78 | ||
Investment in affiliate | ||||
Derivatives: | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 21 | $ 21 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) 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 | |||
Change in Unrealized Gains (Losses) Incl in OCI | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) | Mar. 31, 2022$ / Contract |
Credit linked note | Income-Approach | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative, strike price | 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information Regarding Significant Unobservable Inputs Used for Recurring Level 3 Fair Value Measurements of Financial Instruments (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 5,496 | $ 5,600 |
Liabilities, fair value | 3,395 | 3,883 |
Future policy benefits | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | 0 | |
Fixed indexed annuities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 3,395 | $ 3,883 |
Minimum | Future policy benefits | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-performance spread | 0.50% | |
Minimum | Fixed indexed annuities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-performance spread | 0.49% | 0.43% |
Market value of option | 0.00% | 0.00% |
Swap rates | 0.17% | 0.05% |
Mortality multiplier | 100.00% | 100.00% |
Surrender rates | 0.25% | 0.25% |
Partial withdrawals | 2.00% | 2.00% |
Option cost | 0.00% | 0.07% |
Maximum | Fixed indexed annuities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-performance spread | 1.23% | 1.01% |
Market value of option | 26.75% | 38.72% |
Swap rates | 2.59% | 1.94% |
Mortality multiplier | 100.00% | 100.00% |
Surrender rates | 70.00% | 70.00% |
Partial withdrawals | 23.26% | 23.26% |
Option cost | 4.97% | 4.97% |
Weighted Average | Fixed indexed annuities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-performance spread | 1.01% | 0.68% |
Market value of option | 1.74% | 3.16% |
Swap rates | 1.38% | 1.00% |
Mortality multiplier | 100.00% | 100.00% |
Surrender rates | 6.24% | 6.26% |
Partial withdrawals | 2.73% | 2.72% |
Option cost | 1.82% | 1.83% |
Insurance Subsidiary | Minimum | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.1270 | |
Insurance Subsidiary | Maximum | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.1270 | |
Insurance Subsidiary | Weighted Average | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.1270 | |
Asset-backed securities | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 4,064 | $ 3,844 |
Asset-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 97 | $ 115 |
Asset-backed securities | Minimum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 44.79% | 52.56% |
Asset-backed securities | Minimum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 86.52% | 93.02% |
Asset-backed securities | Maximum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 728.00% | 260.70% |
Asset-backed securities | Maximum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 103.47% | 108.45% |
Asset-backed securities | Weighted Average | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 94.48% | 97.06% |
Asset-backed securities | Weighted Average | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 101.78% | 104.95% |
Commercial mortgage-backed securities | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 23 | $ 24 |
Commercial mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 17 | $ 11 |
Commercial mortgage-backed securities | Minimum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 120.24% | 126.70% |
Commercial mortgage-backed securities | Minimum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 86.30% | 97.91% |
Commercial mortgage-backed securities | Maximum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 120.24% | 126.70% |
Commercial mortgage-backed securities | Maximum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 77.78% | 97.91% |
Commercial mortgage-backed securities | Weighted Average | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 120.24% | 126.70% |
Commercial mortgage-backed securities | Weighted Average | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 92.37% | 97.91% |
Corporates | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 456 | $ 380 |
Corporates | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 671 | 741 |
Corporates | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 14 | $ 14 |
Corporates | Minimum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 0.00% | 0.00% |
Corporates | Minimum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 81.09% | 85.71% |
Corporates | Minimum | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.4400 | |
Corporates | Minimum | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.4400 | |
Corporates | Maximum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 124.44% | 109.69% |
Corporates | Maximum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 113.62% | 119.57% |
Corporates | Maximum | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1 | |
Corporates | Maximum | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1 | |
Corporates | Weighted Average | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 94.94% | 100.91% |
Corporates | Weighted Average | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 99.17% | 107.72% |
Corporates | Weighted Average | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.7700 | |
Corporates | Weighted Average | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.6200 | |
Municipals | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 37 | $ 43 |
Municipals | Minimum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 118.69% | 135.09% |
Municipals | Maximum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 118.69% | 135.09% |
Municipals | Weighted Average | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 118.69% | 135.09% |
Foreign Governments | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 17 | $ 18 |
Foreign Governments | Minimum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 104.86% | 107.23% |
Foreign Governments | Maximum | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 113.31% | 116.44% |
Foreign Governments | Weighted Average | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 107.50% | 110.11% |
Short term investments | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 19 | $ 321 |
Short term investments | Minimum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 94.33% | 100.00% |
Short term investments | Maximum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 95.49% | 100.00% |
Short term investments | Weighted Average | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 94.91% | 100.00% |
Preferred securities | Insurance Subsidiary | Income-Approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1 | $ 2 |
Yield | 2.43% | 2.43% |
Equity securities | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 3 | |
Equity securities | Minimum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 623.00% | |
Equity securities | Minimum | Broker-quoted | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 4.8 | 5.9 |
Equity securities | Maximum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 623.00% | |
Equity securities | Maximum | Broker-quoted | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 4.8 | 5.9 |
Equity securities | Weighted Average | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 623.00% | |
Equity securities | Weighted Average | Broker-quoted | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 4.8 | 5.9 |
Equity securities | Insurance Subsidiary | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 4 | |
Equity securities | Insurance Subsidiary | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 4 | $ 4 |
