Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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, $0.0001 par value | |
Trading Symbol | FNF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 272,174,342 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001331875 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturity securities available for sale, at fair value, at June 30, 2023 and December 31, 2022, at an amortized cost of $42,312 and $37,708, respectively, net of allowance for credit losses of $35 and $39, respectively, and includes pledged fixed maturity securities of $474 and $448, respectively, related to secured trust deposits | $ 38,029 | $ 33,095 |
Derivative investments | 649 | 244 |
Mortgage loans, net of allowance for credit losses of $64 and $42 at June 30, 2023 and December 31, 2022, respectively | 5,076 | 4,554 |
Investments in unconsolidated affiliates | 3,039 | 2,642 |
Other long-term investments | 660 | 664 |
Short-term investments, at June 30, 2023 and December 31, 2022 includes pledged short-term investments of $0 and $6, respectively, related to secured trust deposits | 972 | 2,590 |
Total investments | 49,929 | 45,370 |
Cash and cash equivalents, at June 30, 2023 and December 31, 2022 includes $428 and $242, respectively, of pledged cash related to secured trust deposits | 3,136 | 2,286 |
Trade and notes receivables, net of allowance for credit losses of $32 and $33 at June 30, 2023 and December 31, 2022, respectively | 465 | 467 |
Reinsurance recoverable, net of allowance for credit losses of $20 at March 31, 2022 and December 31, 2021 | 7,077 | 5,418 |
Goodwill | 4,811 | 4,635 |
Prepaid expenses and other assets | 2,214 | 2,068 |
Market risk benefits asset | 118 | 117 |
Lease assets | 362 | 376 |
Other intangible assets, net | 4,317 | 3,811 |
Title plants | 417 | 416 |
Property and equipment, net | 175 | 179 |
Total assets | 73,021 | 65,143 |
Liabilities: | ||
Contractholder funds | 45,070 | 40,843 |
Future policy benefits | 5,715 | 5,021 |
Accounts payable and accrued liabilities | 2,725 | 2,326 |
Market risk benefits liability | 313 | 282 |
Notes payable | 3,696 | 3,238 |
Reserve for title claim losses | 1,781 | 1,810 |
Funds withheld for reinsurance liabilities | 5,681 | 3,703 |
Secured trust deposits | 886 | 862 |
Lease liabilities | 411 | 418 |
Income taxes payable | 3 | 0 |
Deferred tax liability | 63 | 71 |
Total liabilities | 66,344 | 58,574 |
Equity: | ||
FNF common stock, $0.0001 par value; authorized 600,000,000 shares as of June 30, 2023 and December 31, 2022; outstanding of 272,178,622 and 272,309,890 as of June 30, 2023 and December 31, 2022, respectively, and issued of 327,731,804 and 327,757,349 as of June 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Preferred stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding, none | 0 | 0 |
Additional paid-in capital | 5,883 | 5,870 |
Retained earnings | 5,140 | 5,225 |
Accumulated other comprehensive loss | (2,681) | (2,870) |
Less: Treasury stock, 55,553,182 shares and 55,447,459 shares as of June 30, 2023 and December 31, 2022, respectively, at cost | (2,113) | (2,109) |
Total Fidelity National Financial, Inc. shareholders’ equity | 6,229 | 6,116 |
Non-controlling interests | 448 | 453 |
Total equity | 6,677 | 6,569 |
Total liabilities and equity | 73,021 | 65,143 |
Preferred securities | ||
Investments: | ||
Securities, at fair value | 804 | 903 |
Equity securities | ||
Investments: | ||
Securities, at fair value | $ 700 | $ 678 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed maturity securities, available-for-sale securities, amortized cost | $ 42,312 | $ 37,708 |
Fixed maturity securities, available-for-sale securities, allowance for credit losses | 35 | 39 |
Available-for-sale securities, pledged securities, secured trust deposits | 474 | 448 |
Allowance for credit loss | 64 | 42 |
Short-term investments, pledged, secured trust deposits | 0 | 6 |
Cash, pledged, secured trust deposits | 428 | 242 |
Allowance for doubtful accounts, premiums and other receivables | 32 | 33 |
Expected credit losses on reinsurance recoverable | $ 9 | $ 10 |
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) | 272,178,622 | 272,309,890 |
Common stock, shares, issued (in shares) | 327,731,804 | 327,757,349 |
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) | 55,553,182 | 55,447,459 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Direct title insurance premiums | $ 541 | $ 859 | $ 969 | $ 1,626 |
Agency title insurance premiums | 713 | 1,203 | 1,263 | 2,302 |
Escrow, title-related and other fees | 1,212 | 786 | 2,092 | 2,078 |
Interest and investment income | 618 | 463 | 1,229 | 941 |
Recognized gains and losses, net | (16) | (676) | (11) | (1,145) |
Total revenues | 3,068 | 2,635 | 5,542 | 5,802 |
Expenses: | ||||
Personnel costs | 755 | 839 | 1,432 | 1,662 |
Agent commissions | 550 | 930 | 970 | 1,774 |
Other operating expenses | 394 | 457 | 754 | 899 |
Benefits and other changes in policy reserves | 817 | (377) | 1,629 | (174) |
Market risk benefit (gains) losses | (30) | (189) | 29 | (119) |
Depreciation and amortization | 151 | 120 | 285 | 235 |
Provision for title claim losses | 56 | 93 | 100 | 177 |
Interest expense | 43 | 31 | 85 | 61 |
Total expenses | 2,736 | 1,904 | 5,284 | 4,515 |
Earnings from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 332 | 731 | 258 | 1,287 |
Income tax expense | 90 | 202 | 104 | 358 |
Earnings before equity in earnings of unconsolidated affiliates | 242 | 529 | 154 | 929 |
Equity in earnings of unconsolidated affiliates | 1 | 14 | 1 | 16 |
Net earnings | 243 | 543 | 155 | 945 |
Less: Net earnings (loss) attributable to non-controlling interests | 24 | 6 | (5) | 8 |
Net earnings attributable to Fidelity National Financial, Inc. common shareholders | $ 219 | $ 537 | $ 160 | $ 937 |
Basic | ||||
Net earnings per share from continuing operations attributable to common shareholders (in usd per share) | $ 0.81 | $ 1.93 | $ 0.59 | $ 3.36 |
Net earnings per share attributable to common shareholders, basic (in usd per share) | 0.81 | 1.93 | 0.59 | 3.36 |
Diluted | ||||
Net earnings per share from continuing operations attributable to common shareholders (in usd per share) | 0.81 | 1.92 | 0.59 | 3.33 |
Net earnings per share attributable to common shareholders, diluted (in usd per share) | $ 0.81 | $ 1.92 | $ 0.59 | $ 3.33 |
Weighted average common shares outstanding - basic (in shares) | 270 | 278 | 270 | 279 |
Weighted average common shares outstanding - diluted (in shares) | 271 | 279 | 271 | 281 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 243 | $ 543 | $ 155 | $ 945 | |
Other comprehensive (loss) earnings: | |||||
Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | [1] | (175) | (1,905) | 172 | (3,809) |
Unrealized (loss) gain on investments in unconsolidated affiliates | [2] | (5) | 1 | 6 | 7 |
Unrealized gain (loss) on foreign currency translation | [3] | 4 | (9) | 6 | (11) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings | [4] | 42 | 27 | 78 | 53 |
Changes in current discount rate - future policy benefits | [5] | 57 | 310 | (43) | 602 |
Change in instrument-specific credit risk - market risk benefits | [6] | (4) | 50 | 3 | 83 |
Other comprehensive earnings (loss) attributable to non-controlling interest | [7] | 10 | 0 | (33) | 0 |
Other comprehensive (loss) earnings | (71) | (1,526) | 189 | (3,075) | |
Comprehensive earnings (loss) | 172 | (983) | 344 | (2,130) | |
Less: Comprehensive earnings (loss) attributable to non-controlling interests | 24 | 6 | (5) | 8 | |
Comprehensive earnings (loss) attributable to Fidelity National Financial, Inc. common shareholders | $ 148 | $ (989) | $ 349 | $ (2,138) | |
[1]Net of income tax (benefit) expense of $(28) million and $(502) million for the three months ended June 30, 2023 and 2022, respectively, and $35 million and $(892) million for the six months periods ended June 30, 2023 and 2022, respectively.[2]Net of income tax (benefit) expense of $(1) million and for the three months ended June 30, 2023 and $2 million for the six months ended June 30, 2023 and 2022.[3]Net of income tax expense (benefit) of less than $1 million and $(3) million for the three months ended June 30, 2023 and 2022, respectively, and $1 million and $(3) million for the six months ended June 30, 2023 and 2022, respectively.[4]Net of income tax expense of $11 million and $7 million for the three months ended June 30, 2023 and 2022, respectively, and $21 million and $14 million for the six months ended June 30, 2023 and 2022, respectively. (5) Net of income tax expense (benefit) of $15 million and $82 million for the three months ended June 30, 2023 and 2022, respectively, and $(12) million and $160 million for the six months ended June 30, 2023 and 2022, respectively. (6) Net of income tax (benefit) expense of $(1) million and $13 million for the three months ended June 30, 2023 and 2022, respectively, and $1 million and $22 million for the six months ended June 30, 2023 and 2022, respectively. (7) Net of income tax expense (benefit) of $3 million and $(9) million for the three and six months ended June 30, 2023, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized loss on investments and other financial instruments, tax (benefit) expense | $ (28) | $ (502) | $ 35 | $ (892) |
Unrealized gain on investments in unconsolidated affiliates, tax (benefit) expense | (1) | 2 | 2 | |
Unrealized loss on foreign currency translation, tax expense (benefit) | 1 | (3) | 1 | (3) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings, tax expense | 11 | 7 | 21 | 14 |
Changes in current discount rate - future policy benefits , tax expense (benefit) | 15 | 82 | (12) | 160 |
Changes in instrument-specific credit risk - market risk benefits, tax (benefit) expense | (1) | $ 13 | 1 | $ 22 |
Other comprehensive earnings attributable to non-controlling interest, tax expense (benefit) | $ (3) | $ (9) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | F&G | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital F&G | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) | Treasury Stock | Non-controlling Interests | Non-controlling Interests F&G | ||
Beginning balance (in shares) at Dec. 31, 2021 | 325,000,000 | |||||||||||
Beginning balance, Treasury stock (in shares) at Dec. 31, 2021 | 42,000,000 | |||||||||||
Beginning balance at Dec. 31, 2021 | $ 10,006 | $ 0 | $ 5,811 | $ 4,818 | $ 879 | $ (1,545) | $ 43 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 1,000,000 | |||||||||||
Exercise of stock options | 8 | 8 | ||||||||||
Treasury stock repurchased (in shares) | 7,000,000 | |||||||||||
Treasury stock repurchased | (306) | $ (306) | ||||||||||
Other comprehensive loss - unrealized loss on investments and other financial instruments | (3,809) | (3,809) | ||||||||||
Other comprehensive earnings - unrealized gain (loss) on investments in unconsolidated affiliates | 7 | [1] | 7 | |||||||||
Other comprehensive loss - unrealized loss on foreign currency translation | (11) | [2] | (11) | |||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 53 | [3] | 53 | |||||||||
Changes in current discount rate - future policy benefits | 602 | [4] | 602 | |||||||||
Change in instrument-specific credit risk - market risk benefits | 83 | [5] | 83 | |||||||||
Other comprehensive income associated with noncontrolling interests | [6] | 0 | ||||||||||
Stock-based compensation | 24 | 24 | 0 | |||||||||
Dividends declared, per common share | (246) | (246) | ||||||||||
Subsidiary dividends declared to non-controlling interests | (8) | (8) | ||||||||||
Net earnings | 945 | 937 | 8 | |||||||||
Ending balance (in shares) at Jun. 30, 2022 | 326,000,000 | |||||||||||
Ending balance, Treasury stock (in shares) at Jun. 30, 2022 | 49,000,000 | |||||||||||
Ending balance at Jun. 30, 2022 | 7,348 | $ 0 | 5,843 | 5,509 | (2,196) | $ (1,851) | 43 | |||||
Beginning balance (in shares) at Mar. 31, 2022 | 326,000,000 | |||||||||||
Beginning balance, Treasury stock (in shares) at Mar. 31, 2022 | 45,000,000 | |||||||||||
Beginning balance at Mar. 31, 2022 | 8,612 | $ 0 | 5,826 | 5,094 | (670) | $ (1,679) | 41 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 0 | |||||||||||
Exercise of stock options | 5 | 5 | ||||||||||
Treasury stock repurchased (in shares) | 4,000,000 | |||||||||||
Treasury stock repurchased | (172) | $ (172) | ||||||||||
Other comprehensive loss - unrealized loss on investments and other financial instruments | (1,905) | (1,905) | ||||||||||
Other comprehensive earnings - unrealized gain (loss) on investments in unconsolidated affiliates | 1 | [1] | 1 | |||||||||
Other comprehensive loss - unrealized loss on foreign currency translation | (9) | [2] | (9) | |||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 27 | [3] | 27 | |||||||||
Changes in current discount rate - future policy benefits | 310 | [4] | 310 | |||||||||
Change in instrument-specific credit risk - market risk benefits | 50 | [5] | 50 | |||||||||
Other comprehensive income associated with noncontrolling interests | [6] | 0 | ||||||||||
Stock-based compensation | 12 | 12 | 0 | |||||||||
Dividends declared, per common share | (122) | (122) | ||||||||||
Subsidiary dividends declared to non-controlling interests | (4) | (4) | ||||||||||
Net earnings | 543 | 537 | 6 | |||||||||
Ending balance (in shares) at Jun. 30, 2022 | 326,000,000 | |||||||||||
Ending balance, Treasury stock (in shares) at Jun. 30, 2022 | 49,000,000 | |||||||||||
Ending balance at Jun. 30, 2022 | $ 7,348 | $ 0 | 5,843 | 5,509 | (2,196) | $ (1,851) | 43 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 328,000,000 | |||||||||||
Beginning balance, Treasury stock (in shares) at Dec. 31, 2022 | 55,447,459 | 55,000,000 | ||||||||||
Beginning balance at Dec. 31, 2022 | $ 6,569 | $ 0 | 5,870 | 5,225 | (2,870) | $ (2,109) | 453 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Treasury stock repurchased | (4) | $ (16) | $ (1) | $ (4) | $ (15) | |||||||
Other comprehensive loss - unrealized loss on investments and other financial instruments | 172 | 172 | ||||||||||
Other comprehensive earnings - unrealized gain (loss) on investments in unconsolidated affiliates | 6 | [1] | 6 | |||||||||
Other comprehensive loss - unrealized loss on foreign currency translation | 6 | [2] | 6 | |||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 78 | [3] | 78 | |||||||||
Changes in current discount rate - future policy benefits | (43) | [4] | (43) | |||||||||
Change in instrument-specific credit risk - market risk benefits | 3 | [5] | 3 | |||||||||
Other comprehensive income associated with noncontrolling interests | (33) | [6] | (1) | (33) | 34 | |||||||
Stock-based compensation | 28 | 27 | 1 | |||||||||
Purchase of incremental share in consolidated subsidiaries | (20) | (12) | (8) | |||||||||
Dividends declared, per common share | (245) | (245) | ||||||||||
Subsidiary dividends declared to non-controlling interests | (12) | (12) | ||||||||||
Net earnings | $ 155 | 160 | (5) | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 328,000,000 | |||||||||||
Ending balance, Treasury stock (in shares) at Jun. 30, 2023 | 55,553,182 | 55,000,000 | ||||||||||
Ending balance at Jun. 30, 2023 | $ 6,677 | $ 0 | 5,883 | 5,140 | (2,681) | $ (2,113) | 448 | |||||
Beginning balance (in shares) at Mar. 31, 2023 | 328,000,000 | |||||||||||
Beginning balance, Treasury stock (in shares) at Mar. 31, 2023 | 55,000,000 | |||||||||||
Beginning balance at Mar. 31, 2023 | 6,648 | $ 0 | 5,871 | 5,044 | (2,610) | $ (2,113) | 456 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive loss - unrealized loss on investments and other financial instruments | (175) | (175) | ||||||||||
Other comprehensive earnings - unrealized gain (loss) on investments in unconsolidated affiliates | (5) | [1] | (5) | |||||||||
Other comprehensive loss - unrealized loss on foreign currency translation | 4 | [2] | 4 | |||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 42 | [3] | 42 | |||||||||
Changes in current discount rate - future policy benefits | 57 | [4] | 57 | |||||||||
Change in instrument-specific credit risk - market risk benefits | (4) | [5] | (4) | |||||||||
Other comprehensive income associated with noncontrolling interests | 10 | [6] | (1) | 10 | (9) | |||||||
Stock-based compensation | 14 | 14 | ||||||||||
Purchase of incremental share in consolidated subsidiaries | $ 16 | $ 1 | $ 15 | |||||||||
Dividends declared, per common share | (123) | (123) | ||||||||||
Subsidiary dividends declared to non-controlling interests | (8) | (8) | ||||||||||
Net earnings | $ 243 | 219 | 24 | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 328,000,000 | |||||||||||
Ending balance, Treasury stock (in shares) at Jun. 30, 2023 | 55,553,182 | 55,000,000 | ||||||||||
Ending balance at Jun. 30, 2023 | $ 6,677 | $ 0 | $ 5,883 | $ 5,140 | $ (2,681) | $ (2,113) | $ 448 | |||||
[1]Net of income tax (benefit) expense of $(1) million and for the three months ended June 30, 2023 and $2 million for the six months ended June 30, 2023 and 2022.[2]Net of income tax expense (benefit) of less than $1 million and $(3) million for the three months ended June 30, 2023 and 2022, respectively, and $1 million and $(3) million for the six months ended June 30, 2023 and 2022, respectively.[3]Net of income tax expense of $11 million and $7 million for the three months ended June 30, 2023 and 2022, respectively, and $21 million and $14 million for the six months ended June 30, 2023 and 2022, respectively. (5) Net of income tax expense (benefit) of $15 million and $82 million for the three months ended June 30, 2023 and 2022, respectively, and $(12) million and $160 million for the six months ended June 30, 2023 and 2022, respectively. (6) Net of income tax (benefit) expense of $(1) million and $13 million for the three months ended June 30, 2023 and 2022, respectively, and $1 million and $22 million for the six months ended June 30, 2023 and 2022, respectively. (7) Net of income tax expense (benefit) of $3 million and $(9) million for the three and six months ended June 30, 2023, respectively. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend per common share (in dollars per share) | $ 0.45 | $ 0.44 | $ 0.90 | $ 0.88 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 155 | $ 945 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 285 | 235 |
Equity in earnings of unconsolidated affiliates | (1) | (16) |
Loss on sales of investments and other assets and asset impairments, net | 396 | 71 |
Interest credited/index credits to contractholder account balances | 857 | (827) |
Change in market risk benefits, net | 29 | (119) |
Deferred policy acquisition costs and deferred sales inducements | (518) | (371) |
Charges assessed to contractholders for mortality and admin | (122) | (107) |
Non-cash lease costs | 69 | 71 |
Operating lease payments | (76) | (75) |
Distributions from unconsolidated affiliates, return on investment | 89 | 38 |
Stock-based compensation cost | 28 | 24 |
Change in NAV of limited partnerships, net | (96) | (172) |
Change in valuation of derivatives, equity and preferred securities, net | (385) | 1,072 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Change in insurance recoverable | (27) | 209 |
Change in future policy benefits | 421 | 330 |
Change in funds withheld from reinsurers | 1,980 | 617 |
Net decrease in trade receivables | 10 | 27 |
Net decrease in reserve for title claim losses | (29) | (39) |
Net change in income taxes | 7 | 146 |
Net change in other assets and other liabilities | 67 | (564) |
Net cash provided by operating activities | 3,139 | 1,495 |
Cash flows from investing activities: | ||
Proceeds from sales, calls and maturities of investment securities | 2,228 | 3,541 |
Proceeds from sales of property and equipment | 0 | 5 |
Additions to property and equipment and capitalized software | (69) | (77) |
Purchases of investment securities | (7,170) | (6,958) |
Net proceeds from sales and maturities (purchases) of short-term investment securities | 1,628 | (1,644) |
Collections of notes receivable | 0 | 4 |
Additions to notes receivable | (8) | (94) |
Acquisitions and dispositions | (293) | (20) |
Additional investments in unconsolidated affiliates | (736) | (741) |
Distributions from unconsolidated affiliates, return of investment | 187 | 93 |
Net other investing activities | 2 | 0 |
Net cash used in investing activities | (4,231) | (5,891) |
Cash flows from financing activities: | ||
Debt offering | 500 | 0 |
Debt costs/equity issuance additions | (9) | 0 |
F&G Credit Agreement repayments, net | (35) | 0 |
Dividends paid | (243) | (245) |
Subsidiary dividends paid to non-controlling interest shareholders | (15) | (8) |
Exercise of stock options | 0 | 8 |
Additional investment in consolidated subsidiary | (20) | 0 |
Net change in secured trust deposits | 24 | 239 |
Payment of contingent consideration for prior period acquisitions | (5) | (3) |
Contractholder account deposits | 3,847 | 4,513 |
Contractholder account withdrawals | (2,080) | (1,744) |
F&G repurchases of FG stock | (16) | 0 |
Purchases of treasury stock | (6) | (298) |
Net cash provided by financing activities | 1,942 | 2,462 |
Net increase (decrease) in cash and cash equivalents | 850 | (1,934) |
Cash and cash equivalents at beginning of period | 2,286 | 4,360 |
Cash and cash equivalents at end of period | $ 3,136 | $ 2,426 |
Basis of Financial Statements
Basis of Financial Statements | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022. 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 majority-owned subsidiary, F&G Annuities & Life ("F&G"). For information about our reportable segments refe r to Note H Segment Information . Recent Developments 7.40% F&G Senior Notes On January 13, 2023, F&G completed its issuance and sale of $500 million aggregate amount of its 7.40% Senior Notes due 2028 (the "7.40% F&G Notes"), pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. F&G intends to use the net proceeds from the offering for general corporate purposes, including to support the growth of assets under management and for F&G's future liquidity requirements. For further information about the 7.40% F&G Notes refer to Note O Notes Payable . Title Point Acquisition On January 1, 2023, we completed our previously announced acquisition of TitlePoint for $224 million in cash, subject to customary working capital adjustments. TitlePoint enables searches for detailed property information, images of documents and maps from hundreds of counties across the U.S and is a leader in the science of real estate property research technology. For further information about the TitlePoint acquisition refer to Note N Acquisitions . Income Tax Income tax expense was $90 million and $202 million in the three months ended June 30, 2023 and 2022, respectively, and $104 million and $358 million in the six months ended June 30, 2023 and 2022, respectively. Income tax expense as a percentage of earnings before income taxes was 27% and 28% in the three months ended June 30, 2023 and 2022, respectively, and 40% and 28% in the six months ended June 30, 2023 and 2022, respectively. The decrease in income tax expense as a percentage of earnings before taxes in the three months ended June 30, 2023 as compared to the corresponding period in 2022 is primarily attributable to the recording of valuation allowances in 2022, partially offset by the recording of valuation allowances in 2023. The increase in income tax expense as a percentage of earnings before taxes in the six months ended June 30, 2023 as compared to the corresponding period in 2022 is primarily attributable to recording of valuation allowances in 2023. The valuation allowance is associated with tax benefits from deferred tax assets related to recognized valuation losses on equity securities that we will more likely than not be able to realize for tax purposes. Additionally, the tax benefit associated with the valuation losses on equity securities in the three and six months ended June 30, 2023 was further reduced by an increase in the valuation allowance in 2023. Earnings Per Share Basic earnings per share, as presented on the unaudited 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 and shares of restricted stock, 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 and six months ended June 30, 2023 and 2022. Recent Accounting Pronouncements Adopted Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12, as clarified and amended by ASU 2019-09, Financial Services-Insurance: Effective Date and ASU 2020-11, Financial Services-Insurance: Effective Date and Early Application, 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 earnings; 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 accumulated other comprehensive income (loss) (“AOCI”); Market risk benefits (“MRB”) associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value recognized in earnings, except for the change attributable to instrument-specific credit risk, which is recognized in AOCI; 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 roll forwards of beginning to ending balances of the liability for future policyholder benefits ("FPBs"), Contractholder funds, MRBs, 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. We adopted this standard, which required the new guidance be applied as of the beginning of the earliest period presented or January 1, 2021, referred to as the transition date, and elected the full retrospective transition method. As a result of adoption, the Company recorded a cumulative-effect adjustment, which increased opening 2021 retained earnings by $75 million, net of tax. Pronouncements Not Yet Adopted In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction and clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Additionally, the amendments require the following disclosures for equity securities subject to contractual sale restrictions: the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of the restriction(s), and the circumstances that could cause a lapse in the restriction(s). The amendments in this update do not change the principles of fair value measurement, rather, they clarify those principles when measuring the fair value of an equity security subject to a contractual sale restriction and improve current GAAP by reducing diversity in practice, reducing the cost and complexity in measuring fair value, and increasing comparability of financial information across reporting entities that hold those investments. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, though early adoption is permitted. We do not expect this guidance to have a material impact on our Consolidated Financial Statements and related disclosures upon adoption. We do not currently plan to early adopt this standard. Summary of Updated Significant Accounting Policies Since our Annual Report for the year ended December 31, 2022, as a result of the adoption of ASU 2018-12 we have updated the following significant accounting policies, which have been followed in preparing the accompanying unaudited Condensed Consolidated Financial Statements: Investments Fixed Maturity Securities Available-for-Sale Fixed maturity securities are purchased to support our investment strategies, which are developed based on factors including rate of return, maturity, credit risk, duration, tax considerations and regulatory requirements. Our investments in fixed maturity securities have been designated as available-for-sale ("AFS") and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within AOCI, net of deferred income taxes. Fair values for fixed maturity securities are principally a function of current market conditions and are primarily valued based on quoted prices in markets that are not active or model inputs that are observable or unobservable. We recognize investment income on fixed maturities based on the effective interest method, which results in the recognition of a constant rate of return on the investment equal to the prevailing rate at the time of purchase or at the time of subsequent adjustments of book value. In our title segment, realized gains and losses on sales of our fixed maturity securities are determined on the basis of the cost of the specific investments sold and are credited or charged to income on a trade date basis. Our F&G segment uses FIFO cost basis and generally records security transactions on a trade date basis except for private placements, which are recorded on a settlement date basis. Realized gains and losses on sales of fixed maturity securities are reported within Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. Fixed maturity securities AFS are subject to an allowance for credit loss and changes in the allowance are reported in net earnings as a component of Recognized gains and losses, net. For details on our policy around allowance for expected credit losses on AFS securities, refer to Note D Investments. Investments in Unconsolidated Affiliates We account for our investments in unconsolidated affiliates using the equity method or by electing the fair value option. Initial investments are recorded at cost. For investments subsequently measured using the equity method (primarily limited partnerships), adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by net asset value (“NAV”) in the unconsolidated affiliates’s financial statements, which we may adjust if we determine NAV is not calculated consistent with investment company fair value principles. Distributions received are recorded as a decrease in the investment balance. For investments subsequently measured using the fair value option, adjustments to the carrying amount reflecting the change in fair value of the investment are reported along with realized gains and losses on sales of investments in unconsolidated affiliates in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. Other income from investments in unconsolidated affiliates, including distributions received from investments measured using the fair value option, is reported within Interest and investment income in the accompanying unaudited Condensed Consolidated Statements of Earnings. Recognition of income and adjustments to the carrying amount can be delayed due to the availability of the related financial statements, which are obtained from the general partner or managing member generally on a one to three-month delay. For investments using the equity method, management inquires quarterly with the general partner or managing member to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. VOBA, DAC, DSI and URL Our intangible assets include the value of insurance and reinsurance contracts acquired (hereafter referred to as VOBA), deferred acquisition costs ("DAC") and deferred sales inducements ("DSI"). VOBA is an intangible asset that reflects the amount recorded as insurance contract liabilities less the estimated fair value of in-force contracts (“VIF”) in a life insurance company acquisition. It represents the portion of the purchase price that is allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. VOBA is a function of the VIF, current GAAP reserves, GAAP assets, and deferred tax liability. The VIF is determined by the present value of statutory distributable earnings less opening required capital. DAC consists principally of commissions and other acquisition costs that are related directly to the successful sale of new or renewal insurance contracts. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and persistency or vesting bonuses credited to contractholder fund balances. VOBA, DAC, and DSI are amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. Contracts are grouped by product type and feature and issue year into cohorts consistent with the grouping used in estimating the associated liability, where applicable. The constant level amortization bases of VOBA, DAC and DSI varies by product type. For universal life and indexed universal life ("IUL") insurance products, the constant level basis used is face amount in force. For deferred annuities (fixed indexed annuities ("FIA") and fixed rate annuities), the constant level basis used is initial premium deposit for DAC and DSI and vested account value as of the acquisition date for VOBA. For immediate annuity contracts, the VOBA balance is amortized in alignment with the Company’s accounting policy of amortizing the deferred profit liability (“DPL”). All amortization bases are adjusted by full lapses, which includes deaths, full surrenders, annuitizations and maturities, where applicable. The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on Company’s experience, industry data, and other factors and are consistent with those used for the FPBs, where applicable. If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected contract terminations, due to higher mortality and/or lapse experience than expected, are recognized in the current period as a reduction of the capitalized balances. All balances are reduced for actual experience in excess of expected experience with changes in future estimates recognized prospectively over the remaining expected grouped contract term. The impact of changes in projected assumptions and the impact of actual experience that is different from expectations both impact the amortization of these intangible assets, which is reported within Depreciation and amortization in the accompanying unaudited Condensed Consolidated Statements of Earnings. Some of our IUL policies require payment of fees or other policyholder assessments in advance for services that will be rendered over the estimated lives of the policies or contracts. These payments are established as unearned revenue liabilities (“URL”) upon receipt and included in Accounts payable and other accrued liabilities in the unaudited Condensed Consolidated Balance Sheets. URL is amortized like DAC over the estimated lives of these policies. As of June 30, 2023 and December 31, 2022, our URL balance was $215 million and $166 million, respectively Contractholder Funds Contractholder funds include deferred annuities (FIAs and fixed rate annuities), IULs, funding agreements and non-life contingent (“NLC”) immediate annuities (which includes NLC pension risk transfer ("PRT") annuities). The liabilities for contractholder funds for fixed rate annuities, funding agreements and NLC immediate annuities (which includes NLC PRT annuities) consist of contract account balances that accrue to the benefit of the contractholders. The liabilities for FIA and IUL policies consist of the value of the host contract plus the fair value of the indexed crediting feature of the policy, which is accounted for as an embedded derivative. The embedded derivative liability is carried at fair value in Contractholder funds in the accompanying unaudited Condensed Consolidated Balance Sheets with changes in fair value reported in Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Earnings. See a description of the fair value methodology used in Note C Fair Value of Financial Instruments . Future Policy Benefits The FPB is determined as the present value of future policy benefits and related claims expenses to be paid to or on behalf of the policyholder less the present value of future net premiums to be collected from policyholders. The FPB for traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities) are estimated using current assumptions that include discount rate, mortality and surrender/lapse terminations for traditional life insurance policies only, and expenses. The expense assumption is locked-in at contract issuance and not subsequently reviewed or updated. The initial assumptions are based on generally accepted actuarial methods and a combination of internal and industry experience. Policies are terminated through surrenders, lapses and maturities, where surrenders represent the voluntary terminations of policies by policyholders, lapses represent cancellations by us due to nonpayment of premiums, and maturities are determined by policy contract terms. Surrender assumptions are based upon policyholder behavior experience adjusted for expected future conditions. For traditional life policies and life-contingent immediate annuity policies, contracts are grouped into cohorts by product type, legal entity, and issue year, or acquisition year for cohorts established as of the F&G acquisition date, June 1, 2020. Life-contingent PRT annuities are grouped into cohorts by deal and legal entity. At contract inception, a net premium ratio (“NPR”) is determined, which is calculated based on discounted future cash flows projected using best estimate assumptions and is capped at 100%, as net premiums cannot exceed gross premiums. Cohorts with NPRs less than 100% are not used to offset cohorts with NPRs greater than 100%. The NPR is adjusted for changes in cash flow assumptions and for differences between actual and expected experience. We assess the appropriateness of all future cash flow assumptions, excluding the expense assumption, on a quarterly basis and perform an in-depth review of future cash flow assumptions in the third quarter of each year. Updates are made when evidence suggests a revision is necessary. Updates for actual experience, which includes actual cash flows and insurance in-force, are performed on a quarterly basis. These updated cash flows are used to calculate a revised NPR, which is used to derive an updated liability as of the beginning of the current reporting period, discounted at the original contract issuance date. The updated liability is compared with the carrying amount of the liability as of that same date before the revised NPR. The difference between these amounts is the remeasurement gain or loss, presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Earnings. In subsequent periods, the revised NPR, which is capped at 100%, is used to measure the FPB, subject to future revisions. If the NPR is greater than 100%, and therefore capped at 100%, the liability is increased and expensed immediately to reflect the amount necessary for net premiums to equal gross premiums. As the liability assumptions are reviewed and updated, if deemed necessary, at least annually, if conditions improve whereby the contracts are no longer expected to have net premiums in excess of gross premiums, the improvements would be captured in the remeasurement process and reflected in the accompanying unaudited Condensed Consolidated Statements of Earnings in the period of improvement. For traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities), the discount rate assumption is an equivalent single rate that is derived based on A-credit-rated fixed-income instruments with similar duration to the liability. We selected fixed-income instruments that have been A-rated by Bloomberg. In order to reflect the duration characteristics of the liability, we will use an implied forward yield curve and linear interpolation will be used for durations that have limited or no market observable points on the curve. The discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in the accompanying unaudited Condensed Consolidated Statements of Comprehensive Earnings. Deferred Profit Liability For life-contingent immediate annuity policies (which includes life-contingent PRT annuities), gross premiums received in excess of net premiums are deferred at initial recognition as a DPL. Gross premiums are measured using assumptions consistent with those used in the measurement of the related liability for FPB, including discount rate, mortality, and expenses. The DPL is amortized and recognized as premium revenue with the amount of expected future benefit payments, discounted using the same discount rate determined and locked-in at contract issuance that is used in the measurement of the related FPB. Interest is accreted on the balance of the DPL using this same discount rate. We periodically review and update our estimates of using the actual historical experience and updated cash flows for the DPL at the same time as the estimates of cash flows for the FPB. When cash flows are updated, the updated estimates are used to recalculate the initial DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, with any differences recognized as a remeasurement gain or loss, presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Earnings. The DPL is recorded as a component of the Future policy benefits in the accompanying unaudited Condensed Consolidated Balance Sheets. Market Risk Benefits MRBs are contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk (equity, interest rate and foreign exchange risk) and expose the Company to other-than-nominal capital market risk. MRBs include certain contract features primarily on FIA products that provide minimum guarantees to policyholders, such as guaranteed minimum death benefit (“GMDB”) and guaranteed minimum withdrawal benefit (“GMWB”) riders. MRBs are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder used to cover the excess benefits, which represent expected benefits in excess of the policyholder’s account value. At contract inception, an attributed fee ratio is calculated equal to rider charges over benefits paid in excess of the account value attributable to the MRB. The attributed fee ratio remains static over the life of the MRB and is capped at 100%. For each period subsequent to contract inception, the attributed fee ratio is used to calculate the fair value of the MRB using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, GMWB utilization, risk-free rates including non-performance spread and risk margin, market value of options and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. MRBs can either be in an asset or liability position and are presented separately on the unaudited Condensed Consolidated Balance Sheets as the right of setoff criteria are not met. Changes in fair value are recognized in Market risk benefits gain (losses) in the accompanying unaudited Condensed Consolidated Statements of Earnings, except for the change in fair value due to a change in the instrument-specific credit risk, which is recognized in the accompanying unaudited Condensed Consolidated Statements of Comprehensive Earnings. See a description of the fair value methodology used in Note C Fair Value of Financial Instruments and Note P Market Risk Benefits . Benefits and Other Changes in Policy Reserves Benefit expenses for deferred annuities (FIAs and fixed rate annuities), IUL policies and funding agreements include interest credited, fixed interest and/or indexed (specific to FIA and IUL policies), to contractholder account balances. Benefit claims in excess of contract account balances, net of reinsurance recoveries, are charged to expense in the period that they are earned by the policyholder based on their selected strategy or strategies. Other changes in policy reserves include the change in the fair value of the FIA embedded derivative. Other changes in policy reserves also include the change in reserves for life insurance products. For traditional life and life-contingent immediate annuities (which includes PRT annuities with life contingencies), policy benefit claims are charged to expense in the period that the claims are incurred, net of reinsurance recoveries. Remeasurement gains or losses on the related FPB and DPL balances are presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Earnings. Impacts of adoption of ASU 2018-12 on Financial Statements The following tables summarize the impacts of the adoption of ASU 2018-12 on our accompanying unaudited Condensed Consolidated Balance Sheet and unaudited Condensed Consolidated Statement of Earnings. Condensed Consolidated Balance Sheet December 31, 2022 As Previously Reported Adjustments As adjusted (Unaudited) (Unaudited) (In millions) ASSETS Reinsurance recoverable, net of allowance for credit losses $ 5,588 $ (170) $ 5,418 Goodwill 4,642 (7) 4,635 Prepaid expenses and other assets 2,231 (163) 2,068 Market risk benefits asset — 117 117 Other intangible assets, net 4,034 (223) 3,811 Total $ 16,495 $ (446) $ 16,049 LIABILITIES AND EQUITY Liabilities: Contractholder funds $ 41,233 $ (390) $ 40,843 Future policy benefits 5,923 (902) 5,021 Accounts payable and accrued liabilities 2,352 (26) 2,326 Market risk benefits liability — 282 282 Total $ 49,508 $ (1,036) $ 48,472 Equity: Additional paid-in capital $ 5,876 $ (6) $ 5,870 Retained earnings 4,714 511 5,225 Accumulated other comprehensive (loss) earnings (2,862) (8) (2,870) Non-controlling interests 360 93 453 Total $ 8,088 $ 590 $ 8,678 Condensed Consolidated Statement of Earnings Three months ended June 30, 2022 Six months ended June 30, 2022 As Previously Reported Adjustments As adjusted As Previously Reported Adjustments As adjusted (Unaudited) (Unaudited) Revenues: (In millions) (In millions) Escrow, title-related and other fees $ 782 $ 4 $ 786 $ 2,072 $ 6 $ 2,078 Expenses: Benefits and other changes in policy reserves $ (418) $ 41 $ (377) $ (210) $ 36 $ (174) Market risk benefit gains — (189) (189) — (119) (119) Depreciation and amortization 161 (41) 120 343 (108) 235 Income tax expense 164 38 202 319 39 358 Net earnings attributable to Fidelity National Financial, Inc. common shareholders $ 382 $ 155 $ 537 $ 779 $ 158 $ 937 Earnings per share Basic Net earnings per share attributable to common shareholders, basic $ 1.37 $ 0.56 $ 1.93 $ 2.79 $ 0.57 $ 3.36 Diluted Net earnings per share attributable to common shareholders, diluted $ 1.37 $ 0.55 $ 1.92 $ 2.77 $ 0.56 $ 3.33 |
Summary of Reserve for Title Cl
Summary of Reserve for Title Claim Losses | 6 Months Ended |
Jun. 30, 2023 | |
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: Six months ended June 30, 2023 2022 (In millions) Beginning balance $ 1,810 $ 1,883 Change in insurance recoverable — (108) Claim loss provision related to: Current year 100 177 Total title claim loss provision 100 177 Claims paid, net of recoupments related to: Current year (4) (7) Prior years (125) (102) Total title claims paid, net of recoupments (129) (109) Ending balance of claim loss reserve for title insurance $ 1,781 $ 1,843 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 principal (collectively, the “Named Companies”). 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 some of the plaintiffs’ funds were deposited. In connection with the alcoholic beverage license scheme, a lawsuit styled, Securities and Exchange Commission v. Gina Champion-Cain and ANI Development, LLC , was filed in the United States District Court for the Southern District of California asserting claims for securities fraud against Ms. Champion-Cain and certain of her affiliated entities. 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 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 sought compensatory, incidental, consequential, and punitive damages, and the recovery of attorneys’ fees. In turn, the Named Companies petitioned the federal court to sue ANI, via the receiver, to pursue indemnity and other claims against the receivership entities as joint tortfeasors, which was granted. On April 26, 2022, the Named Companies reached a global settlement with the receiver and several other investor claimants. As a condition of the settlement, the Named Companies and the receiver jointly sought court approval of the global settlement and entry of an order barring any claims against the Named Companies related to the alcoholic beverage license scheme. On November 23, 2022, the federal court overruled any objections by non-joining investors and entered an order approving the global settlement and barring further claims against the Named Companies (“Settlement and Bar Order”). The receiver’s lawsuit against the Named Companies has been dismissed. The receiver is in receipt of the settlement payment from Chicago Title Company and will distribute the amount designated for each non-joining investor at the conclusion of any such investor’s appeal of the Settlement and Bar Order (or back to Chicago Title Company if an appeal is successful). Some of the investor claimants who objected to entry of the Settlement and Bar Order appealed the decision to the United States Court of Appeals for the Ninth Circuit by (Cases 22-56206, 22-56208, and 23-55083). Appellate briefing is expected to take place over the next several months. After filing its appeal, one of the appellants, CalPrivate Bank (Case 23-55083), entered into a settlement with the receiver that was approved by the federal court. This settlement resolves CalPrivate Bank’s objections to the Settlement and Bar Order, and its appeal has been dismissed. The following lawsuits remain pending in the Superior Court of San Diego County for the State of California, all of which involve investor claimants who have claims against the Named Companies, objected to the settlement with the receiver, and have appealed the Settlement and Bar Order. Since any pending and future claims against the Named Companies are barred, the state court cases where plaintiffs have served a notice of appeal have been stayed pending the outcome of the appeals, and the claims against the Named Companies by non-appealing plaintiffs have been dismissed with prejudice. 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, and ABC Funding Strategies, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $250 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages, 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 the members of ABC Funding Strategies, LLC plaintiffs under confidential terms. 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 filed a cross-complaint against Ms. Champion-Cain, and others, and the Named Companies were substituted in as the Plaintiff following a settlement with the bank. 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. Given CalPrivate Bank's settlement with the receiver, this action against the Named Companies will be dismissed. 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 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. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect VOBA, DAC, and DSI, 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. Effective October 1, 2022, the Company incorporated IUL products under these Iowa-prescribed accounting practices. This resulted in a $202 million and $152 million decrease to statutory capital and surplus at June 30, 2023 and December 31, 2022, respectively. Based on a permitted practice received from the Iowa Insurance Department, FGL Insurance carries one of its limited partnership interests which qualifies for accounting under SSAP No. 48, “Investments in Joint Ventures, Partnerships and Limited Liability Companies” on a net asset value per share basis. This is a departure from SSAP No. 48 which requires such investments to be carried based on the investees underlying U.S. GAAP equity (prior to any impairment considerations). This resulted in a $15 million and $13 million increase to statutory capital and surplus at June 30, 2023 and December 31, 2022, respectively. FGL Insurance’s statutory carrying value of Raven Re reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset, which increased Raven Re’s statutory capital and surplus by $200 million and $200 million at June 30, 2023 and December 31, 2022, 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 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 $107 million and $121 million at June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, 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 | 6 Months Ended |
Jun. 30, 2023 | |
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, along with net asset value. The 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. Net asset value ("NAV") - Certain equity investments are measured using NAV as a practical expedient in determining fair value. In addition, our unconsolidated affiliates (primarily limited partnerships) are primarily accounted for using the equity method of accounting with fair value determined using NAV as a practical expedient. Our carrying value reflects our pro rata ownership percentage as indicated by NAV in the unconsolidated affiliate's financial statements, which we may adjust if we determine NAV is not calculated consistent with investment company fair value principles. The underlying investments of the unconsolidated affiliates may have significant unobservable inputs, which may include, but are not limited to, comparable multiples and weighted average cost of capital rates applied in valuation models or a discounted cash flow model. Additionally, management meets quarterly with the general partner to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. In 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: June 30, 2023 Level 1 Level 2 Level 3 NAV Fair Value Assets (In millions) Cash and cash equivalents $ 3,136 $ — $ — $ — $ 3,136 Fixed maturity securities, available-for-sale: Asset-backed securities — 6,330 6,510 — 12,840 Commercial mortgage-backed securities — 3,972 17 — 3,989 Corporates 26 14,475 1,628 — 16,129 Hybrids 95 609 — — 704 Municipals — 1,554 49 — 1,603 Residential mortgage-backed securities — 1,988 28 — 2,016 U.S. Government 468 16 — — 484 Foreign Governments — 248 16 — 264 Short term investments 801 45 126 — 972 Preferred securities 266 531 7 — 804 Equity securities 645 — 14 41 700 Derivative investments — 649 — — 649 Investment in unconsolidated affiliates — — 197 — 197 Reinsurance related embedded derivative, included in other assets — 277 — — 277 Market risk benefits asset — — 118 — 118 Other long-term investments — — 49 — 49 Total financial assets at fair value $ 5,437 $ 30,694 $ 8,759 $ 41 $ 44,931 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,821 — 3,821 Market risk benefits liability $ — $ — $ 313 $ — $ 313 Total financial liabilities at fair value $ — $ — $ 4,134 $ — $ 4,134 December 31, 2022 Level 1 Level 2 Level 3 NAV Fair Value Assets (In millions) Cash and cash equivalents $ 2,286 $ — $ — $ — $ 2,286 Fixed maturity securities, available-for-sale: Asset-backed securities — 5,204 6,263 — 11,467 Commercial mortgage-backed securities — 3,026 37 — 3,063 Corporates 40 12,857 1,440 — 14,337 Hybrids 93 638 — — 731 Municipals — 1,431 29 — 1,460 Residential mortgage-backed securities — 1,225 302 — 1,527 U.S. Government 260 11 — — 271 Foreign Governments — 223 16 — 239 Short term investments 2,590 — — — 2,590 Preferred securities 320 582 1 — 903 Equity securities 621 — 10 47 678 Derivative investments — 244 — — 244 Investment in unconsolidated affiliates — — 23 — 23 Reinsurance related embedded derivative, included in other assets — 279 — — 279 Market risk benefits asset — — 117 — 117 Other long-term investments — — 48 — 48 Total financial assets at fair value $ 6,210 $ 25,720 $ 8,286 $ 47 $ 40,263 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,115 — 3,115 Market risk benefits liability — — 282 — 282 Total financial liabilities at fair value $ — $ — $ 3,397 $ — $ 3,397 Valuation Methodologies Cash and Cash Equivalents The carrying amounts reported in the unaudited Condensed Consolidated Balance Sheets for these instruments approximate fair value. 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, preferred 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 June 30, 2023 or December 31, 2022. Certain equity investments are measured using NAV as a practical expedient in determining fair value. 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 June 30, 2023 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. Investments in Unconsolidated affiliates We have elected the fair value option for certain investments in unconsolidated affiliates as we believe this better aligns them with other investments in unconsolidated affiliates that are measured using NAV as a practical expedient in determining fair value. Investments measured using the fair value option are included in Level 3 and the fair value of these investments are determined using a multiple of the affiliates’ EBITDA, which is derived from market analysis of transactions involving comparable companies. The EBITDA used in this calculation is based on the affiliates’ financial information. The inputs are usually considered unobservable, as not all market participants have access to this data. Short-term investments The carrying amounts reported in the unaudited Condensed Consolidated Balance Sheets for these instruments approximate fair value. 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 NAV of the fund at the balance sheet date. The embedded derivative is similar to a call option on the NAV 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 NAV of the fund on the maturity date. A Black-Scholes model determines the NAV 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 NAV 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. Market Risk Benefits MRBs are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder used to cover the excess benefits. The fair value is calculated using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, rider benefit utilization, risk-free rates including non-performance spread and risk margin, market value of options and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. See further discussion on MRBs in Note P - Market Risk Benefits . Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of June 30, 2023 and December 31, 2022 are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) June 30, 2023 (In millions) June 30, 2023 Assets Asset-backed securities $ 6,233 Broker-Quoted Offered Quotes 54.7% - 171.90% (94.28%) Asset-backed securities 277 Third-Party Valuation Offered Quotes 39.65% - 101.77% (62.08%) Commercial mortgage-backed securities 17 Third-Party Valuation Offered Quotes 79.35% - 88.61% (84.76%) Corporates 789 Broker-Quoted Offered Quotes 46.39% - 104.74% (95.87%) Corporates 10 Discounted Cash Flow Discount Rate 44.00% - 100.00% (74.80%) Corporates 829 Third-Party Valuation Offered Quotes 0.00% - 103.12% (89.85%) Municipals 31 Third-Party Valuation Offered Quotes 102.11% - 102.11% (102.11%) Municipals 18 Broker-Quoted Offered Quotes 101.20% - 101.20% (101.20%) Residential mortgage-backed securities 25 Broker-Quoted Offered Quotes 0.00% - 90.45% (90.00%) Residential mortgage-backed securities 3 Third-Party Valuation Offered Quotes 93.11% Foreign Governments 16 Third-Party Valuation Offered Quotes 99.04% - 99.68% (99.24%) Investment in unconsolidated affiliates 197 Market Comparable Company Analysis EBITDA Multiple 5x-14x (12.1x) Short term investments 126 Broker-Quoted Offered Quotes 100.00% - 100.02% (100.01%) Preferred securities 6 Broker-Quoted Offered Quotes $21.25 - $21.25 ($21.25) Preferred securities 1 Discounted Cash Flow Discount rate 100.00% - 100.00% (100.00%) Equity securities 7 Broker Quoted Offered quotes $66.00 - $66.00 ($66.00) Equity securities 7 Discounted Cash Flow Discount rate 12.60% - 12.60% (12.60%) Market Comparable Company Analysis EBITDA multiple 5.3x - 5.3x (5.3x) Other long-term investments: Available-for-sale embedded derivative 26 Black Scholes Model Market Value of Fund 100.00% Secured borrowing receivable 10 Broker-Quoted Offered Quotes 100.00% - 100.00% (100.00%) Credit Linked Note 13 Broker-Quoted Offered Quotes 96.99% Market risk benefits asset 118 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.03%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.55% - 1.37% (1.17%) GMWB Utilization 50.00% - 60.00% (50.85%) Total financial assets at fair value $ 8,759 Liabilities Derivative investments: FIA/ IUL embedded derivatives, included in contractholder funds $ 3,821 Discounted Cash Flow Market Value of Option 0.00% - 30.03% (2.36%) Swap rates 3.81% - 5.47% (4.64%) Mortality Multiplier 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 70.00% (6.61%) Partial Withdrawals 2.00% - 34.48% (2.74%) Non-Performance Spread 0.55% - 1.37% (1.17%) Option cost 0.07% - 5.67% (2.22%) Market risk benefits liability 313 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.03%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.55% - 1.37% (1.17%) GMWB Utilization 50.00% - 60.00% (50.89%) Total financial liabilities at fair value $ 4,134 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2022 (In millions) December 31, 2022 Assets Asset-backed securities $ 5,916 Broker-quoted Offered quotes 52.85% - 117.17% (94.18%) Asset-backed securities 347 Third-Party Valuation Offered quotes 41.43% - 210.50% (67.99%) Commercial mortgage-backed securities 20 Broker-quoted Offered quotes 109.02% - 109.02% (109.02%) Commercial mortgage-backed securities 17 Third-Party Valuation Offered quotes 74.66% - 88.48% (82.74%) Corporates 602 Broker-quoted Offered quotes 79.16% - 102.53% (94.16%) Corporates 826 Third-Party Evaluation Offered quotes 0.00% - 104.96% (89.69%) Corporates 12 Discounted Cash Flow Discount Rate 44.00% - 100.00% (77.02%) Municipals 29 Third-Party Evaluation Offered quotes 93.95% - 93.95% (93.95%) Foreign governments 16 Third-Party Evaluation Offered quotes 99.78% - 102.29% (100.56%) Investment in unconsolidated affiliates 23 Market Comparable Company Analysis EBITDA multiple 5x-5.50x Residential mortgage-backed securities 302 Broker-quoted Offered quotes 0.00% - 91.04% (86.38%) Preferred Securities 1 Discounted Cash Flow Discount rate 100.00% Equity securities 6 Broker-quoted Offered Quotes $64.25 - $64.25 ($64.25) Equity securities 4 Discounted Cash Flow Discount Rate 11.10% - 11.10% (11.10%) Market Comparable Company Analysis EBITDA multiple 5.6x - 5.6x (5.6x) Other long-term investments: Available-for-sale embedded derivative 23 Black Scholes model Market value of fund 100.00% Secured borrowing receivable 10 Broker-quoted Offered quotes 100.00% - 100.00% (100.00%) Credit Linked Note 15 Broker-quoted Offered quotes 96.23% Market risk benefits asset 117 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (4.69%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.48% - 1.44% (1.30%) GMWB Utilization 50.00% - 60.00% (50.94%) Total financial assets at fair value $ 8,286 Liabilities Derivative investments: FIA/ IUL embedded derivatives, included in contractholder funds 3,115 Discounted cash flow Market value of option 0.00% - 23.90% (87.00%) Swap rates 3.88% - 4.73% (4.31%) Mortality multiplier 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 70.00% (6.57%) Partial withdrawals 2.00% - 29.41% (2.73%) Non-performance spread 0.48% - 1.44% (1.30%) Option cost 0.07% - 4.97% (1.89%) Market risk benefits liability 282 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 10.00% (4.69%) Partial withdrawal rates 2.00% - 21.74% (2.49%) Non-performance spread 0.48% - 1.44% (1.30%) GMWB utilization 50.00% - 60.00% (50.94%) Total financial liabilities at fair value $ 3,397 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 and six months ended June 30, 2023 and 2022. 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 June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,300 $ (3) $ 15 $ 379 $ (15) $ (151) $ (15) $ 6,510 $ 14 Commercial mortgage-backed securities 29 — — — — — (12) 17 — Corporates 1,544 — (33) 127 — (14) 4 1,628 (33) Municipals 32 — 17 — — — — 49 17 Residential mortgage-backed securities 12 — — 24 — — (8) 28 — Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 107 — — 90 — — — 197 — Short term investments 23 — — 103 — — — 126 — Preferred securities 1 — — — — — 6 7 — Equity securities 11 (1) — — — — 4 14 — Other long-term investments: Available-for-sale embedded derivative 25 — 1 — — — — 26 1 Credit linked note 13 — — — — — — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,123 $ (4) $ — $ 723 $ (15) $ (165) $ (21) $ 8,641 $ (1) Market risk benefits asset 106 118 Total Level 3 assets at fair value $ 8,229 $ 8,759 Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,569 197 — 93 — (38) — 3,821 — Subtotal Level 3 liabilities at fair value $ 3,569 $ 197 $ — $ 93 $ — $ (38) $ — $ 3,821 $ — Market risk benefits liability 324 313 Total Level 3 liabilities at fair value $ 3,893 $ 4,134 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were exclusively to Level 2. Three months ended June 30, 2022 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 4,161 $ 1 $ (142) $ 827 $ (39) $ (126) $ (5) $ 4,677 $ (153) Commercial mortgage-backed securities 40 — (3) — — — — 37 (2) Corporates 1,141 — (64) 307 — (6) (4) 1,374 (61) Municipals 37 — (4) — — — — 33 (4) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 17 — (1) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 — Short term investments 19 — — — — — (19) — — Preferred securities 1 — — — — — — 1 — Equity securities 10 — — 1 (1) — — 10 — Other long-term investments: Available-for-sale embedded derivative 30 (6) — — — — — 24 — Credit linked note 19 — — — — (2) — 17 — Secured borrowing receivable — — — — — — 10 10 — Subtotal Level 3 assets at fair value $ 5,496 $ (5) $ (214) $ 1,144 $ (40) $ (134) $ (18) $ 6,229 $ (221) Market risk benefits asset 29 86 Total Level 3 assets at fair value $ 5,525 $ 6,315 Liabilities FIA embedded derivatives, included in contractholder funds 3,395 (575) — 146 — (25) — 2,941 — Subtotal Level 3 liabilities at fair value $ 3,395 $ (575) $ — $ 146 $ — $ (25) $ — $ 2,941 $ — Market risk benefits liability 486 292 Total Level 3 liabilities at fair value $ 3,881 $ 3,233 (a) The net transfers out of Level 3 during the three months ended June 30, 2022 were exclusively to Level 2. Six months ended June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,263 $ (11) $ 33 $ 795 $ (98) $ (386) $ (86) $ 6,510 $ 32 Commercial mortgage-backed securities 37 — 1 12 — — (33) 17 1 Corporates 1,440 (1) (56) 261 (1) (19) 4 1,628 (56) Municipals 29 — 20 — — — — 49 20 Residential mortgage-backed securities 302 1 8 32 — (8) (307) 28 8 Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 23 — — 174 — — — 197 — Short-Term — — — 126 — — — 126 — Preferred securities 1 — — — — — 6 7 — Equity securities 10 — — 1 (1) — 4 14 — Other long-term investments: Available-for-sale embedded derivative 23 — 3 — — — — 26 3 Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,169 $ (11) $ 9 $ 1,401 $ (100) $ (415) $ (412) $ 8,641 $ 8 Market risk benefits asset 117 118 Total Level 3 assets at fair value $ 8,286 $ 8,759 Liabilities FIA embedded derivatives, included in contractholder funds 3,115 582 — 189 — (65) — 3,821 — Subtotal Level 3 liabilities at fair value $ 3,115 $ 582 $ — $ 189 $ — $ (65) $ — $ 3,821 $ — Market risk benefits liability $ 282 $ 313 Total Level 3 liabilities at fair value $ 3,397 $ 4,134 (a) The net transfers out of Level 3 during the six months ended June 30, 2023 were exclusively to Level 2. Six months ended June 30, 2022 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ 1 $ (272) $ 1,227 $ (39) $ (278) $ 79 $ 4,677 $ (291) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,135 — (137) 386 — (32) 22 1,374 (134) Municipals 43 — (10) — — — — 33 (9) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 18 — (2) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 Short-Term 321 — (1) 20 — — (340) — (1) Preferred securities 2 — (1) — — — — 1 (1) Equity securities 9 — — 1 — — — 10 — Other long-term investments: Available-for-sale embedded derivative 34 (10) — — — — — 24 — Secured borrowing receivable — — — — — — 10 10 — Credit linked note 23 — (3) — — (3) — 17 — Subtotal Level 3 assets at fair value $ 5,600 $ (9) $ (431) $ 1,643 $ (39) $ (313) $ (222) $ 6,229 $ (441) Market risk benefits asset 41 86 Total Level 3 assets at fair value $ 5,641 $ 6,315 Liabilities FIA embedded derivatives, included in contractholder funds 3,883 (1,159) — 272 — (55) — 2,941 — Subtotal Level 3 liabilities at fair value $ 3,883 $ (1,159) $ — $ 272 $ — $ (55) $ — $ 2,941 $ — Market risk benefits liability $ 469 $ 292 Total Level 3 liabilities at fair value $ 4,352 $ 3,233 (a) The net transfers out of Level 3 during the six months ended June 30, 2022 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. Investments in Unconsolidated affiliates In our F&G segment, the carrying value of Investments in unconsolidated affiliates is primarily determined using NAV as a practical expedient and are included in the NAV column in the table below. In our title segment, Investments in unconsolidated affiliates are accounted for under the equity method of accounting. In our title segment, Investments in unconsolidated affiliates were $237 million and $187 million as of June 30, 2023 and December 31, 2022, respectively. 