Equity securities | Insurance Subsidiary | Black Scholes model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 2 | $ 2 |
Equity securities | Insurance Subsidiary | Black Scholes model | Dividend Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0 | |
Equity securities | Insurance Subsidiary | Minimum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 5000.00% | |
Equity securities | Insurance Subsidiary | Minimum | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.1110 | |
Equity securities | Insurance Subsidiary | Minimum | Black Scholes model | Risk Free Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.0100 | 0.0100 |
Equity securities | Insurance Subsidiary | Minimum | Black Scholes model | Strike Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 1.50 | 1.50 |
Equity securities | Insurance Subsidiary | Minimum | Black Scholes model | Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.8100 | 0.8100 |
Equity securities | Insurance Subsidiary | Minimum | Black Scholes model | Dividend Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0 | |
Equity securities | Insurance Subsidiary | Maximum | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 5500.00% | |
Equity securities | Insurance Subsidiary | Maximum | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.1110 | |
Equity securities | Insurance Subsidiary | Maximum | Black Scholes model | Risk Free Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.0100 | 0.0100 |
Equity securities | Insurance Subsidiary | Maximum | Black Scholes model | Strike Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 1.50 | 1.50 |
Equity securities | Insurance Subsidiary | Maximum | Black Scholes model | Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.8100 | 0.8100 |
Equity securities | Insurance Subsidiary | Maximum | Black Scholes model | Dividend Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0 | |
Equity securities | Insurance Subsidiary | Weighted Average | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 5250.00% | |
Equity securities | Insurance Subsidiary | Weighted Average | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.1110 | |
Equity securities | Insurance Subsidiary | Weighted Average | Black Scholes model | Risk Free Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.0100 | 0.0100 |
Equity securities | Insurance Subsidiary | Weighted Average | Black Scholes model | Strike Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 1.50 | 1.50 |
Equity securities | Insurance Subsidiary | Weighted Average | Black Scholes model | Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0.8100 | 0.8100 |
Equity securities | Insurance Subsidiary | Weighted Average | Black Scholes model | Dividend Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 0 | |
Available-for-sale embedded derivative | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market value of fund | 100.00% | |
Available-for-sale embedded derivative | Black Scholes model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 30 | |
Market value of fund | 100.00% | |
Available-for-sale embedded derivative | Insurance Subsidiary | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 34 | |
Credit linked note | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 19 | |
Offered quotes | 100.00% | |
Credit linked note | Insurance Subsidiary | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Offered quotes | 100.00% | |
Credit linked note | Insurance Subsidiary | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 23 | |
Investment in affiliate | Broker-quoted | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 21 | |
Investment in affiliate | Minimum | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 8 | 8 |
Investment in affiliate | Maximum | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 8 | 8 |
Investment in affiliate | Insurance Subsidiary | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 21 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | $ 5,600 | $ 3,267 |
Assets, Total Gains (Losses) Included in Earnings | (4) | 9 |
Assets, Total Gains (Losses) Included in AOCI | (218) | (57) |
Assets, Purchases | 501 | 406 |
Assets, Sales | 0 | (5) |
Assets, Settlements | (179) | (140) |
Assets, Net transfer In (Out) of Level 3 | (204) | (14) |
Balance at End of Period | 5,496 | 3,466 |
Change in Unrealized Gains (Losses) Incl in OCI | (221) | 49 |
Liabilities | ||
Balance at Beginning of Period | 3,883 | 3,409 |
Liabilities, Total Gains (Losses) Included in Earnings | (488) | (111) |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 |
Liabilities, Purchases | 0 | 0 |
Liabilities, Sales | 0 | 0 |
Liabilities, Settlements | 0 | (1) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 3,395 | 3,297 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 |
Future policy benefits | ||
Liabilities | ||
Balance at Beginning of Period | 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 | (1) | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 4 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
FIA/ IUL embedded derivatives, included in contractholder funds | ||
Liabilities | ||
Balance at Beginning of Period | 3,883 | 3,404 |
Liabilities, Total Gains (Losses) Included in Earnings | (488) | (111) |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 |
Liabilities, Purchases | 0 | 0 |
Liabilities, Sales | 0 | 0 |
Liabilities, Settlements | 0 | 0 |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 3,395 | 3,293 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
Asset-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 3,959 | 1,350 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (130) | (23) |
Assets, Purchases | 400 | 358 |
Assets, Sales | 0 | 0 |
Assets, Settlements | (152) | (92) |
Assets, Net transfer In (Out) of Level 3 | 84 | 0 |
Balance at End of Period | 4,161 | 1,593 |
Change in Unrealized Gains (Losses) Incl in OCI | (138) | (4) |
Commercial mortgage-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 35 | 26 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (2) | (1) |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 7 | 0 |
Balance at End of Period | 40 | 25 |
Change in Unrealized Gains (Losses) Incl in OCI | (2) | 1 |
Corporates | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 1,135 | 1,289 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 6 |
Assets, Total Gains (Losses) Included in AOCI | (74) | (39) |
Assets, Purchases | 80 | 40 |
Assets, Sales | 0 | (5) |
Assets, Settlements | (26) | (31) |
Assets, Net transfer In (Out) of Level 3 | 26 | (14) |
Balance at End of Period | 1,141 | 1,246 |
Change in Unrealized Gains (Losses) Incl in OCI | (73) | 19 |
Hybrids | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 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 | (4) | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 0 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
Municipals | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 43 | 43 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (6) | (2) |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 37 | 41 |
Change in Unrealized Gains (Losses) Incl in OCI | (5) | 4 |
Residential mortgage-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 0 | 483 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 12 |
Assets, Purchases | 0 | 5 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | (13) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 0 | 487 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 27 |
Foreign Governments | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 18 | 17 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (1) | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 17 | 17 |