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 bank loans 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. Bank loans are classified as Level 3 within the fair value hierarchy. For cost method investments, our carrying value approximates fair value. Cost method investments are classified as Level 1 within the fair value hierarchy. Investment Contracts Investment contracts include deferred annuities (FIAs and fixed rate annuities), indexed IULs, funding agreements, pension risk transfer solutions ("PRTs") 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., 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, PRTs and immediate annuity 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, with the exception of the F&G Credit Agreement, as defined in Note O Notes Payable , is based on quoted market prices. The carrying value of the F&G Credit Agreement approximates fair value as the rates are comparable to those at which we could currently borrow under similar terms. 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 instr |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.25 1.00 - 1.25 <1.00 June 30, 2023 (In millions) LTV Ratios: Less than 50.00% $ 510 $ 4 $ 11 $ 525 21 % $ 491 23 % 50.00% to 59.99% 740 — — 740 30 % 649 30 % 60.00% to 74.99% 1,160 10 — 1,170 48 % 973 46 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Commercial mortgage loans (a) $ 2,410 $ 14 $ 29 $ 2,453 100 % $ 2,127 100 % December 31, 2022 LTV Ratios: Less than 50.00% $ 511 $ 4 $ 11 $ 526 22 % $ 490 24 % 50.00% to 59.99% 706 — — 706 29 % 615 30 % 60.00% to 74.99% 1,154 3 — 1,157 48 % 955 45 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Commercial mortgage loans (a) $ 2,371 $ 7 $ 29 $ 2,407 100 % $ 2,074 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $ 9 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 6 $ 67 $ 119 $ 207 $ — $ 126 $ 525 50.00% to 59.99% 27 149 267 158 — 139 740 60.00% to 74.99% 22 113 913 122 — — 1,170 75.00% to 84.99% — 9 — — — 9 18 Total commercial mortgages (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 Commercial mortgages DSCR Greater than 1.25x $ 48 $ 326 $ 1,299 $ 487 $ — $ 250 $ 2,410 1.00x - 1.25x 7 3 — — — 4 14 Less than 1.00x — 9 — — — 20 29 Total commercial mortgages (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2017 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 70 $ 120 $ 207 $ — $ — $ 129 $ 526 50.00% to 59.99% 149 268 158 — — 131 706 60.00% to 74.99% 113 912 123 — — 9 1,157 75.00% to 84.99% 9 — — — — 9 18 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 Commercial mortgages DSCR Greater than 1.25x $ 329 $ 1,300 $ 488 $ — $ — $ 254 $ 2,371 1.00x - 1.25x 3 — — — — 4 7 Less than 1.00x 9 — — — — 20 29 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 9 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At June 30, 2023 and December 31, 2022, we had one CML that was delinquent in principal or interest payments as shown in the risk rating exposure table above. Residential Mortgage Loans Residential mortgage loans (“RMLs”) represented approximately 6% and 5% of our total investments as of June 30, 2023 and December 31, 2022, respectively. Our RMLs 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, gross of valuation allowances: June 30, 2023 Amortized Cost % of Total U.S. State: (In millions) Florida $ 152 5 % New York 131 5 % California 123 5 % All other states (a) 2,264 85 % Total residential mortgage loans $ 2,670 100 % (a) The individual concentration of each state is equal to or less than 5% as of June 30, 2023. December 31, 2022 Amortized Cost % of Total U.S. State: (In millions) Florida $ 324 15 % Texas 215 10 % New Jersey 172 8 % Pennsylvania 153 7 % California 139 6 % New York 138 6 % Georgia 125 6 % All other states (a) 914 42 % Total residential mortgage loans $ 2,180 100 % (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2022. RMLs have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing RMLs as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs as of June 30, 2023 and December 31, 2022, was as follows : June 30, 2023 December 31, 2022 Amortized Cost % of Total Amortized Cost % of Total Performance indicators: (In millions) (In millions) Performing $ 2,598 97 % $ 2,118 97 % Non-performing 72 3 % 62 3 % Total residential mortgage loans, gross of valuation allowance $ 2,670 100 % $ 2,180 100 % Allowance for expected loan loss (51) — % (32) — % Total residential mortgage loans, net of valuation allowance $ 2,619 100 % $ 2,148 100 % RMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances: June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 137 $ 963 $ 862 $ 200 $ 192 $ 199 $ 2,553 30-89 days past due — 6 24 5 4 6 45 90 days or more past due — 7 20 15 29 1 72 Total residential mortgages $ 137 $ 976 $ 906 $ 220 $ 225 $ 206 $ 2,670 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 766 $ 884 $ 214 $ 185 $ 23 $ 33 $ 2,105 30-89 days past due 2 7 — 4 — — 13 90 days or more past due 3 9 15 34 1 — 62 Total residential mortgages $ 771 $ 900 $ 229 $ 223 $ 24 $ 33 $ 2,180 Non-accrual loans by amortized cost as of June 30, 2023 and December 31, 2022, were as follows: June 30, 2023 December 31, 2022 Amortized cost of loans on non-accrual (In millions) Residential mortgage: $ 72 $ 62 Commercial mortgage: 9 9 Total non-accrual mortgages $ 81 $ 71 Immaterial interest income was recognized on non-accrual financing receivables for the six months ended June 30, 2023 and June 30, 2022. It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. 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 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of June 30, 2023 and December 31, 2022, we had $72 million and $62 million, respectively, of mortgage loans that were over 90 days past due, of which $35 million and $38 million were in the process of foreclosure as of June 30, 2023 and December 31, 2022 respectively. Allowance for Expected Credit Loss We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC 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 are summarized as follows: Three months ended June 30, 2023 Six months ended June 30, 2023 (In millions) (In millions) Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (48) $ (12) $ (60) $ (32) $ (10) $ (42) Provision for loan losses (3) (1) (4) (19) (3) (22) Ending Balance $ (51) $ (13) $ (64) $ (51) $ (13) $ (64) Three months ended June 30, 2022 Six months ended June 30, 2022 (In millions) (In millions) Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (26) $ (6) $ (32) $ (25) $ (6) $ (31) Provision for loan losses (3) — (3) (4) — (4) Ending Balance $ (29) $ (6) $ (35) $ (29) $ (6) $ (35) An allowance for expected credit loss is not measured on accrued interest income for CMLs as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for RMLs and were immaterial as of June 30, 2023 and June 30, 2022. 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: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) (In millions) Fixed maturity securities, available-for-sale $ 464 $ 350 $ 912 $ 682 Equity securities 7 7 15 15 Preferred securities 15 20 28 35 Mortgage loans 57 49 108 88 Invested cash and short-term investments 34 13 67 18 Limited partnerships 45 58 103 171 Tax deferred property exchange income 40 10 83 14 Other investments 18 4 38 13 Gross investment income 680 511 1,354 1,036 Investment expense (62) (48) (125) (95) Interest and investment income $ 618 $ 463 $ 1,229 $ 941 Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $76 million and $20 million for the three months ended June 30, 2023 and June 30, 2022, respectively, and $134 million and $38 million for the six months ended June 30, 2023 and June 30, 2022. 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: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) (In millions) Net realized losses on fixed maturity available-for-sale securities $ (54) $ (61) $ (104) $ (98) Net realized/unrealized gains (losses) on equity securities (1) (37) (221) (5) (370) Net realized/unrealized losses on preferred securities (2) 2 (118) (8) (208) Realized losses on other invested assets (24) (9) (29) (10) Change in allowance for expected credit losses (20) (9) (23) (12) Derivatives and embedded derivatives: Realized (losses) gains on certain derivative instruments (65) (35) (154) 15 Unrealized gains (losses) on certain derivative instruments 164 (359) 311 (717) Change in fair value of reinsurance related embedded derivatives (3) 17 141 (2) 263 Change in fair value of other derivatives and embedded derivatives 1 (5) 3 (8) Realized gains (losses) on derivatives and embedded derivatives 117 (258) 158 (447) Recognized gains and losses, net $ (16) $ (676) $ (11) $ (1,145) (1) Includes net valuation losses of $37 million and $222 million for the three months ended June 30, 2023 and 2022, respectively, and net valuation gains (losses) of $9 million and $(388) million for the six months ended June 30, 2023 and 2022, respectively. (2) Includes net valuation gains (losses) of $16 million and $(118) million for the three months ended June 30, 2023 and 2022, respectively, and net valuation gains (losses) of $50 million and $(207) million for the six months ended June 30, 2023 and 2022, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Somerset and Aspida Re. Recognized gains and (losses), net is shown net of amounts attributable to certain funds withheld reinsurance agreements which is passed along to the reinsurer in accordance with the terms of these agreements. Recognized gains (losses) attributable to these agreements, and thus excluded from the totals in the table above, was $21 million and $151 million for the three months ended June 30, 2023 and June 30, 2022, respectively and $(1) million and $279 million for the six months ended June 30, 2023 and June 30, 2022, respectively . The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) Proceeds $ 609 $ 802 $ 1,098 $ 1,835 Gross gains — 1 8 5 Gross losses (33) (61) (90) (69) Unconsolidated Variable Interest Entities We own investments in variable interest entities ("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 June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 2,803 $ 4,491 $ 2,427 $ 4,030 Fixed maturity securities 18,471 20,853 15,680 17,404 Total unconsolidated VIE investments $ 21,274 $ 25,344 $ 18,107 $ 21,434 Concentrations Our underlying investment concentrations that exceed 10% of shareholders equity are as follows: June 30, 2023 (In millions) Blackstone Wave Asset Holdco (1) $ 738 (1) Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries." id="sjs-B4">Investments Our fixed maturity securities investments have been designated as AFS, and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included in AOCI, net of 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 June 30, 2023 and December 31, 2022 are summarized as follows: June 30, 2023 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities (In millions) Asset-backed securities $ 13,492 $ (7) $ 65 $ (710) $ 12,840 Commercial mortgage-backed securities 4,348 (18) 4 (345) 3,989 Corporates 18,919 (2) 46 (2,834) 16,129 Hybrids 773 — 4 (73) 704 Municipals 1,843 — 11 (251) 1,603 Residential mortgage-backed securities 2,127 (8) 11 (114) 2,016 U.S. Government 499 — 1 (16) 484 Foreign Governments 311 — 1 (48) 264 Total available-for-sale securities $ 42,312 $ (35) $ 143 $ (4,391) $ 38,029 December 31, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities (In millions) Asset-backed securities $ 12,209 $ (8) $ 36 $ (770) $ 11,467 Commercial mortgage-backed/asset-backed securities 3,337 (1) 11 (284) 3,063 Corporates 17,396 (22) 32 (3,069) 14,337 Hybrids 806 — 9 (84) 731 Municipals 1,749 — 4 (293) 1,460 Residential mortgage-backed securities 1,638 (8) 6 (109) 1,527 U.S. Government 287 — — (16) 271 Foreign Governments 286 — — (47) 239 Total available-for-sale securities $ 37,708 $ (39) $ 98 $ (4,672) $ 33,095 Securities held on deposit with various state regulatory authorities had a fair value of $19,993 million and $17,870 million at June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, the Company held no material investments that were non-income producing for a period greater than twelve months. As of June 30, 2023 and December 31, 2022, the Company's accrued interest receivable balance was $422 million and $365 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 $3,543 million and $3,387 million as of June 30, 2023 and December 31, 2022, 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 as issuers may have the right to call or prepay obligations. June 30, 2023 December 31, 2022 (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 $ 594 $ 581 $ 536 $ 527 Due after one year through five years 4,202 4,001 3,288 3,089 Due after five years through ten years 2,394 2,172 2,171 1,939 Due after ten years 15,129 12,403 14,503 11,457 Subtotal 22,319 19,157 20,498 17,012 Other securities, which provide for periodic payments: Asset-backed securities 13,492 12,840 12,209 11,467 Commercial mortgage-backed securities 4,348 3,989 3,337 3,063 Structured hybrids 26 27 26 26 Residential mortgage-backed securities 2,127 2,016 1,638 1,527 Subtotal 19,993 18,872 17,210 16,083 Total fixed maturity available-for-sale securities $ 42,312 $ 38,029 $ 37,708 $ 33,095 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 unaudited Condensed 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 as we write-off accrued interest through 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; • 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 unaudited Condensed 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 unaudited Condensed Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI. As of June 30, 2023 and December 31, 2022, our allowance for expected credit losses for AFS securities was $35 million and $39 million, respectively. Purchased credit deteriorated ("PCD") financial assets 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 June 30, 2023 or 2022. 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 June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 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 (In millions) Asset-backed securities $ 4,219 $ (182) $ 6,220 $ (517) $ 10,439 $ (699) Commercial mortgage-backed securities 1,593 (103) 1,665 (243) 3,258 (346) Corporates 5,267 (317) 9,522 (2,517) 14,789 (2,834) Hybrids 194 (15) 457 (58) 651 (73) Municipals 557 (69) 831 (183) 1,388 (252) Residential mortgage-backed securities 1,035 (17) 620 (93) 1,655 (110) U.S. Government 150 (3) 189 (12) 339 (15) Foreign Government 66 (6) 186 (41) 252 (47) Total available-for-sale securities $ 13,081 $ (712) $ 19,690 $ (3,664) $ 32,771 $ (4,376) Total number of available-for-sale securities in an unrealized loss position less than twelve months 2,196 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 2,725 Total number of available-for-sale securities in an unrealized loss position 4,921 December 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 (In millions) Asset-backed securities $ 7,001 $ (410) $ 3,727 $ (360) $ 10,728 $ (770) Commercial mortgage-backed securities 2,079 (169) 475 (116) 2,554 (285) Corporates 9,913 (1,735) 3,523 (1,330) 13,436 (3,065) Hybrids 628 (83) 3 (1) 631 (84) Municipals 998 (180) 352 (113) 1,350 (293) Residential mortgage-backed securities 992 (51) 184 (22) 1,176 (73) U.S. Government 130 (7) 140 (8) 270 (15) Foreign Government 119 (32) 59 (14) 178 (46) Total available-for-sale securities $ 21,860 $ (2,667) $ 8,463 $ (1,964) $ 30,323 $ (4,631) Total number of available-for-sale securities in an unrealized loss position less than twelve months 3,114 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 1,296 Total number of available-for-sale securities in an unrealized loss position 4,410 We determined the decrease in unrealized losses as of June 30, 2023, compared to December 31, 2022, was caused by long treasury rates being lower as well as spread compression. For securities in an unrealized loss position as of June 30, 2023, our allowance for expected credit loss was $35 million. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of June 30, 2023 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties 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 6% of our total investments as of June 30, 2023 and December 31, 2022. The mortgage loans in our investment portfolio, are generally comprised of high quality commercial first lien and mezzanine real estate loans. Mortgage loans are primarily on income producing properties including 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: June 30, 2023 December 31, 2022 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: (In millions) (In millions) Hotel $ 18 1 % $ 18 1 % Industrial 538 22 % 520 22 % Mixed Use 12 1 % 12 1 % Multifamily 1,012 41 % 1,013 42 % Office 328 13 % 330 14 % Retail 103 4 % 105 4 % Student Housing 83 3 % 83 3 % Other 376 15 % 335 13 % Total commercial mortgage loans, gross of valuation allowance $ 2,470 100 % $ 2,416 100 % Allowance for expected credit loss (13) (10) Total commercial mortgage loans, net of valuation allowance $ 2,457 $ 2,406 U.S. Region: East North Central $ 150 6 % $ 151 6 % East South Central 76 3 % 76 3 % Middle Atlantic 325 13 % 326 13 % Mountain 353 14 % 355 15 % New England 166 7 % 158 7 % Pacific 726 29 % 708 28 % South Atlantic 553 22 % 521 22 % West North Central 4 1 % 4 1 % West South Central 117 5 % 117 5 % Total commercial mortgage loans, gross of valuation allowance $ 2,470 100 % $ 2,416 100 % Allowance for expected credit loss (13) (10) Total commercial mortgage loans, net of valuation allowance $ 2,457 $ 2,406 CMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances: June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Commercial mortgages (In millions) Current (less than 30 days past due) $ 55 $ 338 $ 1,299 $ 487 $ — $ 265 $ 2,444 30-89 days past due — — — — — — — 90 days or more past due — — — — — 9 9 Total commercial mortgages (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Commercial mortgages (In millions) Current (less than 30 days past due) $ 350 $ 1,300 $ 488 $ — $ — $ 269 $ 2,407 30-89 days past due — — — — — — — 90 days or more past due — — — — — 9 9 Total commercial mortgages $ 350 $ 1,300 $ 488 $ — $ — $ 278 $ 2,416 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023. 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 tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances at June 30, 2023 and December 31, 2022 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 June 30, 2023 (In millions) LTV Ratios: Less than 50.00% $ 510 $ 4 $ 11 $ 525 21 % $ 491 23 % 50.00% to 59.99% 740 — — 740 30 % 649 30 % 60.00% to 74.99% 1,160 10 — 1,170 48 % 973 46 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Commercial mortgage loans (a) $ 2,410 $ 14 $ 29 $ 2,453 100 % $ 2,127 100 % December 31, 2022 LTV Ratios: Less than 50.00% $ 511 $ 4 $ 11 $ 526 22 % $ 490 24 % 50.00% to 59.99% 706 — — 706 29 % 615 30 % 60.00% to 74.99% 1,154 3 — 1,157 48 % 955 45 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Commercial mortgage loans (a) $ 2,371 $ 7 $ 29 $ 2,407 100 % $ 2,074 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $ 9 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 6 $ 67 $ 119 $ 207 $ — $ 126 $ 525 50.00% to 59.99% 27 149 267 158 — 139 740 60.00% to 74.99% 22 113 913 122 — — 1,170 75.00% to 84.99% — 9 — — — 9 18 Total commercial mortgages (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 Commercial mortgages DSCR Greater than 1.25x $ 48 $ 326 $ 1,299 $ 487 $ — $ 250 $ 2,410 1.00x - 1.25x 7 3 — — — 4 14 Less than 1.00x — 9 — — — 20 29 Total commercial mortgages (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2017 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 70 $ 120 $ 207 $ — $ — $ 129 $ 526 50.00% to 59.99% 149 268 158 — — 131 706 60.00% to 74.99% 113 912 123 — — 9 1,157 75.00% to 84.99% 9 — — — — 9 18 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 Commercial mortgages DSCR Greater than 1.25x $ 329 $ 1,300 $ 488 $ — $ — $ 254 $ 2,371 1.00x - 1.25x 3 — — — — 4 7 Less than 1.00x 9 — — — — 20 29 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 9 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At June 30, 2023 and December 31, 2022, we had one CML that was delinquent in principal or interest payments as shown in the risk rating exposure table above. Residential Mortgage Loans Residential mortgage loans (“RMLs”) represented approximately 6% and 5% of our total investments as of June 30, 2023 and December 31, 2022, respectively. Our RMLs 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, gross of valuation allowances: June 30, 2023 Amortized Cost % of Total U.S. State: (In millions) Florida $ 152 5 % New York 131 5 % California 123 5 % All other states (a) 2,264 85 % Total residential mortgage loans $ 2,670 100 % (a) The individual concentration of each state is equal to or less than 5% as of June 30, 2023. December 31, 2022 Amortized Cost % of Total U.S. State: (In millions) Florida $ 324 15 % Texas 215 10 % New Jersey 172 8 % Pennsylvania 153 7 % California 139 6 % New York 138 6 % Georgia 125 6 % All other states (a) 914 42 % Total residential mortgage loans $ 2,180 100 % (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2022. RMLs have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing RMLs as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs as of June 30, 2023 and December 31, 2022, was as follows : June 30, 2023 December 31, 2022 Amortized Cost % of Total Amortized Cost % of Total Performance indicators: (In millions) (In millions) Performing $ 2,598 97 % $ 2,118 97 % Non-performing 72 3 % 62 3 % Total residential mortgage loans, gross of valuation allowance $ 2,670 100 % $ 2,180 100 % Allowance for expected loan loss (51) — % (32) — % Total residential mortgage loans, net of valuation allowance $ 2,619 100 % $ 2,148 100 % RMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances: June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 137 $ 963 $ 862 $ 200 $ 192 $ 199 $ 2,553 30-89 days past due — 6 24 5 4 6 45 90 days or more past due — 7 20 15 29 1 72 Total residential mortgages $ 137 $ 976 $ 906 $ 220 $ 225 $ 206 $ 2,670 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 766 $ 884 $ 214 $ 185 $ 23 $ 33 $ 2,105 30-89 days past due 2 7 — 4 — — 13 90 days or more past due 3 9 15 34 1 — 62 Total residential mortgages $ 771 $ 900 $ 229 $ 223 $ 24 $ 33 $ 2,180 Non-accrual loans by amortized cost as of June 30, 2023 and December 31, 2022, were as follows: June 30, 2023 December 31, 2022 Amortized cost of loans on non-accrual (In millions) Residential mortgage: $ 72 $ 62 Commercial mortgage: 9 9 Total non-accrual mortgages $ 81 $ 71 Immaterial interest income was recognized on non-accrual financing receivables for the six months ended June 30, 2023 and June 30, 2022. It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. 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 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of June 30, 2023 and December 31, 2022, we had $72 million and $62 million, respectively, of mortgage loans that were over 90 days past due, of which $35 million and $38 million were in the process of foreclosure as of June 30, 2023 and December 31, 2022 respectively. Allowance for Expected Credit Loss We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC 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 are summarized as follows: Three months ended June 30, 2023 Six months ended June 30, 2023 (In millions) (In millions) Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (48) $ (12) $ (60) $ (32) $ (10) $ (42) Provision for loan losses (3) (1) (4) (19) (3) (22) Ending Balance $ (51) $ (13) $ (64) $ (51) $ (13) $ (64) Three months ended June 30, 2022 Six months ended June 30, 2022 (In millions) (In millions) Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (26) $ (6) $ (32) $ (25) $ (6) $ (31) Provision for loan losses (3) — (3) (4) — (4) Ending Balance $ (29) $ (6) $ (35) $ (29) $ (6) $ (35) An allowance for expected credit loss is not measured on accrued interest income for CMLs as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for RMLs and were immaterial as of June 30, 2023 and June 30, 2022. 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: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) (In millions) Fixed maturity securities, available-for-sale $ 464 $ 350 $ 912 $ 682 Equity securities 7 7 15 15 Preferred securities 15 20 28 35 Mortgage loans 57 49 108 88 Invested cash and short-term investments 34 13 67 18 Limited partnerships 45 58 103 171 Tax deferred property exchange income 40 10 83 14 Other investments 18 4 38 13 Gross investment income 680 511 1,354 1,036 Investment expense (62) (48) (125) (95) Interest and investment income $ 618 $ 463 $ 1,229 $ 941 Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $76 million and $20 million for the three months ended June 30, 2023 and June 30, 2022, respectively, and $134 million and $38 million for the six months ended June 30, 2023 and June 30, 2022. 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: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) (In millions) Net realized losses on fixed maturity available-for-sale securities $ (54) $ (61) $ (104) $ (98) Net realized/unrealized gains (losses) on equity securities (1) (37) (221) (5) (370) Net realized/unrealized losses on preferred securities (2) 2 (118) (8) (208) Realized losses on other invested assets (24) (9) (29) (10) Change in allowance for expected credit losses (20) (9) (23) (12) Derivatives and embedded derivatives: Realized (losses) gains on certain derivative instruments (65) (35) (154) 15 Unrealized gains (losses) on certain derivative instruments 164 (359) 311 (717) Change in fair value of reinsurance related embedded derivatives (3) 17 141 (2) 263 Change in fair value of other derivatives and embedded derivatives 1 (5) 3 (8) Realized gains (losses) on derivatives and embedded derivatives 117 (258) 158 (447) Recognized gains and losses, net $ (16) $ (676) $ (11) $ (1,145) (1) Includes net valuation losses of $37 million and $222 million for the three months ended June 30, 2023 and 2022, respectively, and net valuation gains (losses) of $9 million and $(388) million for the six months ended June 30, 2023 and 2022, respectively. (2) Includes net valuation gains (losses) of $16 million and $(118) million for the three months ended June 30, 2023 and 2022, respectively, and net valuation gains (losses) of $50 million and $(207) million for the six months ended June 30, 2023 and 2022, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Somerset and Aspida Re. Recognized gains and (losses), net is shown net of amounts attributable to certain funds withheld reinsurance agreements which is passed along to the reinsurer in accordance with the terms of these agreements. Recognized gains (losses) attributable to these agreements, and thus excluded from the totals in the table above, was $21 million and $151 million for the three months ended June 30, 2023 and June 30, 2022, respectively and $(1) million and $279 million for the six months ended June 30, 2023 and June 30, 2022, respectively . The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) Proceeds $ 609 $ 802 $ 1,098 $ 1,835 Gross gains — 1 8 5 Gross losses (33) (61) (90) (69) Unconsolidated Variable Interest Entities We own investments in variable interest entities ("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 June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 2,803 $ 4,491 $ 2,427 $ 4,030 Fixed maturity securities 18,471 20,853 15,680 17,404 Total unconsolidated VIE investments $ 21,274 $ 25,344 $ 18,107 $ 21,434 Concentrations Our underlying investment concentrations that exceed 10% of shareholders equity are as follows: June 30, 2023 (In millions) Blackstone Wave Asset Holdco (1) $ 738 (1) Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
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: June 30, 2023 December 31, 2022 Assets: (In millions) Derivative investments: Call options $ 649 $ 244 Other long-term investments: Other embedded derivatives 26 23 Prepaid expenses and other assets: Reinsurance related embedded derivatives 277 279 $ 952 $ 546 Liabilities: Contractholder funds: FIA/ IUL embedded derivatives $ 3,821 $ 3,115 $ 3,821 $ 3,115 The change in fair value of derivative instruments in the accompanying unaudited Condensed Consolidated Statements of Earnings is as follows: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Recognized gains and losses, net (In millions) (In millions) Net investment gains (losses): Call options $ 98 $ (395) $ 153 $ (709) Futures contracts — (8) 5 (5) Foreign currency forwards — 9 (1) 12 Other derivatives and embedded derivatives 2 (5) 3 (8) Reinsurance related embedded derivatives 17 141 (2) 263 Total net investment gains (losses) $ 117 $ (258) $ 158 $ (447) Benefits and other changes in policy reserves: FIA/ IUL embedded derivatives (decrease) increase $ 252 $ (454) $ 706 $ (942) Additional Disclosures FIA/IUL Embedded Derivative, 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 futures contracts are marked to fair value with the change in fair value included as a component of Recognized gains and losses, net, in the accompanying unaudited Condensed Consolidated Statements of Earnings. The change in fair value of the call options and futures contracts includes the gains and losses recognized at the expiration of the instrument term or upon early termination and the changes in fair value of open positions. Other market exposures are hedged periodically depending on market conditions and our risk tolerance. Our FIA/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. Reinsurance Related Embedded Derivatives F&G entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain fixed rate and deferred annuity business, including MYGA, on a coinsurance funds withheld basis, net of applicable existing reinsurance. Effective October 31, 2021, this agreement was novated from Kubera to Somerset, a certified third-party reinsurer. Additionally, F&G entered into a reinsurance agreement with Aspida Re effective January 1, 2021, and amended in August 2021 and September 2022, to cede a quota share of MYGA business on a coinsurance 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 underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangements, including gains and losses from sales, were passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. The reinsurance related embedded derivatives are reported in Prepaid expenses and other assets if in a net gain position, or Accounts payable and accrued liabilities, if in a net loss position, on the unaudited Condensed Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains and losses, net on the unaudited Condensed Consolidated Statements of Earnings. 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 tables. June 30, 2023 (In millions) Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 4,033 $ 69 $ 26 $ 43 Morgan Stanley */Aa3/A+ 2,375 50 60 — Barclay's Bank A+/A1/A+ 6,137 121 113 8 Canadian Imperial Bank of Commerce AA/Aa2/A+ 6,542 204 180 24 Wells Fargo A+/A1/BBB+ 1,480 54 53 1 Goldman Sachs A/A2/BBB+ 1,212 23 22 1 Credit Suisse A+/A3/A 266 9 9 — Truist A+/A2/A 2,055 89 85 4 Citibank A+/Aa3/A+ 1,272 29 31 — Total $ 25,372 $ 648 $ 579 $ 81 December 31, 2022 (In millions) Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,563 $ 23 $ — $ 23 Morgan Stanley */Aa3/A+ 1,699 14 19 — Barclay's Bank A+/A1/A 6,049 65 59 6 Canadian Imperial Bank of Commerce AA/Aa2/A+ 5,169 68 64 4 Wells Fargo A+/A1/BBB+ 1,361 17 17 — Goldman Sachs A/A2/BBB+ 1,133 9 10 — Credit Suisse BBB+/A3/A- 1,039 5 5 — Truist A+/A2/A 2,489 35 36 — Citibank A+/Aa3/A+ 795 8 9 — Total $ 23,297 $ 244 $ 219 $ 33 (a) 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 June 30, 2023 and December 31, 2022, counterparties posted $579 million and $219 million, respectively, of collateral of which $459 million and $178 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 Sheets. 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 $81 million at June 30, 2023 and $33 million at December 31, 2022. 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 409 and 409 futures contracts at June 30, 2023 and December 31, 2022, 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 $4 million and $3 million |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
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 $8 million and $12 million as of June 30, 2023 and December 31, 2022, 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. In August 2020, a lawsuit styled, In the Matter of FGL Holdings , was filed in the Grand Court of the Cayman Islands related to FNF's acquisition of F&G where dissenting shareholders, Kingfishers LP, Kingstown 1740 Fund LP, Kingstown Partners II LP, Kingstown Partners Master Ltd., and Ktown LP, asserted statutory appraisal rights relative to their ownership of 12,000,000 shares of F&G stock. They sought a judicial determination of the fair value of their shares of F&G stock as of the date of valuation under the law of the Cayman Islands, together with interest and legal costs. On October 5, 2022, the Grand Court of the Cayman Islands decided in favor of F&G. The dissenting shareholders failed to appeal the fair value order, and its appeal period expired on October 19, 2022. On April 19, 2023 the Grand Court of the Cayman Islands determined that the dissenting shareholders should pay F&G's Cayman Islands legal expenses and discovery costs relating to the lawsuit, by way of interim payment of $4 million with the balance to be determined after assessment. We are attempting to collect reimbursement of our expenses in this lawsuit. 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 June 30, 2023 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 June 30, 2023 is included below: June 30, 2023 Asset Type (In millions) Unconsolidated VIEs: Limited partnerships $ 1,688 Whole loans 1,044 Fixed maturity securities, ABS 247 Direct Lending 910 Other fixed maturity securities, AFS 21 Commercial mortgage loans 16 Other assets 125 Other invested assets 6 Committed amounts included in liabilities 2 Total $ 4,059 |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Dividends | DividendsOn August 8, 2023, our Board of Directors declared cash dividends of $0.45 per share, payable on September 29, 2023, to FNF common shareholders of record as of September 15, 2023. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023: Title F&G Corporate and Other Total (In millions) Title premiums $ 1,254 $ — $ — $ 1,254 Other revenues 581 576 55 1,212 Revenues from external customers 1,835 576 55 2,466 Interest and investment income, including recognized gains and losses, net 29 592 (19) 602 Total revenues 1,864 1,168 36 3,068 Depreciation and amortization 39 104 8 151 Interest expense — 25 18 43 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 233 163 (64) 332 Income tax expense (benefit) 65 33 (8) 90 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 168 130 (56) 242 Equity in earnings of unconsolidated affiliates 1 — — 1 Net earnings (loss) from continuing operations $ 169 $ 130 $ (56) $ 243 Assets $ 8,145 $ 62,564 $ 2,312 $ 73,021 Goodwill 2,770 1,749 292 4,811 As of and for the three months ended June 30, 2022: Title F&G Corporate and Other Total (In millions) Title premiums $ 2,062 $ — $ — $ 2,062 Other revenues 706 71 9 786 Revenues from external customers 2,768 71 9 2,848 Interest and investment income, including recognized gains and losses, net (214) (1) 2 (213) Total revenues 2,554 70 11 2,635 Depreciation and amortization 34 80 6 120 Interest expense — 9 22 31 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 267 482 (18) 731 Income tax expense (benefit) 111 97 (6) 202 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 156 385 (12) 529 Equity in earnings of unconsolidated affiliates 14 — — 14 Net earnings (loss) from continuing operations $ 170 $ 385 $ (12) $ 543 Assets $ 9,309 $ 49,389 $ 2,314 $ 61,012 Goodwill 2,516 1,749 266 4,531 As of and for the six months ended June 30, 2023: Title F&G Corporate and Other Total (In millions) Title premiums $ 2,232 $ — $ — $ 2,232 Other revenues 1,052 941 99 2,092 Revenues from external customers 3,284 941 99 4,324 Interest and investment income, including recognized gains and losses, net 132 1,096 (10) 1,218 Total revenues 3,416 2,037 89 5,542 Depreciation and amortization 76 194 15 285 Interest expense — 47 38 85 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 390 (40) (92) 258 Income tax expense (benefit) 92 25 (13) 104 Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates 298 (65) (79) 154 Equity in earnings of unconsolidated affiliates 1 — — 1 Net earnings (loss) from continuing operations $ 299 $ (65) $ (79) $ 155 Assets $ 8,145 $ 62,564 $ 2,312 $ 73,021 Goodwill 2,770 1,749 292 4,811 As of and for the six months ended June 30, 2022: Title F&G Corporate and Other Total (In millions) Title premiums $ 3,928 $ — $ — $ 3,928 Other revenues 1,371 667 40 2,078 Revenues from external customers 5,299 667 40 6,006 Interest and investment income, including recognized gains and losses, net (362) 153 5 (204) Total revenues 4,937 820 45 5,802 Depreciation and amortization 67 156 12 235 Interest expense — 17 44 61 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 516 827 (56) 1,287 Income tax expense (benefit) 168 203 (13) 358 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 348 624 (43) 929 Equity in earnings of unconsolidated affiliates 16 — — 16 Net earnings (loss) from continuing operations $ 364 $ 624 $ (43) $ 945 Assets $ 9,309 $ 49,389 $ 2,314 $ 61,012 Goodwill 2,516 1,749 266 4,531 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 (FIA and fixed rate annuities), immediate annuities and IUL. This segment also provides funding agreements and PRT solutions. • 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 | 6 Months Ended |
Jun. 30, 2023 | |
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: Six months ended June 30, 2023 2022 Cash paid for: (In millions) Interest $ 61 $ 63 Income taxes 54 202 Deferred sales inducements 68 38 Non-cash investing and financing activities: Change in proceeds of sales of investments available for sale receivable in period (132) 151 Change in purchases of investments available for sale payable in period 238 212 Change in contractholder deposits for FABN issuance — 300 Lease liabilities recognized in exchange for lease right-of-use assets 21 42 Remeasurement of lease liabilities 41 41 Liabilities assumed in connection with acquisitions Fair value of assets acquired 299 — Less: Total Purchase price 293 — Liabilities and noncontrolling interests assumed $ 6 $ — |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue Our revenue consists of: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (In millions) Direct title insurance premiums Direct title insurance premiums Title $ 541 $ 859 $ 969 $ 1,626 Agency title insurance premiums Agency title insurance premiums Title 713 1,203 1,263 2,302 Life insurance premiums, insurance and investment product fees, and other Escrow, title-related and other fees F&G 576 71 941 667 Home warranty Escrow, title-related and other fees Title 37 43 67 77 Total revenue from insurance contracts 1,867 2,176 3,240 4,672 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 219 294 379 559 Other title-related fees and income Escrow, title-related and other fees Title 169 210 315 406 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 87 92 162 186 Real estate technology Escrow, title-related and other fees Corporate and other 39 41 76 79 Total revenue from contracts with customers 514 637 932 1,230 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 69 67 129 143 Other Escrow, title-related and other fees Corporate and other 16 (32) 23 (39) Interest and investment income Interest and investment income Various 618 463 1,229 941 Recognized gains and losses, net Recognized gains and losses, net Various (16) (676) (11) (1,145) Total revenues Total revenues $ 3,068 $ 2,635 $ 5,542 $ 5,802 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, URL 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 VOBA, DAC, and DSI, 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: June 30, 2023 December 31, 2022 (In millions) Trade receivables $ 344 $ 349 Deferred revenue (contract liabilities) 313 271 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 and six months ended June 30, 2023, we recognized $38 million a nd $59 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 | 6 Months Ended |
Jun. 30, 2023 | |
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 The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 (In millions) Customer relationships and contracts $ 209 $ 202 VOBA 1,529 $ 1,615 DAC 1,856 1,411 DSI 258 200 Value of distribution asset 93 100 Computer software 280 196 Definite lived trademarks, tradenames, and other 32 27 Indefinite lived tradenames and other 60 60 Total Other intangible assets, net $ 4,317 $ 3,811 The following tables roll forward VOBA by product for the six months ended June 30, 2023 and June 30, 2022. FIA Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total (In millions) Balance at January 1, 2023 $ 1,166 $ 32 $ 201 $ 143 $ 73 $ 1,615 Amortization (71) (3) (6) (4) (2) (86) Balance at June 30, 2023 $ 1,095 $ 29 $ 195 $ 139 $ 71 $ 1,529 FIA Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total (In millions) Balance at January 1, 2022 $ 1,314 $ 39 $ 212 $ 153 $ 25 $ 1,743 Amortization (76) (3) (6) (5) (1) (91) Shadow Premium Deficiency Testing (“PDT”) — — — — 52 52 Balance at June 30, 2022 $ 1,238 $ 36 $ 206 $ 148 $ 76 $ 1,704 VOBA amortization expense of $86 million and $91 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2023 and June 30, 2022, respectively. The following table presents a reconciliation of VOBA to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) FIA $ 1,095 $ 1,166 Fixed Rate Annuities 29 32 Immediate Annuities 195 201 Universal Life 139 143 Traditional Life 71 73 Total $ 1,529 $ 1,615 The following tables roll forward DAC by product for the six months ended June 30, 2023 and June 30, 2022. FIA Fixed Rate Annuities Universal Life Total (a) (In millions) Balance at January 1, 2023 $ 971 $ 83 $ 348 $ 1,402 Capitalization 249 91 109 449 Amortization (47) (20) (16) (83) Reinsurance related adjustments — 79 — 79 Balance at June 30, 2023 $ 1,173 $ 233 $ 441 $ 1,847 FIA Fixed Rate Annuities Universal Life Total (a) (In millions) Balance at January 1, 2022 $ 564 $ 38 $ 173 $ 775 Capitalization 216 25 91 332 Amortization (29) (4) (9) (42) Balance at June 30, 2022 $ 751 $ 59 $ 255 $ 1,065 (a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”) DAC amortization expense of $83 million and $42 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2023 and June 30, 2022, respectively. The following table presents a reconciliation of DAC to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) FIA $ 1,173 $ 971 Fixed Rate Annuities 233 83 Universal Life 441 348 Funding Agreements 9 9 Total $ 1,856 $ 1,411 The following tables roll forward DSI for the six months ended June 30, 2023 and June 30, 2022: FIA Total (In millions) Balance at January 1, 2023 $ 200 $ 200 Capitalization 68 68 Amortization (10) (10) Balance at June 30, 2023 $ 258 $ 258 FIA Total (In millions) Balance at January 1, 2022 $ 127 $ 127 Capitalization 38 38 Amortization (6) (6) Balance at June 30, 2022 $ 159 $ 159 DSI amortization expense of $10 million and $6 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2023 and June 30, 2022, respectively. The following table presents a reconciliation of DSI to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) FIA $ 258 $ 200 Total $ 258 $ 200 The cash flow assumptions used to amortize VOBA and DAC were consistent with the assumptions used to estimate the FPB for life contingent immediate annuity and PRT contracts, and will be reviewed and unlocked, if applicable, in the same period as those balances. For nonparticipating traditional life contracts, the VOBA amortization is straight-line, without the use of cash flow assumptions. For FIA contracts, the cash flow assumptions used to amortize VOBA, DAC, and DSI were consistent with the assumptions used to estimate the value of the embedded derivative and MRBs, and will be reviewed and unlocked, if applicable, in the same period as those balances. For fixed rate annuities and IUL the cash flow assumptions used to amortize VOBA, DAC and DSI reflect the company’s best estimates for policyholder behavior, consistent with the development of assumptions for FIA, immediate annuity, and PRT. We review cash flow assumptions annually, generally in the third quarter. In 2022, F&G undertook a review of all significant assumptions and revised GMWB utilization for our deferred annuity contracts (FIA and fixed rate annuities) to reflect internal and industry experience in the first several contract years. For the in-force liabilities as of June 30, 2023, the estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year (In millions) 2023 $ 80 2024 151 2025 139 2026 128 2027 117 Thereafter 914 |
F&G Reinsurance
F&G Reinsurance | 6 Months Ended |
Jun. 30, 2023 | |
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 the Company's retention limit is reinsured. The Company primarily seeks reinsurance coverage in order to limit its exposure to mortality losses and enhance capital management. The Company 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 and six months ended June 30, 2023 and June 30, 2022 were as follows: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred (In millions) Direct $ 510 $ 862 $ 39 $ 204 $ 811 $ 1,734 $ 606 $ 709 Ceded (27) (45) (35) (581) (53) (105) (67) (883) Net $ 483 $ 817 $ 4 $ (377) $ 758 $ 1,629 $ 539 $ (174) 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 and six months ended June 30, 2023 and June 30, 2022. F&G did not commute any ceded reinsurance treaties during the three and six months ended June 30, 2023 and June 30, 2022. 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. The expected credit loss reserves were as follows: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) Balance at Beginning of Period $ (10) $ (20) $ (10) $ (20) Changes in the expected credit loss reserve 1 1 1 1 Balance at End of Period $ (9) $ (19) $ (9) $ (19) 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. Aspida Reinsurance Transaction. F&G executed a Funds Withheld Coinsurance Agreement with 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 agreement was originally executed January 15, 2021 and amended in August 2021 and September 2022. For reinsured policies issued prior to September 1, 2022, the policies are ceded on a fifty percent (50%) quota share basis. For reinsured policies issued on or after September 1, 2022, the policies are ceded on a seventy-five percent (75%) quota share basis, capped at $350 million cession per month. For the month of March 2023 only, the premiums cap increased to $450 million. As the policies ceded to Aspida are investment contracts, there is no significant insurance risk present and; therefore, the effects of this agreement are accounted for as a separate investment contract. There have been no other significant changes to reinsurance contracts for the three and six months ended June 30, 2023. Concentration of Reinsurance Risk The Company has a significant concentration of reinsurance risk with third party reinsurers, Aspida Re, Wilton Reassurance Company (“Wilton 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. Aspida Re has an A- issuer credit rating from AM Best as of June 30, 2023, and the risk of non-performance is further mitigated through the funds withheld arrangement. Wilton Re has an A+ issuer credit rating from AM Best and an A issuer credit rating from Fitch as of June 30, 2023. Somerset has an A- issuer credit rating from AM Best and a BBB+ issuer credit rating from S&P as of June 30, 2023, and the risk of non-performance is further mitigated through the funds withheld arrangement. On June 30, 2023, the net amounts recoverable from Aspida Re, Wilton Re, and Somerset were $4,857 million, $1,157 million, and $543 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 Aspida Re, Wilton Re, and Somerset for periodic treaty settlements are collectible as of June 30, 2023. There have been no other material changes in the reinsurance and the intercompany reinsurance agreements described in our Form 10-K for the year ended December 31, 2022. |
F&G Insurance Subsidiary Financ
F&G Insurance Subsidiary Financial Information and Regulatory Matters | 6 Months Ended |
Jun. 30, 2023 | |
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: Six months ended June 30, 2023 2022 (In millions) Beginning balance $ 1,810 $ 1,883 Change in insurance recoverable — (108) Claim loss provision related to: Current year 100 177 Total title claim loss provision 100 177 Claims paid, net of recoupments related to: Current year (4) (7) Prior years (125) (102) Total title claims paid, net of recoupments (129) (109) Ending balance of claim loss reserve for title insurance $ 1,781 $ 1,843 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 principal (collectively, the “Named Companies”). 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 some of the plaintiffs’ funds were deposited. In connection with the alcoholic beverage license scheme, a lawsuit styled, Securities and Exchange Commission v. Gina Champion-Cain and ANI Development, LLC , was filed in the United States District Court for the Southern District of California asserting claims for securities fraud against Ms. Champion-Cain and certain of her affiliated entities. 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 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 sought compensatory, incidental, consequential, and punitive damages, and the recovery of attorneys’ fees. In turn, the Named Companies petitioned the federal court to sue ANI, via the receiver, to pursue indemnity and other claims against the receivership entities as joint tortfeasors, which was granted. On April 26, 2022, the Named Companies reached a global settlement with the receiver and several other investor claimants. As a condition of the settlement, the Named Companies and the receiver jointly sought court approval of the global settlement and entry of an order barring any claims against the Named Companies related to the alcoholic beverage license scheme. On November 23, 2022, the federal court overruled any objections by non-joining investors and entered an order approving the global settlement and barring further claims against the Named Companies (“Settlement and Bar Order”). The receiver’s lawsuit against the Named Companies has been dismissed. The receiver is in receipt of the settlement payment from Chicago Title Company and will distribute the amount designated for each non-joining investor at the conclusion of any such investor’s appeal of the Settlement and Bar Order (or back to Chicago Title Company if an appeal is successful). Some of the investor claimants who objected to entry of the Settlement and Bar Order appealed the decision to the United States Court of Appeals for the Ninth Circuit by (Cases 22-56206, 22-56208, and 23-55083). Appellate briefing is expected to take place over the next several months. After filing its appeal, one of the appellants, CalPrivate Bank (Case 23-55083), entered into a settlement with the receiver that was approved by the federal court. This settlement resolves CalPrivate Bank’s objections to the Settlement and Bar Order, and its appeal has been dismissed. The following lawsuits remain pending in the Superior Court of San Diego County for the State of California, all of which involve investor claimants who have claims against the Named Companies, objected to the settlement with the receiver, and have appealed the Settlement and Bar Order. Since any pending and future claims against the Named Companies are barred, the state court cases where plaintiffs have served a notice of appeal have been stayed pending the outcome of the appeals, and the claims against the Named Companies by non-appealing plaintiffs have been dismissed with prejudice. 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, and ABC Funding Strategies, LLC v. Chicago Title Co., Chicago Title Ins. Co., Thomas Schwiebert, Adelle Ducharme, and Betty Elixman , was filed in San Diego County Superior Court. Plaintiffs claim losses of more than $250 million as a result of the alleged fraud scheme, and also seek statutory, treble, and punitive damages, 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 the members of ABC Funding Strategies, LLC plaintiffs under confidential terms. 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 filed a cross-complaint against Ms. Champion-Cain, and others, and the Named Companies were substituted in as the Plaintiff following a settlement with the bank. 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. Given CalPrivate Bank's settlement with the receiver, this action against the Named Companies will be dismissed. 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 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. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect VOBA, DAC, and DSI, 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. Effective October 1, 2022, the Company incorporated IUL products under these Iowa-prescribed accounting practices. This resulted in a $202 million and $152 million decrease to statutory capital and surplus at June 30, 2023 and December 31, 2022, respectively. Based on a permitted practice received from the Iowa Insurance Department, FGL Insurance carries one of its limited partnership interests which qualifies for accounting under SSAP No. 48, “Investments in Joint Ventures, Partnerships and Limited Liability Companies” on a net asset value per share basis. This is a departure from SSAP No. 48 which requires such investments to be carried based on the investees underlying U.S. GAAP equity (prior to any impairment considerations). This resulted in a $15 million and $13 million increase to statutory capital and surplus at June 30, 2023 and December 31, 2022, respectively. FGL Insurance’s statutory carrying value of Raven Re reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset, which increased Raven Re’s statutory capital and surplus by $200 million and $200 million at June 30, 2023 and December 31, 2022, 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 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 $107 million and $121 million at June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions TitlePoint On January 1, 2023, we completed our previously announced acquisition of TitlePoint for $224 million in cash, subject to a customary working capital adjustment. The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations ("Topic 805"). The purchase price has been allocated to TitlePoint's assets acquired based on their fair values as of the acquisition date. Goodwill has been recorded based on the amount that the purchase price exceeds the fair value of the net assets acquired. Goodwill consists primarily of intangible assets that do not qualify for separate recognition. The goodwill recorded is expected to be deductible for tax purposes. In connection with the acquisition, we recorded preliminary fair value estimates for goodwill, other intangible assets and other assets of $146 million, $73 million and $5 million, respectively, as of June 30, 2023. The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the TitlePoint acquisition consist of the following: Gross Carrying Value Weighted Average Other intangible assets: (In millions) Customer relationships $ 9 10 Trade name 4 10 Software 60 7 Total Other intangible assets $ 73 AllFirst On August 9, 2022, we acquired approximately 74% of the outstanding equity of AllFirst Title Insurance Agency (" AllFirst ") for approximately $130 million in cash consideration. On December 19, 2022, we purchased an additional 6% of the outstanding equity of AllFirst for approximately $10 million in cash consideration. The acquisition was accounted for as a business combination under Topic 805. The purchase price has been allocated to AllFirst's assets acquired and liabilities assumed based on their fair values as of acquisition date. Goodwill has been recorded based on the amount that the purchase price exceeds the fair value of the net assets acquired. Goodwill consists primarily of intangible assets that do not qualify for separate recognition. The goodwill recorded is expected to be deductible for tax purposes. We completed our assessment of the fair value of assets acquired and liabilities assumed within the one-year period from the date of the acquisition. We recorded fair value amounts as of the acquisition date for goodwill, other intangibles, other assets, other liabilities and non-controlling interest of $104 million, $55 million, $40 million, $18 million and $46 million, respectively. The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the AllFirst acquisition consist of the following: Gross Carrying Value Weighted Average Other intangible assets: (In millions) Customer relationships $ 46 10 Trade name 7 10 Non-compete agreements 1 5 Software 1 2 Total Other intangible assets $ 55 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable consists of the following: June 30, 2023 December 31, 2022 (In millions) 4.50% Notes, net of discount $ 445 $ 445 3.40% Notes, net of discount 644 644 2.45% Notes, net of discount 594 594 3.20% Notes, net of discount 444 444 Revolving Credit Facility (2) (3) F&G Credit Agreement 511 547 7.40% F&G Notes 495 — 5.50% F&G Notes 565 567 $ 3,696 $ 3,238 On January 13, 2023, F&G completed its issuance and sale of $500 million aggregate amount of its 7.40% F&G Notes, pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The 7.40% F&G Notes are the senior unsecured, unsubordinated obligations of F&G and are guaranteed on an unsecured, unsubordinated basis by each of F&G's subsidiaries that are guarantors of its obligations under the F&G Credit Agreement (the “Guarantors”). The interest rate payable on the 7.40% F&G Notes will be subject to adjustment from time to time if either S&P or Fitch (or a substitute rating agency therefor) downgrades (or downgrades and subsequently upgrades) the credit ratings assigned to the 7.40% F&G Notes. F&G intends to use the net proceeds from the offering for general corporate purposes, including to support the growth of assets under management and for F&G's future liquidity requirements. On November 22, 2022, F&G entered into a Credit Agreement (the "F&G Credit Agreement") with certain lenders (the "Lenders") and Bank of America, N.A. as administrative agent (the "Administrative Agent"), swing line lender and issuing bank, pursuant to which the Lenders have made available to F&G an unsecured revolving credit facility (the "F&G Credit Facility") in an aggregate principal amount of $550 million to be used for working capital and general corporate purposes. The F&G Credit Agreement matures the earlier to occur of November 22, 2025 or 91 days prior to May 1, 2025, the stated maturity date of the 5.50% F&G Notes, unless the principal amount of the 5.50% F&G Notes is $150 million or less at such time, the 5.50% F&G Notes have been redeemed or defeased in full, and any refinancing Indebtedness incurred in connection therewith matures at least 91 days after the date that is 3 years from the Effective Date, as defined in the F&G Credit Agreement, or certain other conditions are met. Revolving loans under the F&G Credit Agreement generally bear interest at a variable rate based on either (i) the base rate (which is the highest of (a) one-half of one percent in excess of the federal funds rate, (b) the Administrative Agent’s “prime rate”, or (c) the sum of one percent plus Term The Secured Overnight Financing Rate (“SOFR”) plus a margin of between 30.0 and 80.0 basis points depending on the non-credit-enhanced, senior unsecured long-term debt ratings of F&G or (ii) Term SOFR plus a margin of between 130.0 and 180.0 basis points depending on the non-credit-enhanced, senior unsecured long-term debt ratings of F&G. On February 21, 2023, F&G amended F&G Credit Agreement with the Lenders and the Administrative Agent, swing line lender and issuing bank. The amendment to the F&G Credit Agreement increased the aggregate principal amount of commitments under the F&G Credit Facility by $115 million to $665 million. On September 17, 2021, we completed our underwritten public offering of $450 million aggregate principal amount of our 3.20% Notes, pursuant to our registration statement on Form S-3 ASR (File No. 333-239002) and the related prospectus supplement. The net proceeds from the registered offering of the 3.20% Notes were approximately $443 million, after deducting underwriting discounts, commissions and offering expenses. We plan to use the net proceeds from the offering for general corporate purposes. On October 29, 2020, we entered into the Fifth Restated Credit Agreement for our Amended Revolving Credit Facility with Bank of America, N.A., as administrative agent and the other agents party thereto. Among other changes, the Fifth Restated Credit Agreement amends the Fourth Restated Credit Agreement to extend the maturity date from April 27, 2022 to October 29, 2025. The material terms of the Fourth Restated Credit Agreement are set forth in our Annual Report on Form 10-K for the year ended December 31, 2019. As of June 30, 2023, there was no principal outstanding, $2 million of unamortized debt issuance costs, and $800 million of available borrowing capacity under the Revolving Credit Facility. On September 15, 2020, we completed our underwritten public offering of $600 million aggregate principal amount of our 2.45% Notes due March 15, 2031 (the "2.45% Notes") pursuant to an effective registration statement filed with the SEC. The net proceeds from the registered offering of the 2.45% Notes were approximately $593 million, after deducting underwriting discounts and commissions and offering expenses. We used the net proceeds from the offering (i) to repay all our $260 million outstanding indebtedness under the Term Loan, and (ii) for general corporate purposes. On June 12, 2020, we completed our underwritten public offering of $650 million aggregate principal amount of the 3.40% Notes due June 15, 2030 (the “3.40% Notes”) pursuant to an effective registration statement filed with the SEC. The net proceeds from the registered offering of the 3.40% Notes were approximately $642 million, after deducting underwriting discounts, and commissions and offering expenses. We used the net proceeds from the offering (i) to repay $640 million of the outstanding principal amount under the Term Loan, and (ii) for general corporate purposes. On June 1, 2020, as a result of the F&G acquisition, we assumed $550 million aggregate principal amount of 5.50% senior notes due 2025 (the "5.50% F&G Notes"), originally issued on April 20, 2018 at 99.5% of face value for proceeds of $547 million. On August 13, 2018, we completed an offering of $450 million in aggregate principal amount of 4.50% notes due August 2028 (the "4.50% Notes"), pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The 4.50% Notes were priced at 99.252% of par to yield 4.594% annual interest. We pay interest on the 4.50% Notes semi-annually on the 15th of February and August, beginning February 15, 2019. The 4.50% Notes contain customary covenants and events of default for investment grade public debt, which primarily relate to failure to make principal or interest payments. On May 16, 2019, we completed an offering to exchange the 4.50% Notes for substantially identical notes registered pursuant to Rule 424 under the Securities Act of 1933 (the "4.50% Notes Exchange"). There were no material changes to the terms of the 4.50% Notes as a result of the 4.50% Notes Exchange and all holders of the 4.50% Notes accepted the offer to exchange. Gross principal maturities of notes payable at June 30, 2023 are as follows: (In millions) 2023 (remaining) $ 511 2024 — 2025 550 2026 — 2027 — Thereafter 2,650 $ 3,711 |
Market Risk Benefits