Change in Unrealized Gains (Losses) Incl in OCI | (1) | 2 |
Short term investments | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 321 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | (1) | |
Assets, Purchases | 20 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | (321) | |
Balance at End of Period | 19 | |
Change in Unrealized Gains (Losses) Incl in OCI | (1) | |
Preferred securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 2 | |
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 | 1 | |
Change in Unrealized Gains (Losses) Incl in OCI | (1) | |
Equity securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 9 | 5 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 1 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 1 | 3 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 10 | 9 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 |
Available-for-sale embedded derivative | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 34 | 27 |
Assets, Total Gains (Losses) Included in Earnings | (4) | 2 |
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 | 0 | 0 |
Balance at End of Period | 30 | 29 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 |
Investment in affiliate | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 21 | |
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 | 21 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
Credit linked note | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 23 | 23 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (3) | (4) |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | (1) | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 19 | 19 |
Change in Unrealized Gains (Losses) Incl in OCI | $ 0 | $ 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 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Trade and notes receivables, net of allowance | $ 529 | $ 557 |
Total Estimated Fair Value | ||
Assets | ||
FHLB common stock | 79 | 72 |
Commercial mortgage loans | 2,147 | 2,265 |
Residential mortgage loans | 1,904 | 1,549 |
Policy loans | 40 | 39 |
Other invested assets | 67 | 57 |
Company-owned life insurance | 350 | 333 |
Trade and notes receivables, net of allowance | 529 | 557 |
Total | 5,116 | 4,872 |
Liabilities | ||
Investment contracts, included in contractholder funds | 29,031 | 27,448 |
Debt | 2,929 | 3,218 |
Total | 31,960 | 30,666 |
Carrying Value | ||
Assets | ||
FHLB common stock | 79 | 72 |
Commercial mortgage loans | 2,231 | 2,168 |
Residential mortgage loans | 1,986 | 1,581 |
Policy loans | 40 | 39 |
Other invested assets | 67 | 57 |
Company-owned life insurance | 350 | 333 |
Trade and notes receivables, net of allowance | 529 | 557 |
Total | 5,282 | 4,807 |
Liabilities | ||
Investment contracts, included in contractholder funds | 32,903 | 31,529 |
Debt | 3,095 | 3,096 |
Total | 35,998 | 34,625 |
Level 1 | ||
Assets | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Trade and notes receivables, net of allowance | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets | ||
FHLB common stock | 79 | 72 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Trade and notes receivables, net of allowance | 0 | 0 |
Total | 79 | 72 |
Liabilities | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 2,929 | 3,218 |
Total | 2,929 | 3,218 |
Level 3 | ||
Assets | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 2,147 | 2,265 |
Residential mortgage loans | 1,904 | 1,549 |
Policy loans | 40 | 39 |
Other invested assets | 67 | 57 |
Company-owned life insurance | 350 | 333 |
Trade and notes receivables, net of allowance | 529 | 557 |
Total | 5,037 | 4,800 |
Liabilities | ||
Investment contracts, included in contractholder funds | 29,031 | 27,448 |
Debt | 0 | 0 |
Total | $ 29,031 | $ 27,448 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - NAV (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in unconsolidated affiliates | $ 2,849 | $ 2,486 |
Investments measured under equity method or NAV expedient | 2,896 | 2,534 |
Fair Value Measured at Net Asset Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Equity securities (NAV) | 47 | 48 |
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 | 153 | 136 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Fair Value Measured at Net Asset Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in unconsolidated affiliates | $ 2,696 | $ 2,350 |
Investments - Consolidated Inve
Investments - Consolidated Investments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale securities | ||||
Amortized Cost | $ 32,508 | $ 30,705 | ||
Allowance for Expected Credit Losses | (11) | (8) | $ (7) | $ (19) |
Gross Unrealized Gains | 545 | 1,518 | ||
Gross Unrealized Losses | (1,564) | (225) | ||
Fair Value/ Carrying Value | 31,478 | 31,990 | ||
Asset-backed securities | ||||
Available-for-sale securities | ||||
Amortized Cost | 9,137 | 8,516 | ||
Allowance for Expected Credit Losses | (1) | (3) | ||
Gross Unrealized Gains | 129 | 220 | ||
Gross Unrealized Losses | (207) | (38) | ||
Fair Value/ Carrying Value | 9,058 | 8,695 | ||
Commercial mortgage-backed securities | ||||
Available-for-sale securities | ||||
Amortized Cost | 2,951 | 2,684 | ||
Allowance for Expected Credit Losses | (2) | (2) | (1) | 0 |
Gross Unrealized Gains | 170 | 308 | ||
Gross Unrealized Losses | (67) | (11) | ||
Fair Value/ Carrying Value | 3,052 | 2,979 | ||
Corporates | ||||
Available-for-sale securities | ||||
Amortized Cost | 16,480 | 15,822 | ||
Allowance for Expected Credit Losses | (3) | 0 | (3) | (16) |
Gross Unrealized Gains | 188 | 830 | ||
Gross Unrealized Losses | (1,124) | (158) | ||
Fair Value/ Carrying Value | 15,541 | 16,494 | ||
Hybrids | ||||
Available-for-sale securities | ||||
Amortized Cost | 832 | 838 | ||
Allowance for Expected Credit Losses | 0 | 0 | ||
Gross Unrealized Gains | 31 | 74 | ||
Gross Unrealized Losses | (14) | 0 | ||
Fair Value/ Carrying Value | 849 | 912 | ||
Municipals | ||||
Available-for-sale securities | ||||
Amortized Cost | 1,444 | 1,445 | ||
Allowance for Expected Credit Losses | 0 | 0 | ||
Gross Unrealized Gains | 17 | 67 | ||
Gross Unrealized Losses | (89) | (11) | ||
Fair Value/ Carrying Value | 1,372 | 1,501 | ||
Residential mortgage-backed securities | ||||
Available-for-sale securities | ||||
Amortized Cost | 801 | 731 | ||
Allowance for Expected Credit Losses | (5) | (3) | $ (3) | $ (3) |
Gross Unrealized Gains | 4 | 7 | ||
Gross Unrealized Losses | (39) | (4) | ||
Fair Value/ Carrying Value | 761 | 731 | ||
U.S. Government | ||||
Available-for-sale securities | ||||
Amortized Cost | 594 | 393 | ||
Allowance for Expected Credit Losses | 0 | 0 | ||
Gross Unrealized Gains | 3 | 3 | ||
Gross Unrealized Losses | (10) | (2) | ||
Fair Value/ Carrying Value | 587 | 394 | ||
Foreign Governments | ||||
Available-for-sale securities | ||||
Amortized Cost | 269 | 276 | ||
Allowance for Expected Credit Losses | 0 | 0 | ||
Gross Unrealized Gains | 3 | 9 | ||
Gross Unrealized Losses | (14) | (1) | ||
Fair Value/ Carrying Value | $ 258 | $ 284 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Accrued interest receivable | $ 278 | $ 253 | ||
FHLB collateral pledged | 2,840 | 2,469 | ||
Available for sale securities, allowance for credit losses | $ 11 | $ 8 | $ 7 | $ 19 |
Commercial mortgage loans, percentage of investments | 7.00% | |||
DSC ratio, amortization period | 25 years | |||
Cannae Holdings Inc. | Equity securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Investment owned, (in shares) | 4,775,598 | 5,775,598 | ||
Investment owned, at fair value | $ 114 | $ 203 | ||
Shares issued in exchange (in shares) | 1,000,000 | |||
Aggregate consideration received | $ 24 | |||
Residential mortgage loans | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loans over 90 days past due | 2,010 | 1,606 | ||