Market Risk Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Market Risk Benefits | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with FIAs and fixed rate annuities for the six months ended June 30, 2023 and the years ended December 31, 2022 and December 31, 2021: June 30, 2023 December 31, 2022 December 31, 2021 FIA Fixed rate annuities FIA Fixed rate annuities FIA Fixed rate annuities (Dollars in millions) Balance, beginning of period $ 164 $ 1 $ 426 $ 2 $ 478 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 102 $ 1 $ 280 $ 1 $ 320 $ 1 Issuances and benefit payments (8) — (21) — (9) — Attributed fees collected and interest accrual 68 — 107 1 99 1 Actual policyholder behavior different from expected 11 — 43 — (22) — Changes in assumptions and other 1 — (76) — — — Effects of market related movements (38) — (231) (1) (108) (1) Balance, end of period, before effect of changes in the instrument-specific credit risk $ 136 $ 1 $ 102 $ 1 $ 280 $ 1 Effect of changes in the instrument-specific credit risk 58 — 62 — 146 1 Balance, end of period $ 194 $ 1 $ 164 $ 1 $ 426 $ 2 Weighted-average attained age of policyholders weighted by total AV (years) 68.41 72.67 68.59 72.88 68.95 73.10 Net amount at risk $ 1,006 $ 3 $ 952 $ 3 $ 1,304 $ 4 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRB amounts in the accompanying unaudited Condensed Consolidated Balance Sheets: June 30, 2023 December 31, 2022 December 31, 2021 Asset Liability Net Asset Liability Net Asset Liability Net (In millions) FIA $ 118 $ 312 $ 194 $ 117 $ 281 $ 164 $ 41 $ 467 $ 426 Fixed rate annuities — 1 1 — 1 1 — 2 2 Total $ 118 $ 313 $ 195 $ 117 $ 282 $ 165 $ 41 $ 469 $ 428 For the six months ended June 30, 2023, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased slightly, leading to a decrease in the MRB associated with FIA and fixed rate annuities. • Increases in the equity market related projections resulted in a decrease in the net amount at risk associated with FIAs, leading to a decrease in the value of the associated MRBs. • F&G’s credit spread increased slightly, leading to a corresponding decrease in the MRBs associated with both FIA and fixed rate annuities. In 2022, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased significantly, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. • Decreases in the equity markets resulted in an increase in the net amount at risk associated with FIAs, leading to an increase in the value of the associated MRBs. • Volatility indices increased, leading to an increase in the MRBs associated with FIAs. • Cash flow assumptions for mortality and full and partial surrenders were unchanged during the annual third quarter review. The GMWB utilization assumption was revised in the second quarter of 2022 to reflect additional internal and industry experience for the first several contract years. This assumption update led to a decrease in the MRBs. • F&G’s credit spread increased during the year, leading to a corresponding decrease in the MRBs value. Credit spreads on the block of business remain lower than the at-issue or at-purchase credit spreads, but the level has decreased since the beginning of 2022. In 2021, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased moderately, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. • Increases in the equity markets resulted in a decrease in the net amount at risk associated with FIA and fixed rate annuities, leading to a decrease in the value of the associated MRBs. The following tables summarize balances of and changes in contractholder funds’ account balances: June 30, 2023 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 2,415 2,584 99 — 456 Premiums received 52 1 180 — — Policy charges (a) (87) — (124) — — Surrenders and withdrawals (876) (520) (45) — — Benefit payments (254) (118) (16) (27) (323) Interest credited 69 179 20 27 25 Other 23 (1) — — 3 Balance, end of year $ 26,108 $ 11,483 $ 2,226 $ 2,613 $ 2,143 Embedded derivative adjustment (c) 98 — 73 — — Gross Liability, end of period $ 26,206 $ 11,483 $ 2,299 $ 2,613 $ 2,143 Less: Reinsurance (17) (5,431) (924) — — Net Liability, after Reinsurance $ 26,189 $ 6,052 $ 1,375 $ 2,613 $ 2,143 Weighted-average crediting rate 1.10 % 7.07 % 3.85 % N/A N/A Net amount at risk (d) N/A N/A 53,401 N/A N/A Cash surrender value 24,337 10,707 1,760 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2022 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year 21,997 6,367 1,907 1,904 1,543 Issuances 4,462 3,758 167 700 1,192 Premiums received 106 3 295 — — Policy charges (a) (166) (1) (209) — — Surrenders and withdrawals (1,322) (797) (74) — — Benefit payments (485) (192) (22) (35) (789) Interest credited 198 220 48 45 36 Other (24) — — (1) — Balance, end of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Embedded derivative adjustment (c) (343) — 15 — — Gross Liability, end of period $ 24,423 $ 9,358 $ 2,127 $ 2,613 $ 1,982 Less: Reinsurance (17) (3,723) (947) — — Net Liability, after Reinsurance $ 24,406 $ 5,635 $ 1,180 $ 2,613 $ 1,982 Weighted-average crediting rate 0.85 % 2.84 % 2.39 % N/A N/A Net amount at risk (d) N/A N/A 53,348 N/A N/A Cash surrender value 188 5,992 1,698 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2021 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 18,703 $ 5,142 $ 1,696 $ — $ 1,203 Issuances 4,400 1,743 114 1,899 759 Premiums received 103 3 233 — — Policy charges (a) (148) (1) (167) — — Surrenders and withdrawals (1,303) (543) (68) — — Benefit payments (440) (145) (19) (7) (447) Interest credited 686 167 118 12 30 Other (4) 1 — — (2) Balance, end of year $ 21,997 $ 6,367 $ 1,907 $ 1,904 $ 1,543 Embedded derivative adjustment (c) 603 — 74 — — Gross Liability, end of period $ 22,600 $ 6,367 $ 1,981 $ 1,904 $ 1,543 Less: Reinsurance (17) (1,692) (984) — — Net Liability, after Reinsurance $ 22,583 $ 4,675 $ 997 $ 1,904 $ 1,543 Weighted-average crediting rate 3.43 % 2.94 % 6.77 % N/A N/A Net amount at risk (d) N/A N/A 41,326 N/A N/A Cash surrender value 20,455 5,992 1,572 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets: June 30, 2023 December 31, 2022 December 31, 2021 (In millions) FIA $ 26,206 $ 24,423 $ 22,600 Fixed rate annuities 11,483 9,358 6,367 Immediate annuities 317 332 352 Universal life 2,299 2,127 1,981 Traditional life 5 5 5 Funding Agreement-FABN 2,613 2,613 1,904 FHLB 2,143 1,982 1,543 PRT 4 3 1 Total $ 45,070 $ 40,843 $ 34,753 The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: June 30, 2023 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 23,749 $ 796 $ 403 $ 663 $ 25,611 1.51%-2.50% 141 — 1 — 142 Greater than 2.50% 353 — 2 — 355 Total $ 24,243 $ 796 $ 406 $ 663 $ 26,108 Fixed Rate Annuities 0.00%-1.50% $ 17 $ 30 $ 1,838 $ 8,287 $ 10,172 1.51%-2.50% 8 13 28 313 362 Greater than 2.50% 934 3 4 8 949 Total $ 959 $ 46 $ 1,870 $ 8,608 $ 11,483 Universal Life 0.00%-1.50% $ 1,822 $ 4 $ — $ 18 $ 1,844 1.51%-2.50% — — — — — Greater than 2.50% 346 35 1 — 382 Total $ 2,168 $ 39 $ 1 $ 18 $ 2,226 December 31, 2022 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 22,848 $ 801 $ 410 $ 151 $ 24,210 1.51%-2.50% 162 — 1 — 163 Greater than 2.50% 390 — 3 — 393 Total $ 23,400 $ 801 $ 414 $ 151 $ 24,766 Fixed Rate Annuities 0.00%-1.50% $ 10 $ 32 $ 1,871 $ 6,379 $ 8,292 1.51%-2.50% 9 14 30 1 54 Greater than 2.50% 997 4 4 7 1,012 Total $ 1,016 $ 50 $ 1,905 $ 6,387 $ 9,358 Universal Life 0.00%-1.50% $ 1,701 $ 3 $ — $ 17 $ 1,721 1.51%-2.50% — — — — — Greater than 2.50% 346 44 1 — 391 Total $ 2,047 $ 47 $ 1 $ 17 $ 2,112 December 31, 2021 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 20,162 $ 803 $ 388 $ — $ 21,353 1.51%-2.50% 171 11 25 — 207 Greater than 2.50% 431 3 3 — 437 Total $ 20,764 $ 817 $ 416 $ — $ 21,997 Fixed Rate Annuities 0.00%-1.50% $ 2 $ 28 $ 1,928 $ 3,219 $ 5,177 1.51%-2.50% 9 15 37 1 62 Greater than 2.50% 954 142 25 7 1,128 Total $ 965 $ 185 $ 1,990 $ 3,227 $ 6,367 Universal Life 0.00%-1.50% $ 1,486 $ 2 $ — $ 13 $ 1,501 1.51%-2.50% — — — — — Greater than 2.50% 359 46 1 — 406 Total $ 1,845 $ 48 $ 1 $ 13 $ 1,907 |
Contractholder Funds
Contractholder Funds | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Contractholder Funds | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with FIAs and fixed rate annuities for the six months ended June 30, 2023 and the years ended December 31, 2022 and December 31, 2021: June 30, 2023 December 31, 2022 December 31, 2021 FIA Fixed rate annuities FIA Fixed rate annuities FIA Fixed rate annuities (Dollars in millions) Balance, beginning of period $ 164 $ 1 $ 426 $ 2 $ 478 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 102 $ 1 $ 280 $ 1 $ 320 $ 1 Issuances and benefit payments (8) — (21) — (9) — Attributed fees collected and interest accrual 68 — 107 1 99 1 Actual policyholder behavior different from expected 11 — 43 — (22) — Changes in assumptions and other 1 — (76) — — — Effects of market related movements (38) — (231) (1) (108) (1) Balance, end of period, before effect of changes in the instrument-specific credit risk $ 136 $ 1 $ 102 $ 1 $ 280 $ 1 Effect of changes in the instrument-specific credit risk 58 — 62 — 146 1 Balance, end of period $ 194 $ 1 $ 164 $ 1 $ 426 $ 2 Weighted-average attained age of policyholders weighted by total AV (years) 68.41 72.67 68.59 72.88 68.95 73.10 Net amount at risk $ 1,006 $ 3 $ 952 $ 3 $ 1,304 $ 4 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRB amounts in the accompanying unaudited Condensed Consolidated Balance Sheets: June 30, 2023 December 31, 2022 December 31, 2021 Asset Liability Net Asset Liability Net Asset Liability Net (In millions) FIA $ 118 $ 312 $ 194 $ 117 $ 281 $ 164 $ 41 $ 467 $ 426 Fixed rate annuities — 1 1 — 1 1 — 2 2 Total $ 118 $ 313 $ 195 $ 117 $ 282 $ 165 $ 41 $ 469 $ 428 For the six months ended June 30, 2023, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased slightly, leading to a decrease in the MRB associated with FIA and fixed rate annuities. • Increases in the equity market related projections resulted in a decrease in the net amount at risk associated with FIAs, leading to a decrease in the value of the associated MRBs. • F&G’s credit spread increased slightly, leading to a corresponding decrease in the MRBs associated with both FIA and fixed rate annuities. In 2022, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased significantly, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. • Decreases in the equity markets resulted in an increase in the net amount at risk associated with FIAs, leading to an increase in the value of the associated MRBs. • Volatility indices increased, leading to an increase in the MRBs associated with FIAs. • Cash flow assumptions for mortality and full and partial surrenders were unchanged during the annual third quarter review. The GMWB utilization assumption was revised in the second quarter of 2022 to reflect additional internal and industry experience for the first several contract years. This assumption update led to a decrease in the MRBs. • F&G’s credit spread increased during the year, leading to a corresponding decrease in the MRBs value. Credit spreads on the block of business remain lower than the at-issue or at-purchase credit spreads, but the level has decreased since the beginning of 2022. In 2021, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased moderately, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. • Increases in the equity markets resulted in a decrease in the net amount at risk associated with FIA and fixed rate annuities, leading to a decrease in the value of the associated MRBs. The following tables summarize balances of and changes in contractholder funds’ account balances: June 30, 2023 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 2,415 2,584 99 — 456 Premiums received 52 1 180 — — Policy charges (a) (87) — (124) — — Surrenders and withdrawals (876) (520) (45) — — Benefit payments (254) (118) (16) (27) (323) Interest credited 69 179 20 27 25 Other 23 (1) — — 3 Balance, end of year $ 26,108 $ 11,483 $ 2,226 $ 2,613 $ 2,143 Embedded derivative adjustment (c) 98 — 73 — — Gross Liability, end of period $ 26,206 $ 11,483 $ 2,299 $ 2,613 $ 2,143 Less: Reinsurance (17) (5,431) (924) — — Net Liability, after Reinsurance $ 26,189 $ 6,052 $ 1,375 $ 2,613 $ 2,143 Weighted-average crediting rate 1.10 % 7.07 % 3.85 % N/A N/A Net amount at risk (d) N/A N/A 53,401 N/A N/A Cash surrender value 24,337 10,707 1,760 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2022 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year 21,997 6,367 1,907 1,904 1,543 Issuances 4,462 3,758 167 700 1,192 Premiums received 106 3 295 — — Policy charges (a) (166) (1) (209) — — Surrenders and withdrawals (1,322) (797) (74) — — Benefit payments (485) (192) (22) (35) (789) Interest credited 198 220 48 45 36 Other (24) — — (1) — Balance, end of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Embedded derivative adjustment (c) (343) — 15 — — Gross Liability, end of period $ 24,423 $ 9,358 $ 2,127 $ 2,613 $ 1,982 Less: Reinsurance (17) (3,723) (947) — — Net Liability, after Reinsurance $ 24,406 $ 5,635 $ 1,180 $ 2,613 $ 1,982 Weighted-average crediting rate 0.85 % 2.84 % 2.39 % N/A N/A Net amount at risk (d) N/A N/A 53,348 N/A N/A Cash surrender value 188 5,992 1,698 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2021 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 18,703 $ 5,142 $ 1,696 $ — $ 1,203 Issuances 4,400 1,743 114 1,899 759 Premiums received 103 3 233 — — Policy charges (a) (148) (1) (167) — — Surrenders and withdrawals (1,303) (543) (68) — — Benefit payments (440) (145) (19) (7) (447) Interest credited 686 167 118 12 30 Other (4) 1 — — (2) Balance, end of year $ 21,997 $ 6,367 $ 1,907 $ 1,904 $ 1,543 Embedded derivative adjustment (c) 603 — 74 — — Gross Liability, end of period $ 22,600 $ 6,367 $ 1,981 $ 1,904 $ 1,543 Less: Reinsurance (17) (1,692) (984) — — Net Liability, after Reinsurance $ 22,583 $ 4,675 $ 997 $ 1,904 $ 1,543 Weighted-average crediting rate 3.43 % 2.94 % 6.77 % N/A N/A Net amount at risk (d) N/A N/A 41,326 N/A N/A Cash surrender value 20,455 5,992 1,572 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets: June 30, 2023 December 31, 2022 December 31, 2021 (In millions) FIA $ 26,206 $ 24,423 $ 22,600 Fixed rate annuities 11,483 9,358 6,367 Immediate annuities 317 332 352 Universal life 2,299 2,127 1,981 Traditional life 5 5 5 Funding Agreement-FABN 2,613 2,613 1,904 FHLB 2,143 1,982 1,543 PRT 4 3 1 Total $ 45,070 $ 40,843 $ 34,753 The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: June 30, 2023 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 23,749 $ 796 $ 403 $ 663 $ 25,611 1.51%-2.50% 141 — 1 — 142 Greater than 2.50% 353 — 2 — 355 Total $ 24,243 $ 796 $ 406 $ 663 $ 26,108 Fixed Rate Annuities 0.00%-1.50% $ 17 $ 30 $ 1,838 $ 8,287 $ 10,172 1.51%-2.50% 8 13 28 313 362 Greater than 2.50% 934 3 4 8 949 Total $ 959 $ 46 $ 1,870 $ 8,608 $ 11,483 Universal Life 0.00%-1.50% $ 1,822 $ 4 $ — $ 18 $ 1,844 1.51%-2.50% — — — — — Greater than 2.50% 346 35 1 — 382 Total $ 2,168 $ 39 $ 1 $ 18 $ 2,226 December 31, 2022 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 22,848 $ 801 $ 410 $ 151 $ 24,210 1.51%-2.50% 162 — 1 — 163 Greater than 2.50% 390 — 3 — 393 Total $ 23,400 $ 801 $ 414 $ 151 $ 24,766 Fixed Rate Annuities 0.00%-1.50% $ 10 $ 32 $ 1,871 $ 6,379 $ 8,292 1.51%-2.50% 9 14 30 1 54 Greater than 2.50% 997 4 4 7 1,012 Total $ 1,016 $ 50 $ 1,905 $ 6,387 $ 9,358 Universal Life 0.00%-1.50% $ 1,701 $ 3 $ — $ 17 $ 1,721 1.51%-2.50% — — — — — Greater than 2.50% 346 44 1 — 391 Total $ 2,047 $ 47 $ 1 $ 17 $ 2,112 December 31, 2021 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 20,162 $ 803 $ 388 $ — $ 21,353 1.51%-2.50% 171 11 25 — 207 Greater than 2.50% 431 3 3 — 437 Total $ 20,764 $ 817 $ 416 $ — $ 21,997 Fixed Rate Annuities 0.00%-1.50% $ 2 $ 28 $ 1,928 $ 3,219 $ 5,177 1.51%-2.50% 9 15 37 1 62 Greater than 2.50% 954 142 25 7 1,128 Total $ 965 $ 185 $ 1,990 $ 3,227 $ 6,367 Universal Life 0.00%-1.50% $ 1,486 $ 2 $ — $ 13 $ 1,501 1.51%-2.50% — — — — — Greater than 2.50% 359 46 1 — 406 Total $ 1,845 $ 48 $ 1 $ 13 $ 1,907 |
Future Policy Benefits
Future Policy Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Future Policy Benefits | Future Policy Benefits The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts: June 30, 2023 December 31, 2022 December 31, 2021 Expected net premiums (Dollars in millions) Balance, beginning of year $ 797 $ 1,020 $ 1,152 Beginning balance of original discount rate 974 1,045 1,131 Effect of actual variances from expected experience 7 33 25 Balance adjusted for variances from expectation 981 1,078 1,156 Interest accrual 9 20 22 Net premiums collected (60) (124) (133) Ending Balance at original discount rate 930 974 1,045 Effect of changes in discount rate assumptions (167) (177) (25) Balance, end of year $ 763 $ 797 $ 1,020 Expected FPB Balance, beginning of year $ 2,151 $ 2,772 $ 3,105 Beginning balance of original discount rate 2,665 2,806 2,995 Effect of actual variances from expected experience (9) 13 (14) Balance adjusted for variances from expectation $ 2,656 $ 2,819 $ 2,981 Interest accrual 28 59 62 Benefits payments (99) (213) (237) Ending Balance at original discount rate $ 2,585 $ 2,665 $ 2,806 Effect of changes in discount rate assumptions (474) (514) (34) Balance, end of year $ 2,111 $ 2,151 $ 2,772 Net liability for future policy benefits $ 1,348 $ 1,354 $ 1,752 Less: Reinsurance recoverable 587 612 749 Net liability for future policy benefits, after reinsurance recoverable $ 761 $ 742 $ 1,003 Weighted-average duration of liability for future policyholder benefits (years) 7.36 7.58 8.54 The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts: June 30, 2023 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 1,429 $ 2,165 Beginning balance of original discount rate 1,858 2,475 Effect of changes in cash flow assumptions — (5) Effect of actual variances from expected experience (17) — Balance adjusted for variances from expectation 1,841 2,470 Issuances 10 755 Interest accrual 33 50 Benefits payments (65) (115) Ending Balance at original discount rate 1,819 3,160 Effect of changes in discount rate assumptions (408) (290) Balance, end of year $ 1,411 $ 2,870 Net liability for future policy benefits $ 1,411 $ 2,870 Less: Reinsurance recoverable 116 — Net liability for future policy benefits, after reinsurance recoverable $ 1,295 $ 2,870 Weighted-average duration of liability for future policyholder benefits (years) 12.47 8.23 December 31, 2022 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 1,954 $ 1,148 Beginning balance of original discount rate 1,935 1,151 Effect of changes in cash flow assumptions — (20) Effect of actual variances from expected experience (26) 2 Balance adjusted for variances from expectation $ 1,909 $ 1,133 Issuances 26 1,418 Interest accrual 60 50 Benefits payments (137) (126) Ending Balance at original discount rate $ 1,858 $ 2,475 Effect of changes in discount rate assumptions (429) (310) Balance, end of year $ 1,429 $ 2,165 Net liability for future policy benefits $ 1,429 $ 2,165 Less: Reinsurance recoverable 118 — Net liability for future policy benefits, after reinsurance recoverable $ 1,311 $ 2,165 Weighted-average duration of liability for future policyholder benefits (years) 11.76 8.09 December 31, 2021 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 2,153 $ — Beginning balance of original discount rate 2,040 — Effect of actual variances from expected experience (47) — Balance adjusted for variances from expectation $ 1,993 $ — Issuances 18 1,155 Interest accrual 60 2 Benefits payments (136) (6) Ending Balance at original discount rate $ 1,935 $ 1,151 Effect of changes in discount rate assumptions 19 (3) Balance, end of year $ 1,954 $ 1,148 Net liability for future policy benefits $ 1,954 $ 1,148 Less: Reinsurance recoverable 145 — Net liability for future policy benefits, after reinsurance recoverable $ 1,809 $ 1,148 Weighted-average duration of liability for future policyholder benefits (years) 13.61 8.75 The following tables summarize balances and changes in the liability for DPL for limited-payment contracts: June 30, 2023 December 31, 2022 December 31, 2021 Immediate annuities PRT Immediate annuities PRT Immediate annuities PRT (In millions) Balance, beginning of year $ 69 $ 4 $ 57 $ 7 $ 22 $ — Effect of modeling changes 4 — — — — — Effect of changes in cash flow assumptions — — — (2) — — Effect of actual variances from expected experience 10 2 16 — 39 — Balance adjusted for variances from expectation 83 6 73 5 61 — Issuances 1 — 1 — $ — $ 7 Interest accrual 1 (1) 2 — 2 — Amortization (3) (1) (7) (1) (6) — Balance, end of year $ 82 $ 4 $ 69 $ 4 $ 57 $ 7 The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets. The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below: June 30, 2023 December 31, 2022 December 31, 2021 (In millions) Traditional Life $ 1,348 $ 1,354 $ 1,752 Immediate annuities 1,411 1,429 1,954 PRT 2,870 2,165 1,148 Immediate annuities DPL 82 69 57 PRT DPL 4 4 7 Total $ 5,715 $ 5,021 $ 4,918 The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts: Undiscounted Discounted June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Traditional Life (In millions) Expected future benefit payments $ 3,027 $ 3,201 $ 2,089 $ 2,686 Expected future gross premiums 1,114 1,245 803 1,091 Immediate annuities Expected future benefit payments $ 3,361 $ 3,516 $ 1,411 $ 1,907 Expected future gross premiums — — — — PRT Expected future benefit payments $ 4,724 $ 2,265 $ 3,161 $ 1,652 Expected future gross premiums — — — — The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Earnings: Gross Premiums (a) Interest Expense (b) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) Traditional Life $ 63 $ 70 $ 19 $ 20 Immediate annuities 11 16 33 30 PRT 737 520 50 19 Total $ 811 $ 606 $ 102 $ 69 (a) Included in Life insurance premiums and other fees on the Condensed Consolidated Statements of Earnings. (b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the Condensed Consolidated Statements of Earnings. The following table presents the weighted-average interest rate: June 30, 2023 December 31, 2022 December 31, 2021 Traditional Life Interest accretion rate 2.33 % 2.32 % 2.29 % Current discount rate 4.63 % 5.37 % 2.41 % Immediate annuities Interest accretion rate 3.12 % 3.07 % 3.04 % Current discount rate 5.10 % 5.21 % 3.07 % PRT Interest accretion rate 4.04 % 3.20 % 1.20 % Current discount rate 5.28 % 5.40 % 2.79 % The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB: June 30, 2023 Traditional Life Immediate annuities PRT Mortality Actual experience 1.4 % 3.2 % 2.3 % Expected experience 1.4 % 1.6 % 2.1 % Lapses Actual experience 0.1 % — % — % Expected experience 0.3 % — % — % December 31, 2022 Traditional Life Immediate annuities PRT Mortality Actual experience 1.5 % 3.0 % 1.9 % Expected experience 1.3 % 1.9 % 2.5 % Lapses Actual experience — % — % — % Expected experience 0.3 % — % — % December 31, 2021 Traditional Life Immediate annuities PRT Mortality Actual experience 1.7 % 4.2 % — % Expected experience 1.3 % 2.0 % — % Lapses Actual experience 0.1 % — % — % Expected experience 0.3 % — % — % The following table provides additional information for periods in which a cohort has an NPR > 100% (and; therefore, capped at 100%) (dollars in millions): June 30, 2023 December 31, 2022 Cohort X Description Cohort X Description Net Premium Ratio before capping 100 % Term with ROP Non-NY Cohort 100 % Term with ROP Non-NY Cohort Reserves before NP Ratio capping $ 1,184 Term with ROP Non-NY Cohort $ 1,172 Term with ROP Non-NY Cohort Reserves after NP Ratio capping $ 1,185 Term with ROP Non-NY Cohort $ 1,173 Term with ROP Non-NY Cohort Loss Expense $ 1 Term with ROP Non-NY Cohort $ — Term with ROP Non-NY Cohort F&G realized actual-to-expected experience variances and made changes to assumptions during the six months ended June 30, 2023 and the year ended December 31, 2022 as follows: Traditional life Significant assumption inputs to the calculation of the FPB for traditional life include mortality, lapses (including lapses due to nonpayment of premium and surrenders for cash surrender value), and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. Market data that underlies current discount rates was updated in the first quarter of 2023 from that utilized in 2022 resulting in decreased discount rates that drove a material increase to the FPB. In 2022, F&G similarly undertook a review in the third quarter of the significant cash flow assumptions and did not make any changes to mortality or lapses. Market data that underlies current discount rates was updated from 2021 and increased significantly year-over-year, resulting in a material decrease to the FPB. Impacts to expected net premiums and expected future policy benefits due to discount rate changes in 2022 can be observed in the FPB roll forward tables at December 31, 2022. Immediate annuities (life contingent) Significant assumption inputs to the calculation of the FPB for immediate annuities (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. Market data that underlies current discount rates was updated in the first quarter of 2023 from that utilized in 2022, resulting in decreased discount rates that drove a material increase to the FPB. In 2022, F&G similarly undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated from 2021 and increased significantly year-over-year, resulting in a material decrease to the FPB. Impacts to expected future policy benefits due to assumption changes in 2022 can be observed in the FPB roll forward tables at December 31, 2022. PRT (life contingent) Significant assumption inputs to the calculation of the FPB for PRT (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. Market data that underlies current discount rates was updated in the first quarter of 2023 from 2022 resulting in decreased discount rates that drove a material increase to the FPB. In 2022, F&G similarly undertook a review of the significant cash flow assumption and did not make any changes to mortality. Market data that underlies current discount rates was updated from 2021 and increased significantly year-over-year, resulting in a material decrease to the FPB. Impacts to expected future policy benefits due to assumption changes in 2022 can be observed in the FPB roll forward tables at December 31, 2022. Premium deficiency testing |
ASU 2018-12 Transition
ASU 2018-12 Transition | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
ASU 2018-12 Transition | ASU 2018-12 Transition We adopted ASU 2018-12 on January 1, 2023 with a transition date of January 1, 2021, or the beginning of the earliest period that will be presented in the annual December 31, 2023 Consolidated Financial Statements. We elected to adopt ASU 2018-12 using the full retrospective transition method and balances for FPB, DAC and balances amortized on a basis consistent with DAC (VOBA, DSI, and URL), and MRBs were adjusted to conform to ASU 2018-12 starting as of the F&G acquisition date, June 1, 2020. No hindsight was used for the full retrospective adoption of MRBs. As a result of adoption, the Company recorded a cumulative-effect adjustment, which increased opening 2021 retained earnings by $75 million, net of tax. The following table summarizes the balance of and changes in the FPB on January 1, 2021 due to adoption of ASU 2018-12 : Immediate annuities Traditional Life Total (3) (In millions) Balance, December 31, 2020 $ 1,861 $ 2,144 $ 4,005 Cumulative effect of retrospective adoption (1) 201 (279) (78) Effect of remeasurement of liability at current discount rate (2) 113 88 201 Balance, January 1, 2021 $ 2,175 $ 1,953 $ 4,128 Less: Reinsurance Recoverable 322 793 1,115 Balance, January 1, 2021, net of reinsurance $ 1,853 $ 1,160 $ 3,013 (1) Adjustments for the cumulative effect of adoption of the new measurement guidance under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020, net of the effects of any change in the DPL. (2) The remeasurement of the liability at the current discount rate is reflected as an adjustment to opening AOCI upon the adoption of ASU 2018-12. (3) PRT was not written as of the transition date, January 1, 2021, and as a result is not presented in the transition adjustment roll forward. The following table summarizes the balance of and changes in VOBA on January 1, 2021 due to adoption of ASU 2018-12: FIA Fixed rate annuities Immediate annuities Universal Life Traditional Life Total (In millions) Balance, December 31, 2020 $ 1,208 $ 15 $ 86 $ 139 $ 18 $ 1,466 Adjustment for reversal of AOCI adjustments (1) 208 24 — 29 (29) 232 Cumulative effect of retrospective adoption (2) (14) 7 (5) (9) (1) (22) Transition opening balance adjustment 69 2 145 5 43 264 Balance, January 1, 2021 $ 1,471 $ 48 $ 226 $ 164 $ 31 $ 1,940 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020 (3) Adjustments for the change in VOBA due to the full retrospective adjustment of carrying amounts of acquired contracts as of the FNF Acquisition Date due to the adoption of ASU 2018-12. The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12 : FIA Fixed rate annuities Universal Life Total (In millions) Balance, December 31, 2020 $ 167 $ 14 $ 41 $ 222 Adjustment for reversal of AOCI adjustments (1) 15 2 8 25 Cumulative effect of retrospective adoption (2) (1) — (1) (2) Balance, January 1, 2021 $ 181 $ 16 $ 48 $ 245 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in DSI on January 1, 2021 due to adoption of ASU 2018-12 : FIA Total (In millions) Balance, December 31, 2020 $ 36 $ 36 Adjustment for reversal of AOCI adjustments (1) 5 5 Cumulative effect of retrospective adoption (2) 4 4 Balance, January 1, 2021 $ 45 $ 45 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in URL on January 1, 2021 due to adoption of ASU 2018-12 : Universal Life Total (In millions) Balance, December 31, 2020 $ 2 $ 2 Adjustment for reversal of AOCI adjustments (1) 25 25 Cumulative effect of retrospective adoption (2) 2 2 Balance, January 1, 2021 $ 29 $ 29 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in the asset and liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12 : FIA Fixed rate annuities Total (In millions) Balance, December 31, 2020 - Carrying amount of MRBs under prior guidance (1) $ 531 $ — $ 531 Adjustment for reversal of AOCI adjustments (2) (116) — (116) Cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (3) 159 — 159 Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs (4) (96) 1 (95) Balance, January 1, 2021 - Market risk benefits at fair value $ 478 $ 1 $ 479 Less: Reinsurance Recoverable — — — Balance, January 1, 2021, net of reinsurance $ 478 $ 1 $ 479 (1) The pre-adoption balance as of December 31, 2020 balance for MRBs represents the contract features that meet the definition of an MRB under ASU 2018-12 and the related carrying amount of those features prior to the ASU. Those contract features were previously accounted for at fair value as a derivative or embedded derivative under ASC 815 or as an additional liability for annuitization benefits or death or other insurance benefits under ASC 944. (2) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (3) The cumulative effective of the change in instrument-specific credit risk between the FNF Acquisition Date or, if later, the original contract issuance date and the transition date to ASU 2018-12, which is recorded as an adjustment to opening AOCI. (4) The cumulative difference (exclusive of instrument-specific credit risk change) between the pre-adoption carrying amount and the fair value measurement for MRBs is recorded as an adjustment to opening retained earnings. The following table presents the effect of transition adjustments on Equity on January 1, 2021 due to the adoption of ASU 2018-12: January 1, 2021 Retained Earnings AOCI (In millions) Contractholder funds $ 101 $ 115 MRB 30 (160) FPB (14) (159) VOBA (21) 233 DAC (1) 5 Increase to Equity, gross of tax $ 95 $ 34 Tax impact 20 9 Increase to Equity, net of tax $ 75 $ 25 For MRBs, the transition adjustment reflected within the unaudited Condensed Consolidated Statements of Comprehensive Earnings relates to the cumulative effect of changes in the instrument-specific credit risk between contract issue date and transition date. The remaining difference between the fair value and carrying amount of the MRBs at transition, excluding the amounts recorded in the unaudited Condensed Consolidated Statements of Comprehensive Earnings, was recorded as an adjustment to Retained Earnings as of the transition date. For the FPB, the net transition adjustment is primarily related to the difference in the discount rate used pre-transition and the discount rate at January 1, 2021, partially offset by the removal of provisions for adverse deviation from the cash flow assumptions used in the FPB calculation. At transition, we did not identify any instances, at the cohort level, where net premiums exceeded gross premiums. Before the adoption of ASU 2018-12, VOBA was amortized consistent with DAC, which was amortized over the lives of the policies in relation to the expected emergence of estimated gross profits (“EGPs”). Based on our historical practice of using consistent amortization methods for VOBA and DAC, we elected to change the amortization method for VOBA associated with fixed rate annuities, FIAs, and IUL/Universal Life products to maintain consistency with the amortization method for DAC. At transition, VOBA associated with these product types is amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. Additionally, at transition, shadow adjustments previously recorded in the unaudited Condensed Consolidated Statements of Comprehensive Earnings, consistent with the historic amortization of DAC, have been removed. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net earnings attributable to FNF common shareholders | $ 219 | $ 537 | $ 160 | $ 937 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Financial Statements (
Basis of Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022. |
Earnings Per Share | Earnings Per Share Basic earnings per share, as presented on the unaudited 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 and shares of restricted stock, 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 and six months ended June 30, 2023 and 2022. |