Over 90 days past due | Residential mortgage loans | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loans over 90 days past due | 63 | 72 | ||
Loans in process of foreclosure | $ 39 | 39 | ||
United States | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Residential mortgage loans, location percentage | 100.00% | |||
Available-for-sale Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Assets held by insurance regulators | $ 15,578 | $ 22,343 | ||
Residential Mortgage | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Percentage of total investments | 5.00% |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Total fixed maturity available-for-sale securities, Fair Value | $ 32,508 | $ 30,705 |
Fair Value | ||
Total fixed maturity available-for-sale securities, Fair Value | 31,478 | 31,990 |
Other securities which provide for periodic payments: | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 12,915 | 11,962 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 12,900 | 12,442 |
Corporates, Non-structured Hybrids, Municipal and Government securities: | ||
Amortized Cost | ||
Due in one year or less | 439 | 426 |
Due after one year through five years | 3,320 | 2,998 |
Due after five years through ten years | 2,378 | 2,389 |
Due after ten years | 13,456 | 12,930 |
Subtotal, Amortized Cost | 19,593 | 18,743 |
Fair Value | ||
Due in one year or less | 444 | 431 |
Due after one year through five years | 3,249 | 3,051 |
Due after five years through ten years | 2,295 | 2,458 |
Due after ten years | 12,590 | 13,608 |
Subtotal, Fair Value | 18,578 | 19,548 |
Asset-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 9,137 | 8,516 |
Total fixed maturity available-for-sale securities, Fair Value | 9,137 | 8,516 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 9,058 | 8,695 |
Total fixed maturity available-for-sale securities, Fair Value | 9,058 | 8,695 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 2,951 | 2,684 |
Total fixed maturity available-for-sale securities, Fair Value | 2,951 | 2,684 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 3,052 | 2,979 |
Total fixed maturity available-for-sale securities, Fair Value | 3,052 | 2,979 |
Structured hybrids | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 26 | 31 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 29 | 37 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 801 | 731 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | $ 761 | $ 731 |
Investments - Allowance for Cre
Investments - Allowance for Credit Loss Aggregated by Investment Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ (8) | $ (19) |
For credit losses on securities for which losses were not previously recorded | (3) | (1) |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | (2) | 7 |
For securities sold during the period | 2 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 0 | 3 |
Recoveries of amounts previously written off | 0 | 3 |
Balance at End of Period | (11) | (7) |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (3) | |
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 | 0 | |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | |
For securities sold during the period | 2 | |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | |
Write-offs charged against the allowance | 0 | |
Recoveries of amounts previously written off | 0 | |
Balance at End of Period | (1) | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (2) | 0 |
For credit losses on securities for which losses were not previously recorded | 0 | (1) |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | 0 |
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | (2) | (1) |
Corporates | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 0 | (16) |
For credit losses on securities for which losses were not previously recorded | (3) | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | 7 |
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 0 | 3 |
Recoveries of amounts previously written off | 0 | 3 |
Balance at End of Period | (3) | (3) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (3) | (3) |
For credit losses on securities for which losses were not previously recorded | 0 | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | (2) | 0 |
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | $ (5) | $ (3) |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 19,667 | $ 11,443 |
Gross Unrealized Losses Less than 12 months | (1,201) | (185) |
Fair Value, 12 Months or longer | 2,199 | 646 |
Gross Unrealized Losses, 12 months or longer | (363) | (40) |
Total Fair Value | 21,866 | 12,089 |
Total Gross Unrealized Losses | $ (1,564) | $ (225) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | security | 3,321 | 2,056 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | security | 223 | 68 |
Total number of available-for-sale securities in an unrealized loss position | security | 3,544 | 2,124 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 5,910 | $ 4,410 |
Gross Unrealized Losses Less than 12 months | (179) | (31) |
Fair Value, 12 Months or longer | 348 | 146 |
Gross Unrealized Losses, 12 months or longer | (28) | (7) |
Total Fair Value | 6,258 | 4,556 |
Total Gross Unrealized Losses | (207) | (38) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 1,205 | 603 |
Gross Unrealized Losses Less than 12 months | (62) | (11) |
Fair Value, 12 Months or longer | 44 | 1 |
Gross Unrealized Losses, 12 months or longer | (5) | 0 |
Total Fair Value | 1,249 | 604 |
Total Gross Unrealized Losses | (67) | (11) |
Corporates | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 10,103 | 5,391 |
Gross Unrealized Losses Less than 12 months | (817) | (132) |
Fair Value, 12 Months or longer | 1,613 | 394 |
Gross Unrealized Losses, 12 months or longer | (307) | (26) |
Total Fair Value | 11,716 | 5,785 |
Total Gross Unrealized Losses | (1,124) | (158) |
Hybrids | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 407 | 3 |
Gross Unrealized Losses Less than 12 months | (14) | 0 |
Fair Value, 12 Months or longer | 2 | 0 |
Gross Unrealized Losses, 12 months or longer | 0 | 0 |
Total Fair Value | 409 | 3 |
Total Gross Unrealized Losses | (14) | 0 |
Municipals | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 954 | 410 |
Gross Unrealized Losses Less than 12 months | (72) | (5) |
Fair Value, 12 Months or longer | 131 | 85 |
Gross Unrealized Losses, 12 months or longer | (17) | (6) |
Total Fair Value | 1,085 | 495 |
Total Gross Unrealized Losses | (89) | (11) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 609 | 325 |
Gross Unrealized Losses Less than 12 months | (37) | (3) |
Fair Value, 12 Months or longer | 19 | 11 |
Gross Unrealized Losses, 12 months or longer | (2) | (1) |
Total Fair Value | 628 | 336 |
Total Gross Unrealized Losses | (39) | (4) |
U.S. Government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 327 | 219 |
Gross Unrealized Losses Less than 12 months | (9) | (2) |
Fair Value, 12 Months or longer | 30 | 4 |
Gross Unrealized Losses, 12 months or longer | (1) | 0 |
Total Fair Value | 357 | 223 |
Total Gross Unrealized Losses | (10) | (2) |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 152 | 82 |
Gross Unrealized Losses Less than 12 months | (11) | (1) |
Fair Value, 12 Months or longer | 12 | 5 |
Gross Unrealized Losses, 12 months or longer | (3) | 0 |
Total Fair Value | 164 | 87 |
Total Gross Unrealized Losses | $ (14) | $ (1) |
Investments - Schedule of Comme
Investments - Schedule of Commercial Mortgage Loan Investment (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||||
Allowance for expected credit loss | $ (32) | $ (31) | $ (36) | $ (39) |
Total mortgage loans | 4,217 | 3,749 | ||
Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | 2,237 | 2,174 | ||
Allowance for expected credit loss | (6) | (6) | $ (5) | $ (2) |
Total mortgage loans | $ 2,231 | $ 2,168 | ||
% of Total | 100.00% | 100.00% | ||
East North Central | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 134 | $ 137 | ||
% of Total | 6.00% | 6.00% | ||
East South Central | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 76 | $ 79 | ||
% of Total | 3.00% | 4.00% | ||
Middle Atlantic | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 293 | $ 293 | ||
% of Total | 13.00% | 13.00% | ||
Mountain | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 289 | $ 236 | ||
% of Total | 13.00% | 11.00% | ||
New England | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 149 | $ 149 | ||
% of Total | 7.00% | 7.00% | ||
Pacific | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 648 | $ 649 | ||
% of Total | 29.00% | 30.00% | ||
South Atlantic | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 492 | $ 459 | ||
% of Total | 22.00% | 21.00% | ||
West North Central | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 4 | $ 12 | ||
% of Total | 0.00% | 1.00% | ||
West South Central | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 152 | $ 160 | ||
% of Total | 7.00% | 7.00% | ||
Hotel | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 19 | $ 19 | ||
% of Total | 1.00% | 1.00% | ||
Industrial - General | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 486 | $ 497 | ||
% of Total | 22.00% | 23.00% | ||
Mixed Use | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 12 | $ 13 | ||
% of Total | 1.00% | 1.00% | ||
Multifamily | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 979 | $ 894 | ||
% of Total | 43.00% | 41.00% | ||
Office | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 342 | $ 343 | ||
% of Total | 15.00% | 16.00% | ||
Retail | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 108 | $ 121 | ||
% of Total | 5.00% | 6.00% | ||
Student Housing | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 83 | $ 83 | ||
% of Total | 4.00% | 4.00% | ||
Other | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross Carrying Value | $ 208 | $ 204 | ||
% of Total | 9.00% | 8.00% |
Investments - Recorded Investme
Investments - Recorded Investment in CMLs by LTV and DSC Ratio Categories (Details) - Commercial mortgage loans - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 2,237 | $ 2,174 |
% of Total | 100.00% | 100.00% |
Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 2,147 | $ 2,265 |
% of Total | 100.00% | 100.00% |
Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 2,198 | $ 2,132 |
1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 30 | 33 |
Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 9 | 9 |
LTV Less Than 50 % | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 638 | $ 668 |
% of Total | 29.00% | 31.00% |
LTV Less Than 50 % | Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 631 | $ 745 |
% of Total | 29.00% | 33.00% |
LTV Less Than 50 % | Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 608 | $ 626 |
LTV Less Than 50 % | 1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 21 | 33 |
LTV Less Than 50 % | Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 9 | 9 |
LTV 50 to 60% | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 512 | $ 470 |
% of Total | 23.00% | 22.00% |
LTV 50 to 60% | Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 494 | $ 481 |
% of Total | 23.00% | 21.00% |
LTV 50 to 60% | Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 512 | $ 470 |
LTV 50 to 60% | 1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 0 | 0 |
LTV 50 to 60% | Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 0 | 0 |
LTV 60% to 75% | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 1,078 | $ 1,036 |
% of Total | 48.00% | 47.00% |
LTV 60% to 75% | Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 1,016 | $ 1,039 |
% of Total | 47.00% | 46.00% |
LTV 60% to 75% | Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 1,078 | $ 1,036 |
LTV 60% to 75% | 1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 0 | 0 |
LTV 60% to 75% | Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 0 | $ 0 |
LTV 75% to 85% | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 9 | |
% of Total | 1.00% | |
LTV 75% to 85% | Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 6 | |
% of Total | 1.00% | |
LTV 75% to 85% | Greater than 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 0 | |
LTV 75% to 85% | 1.00 - 1.25 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | 9 | |
LTV 75% to 85% | Greater than 1.00 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Carrying Value | $ 0 |
Investments - Schedule of Distr
Investments - Schedule of Distribution of Residential Mortgage Loan Investment by State Concentrations (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Residential mortgage loans | ||
Gross Carrying Value | $ 2,012 | $ 1,606 |
% of Total | 100.00% | 100.00% |
Total mortgage loans | ||
Gross Carrying Value | $ 2,010 | $ 1,604 |
Florida | Residential mortgage loans | ||
Gross Carrying Value | $ 288 | $ 234 |
% of Total | 14.00% | 15.00% |
Texas | Residential mortgage loans | ||
Gross Carrying Value | $ 218 | $ 170 |
% of Total | 11.00% | 10.00% |
New Jersey | Residential mortgage loans | ||
Gross Carrying Value | $ 170 | $ 153 |
% of Total | 8.00% | 10.00% |
California | Residential mortgage loans | ||
Gross Carrying Value | $ 141 | |
% of Total | 7.00% | |
Pennsylvania | Residential mortgage loans | ||
Gross Carrying Value | $ 134 | |
% of Total | 7.00% | |
New York | Residential mortgage loans | ||
Gross Carrying Value | $ 131 | |
% of Total | 7.00% | |
Georgia | Residential mortgage loans | ||
Gross Carrying Value | $ 115 | |
% of Total | 6.00% | |
All Other States | Residential mortgage loans | ||
Gross Carrying Value | $ 813 | $ 1,047 |
% of Total | 40.00% | 65.00% |
Investments - Credit Quality of
Investments - Credit Quality of RMLs (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Allowance for expected loan loss | $ (32) | $ (31) | $ (36) | $ (39) |
Total mortgage loans | 4,217 | 3,749 | ||
Residential mortgage loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Gross Carrying Value | $ 2,012 | $ 1,606 | ||
% of Total | 100.00% | 100.00% | ||
Allowance for expected loan loss | $ (26) | $ (25) | $ (31) | $ (37) |
Allowance for expected loan loss, percent | 0.00% | 0.00% | ||
Total mortgage loans | $ 1,986 | $ 1,581 | ||
Allowance % of Total | 100.00% | 100.00% | ||
Residential mortgage loans | Performing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Gross Carrying Value | $ 1,947 | $ 1,533 | ||
% of Total | 97.00% | 95.00% | ||
Residential mortgage loans | Non-performing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Gross Carrying Value | $ 65 | $ 73 | ||
% of Total | 3.00% | 5.00% |
Investments - Loans Segregated
Investments - Loans Segregated by Risk Rating (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized cost of loans on non-accrual | ||
Total non-accrual loans | $ 63 | $ 72 |
Residential mortgages | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 377 | 801 |
2021 | 927 | 320 |
2020 | 285 | 375 |
2019 | 333 | 53 |
2018 | 40 | 36 |
Prior | 48 | 21 |
Total | 2,010 | 1,606 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 377 | 801 |
2020 | 927 | 320 |
2019 | 285 | 375 |
2018 | 333 | 53 |
2017 | 40 | 36 |
Prior | 48 | 21 |
Total | 2,010 | 1,606 |
Amortized cost of loans on non-accrual | ||
Total non-accrual loans | 63 | 72 |
Residential mortgages | Current (less than 30 days past due) | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 377 | 795 |
2021 | 916 | 293 |
2020 | 264 | 323 |
2019 | 276 | 50 |
2018 | 38 | 36 |
Prior | 48 | 21 |
Total | 1,919 | 1,518 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 377 | 795 |
2020 | 916 | 293 |
2019 | 264 | 323 |
2018 | 276 | 50 |
2017 | 38 | 36 |
Prior | 48 | 21 |
Total | 1,919 | 1,518 |
Residential mortgages | 30-89 days past due | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 0 | 5 |
2021 | 10 | 4 |
2020 | 6 | 6 |
2019 | 12 | 1 |
2018 | 0 | 0 |
Prior | 0 | 0 |
Total | 28 | 16 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | 5 |
2020 | 10 | 4 |
2019 | 6 | 6 |
2018 | 12 | 1 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | 28 | 16 |
Residential mortgages | Over 90 days past due | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 0 | 1 |
2021 | 1 | 23 |
2020 | 15 | 46 |
2019 | 45 | 2 |
2018 | 2 | 0 |
Prior | 0 | 0 |
Total | 63 | 72 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | 1 |
2020 | 1 | 23 |
2019 | 15 | 46 |
2018 | 45 | 2 |
2017 | 2 | 0 |
Prior | 0 | 0 |
Total | 63 | 72 |
Commercial mortgages | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 89 | 1,301 |
2021 | 1,301 | 543 |
2020 | 543 | 0 |
2019 | 0 | 6 |
2018 | 0 | 0 |
Prior | 304 | 324 |
Total | 2,237 | 2,174 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 89 | 1,301 |
2020 | 1,301 | 543 |
2019 | 543 | 0 |
2018 | 0 | 6 |
2017 | 0 | 0 |
Prior | 304 | 324 |
Total | 2,237 | 2,174 |
Amortized cost of loans on non-accrual | ||
Total non-accrual loans | 0 | 0 |
Commercial mortgages | Greater than 1.25x | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 89 | 1,301 |
2021 | 1,301 | 543 |
2020 | 543 | 0 |
2019 | 0 | 4 |
2018 | 0 | 0 |
Prior | 265 | 284 |
Total | 2,198 | 2,132 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 89 | 1,301 |
2020 | 1,301 | 543 |
2019 | 543 | 0 |
2018 | 0 | 4 |
2017 | 0 | 0 |
Prior | 265 | 284 |
Total | 2,198 | 2,132 |
Commercial mortgages | 1.00x - 1.25x | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 2 |
2018 | 0 | 0 |
Prior | 30 | 31 |
Total | 30 | 33 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 2 |
2017 | 0 | 0 |
Prior | 30 | 31 |
Total | 30 | 33 |
Commercial mortgages | Less than 1.00x | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 9 | 9 |
Total | 9 | 9 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 9 | 9 |
Total | 9 | 9 |
Commercial mortgages | LTV Less Than 50 % | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 4 | 120 |
2021 | 120 | 229 |
2020 | 229 | 0 |
2019 | 0 | 6 |
2018 | 0 | 0 |
Prior | 285 | 313 |
Total | 638 | 668 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 4 | 120 |
2020 | 120 | 229 |
2019 | 229 | 0 |
2018 | 0 | 6 |
2017 | 0 | 0 |
Prior | 285 | 313 |
Total | 638 | 668 |
Commercial mortgages | LTV 50 to 60% | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 43 | 267 |
2021 | 267 | 192 |
2020 | 192 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 10 | 11 |
Total | 512 | 470 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 43 | 267 |
2020 | 267 | 192 |
2019 | 192 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 10 | 11 |
Total | 512 | 470 |
Commercial mortgages | LTV 60% to 75% | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 42 | 914 |
2021 | 914 | 122 |
2020 | 122 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 0 | 0 |
Total | 1,078 | 1,036 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 42 | 914 |
2020 | 914 | 122 |
2019 | 122 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | 1,078 | 1,036 |
Commercial mortgages | LTV 75% to 85% | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 9 | |
Total | 9 | |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 9 | |
Total | 9 | |
Commercial mortgages | Current (less than 30 days past due) | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 89 | 1,301 |
2021 | 1,301 | 543 |
2020 | 543 | 0 |
2019 | 0 | 6 |
2018 | 0 | 0 |
Prior | 295 | 324 |
Total | 2,228 | 2,174 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 89 | 1,301 |
2020 | 1,301 | 543 |
2019 | 543 | 0 |
2018 | 0 | 6 |
2017 | 0 | 0 |
Prior | 295 | 324 |
Total | 2,228 | 2,174 |
Commercial mortgages | 30-89 days past due | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 9 | 0 |
Total | 9 | 0 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 9 | 0 |
Total | 9 | 0 |
Commercial mortgages | Over 90 days past due | ||
Financing Receivable Credit Quality Indicator Current Year Abstract [Abstract] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Financing Receivable Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | $ 0 | $ 0 |
Investments - Changes in Allowa
Investments - Changes in Allowance for Expected Credit Losses on Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | $ 31 | $ 39 |
Provision for loan losses | 1 | (3) |
Ending Balance | 32 | 36 |
Residential Mortgage | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 25 | 37 |
Provision for loan losses | 1 | (6) |
Ending Balance | 26 | 31 |
Commercial Mortgage | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 6 | 2 |
Provision for loan losses | 0 | 3 |
Ending Balance | $ 6 | $ 5 |
Investments - Interest and Inve
Investments - Interest and Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Investments [Line Items] | ||
Gross investment income | $ 524 | $ 441 |
Investment expense | (46) | (39) |
Interest and investment income | 478 | 402 |
Fixed maturity securities, available-for-sale | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 332 | 307 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 8 | 5 |
Preferred securities | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 15 | 14 |
Mortgage loans | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 39 | 23 |
Invested cash and short-term investments | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 5 | 0 |
Limited partnerships | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 113 | 80 |
Tax deferred property exchange income | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 3 | 4 |
Other investments | ||
Schedule of Investments [Line Items] | ||
Gross investment income | $ 9 | $ 8 |
Investments - Recognized Gains
Investments - Recognized Gains (Losses), net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Investments [Line Items] | ||
Net realized (losses) gains on fixed maturity available-for-sale securities | $ (36) | $ 40 |
Realized losses on other invested assets | (1) | (3) |
Change in allowance for expected credit losses | (4) | 10 |
Realized gains on certain derivative instruments | 50 | 60 |
Unrealized losses on certain derivative instruments | (358) | (35) |
Change in fair value of reinsurance related embedded derivatives | 122 | 27 |
Change in fair value of other derivatives and embedded derivatives | (3) | 0 |
Realized gains (losses) on derivatives and embedded derivatives | (189) | 52 |
Recognized gains and losses, net | (469) | 43 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Net realized/unrealized (losses) gains on securities | (148) | (46) |
Valuation losses | (166) | (46) |
Preferred securities | ||
Schedule of Investments [Line Items] | ||
Net realized/unrealized (losses) gains on securities | (91) | (10) |
Valuation losses | $ (90) | $ (3) |
Investments - Proceeds From the
Investments - Proceeds From the Sale of Fixed-Maturity Available-For-Sale Securities (Details) - Total fixed maturities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds | $ 1,032 | $ 424 |
Gross gains | 3 | 32 |
Gross losses | $ (37) | $ (8) |
Investments - VIE (Details)
Investments - VIE (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 15,524 | $ 14,732 |
Maximum Loss Exposure | 17,342 | 16,298 |
Limited Partnerships | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 2,675 | 2,350 |
Maximum Loss Exposure | 3,751 | 3,496 |