Recent Accounting Pronouncements and Impacts of adoption of ASU 2018-12 on Financial Statements | Recent Accounting Pronouncements Adopted Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12, as clarified and amended by ASU 2019-09, Financial Services-Insurance: Effective Date and ASU 2020-11, Financial Services-Insurance: Effective Date and Early Application, 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 earnings; 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 accumulated other comprehensive income (loss) (“AOCI”); Market risk benefits (“MRB”) associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value recognized in earnings, except for the change attributable to instrument-specific credit risk, which is recognized in AOCI; 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 roll forwards of beginning to ending balances of the liability for future policyholder benefits ("FPBs"), Contractholder funds, MRBs, 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. We adopted this standard, which required the new guidance be applied as of the beginning of the earliest period presented or January 1, 2021, referred to as the transition date, and elected the full retrospective transition method. As a result of adoption, the Company recorded a cumulative-effect adjustment, which increased opening 2021 retained earnings by $75 million, net of tax. Pronouncements Not Yet Adopted |
Investment Securities | Investments Fixed Maturity Securities Available-for-Sale Fixed maturity securities are purchased to support our investment strategies, which are developed based on factors including rate of return, maturity, credit risk, duration, tax considerations and regulatory requirements. Our investments in fixed maturity securities have been designated as available-for-sale ("AFS") and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within AOCI, net of deferred income taxes. Fair values for fixed maturity securities are principally a function of current market conditions and are primarily valued based on quoted prices in markets that are not active or model inputs that are observable or unobservable. We recognize investment income on fixed maturities based on the effective interest method, which results in the recognition of a constant rate of return on the investment equal to the prevailing rate at the time of purchase or at the time of subsequent adjustments of book value. In our title segment, realized gains and losses on sales of our fixed maturity securities are determined on the basis of the cost of the specific investments sold and are credited or charged to income on a trade date basis. Our F&G segment uses FIFO cost basis and generally records security transactions on a trade date basis except for private placements, which are recorded on a settlement date basis. Realized gains and losses on sales of fixed maturity securities are reported within Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. Fixed maturity securities AFS are subject to an allowance for credit loss and changes in the allowance are reported in net earnings as a component of Recognized gains and losses, net. For details on our policy around allowance for expected credit losses on AFS securities, refer to Note D Investments. Investments in Unconsolidated Affiliates We account for our investments in unconsolidated affiliates using the equity method or by electing the fair value option. Initial investments are recorded at cost. For investments subsequently measured using the equity method (primarily limited partnerships), adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by net asset value (“NAV”) in the unconsolidated affiliates’s financial statements, which we may adjust if we determine NAV is not calculated consistent with investment company fair value principles. Distributions received are recorded as a decrease in the investment balance. For investments subsequently measured using the fair value option, adjustments to the carrying amount reflecting the change in fair value of the investment are reported along with realized gains and losses on sales of investments in unconsolidated affiliates in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. Other income from investments in unconsolidated affiliates, including distributions received from investments measured using the fair value option, is reported within Interest and investment income in the accompanying unaudited Condensed Consolidated Statements of Earnings. Recognition of income and adjustments to the carrying amount can be delayed due to the availability of the related financial statements, which are obtained from the general partner or managing member generally on a one to three-month delay. For investments using the equity method, management inquires quarterly with the general partner or managing member to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. |
VOBA, DAC, DSI and URL | VOBA, DAC, DSI and URL Our intangible assets include the value of insurance and reinsurance contracts acquired (hereafter referred to as VOBA), deferred acquisition costs ("DAC") and deferred sales inducements ("DSI"). VOBA is an intangible asset that reflects the amount recorded as insurance contract liabilities less the estimated fair value of in-force contracts (“VIF”) in a life insurance company acquisition. It represents the portion of the purchase price that is allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. VOBA is a function of the VIF, current GAAP reserves, GAAP assets, and deferred tax liability. The VIF is determined by the present value of statutory distributable earnings less opening required capital. DAC consists principally of commissions and other acquisition costs that are related directly to the successful sale of new or renewal insurance contracts. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and persistency or vesting bonuses credited to contractholder fund balances. VOBA, DAC, and DSI are amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. Contracts are grouped by product type and feature and issue year into cohorts consistent with the grouping used in estimating the associated liability, where applicable. The constant level amortization bases of VOBA, DAC and DSI varies by product type. For universal life and indexed universal life ("IUL") insurance products, the constant level basis used is face amount in force. For deferred annuities (fixed indexed annuities ("FIA") and fixed rate annuities), the constant level basis used is initial premium deposit for DAC and DSI and vested account value as of the acquisition date for VOBA. For immediate annuity contracts, the VOBA balance is amortized in alignment with the Company’s accounting policy of amortizing the deferred profit liability (“DPL”). All amortization bases are adjusted by full lapses, which includes deaths, full surrenders, annuitizations and maturities, where applicable. The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on Company’s experience, industry data, and other factors and are consistent with those used for the FPBs, where applicable. If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected contract terminations, due to higher mortality and/or lapse experience than expected, are recognized in the current period as a reduction of the capitalized balances. All balances are reduced for actual experience in excess of expected experience with changes in future estimates recognized prospectively over the remaining expected grouped contract term. The impact of changes in projected assumptions and the impact of actual experience that is different from expectations both impact the amortization of these intangible assets, which is reported within Depreciation and amortization in the accompanying unaudited Condensed Consolidated Statements of Earnings. Some of our IUL policies require payment of fees or other policyholder assessments in advance for services that will be rendered over the estimated lives of the policies or contracts. These payments are established as unearned revenue liabilities (“URL”) upon receipt and included in Accounts payable and other accrued liabilities in the unaudited Condensed Consolidated Balance Sheets. URL is amortized like DAC over the estimated lives of these policies. As of June 30, 2023 and December 31, 2022, our URL balance was $215 million and $166 million, respectively |
Contractholder Funds | Contractholder Funds Contractholder funds include deferred annuities (FIAs and fixed rate annuities), IULs, funding agreements and non-life contingent (“NLC”) immediate annuities (which includes NLC pension risk transfer ("PRT") annuities). The liabilities for contractholder funds for fixed rate annuities, funding agreements and NLC immediate annuities (which includes NLC PRT annuities) consist of contract account balances that accrue to the benefit of the contractholders. The liabilities for FIA and IUL policies consist of the value of the host contract plus the fair value of the indexed crediting feature of the policy, which is accounted for as an embedded derivative. The embedded derivative liability is carried at fair value in Contractholder funds in the accompanying unaudited Condensed Consolidated Balance Sheets with changes in fair value reported in Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Earnings. See a description of the fair value methodology used in Note C Fair Value of Financial Instruments . |
Future Policy Benefits | Future Policy Benefits The FPB is determined as the present value of future policy benefits and related claims expenses to be paid to or on behalf of the policyholder less the present value of future net premiums to be collected from policyholders. The FPB for traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities) are estimated using current assumptions that include discount rate, mortality and surrender/lapse terminations for traditional life insurance policies only, and expenses. The expense assumption is locked-in at contract issuance and not subsequently reviewed or updated. The initial assumptions are based on generally accepted actuarial methods and a combination of internal and industry experience. Policies are terminated through surrenders, lapses and maturities, where surrenders represent the voluntary terminations of policies by policyholders, lapses represent cancellations by us due to nonpayment of premiums, and maturities are determined by policy contract terms. Surrender assumptions are based upon policyholder behavior experience adjusted for expected future conditions. For traditional life policies and life-contingent immediate annuity policies, contracts are grouped into cohorts by product type, legal entity, and issue year, or acquisition year for cohorts established as of the F&G acquisition date, June 1, 2020. Life-contingent PRT annuities are grouped into cohorts by deal and legal entity. At contract inception, a net premium ratio (“NPR”) is determined, which is calculated based on discounted future cash flows projected using best estimate assumptions and is capped at 100%, as net premiums cannot exceed gross premiums. Cohorts with NPRs less than 100% are not used to offset cohorts with NPRs greater than 100%. The NPR is adjusted for changes in cash flow assumptions and for differences between actual and expected experience. We assess the appropriateness of all future cash flow assumptions, excluding the expense assumption, on a quarterly basis and perform an in-depth review of future cash flow assumptions in the third quarter of each year. Updates are made when evidence suggests a revision is necessary. Updates for actual experience, which includes actual cash flows and insurance in-force, are performed on a quarterly basis. These updated cash flows are used to calculate a revised NPR, which is used to derive an updated liability as of the beginning of the current reporting period, discounted at the original contract issuance date. The updated liability is compared with the carrying amount of the liability as of that same date before the revised NPR. The difference between these amounts is the remeasurement gain or loss, presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Earnings. In subsequent periods, the revised NPR, which is capped at 100%, is used to measure the FPB, subject to future revisions. If the NPR is greater than 100%, and therefore capped at 100%, the liability is increased and expensed immediately to reflect the amount necessary for net premiums to equal gross premiums. As the liability assumptions are reviewed and updated, if deemed necessary, at least annually, if conditions improve whereby the contracts are no longer expected to have net premiums in excess of gross premiums, the improvements would be captured in the remeasurement process and reflected in the accompanying unaudited Condensed Consolidated Statements of Earnings in the period of improvement. For traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities), the discount rate assumption is an equivalent single rate that is derived based on A-credit-rated fixed-income instruments with |
Deferred Profit Liability | Deferred Profit Liability For life-contingent immediate annuity policies (which includes life-contingent PRT annuities), gross premiums received in excess of net premiums are deferred at initial recognition as a DPL. Gross premiums are measured using assumptions consistent with those used in the measurement of the related liability for FPB, including discount rate, mortality, and expenses. The DPL is amortized and recognized as premium revenue with the amount of expected future benefit payments, discounted using the same discount rate determined and locked-in at contract issuance that is used in the measurement of the related FPB. Interest is accreted on the balance of the DPL using this same discount rate. We periodically review and update our estimates of using the actual historical experience and updated cash flows for the DPL at the same time as the estimates of cash flows for the FPB. When cash flows are updated, the updated estimates are used to recalculate the initial DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, with any differences recognized as a remeasurement gain or loss, presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Earnings. The DPL is recorded as a component of the Future policy benefits in the accompanying unaudited Condensed Consolidated Balance Sheets. |
Market Risk Benefit | Market Risk Benefits MRBs are contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk (equity, interest rate and foreign exchange risk) and expose the Company to other-than-nominal capital market risk. MRBs include certain contract features primarily on FIA products that provide minimum guarantees to policyholders, such as guaranteed minimum death benefit (“GMDB”) and guaranteed minimum withdrawal benefit (“GMWB”) riders. MRBs are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder used to cover the excess benefits, which represent expected benefits in excess of the policyholder’s account value. At contract inception, an attributed fee ratio is calculated equal to rider charges over benefits paid in excess of the account value attributable to the MRB. The attributed fee ratio remains static over the life of the MRB and is capped at 100%. For each period subsequent to contract inception, the attributed fee ratio is used to calculate the fair value of the MRB using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, GMWB utilization, risk-free rates including non-performance spread and risk margin, market value of options and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. MRBs can either be in an asset or liability position and are presented separately on the unaudited Condensed Consolidated Balance Sheets as the right of setoff criteria are not met. Changes in fair value are recognized in Market risk benefits gain (losses) in the accompanying unaudited Condensed Consolidated Statements of Earnings, except for the change in fair value due to a change in the instrument-specific credit risk, which is recognized in the accompanying unaudited Condensed Consolidated Statements of Comprehensive Earnings. See a description of the fair value methodology used in Note C Fair Value of Financial Instruments and Note P Market Risk Benefits . |
Benefits and Other Changes in Policy Reserves | Benefits and Other Changes in Policy Reserves Benefit expenses for deferred annuities (FIAs and fixed rate annuities), IUL policies and funding agreements include interest credited, fixed interest and/or indexed (specific to FIA and IUL policies), to contractholder account balances. Benefit claims in excess of contract account balances, net of reinsurance recoveries, are charged to expense in the period that they are earned by the policyholder based on their selected strategy or strategies. Other changes in policy reserves include the change in the fair value of the FIA embedded derivative. Other changes in policy reserves also include the change in reserves for life insurance products. For traditional life and life-contingent immediate annuities (which includes PRT annuities with life contingencies), policy benefit claims are charged to expense in the period that the claims are incurred, net of reinsurance recoveries. Remeasurement gains or losses on the related FPB and DPL balances are presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Earnings. |
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, URL 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 VOBA, DAC, and DSI, 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. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of the Impacts of the Adoption of ASU 2018-12 on the Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations | Impacts of adoption of ASU 2018-12 on Financial Statements The following tables summarize the impacts of the adoption of ASU 2018-12 on our accompanying unaudited Condensed Consolidated Balance Sheet and unaudited Condensed Consolidated Statement of Earnings. Condensed Consolidated Balance Sheet December 31, 2022 As Previously Reported Adjustments As adjusted (Unaudited) (Unaudited) (In millions) ASSETS Reinsurance recoverable, net of allowance for credit losses $ 5,588 $ (170) $ 5,418 Goodwill 4,642 (7) 4,635 Prepaid expenses and other assets 2,231 (163) 2,068 Market risk benefits asset — 117 117 Other intangible assets, net 4,034 (223) 3,811 Total $ 16,495 $ (446) $ 16,049 LIABILITIES AND EQUITY Liabilities: Contractholder funds $ 41,233 $ (390) $ 40,843 Future policy benefits 5,923 (902) 5,021 Accounts payable and accrued liabilities 2,352 (26) 2,326 Market risk benefits liability — 282 282 Total $ 49,508 $ (1,036) $ 48,472 Equity: Additional paid-in capital $ 5,876 $ (6) $ 5,870 Retained earnings 4,714 511 5,225 Accumulated other comprehensive (loss) earnings (2,862) (8) (2,870) Non-controlling interests 360 93 453 Total $ 8,088 $ 590 $ 8,678 Condensed Consolidated Statement of Earnings Three months ended June 30, 2022 Six months ended June 30, 2022 As Previously Reported Adjustments As adjusted As Previously Reported Adjustments As adjusted (Unaudited) (Unaudited) Revenues: (In millions) (In millions) Escrow, title-related and other fees $ 782 $ 4 $ 786 $ 2,072 $ 6 $ 2,078 Expenses: Benefits and other changes in policy reserves $ (418) $ 41 $ (377) $ (210) $ 36 $ (174) Market risk benefit gains — (189) (189) — (119) (119) Depreciation and amortization 161 (41) 120 343 (108) 235 Income tax expense 164 38 202 319 39 358 Net earnings attributable to Fidelity National Financial, Inc. common shareholders $ 382 $ 155 $ 537 $ 779 $ 158 $ 937 Earnings per share Basic Net earnings per share attributable to common shareholders, basic $ 1.37 $ 0.56 $ 1.93 $ 2.79 $ 0.57 $ 3.36 Diluted Net earnings per share attributable to common shareholders, diluted $ 1.37 $ 0.55 $ 1.92 $ 2.77 $ 0.56 $ 3.33 The following table summarizes the balance of and changes in the FPB on January 1, 2021 due to adoption of ASU 2018-12 : Immediate annuities Traditional Life Total (3) (In millions) Balance, December 31, 2020 $ 1,861 $ 2,144 $ 4,005 Cumulative effect of retrospective adoption (1) 201 (279) (78) Effect of remeasurement of liability at current discount rate (2) 113 88 201 Balance, January 1, 2021 $ 2,175 $ 1,953 $ 4,128 Less: Reinsurance Recoverable 322 793 1,115 Balance, January 1, 2021, net of reinsurance $ 1,853 $ 1,160 $ 3,013 (1) Adjustments for the cumulative effect of adoption of the new measurement guidance under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020, net of the effects of any change in the DPL. (2) The remeasurement of the liability at the current discount rate is reflected as an adjustment to opening AOCI upon the adoption of ASU 2018-12. (3) PRT was not written as of the transition date, January 1, 2021, and as a result is not presented in the transition adjustment roll forward. The following table summarizes the balance of and changes in VOBA on January 1, 2021 due to adoption of ASU 2018-12: FIA Fixed rate annuities Immediate annuities Universal Life Traditional Life Total (In millions) Balance, December 31, 2020 $ 1,208 $ 15 $ 86 $ 139 $ 18 $ 1,466 Adjustment for reversal of AOCI adjustments (1) 208 24 — 29 (29) 232 Cumulative effect of retrospective adoption (2) (14) 7 (5) (9) (1) (22) Transition opening balance adjustment 69 2 145 5 43 264 Balance, January 1, 2021 $ 1,471 $ 48 $ 226 $ 164 $ 31 $ 1,940 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020 (3) Adjustments for the change in VOBA due to the full retrospective adjustment of carrying amounts of acquired contracts as of the FNF Acquisition Date due to the adoption of ASU 2018-12. The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12 : FIA Fixed rate annuities Universal Life Total (In millions) Balance, December 31, 2020 $ 167 $ 14 $ 41 $ 222 Adjustment for reversal of AOCI adjustments (1) 15 2 8 25 Cumulative effect of retrospective adoption (2) (1) — (1) (2) Balance, January 1, 2021 $ 181 $ 16 $ 48 $ 245 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in DSI on January 1, 2021 due to adoption of ASU 2018-12 : FIA Total (In millions) Balance, December 31, 2020 $ 36 $ 36 Adjustment for reversal of AOCI adjustments (1) 5 5 Cumulative effect of retrospective adoption (2) 4 4 Balance, January 1, 2021 $ 45 $ 45 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in URL on January 1, 2021 due to adoption of ASU 2018-12 : Universal Life Total (In millions) Balance, December 31, 2020 $ 2 $ 2 Adjustment for reversal of AOCI adjustments (1) 25 25 Cumulative effect of retrospective adoption (2) 2 2 Balance, January 1, 2021 $ 29 $ 29 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in the asset and liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12 : FIA Fixed rate annuities Total (In millions) Balance, December 31, 2020 - Carrying amount of MRBs under prior guidance (1) $ 531 $ — $ 531 Adjustment for reversal of AOCI adjustments (2) (116) — (116) Cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (3) 159 — 159 Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs (4) (96) 1 (95) Balance, January 1, 2021 - Market risk benefits at fair value $ 478 $ 1 $ 479 Less: Reinsurance Recoverable — — — Balance, January 1, 2021, net of reinsurance $ 478 $ 1 $ 479 (1) The pre-adoption balance as of December 31, 2020 balance for MRBs represents the contract features that meet the definition of an MRB under ASU 2018-12 and the related carrying amount of those features prior to the ASU. Those contract features were previously accounted for at fair value as a derivative or embedded derivative under ASC 815 or as an additional liability for annuitization benefits or death or other insurance benefits under ASC 944. (2) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (3) The cumulative effective of the change in instrument-specific credit risk between the FNF Acquisition Date or, if later, the original contract issuance date and the transition date to ASU 2018-12, which is recorded as an adjustment to opening AOCI. (4) The cumulative difference (exclusive of instrument-specific credit risk change) between the pre-adoption carrying amount and the fair value measurement for MRBs is recorded as an adjustment to opening retained earnings. |
Summary of Reserve for Title _2
Summary of Reserve for Title Claim Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Summary of the Reserve for Claim Losses | A summary of the reserve for title claim losses follows: Six months ended June 30, 2023 2022 (In millions) Beginning balance $ 1,810 $ 1,883 Change in insurance recoverable — (108) Claim loss provision related to: Current year 100 177 Total title claim loss provision 100 177 Claims paid, net of recoupments related to: Current year (4) (7) Prior years (125) (102) Total title claims paid, net of recoupments (129) (109) Ending balance of claim loss reserve for title insurance $ 1,781 $ 1,843 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) | 6 Months Ended |
Jun. 30, 2023 | |
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: June 30, 2023 Level 1 Level 2 Level 3 NAV Fair Value Assets (In millions) Cash and cash equivalents $ 3,136 $ — $ — $ — $ 3,136 Fixed maturity securities, available-for-sale: Asset-backed securities — 6,330 6,510 — 12,840 Commercial mortgage-backed securities — 3,972 17 — 3,989 Corporates 26 14,475 1,628 — 16,129 Hybrids 95 609 — — 704 Municipals — 1,554 49 — 1,603 Residential mortgage-backed securities — 1,988 28 — 2,016 U.S. Government 468 16 — — 484 Foreign Governments — 248 16 — 264 Short term investments 801 45 126 — 972 Preferred securities 266 531 7 — 804 Equity securities 645 — 14 41 700 Derivative investments — 649 — — 649 Investment in unconsolidated affiliates — — 197 — 197 Reinsurance related embedded derivative, included in other assets — 277 — — 277 Market risk benefits asset — — 118 — 118 Other long-term investments — — 49 — 49 Total financial assets at fair value $ 5,437 $ 30,694 $ 8,759 $ 41 $ 44,931 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,821 — 3,821 Market risk benefits liability $ — $ — $ 313 $ — $ 313 Total financial liabilities at fair value $ — $ — $ 4,134 $ — $ 4,134 December 31, 2022 Level 1 Level 2 Level 3 NAV Fair Value Assets (In millions) Cash and cash equivalents $ 2,286 $ — $ — $ — $ 2,286 Fixed maturity securities, available-for-sale: Asset-backed securities — 5,204 6,263 — 11,467 Commercial mortgage-backed securities — 3,026 37 — 3,063 Corporates 40 12,857 1,440 — 14,337 Hybrids 93 638 — — 731 Municipals — 1,431 29 — 1,460 Residential mortgage-backed securities — 1,225 302 — 1,527 U.S. Government 260 11 — — 271 Foreign Governments — 223 16 — 239 Short term investments 2,590 — — — 2,590 Preferred securities 320 582 1 — 903 Equity securities 621 — 10 47 678 Derivative investments — 244 — — 244 Investment in unconsolidated affiliates — — 23 — 23 Reinsurance related embedded derivative, included in other assets — 279 — — 279 Market risk benefits asset — — 117 — 117 Other long-term investments — — 48 — 48 Total financial assets at fair value $ 6,210 $ 25,720 $ 8,286 $ 47 $ 40,263 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,115 — 3,115 Market risk benefits liability — — 282 — 282 Total financial liabilities at fair value $ — $ — $ 3,397 $ — $ 3,397 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. June 30, 2023 Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets (In millions) FHLB common stock $ — $ 106 $ — $ — $ 106 $ 106 Commercial mortgage loans — — 2,144 — 2,144 2,457 Residential mortgage loans — — 2,377 — 2,377 2,619 Investments in unconsolidated affiliates — — 8 2,598 2,606 2,606 Policy loans — — 59 — 59 59 Other invested assets 59 — 1 — 60 60 Company-owned life insurance 35 — 352 — 387 387 Trade and notes receivables, net of allowance — — 465 — 465 465 Total $ 94 $ 106 $ 5,406 $ 2,598 $ 8,204 $ 8,759 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 37,228 $ — $ 37,228 $ 41,249 Debt — 3,252 — — 3,252 3,696 Total $ — $ 3,252 $ 37,228 $ — $ 40,480 $ 44,945 December 31, 2022 Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets (In millions) FHLB common stock $ — $ 99 $ — $ — $ 99 $ 99 Commercial mortgage loans — — 2,083 — 2,083 2,406 Residential mortgage loans — — 1,892 — 1,892 2,148 Investments in unconsolidated affiliates — — 5 2,427 2,432 2,432 Policy loans — — 52 — 52 52 Other invested assets 93 — 16 — 109 109 Company-owned life insurance — — 363 — 363 363 Trade and notes receivables, net of allowance — — 467 — 467 467 Total $ 93 $ 99 $ 4,878 $ 2,427 $ 7,497 $ 8,076 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 34,464 $ — $ 34,464 $ 38,412 Debt — 2,776 — — 2,776 3,238 Total $ — $ 2,776 $ 34,464 $ — $ 37,240 $ 41,650 |
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 June 30, 2023 and December 31, 2022 are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) June 30, 2023 (In millions) June 30, 2023 Assets Asset-backed securities $ 6,233 Broker-Quoted Offered Quotes 54.7% - 171.90% (94.28%) Asset-backed securities 277 Third-Party Valuation Offered Quotes 39.65% - 101.77% (62.08%) Commercial mortgage-backed securities 17 Third-Party Valuation Offered Quotes 79.35% - 88.61% (84.76%) Corporates 789 Broker-Quoted Offered Quotes 46.39% - 104.74% (95.87%) Corporates 10 Discounted Cash Flow Discount Rate 44.00% - 100.00% (74.80%) Corporates 829 Third-Party Valuation Offered Quotes 0.00% - 103.12% (89.85%) Municipals 31 Third-Party Valuation Offered Quotes 102.11% - 102.11% (102.11%) Municipals 18 Broker-Quoted Offered Quotes 101.20% - 101.20% (101.20%) Residential mortgage-backed securities 25 Broker-Quoted Offered Quotes 0.00% - 90.45% (90.00%) Residential mortgage-backed securities 3 Third-Party Valuation Offered Quotes 93.11% Foreign Governments 16 Third-Party Valuation Offered Quotes 99.04% - 99.68% (99.24%) Investment in unconsolidated affiliates 197 Market Comparable Company Analysis EBITDA Multiple 5x-14x (12.1x) Short term investments 126 Broker-Quoted Offered Quotes 100.00% - 100.02% (100.01%) Preferred securities 6 Broker-Quoted Offered Quotes $21.25 - $21.25 ($21.25) Preferred securities 1 Discounted Cash Flow Discount rate 100.00% - 100.00% (100.00%) Equity securities 7 Broker Quoted Offered quotes $66.00 - $66.00 ($66.00) Equity securities 7 Discounted Cash Flow Discount rate 12.60% - 12.60% (12.60%) Market Comparable Company Analysis EBITDA multiple 5.3x - 5.3x (5.3x) Other long-term investments: Available-for-sale embedded derivative 26 Black Scholes Model Market Value of Fund 100.00% Secured borrowing receivable 10 Broker-Quoted Offered Quotes 100.00% - 100.00% (100.00%) Credit Linked Note 13 Broker-Quoted Offered Quotes 96.99% Market risk benefits asset 118 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.03%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.55% - 1.37% (1.17%) GMWB Utilization 50.00% - 60.00% (50.85%) Total financial assets at fair value $ 8,759 Liabilities Derivative investments: FIA/ IUL embedded derivatives, included in contractholder funds $ 3,821 Discounted Cash Flow Market Value of Option 0.00% - 30.03% (2.36%) Swap rates 3.81% - 5.47% (4.64%) Mortality Multiplier 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 70.00% (6.61%) Partial Withdrawals 2.00% - 34.48% (2.74%) Non-Performance Spread 0.55% - 1.37% (1.17%) Option cost 0.07% - 5.67% (2.22%) Market risk benefits liability 313 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.03%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.55% - 1.37% (1.17%) GMWB Utilization 50.00% - 60.00% (50.89%) Total financial liabilities at fair value $ 4,134 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2022 (In millions) December 31, 2022 Assets Asset-backed securities $ 5,916 Broker-quoted Offered quotes 52.85% - 117.17% (94.18%) Asset-backed securities 347 Third-Party Valuation Offered quotes 41.43% - 210.50% (67.99%) Commercial mortgage-backed securities 20 Broker-quoted Offered quotes 109.02% - 109.02% (109.02%) Commercial mortgage-backed securities 17 Third-Party Valuation Offered quotes 74.66% - 88.48% (82.74%) Corporates 602 Broker-quoted Offered quotes 79.16% - 102.53% (94.16%) Corporates 826 Third-Party Evaluation Offered quotes 0.00% - 104.96% (89.69%) Corporates 12 Discounted Cash Flow Discount Rate 44.00% - 100.00% (77.02%) Municipals 29 Third-Party Evaluation Offered quotes 93.95% - 93.95% (93.95%) Foreign governments 16 Third-Party Evaluation Offered quotes 99.78% - 102.29% (100.56%) Investment in unconsolidated affiliates 23 Market Comparable Company Analysis EBITDA multiple 5x-5.50x Residential mortgage-backed securities 302 Broker-quoted Offered quotes 0.00% - 91.04% (86.38%) Preferred Securities 1 Discounted Cash Flow Discount rate 100.00% Equity securities 6 Broker-quoted Offered Quotes $64.25 - $64.25 ($64.25) Equity securities 4 Discounted Cash Flow Discount Rate 11.10% - 11.10% (11.10%) Market Comparable Company Analysis EBITDA multiple 5.6x - 5.6x (5.6x) Other long-term investments: Available-for-sale embedded derivative 23 Black Scholes model Market value of fund 100.00% Secured borrowing receivable 10 Broker-quoted Offered quotes 100.00% - 100.00% (100.00%) Credit Linked Note 15 Broker-quoted Offered quotes 96.23% Market risk benefits asset 117 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (4.69%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.48% - 1.44% (1.30%) GMWB Utilization 50.00% - 60.00% (50.94%) Total financial assets at fair value $ 8,286 Liabilities Derivative investments: FIA/ IUL embedded derivatives, included in contractholder funds 3,115 Discounted cash flow Market value of option 0.00% - 23.90% (87.00%) Swap rates 3.88% - 4.73% (4.31%) Mortality multiplier 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 70.00% (6.57%) Partial withdrawals 2.00% - 29.41% (2.73%) Non-performance spread 0.48% - 1.44% (1.30%) Option cost 0.07% - 4.97% (1.89%) Market risk benefits liability 282 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 10.00% (4.69%) Partial withdrawal rates 2.00% - 21.74% (2.49%) Non-performance spread 0.48% - 1.44% (1.30%) GMWB utilization 50.00% - 60.00% (50.94%) Total financial liabilities at fair value $ 3,397 |