Fixed Maturity Securities | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 12,849 | 12,382 |
Maximum Loss Exposure | $ 13,591 | $ 12,802 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amounts of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Total asset derivatives | $ 567 | $ 849 |
Total liability derivatives | 3,396 | 3,956 |
Call options | Derivative investments | ||
Derivative [Line Items] | ||
Total asset derivatives | 487 | 816 |
Other embedded derivatives | Other long-term investments | ||
Derivative [Line Items] | ||
Total asset derivatives | 30 | 33 |
Other embedded derivatives | Prepaid expenses and other assets | ||
Derivative [Line Items] | ||
Total asset derivatives | 50 | 0 |
FIA/ IUL embedded derivatives, included in contractholder funds | Contractholder funds | ||
Derivative [Line Items] | ||
Total liability derivatives | 3,395 | 3,883 |
Reinsurance related embedded derivatives | Accounts payable and accrued liabilities: | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 1 | $ 73 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Change in fair value of derivatives | $ 122 | $ 27 |
Net investment gains (losses) | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | (189) | 53 |
Call options | Net investment gains (losses) | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | (314) | 22 |
Futures contracts | Net investment gains (losses) | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | 3 | 0 |
Foreign currency forwards | Net investment gains (losses) | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | 3 | 4 |
Other embedded derivatives | Net investment gains (losses) | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | (3) | 0 |
Reinsurance related embedded derivatives | Net investment gains (losses) | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | 122 | 27 |
FIA/ IUL embedded derivatives | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | $ (488) | $ (111) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)contract | Dec. 31, 2021USD ($)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 four | 5 years | |
Call options | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 472 | $ 790 |
Maximum amount of loss due to credit risk | 40 | 42 |
Call options | Derivatives for Trading and Investment | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | 472 | 790 |
Maximum amount of loss due to credit risk | 40 | 42 |
Call options | Cash and Cash Equivalents | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 364 | $ 576 |
Futures contracts | ||
Derivative [Line Items] | ||
Number of instruments held | contract | 309,000,000 | 329,000,000 |
Collateral held | $ 3 | $ 3 |
Derivative Financial Instrume_6
Derivative Financial Instruments - FGL's Exposure to Credit Loss on Call Options Held (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 567 | $ 849 |
Not Designated as Hedging Instrument | Call options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 20,040 | 19,404 |
Fair Value | 487 | 816 |
Collateral | 472 | 790 |
Maximum amount of loss due to credit risk | 40 | 42 |
Not Designated as Hedging Instrument | Call options | Merrill Lynch | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,745 | 3,307 |
Fair Value | 79 | 128 |
Collateral | 39 | 86 |
Maximum amount of loss due to credit risk | 40 | 42 |
Not Designated as Hedging Instrument | Call options | Morgan Stanley | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,679 | 2,184 |
Fair Value | 14 | 86 |
Collateral | 17 | 92 |
Maximum amount of loss due to credit risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Barclay's Bank | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,324 | 5,197 |
Fair Value | 161 | 231 |
Collateral | 166 | 233 |
Maximum amount of loss due to credit risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Canadian Imperial Bank of Commerce | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,178 | 2,936 |
Fair Value | 84 | 147 |
Collateral | 93 | 151 |
Maximum amount of loss due to credit risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Wells Fargo | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,535 | 2,445 |
Fair Value | 73 | 89 |
Collateral | 77 | 90 |
Maximum amount of loss due to credit risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Goldman Sachs | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 410 | 307 |
Fair Value | 11 | 10 |
Collateral | 11 | 10 |
Maximum amount of loss due to credit risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Credit Suisse | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,289 | 1,485 |
Fair Value | 16 | 74 |
Collateral | 16 | 75 |
Maximum amount of loss due to credit risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Truist | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,880 | 1,543 |
Fair Value | 49 | 51 |
Collateral | 53 | 53 |
Maximum amount of loss due to credit risk | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Aug. 17, 2020shares | Aug. 04, 2020lawsuitdirector | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Other Commitments [Line Items] | ||||
Estimated litigation liability | $ | $ 15 | $ 12 | ||
Number of Board of Directors on the litigation committee | director | 3 | |||
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 Investment Commitments (Details) - Commitment to Invest $ in Millions | Mar. 31, 2022USD ($) |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 2,089 |
Limited partnerships | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,076 |
Whole loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 513 |
Fixed maturity securities, ABS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 212 |
Other fixed maturity securities, AFS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 101 |
Commercial mortgage loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 40 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 146 |
Residential mortgage loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 1 |
Dividends (Details)
Dividends (Details) - $ / shares | May 10, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Subsequent Event [Line Items] | |||
Cash dividend per common share (in dollars per share) | $ 0.44 | $ 0.36 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividend per common share (in dollars per share) | $ 0.44 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Title premiums | $ 1,866 | $ 1,804 | |
Other revenues | 1,290 | 851 | |
Revenues from external customers | 3,156 | 2,655 | |
Interest and investment income, including recognized gains and losses, net | 9 | 445 | |
Total revenues | 3,165 | 3,100 | |
Depreciation and amortization | 182 | 183 | |
Interest expense | 30 | 28 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 552 | 757 | |
Income tax expense (benefit) | 155 | 166 | |
Earnings before equity in earnings of unconsolidated affiliates | 397 | 591 | |
Equity in earnings (loss) of unconsolidated affiliates | 2 | 13 | |
Net earnings (loss) from continuing operations | 399 | 604 | |
Assets | 60,857 | 51,489 | $ 60,690 |
Goodwill | 4,539 | 4,498 | $ 4,539 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 0 | 0 | |
Other revenues | 31 | 42 | |
Revenues from external customers | 31 | 42 | |
Interest and investment income, including recognized gains and losses, net | 3 | 0 | |
Total revenues | 34 | 42 | |
Depreciation and amortization | 6 | 6 | |
Interest expense | 22 | 20 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | (38) | (38) | |
Income tax expense (benefit) | (7) | (9) | |
Earnings before equity in earnings of unconsolidated affiliates | (31) | (29) | |
Equity in earnings (loss) of unconsolidated affiliates | 0 | 5 | |
Net earnings (loss) from continuing operations | (31) | (24) | |
Assets | 2,272 | 1,486 | |
Goodwill | 266 | 266 | |
Operating Segments | Title | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 1,866 | 1,804 | |
Other revenues | 665 | 745 | |
Revenues from external customers | 2,531 | 2,549 | |
Interest and investment income, including recognized gains and losses, net | (148) | (30) | |
Total revenues | 2,383 | 2,519 | |
Depreciation and amortization | 33 | 33 | |
Interest expense | 0 | 0 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 249 | 439 | |
Income tax expense (benefit) | 57 | 103 | |
Earnings before equity in earnings of unconsolidated affiliates | 192 | 336 | |
Equity in earnings (loss) of unconsolidated affiliates | 2 | 8 | |
Net earnings (loss) from continuing operations | 194 | 344 | |
Assets | 9,478 | 9,389 | |
Goodwill | 2,517 | 2,481 | |
Operating Segments | F&G | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 0 | 0 | |
Other revenues | 594 | 64 | |
Revenues from external customers | 594 | 64 | |
Interest and investment income, including recognized gains and losses, net | 154 | 475 | |
Total revenues | 748 | 539 | |
Depreciation and amortization | 143 | 144 | |
Interest expense | 8 | 8 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated affiliates | 341 | 356 | |
Income tax expense (benefit) | 105 | 72 | |
Earnings before equity in earnings of unconsolidated affiliates | 236 | 284 | |
Equity in earnings (loss) of unconsolidated affiliates | 0 | 0 | |
Net earnings (loss) from continuing operations | 236 | 284 | |
Assets | 49,107 | 40,614 | |
Goodwill | $ 1,756 | $ 1,751 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid for: | ||
Interest | $ 36 | $ 29 |
Income taxes | 9 | 7 |
Deferred sales inducements | 16 | 21 |
Non-cash investing and financing activities: | ||
Change in proceeds of sales of investments available for sale receivable in period | 81 | (9) |
Change in purchases of investments available for sale payable in period | 277 | 164 |
Lease liabilities recognized in exchange for lease right-of-use assets | 15 | 5 |
Remeasurement of lease liabilities | $ 15 | $ 13 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 586 | $ 661 |
Interest and investment income | 478 | 402 |
Recognized gains and losses, net | (469) | 43 |
Total revenues | 3,165 | 3,100 |
Title | ||
Disaggregation of Revenue [Line Items] | ||
Loan subservicing revenue | 76 | 87 |
Title | Direct title insurance premiums | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 767 | 746 |
Title | Agency title insurance premiums | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,099 | 1,058 |
Title | Home warranty | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 34 | 39 |
Title | Insurance contracts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 2,494 | 1,907 |
Title | Escrow fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 265 | 324 |
Title | Other title-related fees and income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 196 | 205 |
Title | ServiceLink, excluding title premiums, escrow fees, and subservicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 94 | 90 |
F&G | Life insurance premiums, insurance and investment product fees, and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 594 | 64 |
Corporate and other | Real estate technology | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 38 | 32 |
Corporate and other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ (7) | $ 10 |
Revenue Recognition - Informati
Revenue Recognition - Information about Receivables and Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables | $ 497 | $ 524 | |
Deferred revenue (contract liabilities) | $ 231 | $ 144 | |
Policy period | 1 year | ||
Revenue recognized | $ 38 | $ 41 |
Value of Business Acquired, D_3
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Summary of Changes in Carrying Amounts of Intangible Assets Including DAC, VOBA and DSI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Total | ||
Balance at beginning of period | $ 2,034 | $ 1,724 |
Deferrals | 170 | 154 |
Amortization | (144) | (148) |
Interest | 13 | 10 |
Unlocking | (5) | 1 |
Adjustment for net unrealized investment (gains) losses | 427 | 127 |
Balance at end of period | 2,495 | 1,868 |
VOBA | ||
Total | ||
Balance at beginning of period | 1,185 | 1,466 |
Deferrals | 0 | 0 |
Amortization | (94) | (132) |
Interest | 7 | 8 |
Unlocking | (6) | 1 |
Adjustment for net unrealized investment (gains) losses | 318 | 132 |
Balance at end of period | 1,410 | 1,475 |
DAC | ||
Total | ||
Balance at beginning of period | 761 | 222 |
Deferrals | 154 | 133 |
Amortization | (39) | (8) |
Interest | 6 | 2 |
Unlocking | (1) | 0 |
Adjustment for net unrealized investment (gains) losses | 88 | (5) |
Balance at end of period | 969 | 344 |
DSI | ||
Total | ||
Balance at beginning of period | 88 | 36 |
Deferrals | 21 | |
Amortization | (11) | (8) |
Interest | 0 | 0 |
Unlocking | 2 | 0 |
Adjustment for net unrealized investment (gains) losses | 21 | 0 |
Balance at end of period | $ 116 | $ 49 |
Value of Business Acquired, D_4
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
VOBA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Adjustment for net unrealized investment gains and losses | $ 86 | $ (152) |
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] | ||
Adjustment for net unrealized investment gains and losses | $ 49 | (30) |
Deferred sales inducement, unrealized investment gains | $ 15 | $ (4) |
Value of Business Acquired, D_5
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Details) $ in Millions | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ (19) |
2023 | 120 |
2024 | 157 |
2025 | 150 |
2026 | 138 |
Thereafter | $ 778 |
F&G Reinsurance - Effect of Rei
F&G Reinsurance - Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes (Details) - Traditional Life Insurance Premiums - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2020 | |
Premiums and other considerations: | ||
Direct | $ 567 | $ 44 |
Ceded | (32) | (33) |
Net | 535 | 11 |
Benefits and Other Changes in Insurance Policy Reserves: | ||
Direct | 513 | 293 |
Ceded | (305) | (319) |
Net | $ 208 | $ (26) |
F&G Reinsurance - Narrative (De
F&G Reinsurance - Narrative (Details) $ in Millions | Oct. 31, 2021USD ($) | Jan. 15, 2021 | Mar. 31, 2022USD ($)policy | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2021USD ($) |
Ceded Credit Risk [Line Items] | ||||||
Expected credit losses on reinsurance recoverable | $ 20 | $ 21 | $ 20 | |||
Number of policies reinsured by foreign company not engaged in insurance | policy | 0 | |||||
Funds withheld co-insurance basis, percentage | 50.00% | |||||
Hannover Re | Fixed indexed annuities | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance risk charge fees | $ 5 | 5 | ||||
Kubera Reassurance Company | Fixed indexed annuities | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance risk charge fees | 4 | 1 | ||||
Reinsurance retention policy, amount retained | $ 10,000 | $ 4,000 | ||||
Canada Life Assurance Company, US | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance risk charge fees | 1 | $ 0 | ||||
Wilton Reassurance Company | ||||||
Ceded Credit Risk [Line Items] | ||||||
Net amount recoverable | 1,279 | |||||
Aspida Re | ||||||
Ceded Credit Risk [Line Items] | ||||||
Net amount recoverable | 1,103 | |||||
Somerset | ||||||
Ceded Credit Risk [Line Items] | ||||||
Net amount recoverable | $ 727 |
F&G Insurance Subsidiary Fina_2
F&G Insurance Subsidiary Financial Information and Regulatory Matters - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Insurance [Abstract] | ||
Decrease in statutory capital and surplus | $ (135) | $ (106) |
Change in statutory capital surplus increase (decrease) | 65 | 85 |
Statutory capital and surplus | $ 95 | $ 115 |