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 and six months ended June 30, 2023 and 2022. 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 June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,300 $ (3) $ 15 $ 379 $ (15) $ (151) $ (15) $ 6,510 $ 14 Commercial mortgage-backed securities 29 — — — — — (12) 17 — Corporates 1,544 — (33) 127 — (14) 4 1,628 (33) Municipals 32 — 17 — — — — 49 17 Residential mortgage-backed securities 12 — — 24 — — (8) 28 — Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 107 — — 90 — — — 197 — Short term investments 23 — — 103 — — — 126 — Preferred securities 1 — — — — — 6 7 — Equity securities 11 (1) — — — — 4 14 — Other long-term investments: Available-for-sale embedded derivative 25 — 1 — — — — 26 1 Credit linked note 13 — — — — — — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,123 $ (4) $ — $ 723 $ (15) $ (165) $ (21) $ 8,641 $ (1) Market risk benefits asset 106 118 Total Level 3 assets at fair value $ 8,229 $ 8,759 Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,569 197 — 93 — (38) — 3,821 — Subtotal Level 3 liabilities at fair value $ 3,569 $ 197 $ — $ 93 $ — $ (38) $ — $ 3,821 $ — Market risk benefits liability 324 313 Total Level 3 liabilities at fair value $ 3,893 $ 4,134 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were exclusively to Level 2. Three months ended June 30, 2022 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 4,161 $ 1 $ (142) $ 827 $ (39) $ (126) $ (5) $ 4,677 $ (153) Commercial mortgage-backed securities 40 — (3) — — — — 37 (2) Corporates 1,141 — (64) 307 — (6) (4) 1,374 (61) Municipals 37 — (4) — — — — 33 (4) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 17 — (1) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 — Short term investments 19 — — — — — (19) — — Preferred securities 1 — — — — — — 1 — Equity securities 10 — — 1 (1) — — 10 — Other long-term investments: Available-for-sale embedded derivative 30 (6) — — — — — 24 — Credit linked note 19 — — — — (2) — 17 — Secured borrowing receivable — — — — — — 10 10 — Subtotal Level 3 assets at fair value $ 5,496 $ (5) $ (214) $ 1,144 $ (40) $ (134) $ (18) $ 6,229 $ (221) Market risk benefits asset 29 86 Total Level 3 assets at fair value $ 5,525 $ 6,315 Liabilities FIA embedded derivatives, included in contractholder funds 3,395 (575) — 146 — (25) — 2,941 — Subtotal Level 3 liabilities at fair value $ 3,395 $ (575) $ — $ 146 $ — $ (25) $ — $ 2,941 $ — Market risk benefits liability 486 292 Total Level 3 liabilities at fair value $ 3,881 $ 3,233 (a) The net transfers out of Level 3 during the three months ended June 30, 2022 were exclusively to Level 2. Six months ended June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,263 $ (11) $ 33 $ 795 $ (98) $ (386) $ (86) $ 6,510 $ 32 Commercial mortgage-backed securities 37 — 1 12 — — (33) 17 1 Corporates 1,440 (1) (56) 261 (1) (19) 4 1,628 (56) Municipals 29 — 20 — — — — 49 20 Residential mortgage-backed securities 302 1 8 32 — (8) (307) 28 8 Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 23 — — 174 — — — 197 — Short-Term — — — 126 — — — 126 — Preferred securities 1 — — — — — 6 7 — Equity securities 10 — — 1 (1) — 4 14 — Other long-term investments: Available-for-sale embedded derivative 23 — 3 — — — — 26 3 Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,169 $ (11) $ 9 $ 1,401 $ (100) $ (415) $ (412) $ 8,641 $ 8 Market risk benefits asset 117 118 Total Level 3 assets at fair value $ 8,286 $ 8,759 Liabilities FIA embedded derivatives, included in contractholder funds 3,115 582 — 189 — (65) — 3,821 — Subtotal Level 3 liabilities at fair value $ 3,115 $ 582 $ — $ 189 $ — $ (65) $ — $ 3,821 $ — Market risk benefits liability $ 282 $ 313 Total Level 3 liabilities at fair value $ 3,397 $ 4,134 (a) The net transfers out of Level 3 during the six months ended June 30, 2023 were exclusively to Level 2. Six months ended June 30, 2022 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ 1 $ (272) $ 1,227 $ (39) $ (278) $ 79 $ 4,677 $ (291) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,135 — (137) 386 — (32) 22 1,374 (134) Municipals 43 — (10) — — — — 33 (9) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 18 — (2) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 Short-Term 321 — (1) 20 — — (340) — (1) Preferred securities 2 — (1) — — — — 1 (1) Equity securities 9 — — 1 — — — 10 — Other long-term investments: Available-for-sale embedded derivative 34 (10) — — — — — 24 — Secured borrowing receivable — — — — — — 10 10 — Credit linked note 23 — (3) — — (3) — 17 — Subtotal Level 3 assets at fair value $ 5,600 $ (9) $ (431) $ 1,643 $ (39) $ (313) $ (222) $ 6,229 $ (441) Market risk benefits asset 41 86 Total Level 3 assets at fair value $ 5,641 $ 6,315 Liabilities FIA embedded derivatives, included in contractholder funds 3,883 (1,159) — 272 — (55) — 2,941 — Subtotal Level 3 liabilities at fair value $ 3,883 $ (1,159) $ — $ 272 $ — $ (55) $ — $ 2,941 $ — Market risk benefits liability $ 469 $ 292 Total Level 3 liabilities at fair value $ 4,352 $ 3,233 |
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 and six months ended June 30, 2023 and 2022. 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 June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,300 $ (3) $ 15 $ 379 $ (15) $ (151) $ (15) $ 6,510 $ 14 Commercial mortgage-backed securities 29 — — — — — (12) 17 — Corporates 1,544 — (33) 127 — (14) 4 1,628 (33) Municipals 32 — 17 — — — — 49 17 Residential mortgage-backed securities 12 — — 24 — — (8) 28 — Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 107 — — 90 — — — 197 — Short term investments 23 — — 103 — — — 126 — Preferred securities 1 — — — — — 6 7 — Equity securities 11 (1) — — — — 4 14 — Other long-term investments: Available-for-sale embedded derivative 25 — 1 — — — — 26 1 Credit linked note 13 — — — — — — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,123 $ (4) $ — $ 723 $ (15) $ (165) $ (21) $ 8,641 $ (1) Market risk benefits asset 106 118 Total Level 3 assets at fair value $ 8,229 $ 8,759 Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,569 197 — 93 — (38) — 3,821 — Subtotal Level 3 liabilities at fair value $ 3,569 $ 197 $ — $ 93 $ — $ (38) $ — $ 3,821 $ — Market risk benefits liability 324 313 Total Level 3 liabilities at fair value $ 3,893 $ 4,134 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were exclusively to Level 2. Three months ended June 30, 2022 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 4,161 $ 1 $ (142) $ 827 $ (39) $ (126) $ (5) $ 4,677 $ (153) Commercial mortgage-backed securities 40 — (3) — — — — 37 (2) Corporates 1,141 — (64) 307 — (6) (4) 1,374 (61) Municipals 37 — (4) — — — — 33 (4) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 17 — (1) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 — Short term investments 19 — — — — — (19) — — Preferred securities 1 — — — — — — 1 — Equity securities 10 — — 1 (1) — — 10 — Other long-term investments: Available-for-sale embedded derivative 30 (6) — — — — — 24 — Credit linked note 19 — — — — (2) — 17 — Secured borrowing receivable — — — — — — 10 10 — Subtotal Level 3 assets at fair value $ 5,496 $ (5) $ (214) $ 1,144 $ (40) $ (134) $ (18) $ 6,229 $ (221) Market risk benefits asset 29 86 Total Level 3 assets at fair value $ 5,525 $ 6,315 Liabilities FIA embedded derivatives, included in contractholder funds 3,395 (575) — 146 — (25) — 2,941 — Subtotal Level 3 liabilities at fair value $ 3,395 $ (575) $ — $ 146 $ — $ (25) $ — $ 2,941 $ — Market risk benefits liability 486 292 Total Level 3 liabilities at fair value $ 3,881 $ 3,233 (a) The net transfers out of Level 3 during the three months ended June 30, 2022 were exclusively to Level 2. Six months ended June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,263 $ (11) $ 33 $ 795 $ (98) $ (386) $ (86) $ 6,510 $ 32 Commercial mortgage-backed securities 37 — 1 12 — — (33) 17 1 Corporates 1,440 (1) (56) 261 (1) (19) 4 1,628 (56) Municipals 29 — 20 — — — — 49 20 Residential mortgage-backed securities 302 1 8 32 — (8) (307) 28 8 Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 23 — — 174 — — — 197 — Short-Term — — — 126 — — — 126 — Preferred securities 1 — — — — — 6 7 — Equity securities 10 — — 1 (1) — 4 14 — Other long-term investments: Available-for-sale embedded derivative 23 — 3 — — — — 26 3 Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,169 $ (11) $ 9 $ 1,401 $ (100) $ (415) $ (412) $ 8,641 $ 8 Market risk benefits asset 117 118 Total Level 3 assets at fair value $ 8,286 $ 8,759 Liabilities FIA embedded derivatives, included in contractholder funds 3,115 582 — 189 — (65) — 3,821 — Subtotal Level 3 liabilities at fair value $ 3,115 $ 582 $ — $ 189 $ — $ (65) $ — $ 3,821 $ — Market risk benefits liability $ 282 $ 313 Total Level 3 liabilities at fair value $ 3,397 $ 4,134 (a) The net transfers out of Level 3 during the six months ended June 30, 2023 were exclusively to Level 2. Six months ended June 30, 2022 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ 1 $ (272) $ 1,227 $ (39) $ (278) $ 79 $ 4,677 $ (291) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,135 — (137) 386 — (32) 22 1,374 (134) Municipals 43 — (10) — — — — 33 (9) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 18 — (2) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 Short-Term 321 — (1) 20 — — (340) — (1) Preferred securities 2 — (1) — — — — 1 (1) Equity securities 9 — — 1 — — — 10 — Other long-term investments: Available-for-sale embedded derivative 34 (10) — — — — — 24 — Secured borrowing receivable — — — — — — 10 10 — Credit linked note 23 — (3) — — (3) — 17 — Subtotal Level 3 assets at fair value $ 5,600 $ (9) $ (431) $ 1,643 $ (39) $ (313) $ (222) $ 6,229 $ (441) Market risk benefits asset 41 86 Total Level 3 assets at fair value $ 5,641 $ 6,315 Liabilities FIA embedded derivatives, included in contractholder funds 3,883 (1,159) — 272 — (55) — 2,941 — Subtotal Level 3 liabilities at fair value $ 3,883 $ (1,159) $ — $ 272 $ — $ (55) $ — $ 2,941 $ — Market risk benefits liability $ 469 $ 292 Total Level 3 liabilities at fair value $ 4,352 $ 3,233 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Consolidated Investments | The Company’s consolidated investments at June 30, 2023 and December 31, 2022 are summarized as follows: June 30, 2023 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities (In millions) Asset-backed securities $ 13,492 $ (7) $ 65 $ (710) $ 12,840 Commercial mortgage-backed securities 4,348 (18) 4 (345) 3,989 Corporates 18,919 (2) 46 (2,834) 16,129 Hybrids 773 — 4 (73) 704 Municipals 1,843 — 11 (251) 1,603 Residential mortgage-backed securities 2,127 (8) 11 (114) 2,016 U.S. Government 499 — 1 (16) 484 Foreign Governments 311 — 1 (48) 264 Total available-for-sale securities $ 42,312 $ (35) $ 143 $ (4,391) $ 38,029 December 31, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities (In millions) Asset-backed securities $ 12,209 $ (8) $ 36 $ (770) $ 11,467 Commercial mortgage-backed/asset-backed securities 3,337 (1) 11 (284) 3,063 Corporates 17,396 (22) 32 (3,069) 14,337 Hybrids 806 — 9 (84) 731 Municipals 1,749 — 4 (293) 1,460 Residential mortgage-backed securities 1,638 (8) 6 (109) 1,527 U.S. Government 287 — — (16) 271 Foreign Governments 286 — — (47) 239 Total available-for-sale securities $ 37,708 $ (39) $ 98 $ (4,672) $ 33,095 |
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 as issuers may have the right to call or prepay obligations. June 30, 2023 December 31, 2022 (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 $ 594 $ 581 $ 536 $ 527 Due after one year through five years 4,202 4,001 3,288 3,089 Due after five years through ten years 2,394 2,172 2,171 1,939 Due after ten years 15,129 12,403 14,503 11,457 Subtotal 22,319 19,157 20,498 17,012 Other securities, which provide for periodic payments: Asset-backed securities 13,492 12,840 12,209 11,467 Commercial mortgage-backed securities 4,348 3,989 3,337 3,063 Structured hybrids 26 27 26 26 Residential mortgage-backed securities 2,127 2,016 1,638 1,527 Subtotal 19,993 18,872 17,210 16,083 Total fixed maturity available-for-sale securities $ 42,312 $ 38,029 $ 37,708 $ 33,095 |
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 June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 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 (In millions) Asset-backed securities $ 4,219 $ (182) $ 6,220 $ (517) $ 10,439 $ (699) Commercial mortgage-backed securities 1,593 (103) 1,665 (243) 3,258 (346) Corporates 5,267 (317) 9,522 (2,517) 14,789 (2,834) Hybrids 194 (15) 457 (58) 651 (73) Municipals 557 (69) 831 (183) 1,388 (252) Residential mortgage-backed securities 1,035 (17) 620 (93) 1,655 (110) U.S. Government 150 (3) 189 (12) 339 (15) Foreign Government 66 (6) 186 (41) 252 (47) Total available-for-sale securities $ 13,081 $ (712) $ 19,690 $ (3,664) $ 32,771 $ (4,376) Total number of available-for-sale securities in an unrealized loss position less than twelve months 2,196 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 2,725 Total number of available-for-sale securities in an unrealized loss position 4,921 December 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 (In millions) Asset-backed securities $ 7,001 $ (410) $ 3,727 $ (360) $ 10,728 $ (770) Commercial mortgage-backed securities 2,079 (169) 475 (116) 2,554 (285) Corporates 9,913 (1,735) 3,523 (1,330) 13,436 (3,065) Hybrids 628 (83) 3 (1) 631 (84) Municipals 998 (180) 352 (113) 1,350 (293) Residential mortgage-backed securities 992 (51) 184 (22) 1,176 (73) U.S. Government 130 (7) 140 (8) 270 (15) Foreign Government 119 (32) 59 (14) 178 (46) Total available-for-sale securities $ 21,860 $ (2,667) $ 8,463 $ (1,964) $ 30,323 $ (4,631) Total number of available-for-sale securities in an unrealized loss position less than twelve months 3,114 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 1,296 Total number of available-for-sale securities in an unrealized loss position 4,410 |
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: June 30, 2023 December 31, 2022 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: (In millions) (In millions) Hotel $ 18 1 % $ 18 1 % Industrial 538 22 % 520 22 % Mixed Use 12 1 % 12 1 % Multifamily 1,012 41 % 1,013 42 % Office 328 13 % 330 14 % Retail 103 4 % 105 4 % Student Housing 83 3 % 83 3 % Other 376 15 % 335 13 % Total commercial mortgage loans, gross of valuation allowance $ 2,470 100 % $ 2,416 100 % Allowance for expected credit loss (13) (10) Total commercial mortgage loans, net of valuation allowance $ 2,457 $ 2,406 U.S. Region: East North Central $ 150 6 % $ 151 6 % East South Central 76 3 % 76 3 % Middle Atlantic 325 13 % 326 13 % Mountain 353 14 % 355 15 % New England 166 7 % 158 7 % Pacific 726 29 % 708 28 % South Atlantic 553 22 % 521 22 % West North Central 4 1 % 4 1 % West South Central 117 5 % 117 5 % Total commercial mortgage loans, gross of valuation allowance $ 2,470 100 % $ 2,416 100 % Allowance for expected credit loss (13) (10) Total commercial mortgage loans, net of valuation allowance $ 2,457 $ 2,406 |
Loans Segregated by Risk Rating Exposure | CMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances: June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Commercial mortgages (In millions) Current (less than 30 days past due) $ 55 $ 338 $ 1,299 $ 487 $ — $ 265 $ 2,444 30-89 days past due — — — — — — — 90 days or more past due — — — — — 9 9 Total commercial mortgages (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Commercial mortgages (In millions) Current (less than 30 days past due) $ 350 $ 1,300 $ 488 $ — $ — $ 269 $ 2,407 30-89 days past due — — — — — — — 90 days or more past due — — — — — 9 9 Total commercial mortgages $ 350 $ 1,300 $ 488 $ — $ — $ 278 $ 2,416 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023. RMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances: June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 137 $ 963 $ 862 $ 200 $ 192 $ 199 $ 2,553 30-89 days past due — 6 24 5 4 6 45 90 days or more past due — 7 20 15 29 1 72 Total residential mortgages $ 137 $ 976 $ 906 $ 220 $ 225 $ 206 $ 2,670 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 766 $ 884 $ 214 $ 185 $ 23 $ 33 $ 2,105 30-89 days past due 2 7 — 4 — — 13 90 days or more past due 3 9 15 34 1 — 62 Total residential mortgages $ 771 $ 900 $ 229 $ 223 $ 24 $ 33 $ 2,180 |
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | The following tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances at June 30, 2023 and December 31, 2022 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 June 30, 2023 (In millions) LTV Ratios: Less than 50.00% $ 510 $ 4 $ 11 $ 525 21 % $ 491 23 % 50.00% to 59.99% 740 — — 740 30 % 649 30 % 60.00% to 74.99% 1,160 10 — 1,170 48 % 973 46 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Commercial mortgage loans (a) $ 2,410 $ 14 $ 29 $ 2,453 100 % $ 2,127 100 % December 31, 2022 LTV Ratios: Less than 50.00% $ 511 $ 4 $ 11 $ 526 22 % $ 490 24 % 50.00% to 59.99% 706 — — 706 29 % 615 30 % 60.00% to 74.99% 1,154 3 — 1,157 48 % 955 45 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Commercial mortgage loans (a) $ 2,371 $ 7 $ 29 $ 2,407 100 % $ 2,074 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $ 9 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 6 $ 67 $ 119 $ 207 $ — $ 126 $ 525 50.00% to 59.99% 27 149 267 158 — 139 740 60.00% to 74.99% 22 113 913 122 — — 1,170 75.00% to 84.99% — 9 — — — 9 18 Total commercial mortgages (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 Commercial mortgages DSCR Greater than 1.25x $ 48 $ 326 $ 1,299 $ 487 $ — $ 250 $ 2,410 1.00x - 1.25x 7 3 — — — 4 14 Less than 1.00x — 9 — — — 20 29 Total commercial mortgages (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2017 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 70 $ 120 $ 207 $ — $ — $ 129 $ 526 50.00% to 59.99% 149 268 158 — — 131 706 60.00% to 74.99% 113 912 123 — — 9 1,157 75.00% to 84.99% 9 — — — — 9 18 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 Commercial mortgages DSCR Greater than 1.25x $ 329 $ 1,300 $ 488 $ — $ — $ 254 $ 2,371 1.00x - 1.25x 3 — — — — 4 7 Less than 1.00x 9 — — — — 20 29 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 9 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. |
Schedule of Residential Mortgage Loans by State | The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances: June 30, 2023 Amortized Cost % of Total U.S. State: (In millions) Florida $ 152 5 % New York 131 5 % California 123 5 % All other states (a) 2,264 85 % Total residential mortgage loans $ 2,670 100 % (a) The individual concentration of each state is equal to or less than 5% as of June 30, 2023. December 31, 2022 Amortized Cost % of Total U.S. State: (In millions) Florida $ 324 15 % Texas 215 10 % New Jersey 172 8 % Pennsylvania 153 7 % California 139 6 % New York 138 6 % Georgia 125 6 % All other states (a) 914 42 % Total residential mortgage loans $ 2,180 100 % (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2022. |
Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming | The credit quality of RMLs as of June 30, 2023 and December 31, 2022, was as follows : June 30, 2023 December 31, 2022 Amortized Cost % of Total Amortized Cost % of Total Performance indicators: (In millions) (In millions) Performing $ 2,598 97 % $ 2,118 97 % Non-performing 72 3 % 62 3 % Total residential mortgage loans, gross of valuation allowance $ 2,670 100 % $ 2,180 100 % Allowance for expected loan loss (51) — % (32) — % Total residential mortgage loans, net of valuation allowance $ 2,619 100 % $ 2,148 100 % |
Nonaccrual Loans by Amortized Cost | Non-accrual loans by amortized cost as of June 30, 2023 and December 31, 2022, were as follows: June 30, 2023 December 31, 2022 Amortized cost of loans on non-accrual (In millions) Residential mortgage: $ 72 $ 62 Commercial mortgage: 9 9 Total non-accrual mortgages $ 81 $ 71 |
Allowance for Expected Credit Losses on Loans | The allowances for our mortgage loan portfolio are summarized as follows: Three months ended June 30, 2023 Six months ended June 30, 2023 (In millions) (In millions) Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (48) $ (12) $ (60) $ (32) $ (10) $ (42) Provision for loan losses (3) (1) (4) (19) (3) (22) Ending Balance $ (51) $ (13) $ (64) $ (51) $ (13) $ (64) Three months ended June 30, 2022 Six months ended June 30, 2022 (In millions) (In millions) Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (26) $ (6) $ (32) $ (25) $ (6) $ (31) Provision for loan losses (3) — (3) (4) — (4) Ending Balance $ (29) $ (6) $ (35) $ (29) $ (6) $ (35) |
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: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) (In millions) Fixed maturity securities, available-for-sale $ 464 $ 350 $ 912 $ 682 Equity securities 7 7 15 15 Preferred securities 15 20 28 35 Mortgage loans 57 49 108 88 Invested cash and short-term investments 34 13 67 18 Limited partnerships 45 58 103 171 Tax deferred property exchange income 40 10 83 14 Other investments 18 4 38 13 Gross investment income 680 511 1,354 1,036 Investment expense (62) (48) (125) (95) Interest and investment income $ 618 $ 463 $ 1,229 $ 941 |
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: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) (In millions) Net realized losses on fixed maturity available-for-sale securities $ (54) $ (61) $ (104) $ (98) Net realized/unrealized gains (losses) on equity securities (1) (37) (221) (5) (370) Net realized/unrealized losses on preferred securities (2) 2 (118) (8) (208) Realized losses on other invested assets (24) (9) (29) (10) Change in allowance for expected credit losses (20) (9) (23) (12) Derivatives and embedded derivatives: Realized (losses) gains on certain derivative instruments (65) (35) (154) 15 Unrealized gains (losses) on certain derivative instruments 164 (359) 311 (717) Change in fair value of reinsurance related embedded derivatives (3) 17 141 (2) 263 Change in fair value of other derivatives and embedded derivatives 1 (5) 3 (8) Realized gains (losses) on derivatives and embedded derivatives 117 (258) 158 (447) Recognized gains and losses, net $ (16) $ (676) $ (11) $ (1,145) (1) Includes net valuation losses of $37 million and $222 million for the three months ended June 30, 2023 and 2022, respectively, and net valuation gains (losses) of $9 million and $(388) million for the six months ended June 30, 2023 and 2022, respectively. (2) Includes net valuation gains (losses) of $16 million and $(118) million for the three months ended June 30, 2023 and 2022, respectively, and net valuation gains (losses) of $50 million and $(207) million for the six months ended June 30, 2023 and 2022, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Somerset 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: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) Proceeds $ 609 $ 802 $ 1,098 $ 1,835 Gross gains — 1 8 5 Gross losses (33) (61) (90) (69) |
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 June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 2,803 $ 4,491 $ 2,427 $ 4,030 Fixed maturity securities 18,471 20,853 15,680 17,404 Total unconsolidated VIE investments $ 21,274 $ 25,344 $ 18,107 $ 21,434 |
Schedules of Investment Concentrations | Our underlying investment concentrations that exceed 10% of shareholders equity are as follows: June 30, 2023 (In millions) Blackstone Wave Asset Holdco (1) $ 738 (1) Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying Amount of Derivative Instruments | The carrying amounts of derivative instruments, including derivative instruments embedded in FIA/IUL contracts, and reinsurance is as follows: June 30, 2023 December 31, 2022 Assets: (In millions) Derivative investments: Call options $ 649 $ 244 Other long-term investments: Other embedded derivatives 26 23 Prepaid expenses and other assets: Reinsurance related embedded derivatives 277 279 $ 952 $ 546 Liabilities: Contractholder funds: FIA/ IUL embedded derivatives $ 3,821 $ 3,115 $ 3,821 $ 3,115 |
Change in Fair Value of Derivative Instruments | The change in fair value of derivative instruments in the accompanying unaudited Condensed Consolidated Statements of Earnings is as follows: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Recognized gains and losses, net (In millions) (In millions) Net investment gains (losses): Call options $ 98 $ (395) $ 153 $ (709) Futures contracts — (8) 5 (5) Foreign currency forwards — 9 (1) 12 Other derivatives and embedded derivatives 2 (5) 3 (8) Reinsurance related embedded derivatives 17 141 (2) 263 Total net investment gains (losses) $ 117 $ (258) $ 158 $ (447) Benefits and other changes in policy reserves: FIA/ IUL embedded derivatives (decrease) increase $ 252 $ (454) $ 706 $ (942) |
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 tables. June 30, 2023 (In millions) Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 4,033 $ 69 $ 26 $ 43 Morgan Stanley */Aa3/A+ 2,375 50 60 — Barclay's Bank A+/A1/A+ 6,137 121 113 8 Canadian Imperial Bank of Commerce AA/Aa2/A+ 6,542 204 180 24 Wells Fargo A+/A1/BBB+ 1,480 54 53 1 Goldman Sachs A/A2/BBB+ 1,212 23 22 1 Credit Suisse A+/A3/A 266 9 9 — Truist A+/A2/A 2,055 89 85 4 Citibank A+/Aa3/A+ 1,272 29 31 — Total $ 25,372 $ 648 $ 579 $ 81 December 31, 2022 (In millions) Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,563 $ 23 $ — $ 23 Morgan Stanley */Aa3/A+ 1,699 14 19 — Barclay's Bank A+/A1/A 6,049 65 59 6 Canadian Imperial Bank of Commerce AA/Aa2/A+ 5,169 68 64 4 Wells Fargo A+/A1/BBB+ 1,361 17 17 — Goldman Sachs A/A2/BBB+ 1,133 9 10 — Credit Suisse BBB+/A3/A- 1,039 5 5 — Truist A+/A2/A 2,489 35 36 — Citibank A+/Aa3/A+ 795 8 9 — Total $ 23,297 $ 244 $ 219 $ 33 (a) An * represents credit ratings that were not available. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | A summary of unfunded commitments by invested asset class as of June 30, 2023 is included below: June 30, 2023 Asset Type (In millions) Unconsolidated VIEs: Limited partnerships $ 1,688 Whole loans 1,044 Fixed maturity securities, ABS 247 Direct Lending 910 Other fixed maturity securities, AFS 21 Commercial mortgage loans 16 Other assets 125 Other invested assets 6 Committed amounts included in liabilities 2 Total $ 4,059 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023: Title F&G Corporate and Other Total (In millions) Title premiums $ 1,254 $ — $ — $ 1,254 Other revenues 581 576 55 1,212 Revenues from external customers 1,835 576 55 2,466 Interest and investment income, including recognized gains and losses, net 29 592 (19) 602 Total revenues 1,864 1,168 36 3,068 Depreciation and amortization 39 104 8 151 Interest expense — 25 18 43 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 233 163 (64) 332 Income tax expense (benefit) 65 33 (8) 90 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 168 130 (56) 242 Equity in earnings of unconsolidated affiliates 1 — — 1 Net earnings (loss) from continuing operations $ 169 $ 130 $ (56) $ 243 Assets $ 8,145 $ 62,564 $ 2,312 $ 73,021 Goodwill 2,770 1,749 292 4,811 As of and for the three months ended June 30, 2022: Title F&G Corporate and Other Total (In millions) Title premiums $ 2,062 $ — $ — $ 2,062 Other revenues 706 71 9 786 Revenues from external customers 2,768 71 9 2,848 Interest and investment income, including recognized gains and losses, net (214) (1) 2 (213) Total revenues 2,554 70 11 2,635 Depreciation and amortization 34 80 6 120 Interest expense — 9 22 31 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 267 482 (18) 731 Income tax expense (benefit) 111 97 (6) 202 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 156 385 (12) 529 Equity in earnings of unconsolidated affiliates 14 — — 14 Net earnings (loss) from continuing operations $ 170 $ 385 $ (12) $ 543 Assets $ 9,309 $ 49,389 $ 2,314 $ 61,012 Goodwill 2,516 1,749 266 4,531 As of and for the six months ended June 30, 2023: Title F&G Corporate and Other Total (In millions) Title premiums $ 2,232 $ — $ — $ 2,232 Other revenues 1,052 941 99 2,092 Revenues from external customers 3,284 941 99 4,324 Interest and investment income, including recognized gains and losses, net 132 1,096 (10) 1,218 Total revenues 3,416 2,037 89 5,542 Depreciation and amortization 76 194 15 285 Interest expense — 47 38 85 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 390 (40) (92) 258 Income tax expense (benefit) 92 25 (13) 104 Earnings (loss) from continuing operations before equity in earnings (loss) of unconsolidated affiliates 298 (65) (79) 154 Equity in earnings of unconsolidated affiliates 1 — — 1 Net earnings (loss) from continuing operations $ 299 $ (65) $ (79) $ 155 Assets $ 8,145 $ 62,564 $ 2,312 $ 73,021 Goodwill 2,770 1,749 292 4,811 As of and for the six months ended June 30, 2022: Title F&G Corporate and Other Total (In millions) Title premiums $ 3,928 $ — $ — $ 3,928 Other revenues 1,371 667 40 2,078 Revenues from external customers 5,299 667 40 6,006 Interest and investment income, including recognized gains and losses, net (362) 153 5 (204) Total revenues 4,937 820 45 5,802 Depreciation and amortization 67 156 12 235 Interest expense — 17 44 61 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 516 827 (56) 1,287 Income tax expense (benefit) 168 203 (13) 358 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 348 624 (43) 929 Equity in earnings of unconsolidated affiliates 16 — — 16 Net earnings (loss) from continuing operations $ 364 $ 624 $ (43) $ 945 Assets $ 9,309 $ 49,389 $ 2,314 $ 61,012 Goodwill 2,516 1,749 266 4,531 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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: Six months ended June 30, 2023 2022 Cash paid for: (In millions) Interest $ 61 $ 63 Income taxes 54 202 Deferred sales inducements 68 38 Non-cash investing and financing activities: Change in proceeds of sales of investments available for sale receivable in period (132) 151 Change in purchases of investments available for sale payable in period 238 212 Change in contractholder deposits for FABN issuance — 300 Lease liabilities recognized in exchange for lease right-of-use assets 21 42 Remeasurement of lease liabilities 41 41 Liabilities assumed in connection with acquisitions Fair value of assets acquired 299 — Less: Total Purchase price 293 — Liabilities and noncontrolling interests assumed $ 6 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Disaggregation of Revenue | Our revenue consists of: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (In millions) Direct title insurance premiums Direct title insurance premiums Title $ 541 $ 859 $ 969 $ 1,626 Agency title insurance premiums Agency title insurance premiums Title 713 1,203 1,263 2,302 Life insurance premiums, insurance and investment product fees, and other Escrow, title-related and other fees F&G 576 71 941 667 Home warranty Escrow, title-related and other fees Title 37 43 67 77 Total revenue from insurance contracts 1,867 2,176 3,240 4,672 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 219 294 379 559 Other title-related fees and income Escrow, title-related and other fees Title 169 210 315 406 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 87 92 162 186 Real estate technology Escrow, title-related and other fees Corporate and other 39 41 76 79 Total revenue from contracts with customers 514 637 932 1,230 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 69 67 129 143 Other Escrow, title-related and other fees Corporate and other 16 (32) 23 (39) Interest and investment income Interest and investment income Various 618 463 1,229 941 Recognized gains and losses, net Recognized gains and losses, net Various (16) (676) (11) (1,145) Total revenues Total revenues $ 3,068 $ 2,635 $ 5,542 $ 5,802 | |||
Information about Trade Receivables and Deferred Revenue | The following table provides information about trade receivables and deferred revenue: June 30, 2023 December 31, 2022 (In millions) Trade receivables $ 344 $ 349 Deferred revenue (contract liabilities) 313 271 | |||
Revenue from contract with customer | $ 514 | $ 637 | $ 932 | $ 1,230 |
Value of Business Acquired, D_2
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets, Finite | The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 (In millions) Customer relationships and contracts $ 209 $ 202 VOBA 1,529 $ 1,615 DAC 1,856 1,411 DSI 258 200 Value of distribution asset 93 100 Computer software 280 196 Definite lived trademarks, tradenames, and other 32 27 Indefinite lived tradenames and other 60 60 Total Other intangible assets, net $ 4,317 $ 3,811 |
Schedule of Other Intangible Assets, Indefinite | The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 (In millions) Customer relationships and contracts $ 209 $ 202 VOBA 1,529 $ 1,615 DAC 1,856 1,411 DSI 258 200 Value of distribution asset 93 100 Computer software 280 196 Definite lived trademarks, tradenames, and other 32 27 Indefinite lived tradenames and other 60 60 Total Other intangible assets, net $ 4,317 $ 3,811 |
Rollforward of Value of Business Acquired | The following tables roll forward VOBA by product for the six months ended June 30, 2023 and June 30, 2022. FIA Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total (In millions) Balance at January 1, 2023 $ 1,166 $ 32 $ 201 $ 143 $ 73 $ 1,615 Amortization (71) (3) (6) (4) (2) (86) Balance at June 30, 2023 $ 1,095 $ 29 $ 195 $ 139 $ 71 $ 1,529 FIA Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total (In millions) Balance at January 1, 2022 $ 1,314 $ 39 $ 212 $ 153 $ 25 $ 1,743 Amortization (76) (3) (6) (5) (1) (91) Shadow Premium Deficiency Testing (“PDT”) — — — — 52 52 Balance at June 30, 2022 $ 1,238 $ 36 $ 206 $ 148 $ 76 $ 1,704 |
Reconciliation of VOBA to Condensed Consolidated Balance Sheets | The following table presents a reconciliation of VOBA to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) FIA $ 1,095 $ 1,166 Fixed Rate Annuities 29 32 Immediate Annuities 195 201 Universal Life 139 143 Traditional Life 71 73 Total $ 1,529 $ 1,615 |
Rollforward of Deferred Policy Acquisition Costs | The following tables roll forward DAC by product for the six months ended June 30, 2023 and June 30, 2022. FIA Fixed Rate Annuities Universal Life Total (a) (In millions) Balance at January 1, 2023 $ 971 $ 83 $ 348 $ 1,402 Capitalization 249 91 109 449 Amortization (47) (20) (16) (83) Reinsurance related adjustments — 79 — 79 Balance at June 30, 2023 $ 1,173 $ 233 $ 441 $ 1,847 FIA Fixed Rate Annuities Universal Life Total (a) (In millions) Balance at January 1, 2022 $ 564 $ 38 $ 173 $ 775 Capitalization 216 25 91 332 Amortization (29) (4) (9) (42) Balance at June 30, 2022 $ 751 $ 59 $ 255 $ 1,065 (a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”) |
Reconciliation of DAC to Condensed Consolidated Balance Sheets | The following table presents a reconciliation of DAC to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) FIA $ 1,173 $ 971 Fixed Rate Annuities 233 83 Universal Life 441 348 Funding Agreements 9 9 Total $ 1,856 $ 1,411 |
Rollforward of Deferred Sale Inducement Cost | The following tables roll forward DSI for the six months ended June 30, 2023 and June 30, 2022: FIA Total (In millions) Balance at January 1, 2023 $ 200 $ 200 Capitalization 68 68 Amortization (10) (10) Balance at June 30, 2023 $ 258 $ 258 FIA Total (In millions) Balance at January 1, 2022 $ 127 $ 127 Capitalization 38 38 Amortization (6) (6) Balance at June 30, 2022 $ 159 $ 159 DSI amortization expense of $10 million and $6 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2023 and June 30, 2022, respectively. |
Reconciliation of DSI to Condensed Consolidated Balance Sheets | The following table presents a reconciliation of DSI to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (In millions) FIA $ 258 $ 200 Total $ 258 $ 200 |
Estimated Amortization Expense for VOBA in Future Fiscal Periods | For the in-force liabilities as of June 30, 2023, the estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year (In millions) 2023 $ 80 2024 151 2025 139 2026 128 2027 117 Thereafter 914 |
F&G Reinsurance (Tables)
F&G Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 and six months ended June 30, 2023 and June 30, 2022 were as follows: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred (In millions) Direct $ 510 $ 862 $ 39 $ 204 $ 811 $ 1,734 $ 606 $ 709 Ceded (27) (45) (35) (581) (53) (105) (67) (883) Net $ 483 $ 817 $ 4 $ (377) $ 758 $ 1,629 $ 539 $ (174) |
Reinsurance Recoverable Expected Credit Loss | The expected credit loss reserves were as follows: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) Balance at Beginning of Period $ (10) $ (20) $ (10) $ (20) Changes in the expected credit loss reserve 1 1 1 1 Balance at End of Period $ (9) $ (19) $ (9) $ (19) |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Gross Carrying Value and Weighted Average Useful Lives of Other Intangible Assets Acquired | The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the TitlePoint acquisition consist of the following: Gross Carrying Value Weighted Average Other intangible assets: (In millions) Customer relationships $ 9 10 Trade name 4 10 Software 60 7 Total Other intangible assets $ 73 The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the AllFirst acquisition consist of the following: Gross Carrying Value Weighted Average Other intangible assets: (In millions) Customer relationships $ 46 10 Trade name 7 10 Non-compete agreements 1 5 Software 1 2 Total Other intangible assets $ 55 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable consists of the following: June 30, 2023 December 31, 2022 (In millions) 4.50% Notes, net of discount $ 445 $ 445 3.40% Notes, net of discount 644 644 2.45% Notes, net of discount 594 594 3.20% Notes, net of discount 444 444 Revolving Credit Facility (2) (3) F&G Credit Agreement 511 547 7.40% F&G Notes 495 — 5.50% F&G Notes 565 567 $ 3,696 $ 3,238 |
Schedule of Principal Maturities of Notes Payable | Gross principal maturities of notes payable at June 30, 2023 are as follows: (In millions) 2023 (remaining) $ 511 2024 — 2025 550 2026 — 2027 — Thereafter 2,650 $ 3,711 |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Balances and Changes in Market Risk Benefit | The following table presents the balances of and changes in MRBs associated with FIAs and fixed rate annuities for the six months ended June 30, 2023 and the years ended December 31, 2022 and December 31, 2021: June 30, 2023 December 31, 2022 December 31, 2021 FIA Fixed rate annuities FIA Fixed rate annuities FIA Fixed rate annuities (Dollars in millions) Balance, beginning of period $ 164 $ 1 $ 426 $ 2 $ 478 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 102 $ 1 $ 280 $ 1 $ 320 $ 1 Issuances and benefit payments (8) — (21) — (9) — Attributed fees collected and interest accrual 68 — 107 1 99 1 Actual policyholder behavior different from expected 11 — 43 — (22) — Changes in assumptions and other 1 — (76) — — — Effects of market related movements (38) — (231) (1) (108) (1) Balance, end of period, before effect of changes in the instrument-specific credit risk $ 136 $ 1 $ 102 $ 1 $ 280 $ 1 Effect of changes in the instrument-specific credit risk 58 — 62 — 146 1 Balance, end of period $ 194 $ 1 $ 164 $ 1 $ 426 $ 2 Weighted-average attained age of policyholders weighted by total AV (years) 68.41 72.67 68.59 72.88 68.95 73.10 Net amount at risk $ 1,006 $ 3 $ 952 $ 3 $ 1,304 $ 4 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRB amounts in the accompanying unaudited Condensed Consolidated Balance Sheets: June 30, 2023 December 31, 2022 December 31, 2021 Asset Liability Net Asset Liability Net Asset Liability Net (In millions) FIA $ 118 $ 312 $ 194 $ 117 $ 281 $ 164 $ 41 $ 467 $ 426 Fixed rate annuities — 1 1 — 1 1 — 2 2 Total $ 118 $ 313 $ 195 $ 117 $ 282 $ 165 $ 41 $ 469 $ 428 |
Contractholder Funds (Tables)
Contractholder Funds (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Summary of Balances and Changes in Contractholder Funds | The following tables summarize balances of and changes in contractholder funds’ account balances: June 30, 2023 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 2,415 2,584 99 — 456 Premiums received 52 1 180 — — Policy charges (a) (87) — (124) — — Surrenders and withdrawals (876) (520) (45) — — Benefit payments (254) (118) (16) (27) (323) Interest credited 69 179 20 27 25 Other 23 (1) — — 3 Balance, end of year $ 26,108 $ 11,483 $ 2,226 $ 2,613 $ 2,143 Embedded derivative adjustment (c) 98 — 73 — — Gross Liability, end of period $ 26,206 $ 11,483 $ 2,299 $ 2,613 $ 2,143 Less: Reinsurance (17) (5,431) (924) — — Net Liability, after Reinsurance $ 26,189 $ 6,052 $ 1,375 $ 2,613 $ 2,143 Weighted-average crediting rate 1.10 % 7.07 % 3.85 % N/A N/A Net amount at risk (d) N/A N/A 53,401 N/A N/A Cash surrender value 24,337 10,707 1,760 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2022 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year 21,997 6,367 1,907 1,904 1,543 Issuances 4,462 3,758 167 700 1,192 Premiums received 106 3 295 — — Policy charges (a) (166) (1) (209) — — Surrenders and withdrawals (1,322) (797) (74) — — Benefit payments (485) (192) (22) (35) (789) Interest credited 198 220 48 45 36 Other (24) — — (1) — Balance, end of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Embedded derivative adjustment (c) (343) — 15 — — Gross Liability, end of period $ 24,423 $ 9,358 $ 2,127 $ 2,613 $ 1,982 Less: Reinsurance (17) (3,723) (947) — — Net Liability, after Reinsurance $ 24,406 $ 5,635 $ 1,180 $ 2,613 $ 1,982 Weighted-average crediting rate 0.85 % 2.84 % 2.39 % N/A N/A Net amount at risk (d) N/A N/A 53,348 N/A N/A Cash surrender value 188 5,992 1,698 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2021 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 18,703 $ 5,142 $ 1,696 $ — $ 1,203 Issuances 4,400 1,743 114 1,899 759 Premiums received 103 3 233 — — Policy charges (a) (148) (1) (167) — — Surrenders and withdrawals (1,303) (543) (68) — — Benefit payments (440) (145) (19) (7) (447) Interest credited 686 167 118 12 30 Other (4) 1 — — (2) Balance, end of year $ 21,997 $ 6,367 $ 1,907 $ 1,904 $ 1,543 Embedded derivative adjustment (c) 603 — 74 — — Gross Liability, end of period $ 22,600 $ 6,367 $ 1,981 $ 1,904 $ 1,543 Less: Reinsurance (17) (1,692) (984) — — Net Liability, after Reinsurance $ 22,583 $ 4,675 $ 997 $ 1,904 $ 1,543 Weighted-average crediting rate 3.43 % 2.94 % 6.77 % N/A N/A Net amount at risk (d) N/A N/A 41,326 N/A N/A Cash surrender value 20,455 5,992 1,572 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. |
Schedule Of Reconciliation Of Policyholder Account Balances To Statement Of Financial Position | The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets: June 30, 2023 December 31, 2022 December 31, 2021 (In millions) FIA $ 26,206 $ 24,423 $ 22,600 Fixed rate annuities 11,483 9,358 6,367 Immediate annuities 317 332 352 Universal life 2,299 2,127 1,981 Traditional life 5 5 5 Funding Agreement-FABN 2,613 2,613 1,904 FHLB 2,143 1,982 1,543 PRT 4 3 1 Total $ 45,070 $ 40,843 $ 34,753 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: June 30, 2023 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 23,749 $ 796 $ 403 $ 663 $ 25,611 1.51%-2.50% 141 — 1 — 142 Greater than 2.50% 353 — 2 — 355 Total $ 24,243 $ 796 $ 406 $ 663 $ 26,108 Fixed Rate Annuities 0.00%-1.50% $ 17 $ 30 $ 1,838 $ 8,287 $ 10,172 1.51%-2.50% 8 13 28 313 362 Greater than 2.50% 934 3 4 8 949 Total $ 959 $ 46 $ 1,870 $ 8,608 $ 11,483 Universal Life 0.00%-1.50% $ 1,822 $ 4 $ — $ 18 $ 1,844 1.51%-2.50% — — — — — Greater than 2.50% 346 35 1 — 382 Total $ 2,168 $ 39 $ 1 $ 18 $ 2,226 December 31, 2022 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 22,848 $ 801 $ 410 $ 151 $ 24,210 1.51%-2.50% 162 — 1 — 163 Greater than 2.50% 390 — 3 — 393 Total $ 23,400 $ 801 $ 414 $ 151 $ 24,766 Fixed Rate Annuities 0.00%-1.50% $ 10 $ 32 $ 1,871 $ 6,379 $ 8,292 1.51%-2.50% 9 14 30 1 54 Greater than 2.50% 997 4 4 7 1,012 Total $ 1,016 $ 50 $ 1,905 $ 6,387 $ 9,358 Universal Life 0.00%-1.50% $ 1,701 $ 3 $ — $ 17 $ 1,721 1.51%-2.50% — — — — — Greater than 2.50% 346 44 1 — 391 Total $ 2,047 $ 47 $ 1 $ 17 $ 2,112 December 31, 2021 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA (In millions) 0.00%-1.50% $ 20,162 $ 803 $ 388 $ — $ 21,353 1.51%-2.50% 171 11 25 — 207 Greater than 2.50% 431 3 3 — 437 Total $ 20,764 $ 817 $ 416 $ — $ 21,997 Fixed Rate Annuities 0.00%-1.50% $ 2 $ 28 $ 1,928 $ 3,219 $ 5,177 1.51%-2.50% 9 15 37 1 62 Greater than 2.50% 954 142 25 7 1,128 Total $ 965 $ 185 $ 1,990 $ 3,227 $ 6,367 Universal Life 0.00%-1.50% $ 1,486 $ 2 $ — $ 13 $ 1,501 1.51%-2.50% — — — — — Greater than 2.50% 359 46 1 — 406 Total $ 1,845 $ 48 $ 1 $ 13 $ 1,907 |
Future Policy Benefits (Tables)
Future Policy Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Summary Balances and Changes in the Present Value of Expected Net Premiums and Present Value | The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts: June 30, 2023 December 31, 2022 December 31, 2021 Expected net premiums (Dollars in millions) Balance, beginning of year $ 797 $ 1,020 $ 1,152 Beginning balance of original discount rate 974 1,045 1,131 Effect of actual variances from expected experience 7 33 25 Balance adjusted for variances from expectation 981 1,078 1,156 Interest accrual 9 20 22 Net premiums collected (60) (124) (133) Ending Balance at original discount rate 930 974 1,045 Effect of changes in discount rate assumptions (167) (177) (25) Balance, end of year $ 763 $ 797 $ 1,020 Expected FPB Balance, beginning of year $ 2,151 $ 2,772 $ 3,105 Beginning balance of original discount rate 2,665 2,806 2,995 Effect of actual variances from expected experience (9) 13 (14) Balance adjusted for variances from expectation $ 2,656 $ 2,819 $ 2,981 Interest accrual 28 59 62 Benefits payments (99) (213) (237) Ending Balance at original discount rate $ 2,585 $ 2,665 $ 2,806 Effect of changes in discount rate assumptions (474) (514) (34) Balance, end of year $ 2,111 $ 2,151 $ 2,772 Net liability for future policy benefits $ 1,348 $ 1,354 $ 1,752 Less: Reinsurance recoverable 587 612 749 Net liability for future policy benefits, after reinsurance recoverable $ 761 $ 742 $ 1,003 Weighted-average duration of liability for future policyholder benefits (years) 7.36 7.58 8.54 The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts: June 30, 2023 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 1,429 $ 2,165 Beginning balance of original discount rate 1,858 2,475 Effect of changes in cash flow assumptions — (5) Effect of actual variances from expected experience (17) — Balance adjusted for variances from expectation 1,841 2,470 Issuances 10 755 Interest accrual 33 50 Benefits payments (65) (115) Ending Balance at original discount rate 1,819 3,160 Effect of changes in discount rate assumptions (408) (290) Balance, end of year $ 1,411 $ 2,870 Net liability for future policy benefits $ 1,411 $ 2,870 Less: Reinsurance recoverable 116 — Net liability for future policy benefits, after reinsurance recoverable $ 1,295 $ 2,870 Weighted-average duration of liability for future policyholder benefits (years) 12.47 8.23 December 31, 2022 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 1,954 $ 1,148 Beginning balance of original discount rate 1,935 1,151 Effect of changes in cash flow assumptions — (20) Effect of actual variances from expected experience (26) 2 Balance adjusted for variances from expectation $ 1,909 $ 1,133 Issuances 26 1,418 Interest accrual 60 50 Benefits payments (137) (126) Ending Balance at original discount rate $ 1,858 $ 2,475 Effect of changes in discount rate assumptions (429) (310) Balance, end of year $ 1,429 $ 2,165 Net liability for future policy benefits $ 1,429 $ 2,165 Less: Reinsurance recoverable 118 — Net liability for future policy benefits, after reinsurance recoverable $ 1,311 $ 2,165 Weighted-average duration of liability for future policyholder benefits (years) 11.76 8.09 December 31, 2021 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 2,153 $ — Beginning balance of original discount rate 2,040 — Effect of actual variances from expected experience (47) — Balance adjusted for variances from expectation $ 1,993 $ — Issuances 18 1,155 Interest accrual 60 2 Benefits payments (136) (6) Ending Balance at original discount rate $ 1,935 $ 1,151 Effect of changes in discount rate assumptions 19 (3) Balance, end of year $ 1,954 $ 1,148 Net liability for future policy benefits $ 1,954 $ 1,148 Less: Reinsurance recoverable 145 — Net liability for future policy benefits, after reinsurance recoverable $ 1,809 $ 1,148 Weighted-average duration of liability for future policyholder benefits (years) 13.61 8.75 |
Summary of Changes in Liability for Deferred Profit Liability | The following tables summarize balances and changes in the liability for DPL for limited-payment contracts: June 30, 2023 December 31, 2022 December 31, 2021 Immediate annuities PRT Immediate annuities PRT Immediate annuities PRT (In millions) Balance, beginning of year $ 69 $ 4 $ 57 $ 7 $ 22 $ — Effect of modeling changes 4 — — — — — Effect of changes in cash flow assumptions — — — (2) — — Effect of actual variances from expected experience 10 2 16 — 39 — Balance adjusted for variances from expectation 83 6 73 5 61 — Issuances 1 — 1 — $ — $ 7 Interest accrual 1 (1) 2 — 2 — Amortization (3) (1) (7) (1) (6) — Balance, end of year $ 82 $ 4 $ 69 $ 4 $ 57 $ 7 |
Schedule Of Reconciliation Of Future Policy Benefits To Statement Of Financial Position | The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets. The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below: June 30, 2023 December 31, 2022 December 31, 2021 (In millions) Traditional Life $ 1,348 $ 1,354 $ 1,752 Immediate annuities 1,411 1,429 1,954 PRT 2,870 2,165 1,148 Immediate annuities DPL 82 69 57 PRT DPL 4 4 7 Total $ 5,715 $ 5,021 $ 4,918 |
Schedule Of Liability For Future Policy Benefit Expected Future Policy Benefit Undiscounted Before Reinsurance | The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts: Undiscounted Discounted June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Traditional Life (In millions) Expected future benefit payments $ 3,027 $ 3,201 $ 2,089 $ 2,686 Expected future gross premiums 1,114 1,245 803 1,091 Immediate annuities Expected future benefit payments $ 3,361 $ 3,516 $ 1,411 $ 1,907 Expected future gross premiums — — — — PRT Expected future benefit payments $ 4,724 $ 2,265 $ 3,161 $ 1,652 Expected future gross premiums — — — — |
Revenue from External Customers by Products and Services | The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Earnings: Gross Premiums (a) Interest Expense (b) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (In millions) Traditional Life $ 63 $ 70 $ 19 $ 20 Immediate annuities 11 16 33 30 PRT 737 520 50 19 Total $ 811 $ 606 $ 102 $ 69 (a) Included in Life insurance premiums and other fees on the Condensed Consolidated Statements of Earnings. (b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the Condensed Consolidated Statements of Earnings. |
Schedule Of Liability For Future Policy Benefit, Weighted Average Discount Rates | The following table presents the weighted-average interest rate: June 30, 2023 December 31, 2022 December 31, 2021 Traditional Life Interest accretion rate 2.33 % 2.32 % 2.29 % Current discount rate 4.63 % 5.37 % 2.41 % Immediate annuities Interest accretion rate 3.12 % 3.07 % 3.04 % Current discount rate 5.10 % 5.21 % 3.07 % PRT Interest accretion rate 4.04 % 3.20 % 1.20 % Current discount rate 5.28 % 5.40 % 2.79 % |
Schedule Of Liability for Future Policy Benefit, Mortality And Lapse, Actual And Expected Experience | The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB: June 30, 2023 Traditional Life Immediate annuities PRT Mortality Actual experience 1.4 % 3.2 % 2.3 % Expected experience 1.4 % 1.6 % 2.1 % Lapses Actual experience 0.1 % — % — % Expected experience 0.3 % — % — % December 31, 2022 Traditional Life Immediate annuities PRT Mortality Actual experience 1.5 % 3.0 % 1.9 % Expected experience 1.3 % 1.9 % 2.5 % Lapses Actual experience — % — % — % Expected experience 0.3 % — % — % December 31, 2021 Traditional Life Immediate annuities PRT Mortality Actual experience 1.7 % 4.2 % — % Expected experience 1.3 % 2.0 % — % Lapses Actual experience 0.1 % — % — % Expected experience 0.3 % — % — % |
Liability For Future Policy Benefits, Additional Information | The following table provides additional information for periods in which a cohort has an NPR > 100% (and; therefore, capped at 100%) (dollars in millions): June 30, 2023 December 31, 2022 Cohort X Description Cohort X Description Net Premium Ratio before capping 100 % Term with ROP Non-NY Cohort 100 % Term with ROP Non-NY Cohort Reserves before NP Ratio capping $ 1,184 Term with ROP Non-NY Cohort $ 1,172 Term with ROP Non-NY Cohort Reserves after NP Ratio capping $ 1,185 Term with ROP Non-NY Cohort $ 1,173 Term with ROP Non-NY Cohort Loss Expense $ 1 Term with ROP Non-NY Cohort $ — Term with ROP Non-NY Cohort |
ASU 2018-12 Transition (Tables)
ASU 2018-12 Transition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Changes in FPB, VOBA, DAC, DSI, URL and MRB | Impacts of adoption of ASU 2018-12 on Financial Statements The following tables summarize the impacts of the adoption of ASU 2018-12 on our accompanying unaudited Condensed Consolidated Balance Sheet and unaudited Condensed Consolidated Statement of Earnings. Condensed Consolidated Balance Sheet December 31, 2022 As Previously Reported Adjustments As adjusted (Unaudited) (Unaudited) (In millions) ASSETS Reinsurance recoverable, net of allowance for credit losses $ 5,588 $ (170) $ 5,418 Goodwill 4,642 (7) 4,635 Prepaid expenses and other assets 2,231 (163) 2,068 Market risk benefits asset — 117 117 Other intangible assets, net 4,034 (223) 3,811 Total $ 16,495 $ (446) $ 16,049 LIABILITIES AND EQUITY Liabilities: Contractholder funds $ 41,233 $ (390) $ 40,843 Future policy benefits 5,923 (902) 5,021 Accounts payable and accrued liabilities 2,352 (26) 2,326 Market risk benefits liability — 282 282 Total $ 49,508 $ (1,036) $ 48,472 Equity: Additional paid-in capital $ 5,876 $ (6) $ 5,870 Retained earnings 4,714 511 5,225 Accumulated other comprehensive (loss) earnings (2,862) (8) (2,870) Non-controlling interests 360 93 453 Total $ 8,088 $ 590 $ 8,678 Condensed Consolidated Statement of Earnings Three months ended June 30, 2022 Six months ended June 30, 2022 As Previously Reported Adjustments As adjusted As Previously Reported Adjustments As adjusted (Unaudited) (Unaudited) Revenues: (In millions) (In millions) Escrow, title-related and other fees $ 782 $ 4 $ 786 $ 2,072 $ 6 $ 2,078 Expenses: Benefits and other changes in policy reserves $ (418) $ 41 $ (377) $ (210) $ 36 $ (174) Market risk benefit gains — (189) (189) — (119) (119) Depreciation and amortization 161 (41) 120 343 (108) 235 Income tax expense 164 38 202 319 39 358 Net earnings attributable to Fidelity National Financial, Inc. common shareholders $ 382 $ 155 $ 537 $ 779 $ 158 $ 937 Earnings per share Basic Net earnings per share attributable to common shareholders, basic $ 1.37 $ 0.56 $ 1.93 $ 2.79 $ 0.57 $ 3.36 Diluted Net earnings per share attributable to common shareholders, diluted $ 1.37 $ 0.55 $ 1.92 $ 2.77 $ 0.56 $ 3.33 The following table summarizes the balance of and changes in the FPB on January 1, 2021 due to adoption of ASU 2018-12 : Immediate annuities Traditional Life Total (3) (In millions) Balance, December 31, 2020 $ 1,861 $ 2,144 $ 4,005 Cumulative effect of retrospective adoption (1) 201 (279) (78) Effect of remeasurement of liability at current discount rate (2) 113 88 201 Balance, January 1, 2021 $ 2,175 $ 1,953 $ 4,128 Less: Reinsurance Recoverable 322 793 1,115 Balance, January 1, 2021, net of reinsurance $ 1,853 $ 1,160 $ 3,013 (1) Adjustments for the cumulative effect of adoption of the new measurement guidance under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020, net of the effects of any change in the DPL. (2) The remeasurement of the liability at the current discount rate is reflected as an adjustment to opening AOCI upon the adoption of ASU 2018-12. (3) PRT was not written as of the transition date, January 1, 2021, and as a result is not presented in the transition adjustment roll forward. The following table summarizes the balance of and changes in VOBA on January 1, 2021 due to adoption of ASU 2018-12: FIA Fixed rate annuities Immediate annuities Universal Life Traditional Life Total (In millions) Balance, December 31, 2020 $ 1,208 $ 15 $ 86 $ 139 $ 18 $ 1,466 Adjustment for reversal of AOCI adjustments (1) 208 24 — 29 (29) 232 Cumulative effect of retrospective adoption (2) (14) 7 (5) (9) (1) (22) Transition opening balance adjustment 69 2 145 5 43 264 Balance, January 1, 2021 $ 1,471 $ 48 $ 226 $ 164 $ 31 $ 1,940 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020 (3) Adjustments for the change in VOBA due to the full retrospective adjustment of carrying amounts of acquired contracts as of the FNF Acquisition Date due to the adoption of ASU 2018-12. The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12 : FIA Fixed rate annuities Universal Life Total (In millions) Balance, December 31, 2020 $ 167 $ 14 $ 41 $ 222 Adjustment for reversal of AOCI adjustments (1) 15 2 8 25 Cumulative effect of retrospective adoption (2) (1) — (1) (2) Balance, January 1, 2021 $ 181 $ 16 $ 48 $ 245 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in DSI on January 1, 2021 due to adoption of ASU 2018-12 : FIA Total (In millions) Balance, December 31, 2020 $ 36 $ 36 Adjustment for reversal of AOCI adjustments (1) 5 5 Cumulative effect of retrospective adoption (2) 4 4 Balance, January 1, 2021 $ 45 $ 45 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in URL on January 1, 2021 due to adoption of ASU 2018-12 : Universal Life Total (In millions) Balance, December 31, 2020 $ 2 $ 2 Adjustment for reversal of AOCI adjustments (1) 25 25 Cumulative effect of retrospective adoption (2) 2 2 Balance, January 1, 2021 $ 29 $ 29 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF acquisition date through December 31, 2020. The following table summarizes the balance of and changes in the asset and liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12 : FIA Fixed rate annuities Total (In millions) Balance, December 31, 2020 - Carrying amount of MRBs under prior guidance (1) $ 531 $ — $ 531 Adjustment for reversal of AOCI adjustments (2) (116) — (116) Cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (3) 159 — 159 Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs (4) (96) 1 (95) Balance, January 1, 2021 - Market risk benefits at fair value $ 478 $ 1 $ 479 Less: Reinsurance Recoverable — — — Balance, January 1, 2021, net of reinsurance $ 478 $ 1 $ 479 (1) The pre-adoption balance as of December 31, 2020 balance for MRBs represents the contract features that meet the definition of an MRB under ASU 2018-12 and the related carrying amount of those features prior to the ASU. Those contract features were previously accounted for at fair value as a derivative or embedded derivative under ASC 815 or as an additional liability for annuitization benefits or death or other insurance benefits under ASC 944. (2) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (3) The cumulative effective of the change in instrument-specific credit risk between the FNF Acquisition Date or, if later, the original contract issuance date and the transition date to ASU 2018-12, which is recorded as an adjustment to opening AOCI. (4) The cumulative difference (exclusive of instrument-specific credit risk change) between the pre-adoption carrying amount and the fair value measurement for MRBs is recorded as an adjustment to opening retained earnings. |
Effect of Transition Adjustments On Equity | The following table presents the effect of transition adjustments on Equity on January 1, 2021 due to the adoption of ASU 2018-12: January 1, 2021 Retained Earnings AOCI (In millions) Contractholder funds $ 101 $ 115 MRB 30 (160) FPB (14) (159) VOBA (21) 233 DAC (1) 5 Increase to Equity, gross of tax $ 95 $ 34 Tax impact 20 9 Increase to Equity, net of tax $ 75 $ 25 |
Basis of Financial Statements -
Basis of Financial Statements - Recent Developments (Details) - USD ($) $ in Millions | Jan. 01, 2023 | Jun. 30, 2023 | Jan. 13, 2023 |
TitlePoint | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 224 | ||
7.40% F&G Senior Notes | Senior Notes | |||
Business Acquisition [Line Items] | |||
Debt instrument, interest rate, stated percentage | 7.40% | 7.40% | |
Aggregate principal amount | $ 500 |
Basis of Financial Statements_2
Basis of Financial Statements - Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Income tax expense | $ 90 | $ 202 | $ 104 | $ 358 |
Income tax expense as percentage of earnings before income taxes, percent | 27% | 28% | 40% | 28% |
Basis of Financial Statements_3
Basis of Financial Statements - Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Antidilutive securities excluded from computation of EPS, less than (in shares) | 1,000 | 1,000 | 1,000 | 1,000 |
Basis of Financial Statements_4
Basis of Financial Statements -Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Unearned revenue liability | $ 215 | $ 166 |
Net premium ratio, capped percentage | 100% | |
MRB, attributed fee ratio capped percentage | 100% |
Basis of Financial Statements_5
Basis of Financial Statements - Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment to increase opening retained earnings | $ 6,229 | $ 6,116 | |
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment to increase opening retained earnings | $ 75 |
Basis of Financial Statements_6
Basis of Financial Statements - Summary of Impact of the Adoption of ASU 2018 on the Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Dec. 31, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||||||||
Reinsurance recoverable, net of allowance for credit losses | $ 7,077 | $ 7,077 | $ 5,418 | ||||||
Goodwill | 4,811 | $ 4,531 | 4,811 | $ 4,531 | 4,635 | ||||
Prepaid expenses and other assets | 2,214 | 2,214 | 2,068 | ||||||
Market risk benefits asset | 118 | 118 | 117 | $ 41 | |||||
Other intangible assets, net | 4,317 | 4,317 | 3,811 | ||||||
Total | 73,021 | 61,012 | 73,021 | 61,012 | 65,143 | ||||
Liabilities: | |||||||||
Contractholder funds | 45,070 | 45,070 | 40,843 | ||||||
Future policy benefits | 5,715 | 5,715 | 5,021 | 4,918 | |||||
Accounts payable and accrued liabilities | 2,725 | 2,725 | 2,326 | ||||||
Market risk benefits liability | 313 | 313 | 282 | 469 | |||||
Total | 66,344 | 66,344 | 58,574 | ||||||
Equity [Abstract] | |||||||||
Additional paid-in capital | 5,883 | 5,883 | 5,870 | ||||||
Retained earnings | 5,140 | 5,140 | 5,225 | ||||||
Accumulated other comprehensive loss | (2,681) | (2,681) | (2,870) | ||||||
Non-controlling interests | 448 | 448 | 453 | ||||||
Total | 6,677 | 7,348 | 6,677 | 7,348 | $ 6,648 | 6,569 | $ 8,612 | $ 10,006 | |
Revenues: | |||||||||
Escrow, title-related and other fees | 1,212 | 786 | 2,092 | 2,078 | |||||
Expenses: | |||||||||
Benefits and other changes in policy reserves | 817 | (377) | 1,629 | (174) | |||||
Market risk benefit gains | (30) | (189) | 29 | (119) | |||||
Depreciation and amortization | 151 | 120 | 285 | 235 | |||||
Income tax expense | 90 | 202 | 104 | 358 | |||||
Net earnings attributable to FNF common shareholders | $ 219 | $ 537 | $ 160 | $ 937 | |||||
Basic | |||||||||
Net earnings per share attributable to common shareholders, basic (in usd per share) | $ 0.81 | $ 1.93 | $ 0.59 | $ 3.36 | |||||
Diluted | |||||||||
Net earnings per share attributable to common shareholders, basic (in usd per share) | $ 0.81 | $ 1.92 | $ 0.59 | $ 3.33 | |||||
Adjustments | |||||||||
ASSETS | |||||||||
Reinsurance recoverable, net of allowance for credit losses | (170) | ||||||||
Goodwill | (7) | ||||||||
Prepaid expenses and other assets | (163) | ||||||||
Market risk benefits asset | 117 | ||||||||
Other intangible assets, net | (223) | ||||||||
Total | (446) | ||||||||
Liabilities: | |||||||||
Contractholder funds | (390) | ||||||||
Future policy benefits | (902) | ||||||||
Accounts payable and accrued liabilities | (26) | ||||||||
Market risk benefits liability | 282 | ||||||||
Total | (1,036) | ||||||||
Equity [Abstract] | |||||||||
Additional paid-in capital | (6) | ||||||||
Retained earnings | 511 | ||||||||
Accumulated other comprehensive loss | (8) | ||||||||
Non-controlling interests | 93 | ||||||||
Total | 590 | ||||||||
Revenues: | |||||||||
Escrow, title-related and other fees | $ 4 | $ 6 | |||||||
Expenses: | |||||||||
Benefits and other changes in policy reserves | 41 | 36 | |||||||
Market risk benefit gains | (189) | (119) | |||||||
Depreciation and amortization | (41) | (108) | |||||||
Income tax expense | $ 20 | 38 | 39 | ||||||
Net earnings attributable to FNF common shareholders | $ 155 | $ 158 | |||||||
Basic | |||||||||
Net earnings per share attributable to common shareholders, basic (in usd per share) | $ 0.56 | $ 0.57 | |||||||
Diluted | |||||||||
Net earnings per share attributable to common shareholders, basic (in usd per share) | $ 0.55 | $ 0.56 | |||||||
As adjusted | |||||||||
ASSETS | |||||||||
Reinsurance recoverable, net of allowance for credit losses | 5,418 | ||||||||
Goodwill | 4,635 | ||||||||
Prepaid expenses and other assets | 2,068 | ||||||||
Market risk benefits asset | 117 | ||||||||
Other intangible assets, net | 3,811 | ||||||||
Total | 16,049 | ||||||||
Liabilities: | |||||||||
Contractholder funds | 40,843 | ||||||||
Future policy benefits | 5,021 | ||||||||
Accounts payable and accrued liabilities | 2,326 | ||||||||
Market risk benefits liability | 282 | ||||||||
Total | 48,472 | ||||||||
Equity [Abstract] | |||||||||
Additional paid-in capital | 5,870 | ||||||||
Retained earnings | 5,225 | ||||||||
Accumulated other comprehensive loss | (2,870) | ||||||||
Non-controlling interests | 453 | ||||||||
Total | 8,678 | ||||||||
Revenues: | |||||||||
Escrow, title-related and other fees | $ 786 | $ 2,078 | |||||||
Expenses: | |||||||||
Benefits and other changes in policy reserves | (377) | (174) | |||||||
Market risk benefit gains | (189) | (119) | |||||||
Depreciation and amortization | 120 | 235 | |||||||
Income tax expense | 202 | 358 | |||||||
Net earnings attributable to FNF common shareholders | $ 537 | $ 937 | |||||||
Basic | |||||||||
Net earnings per share attributable to common shareholders, basic (in usd per share) | $ 1.93 | $ 3.36 | |||||||
Diluted | |||||||||
Net earnings per share attributable to common shareholders, basic (in usd per share) | $ 1.92 | $ 3.33 | |||||||
As Previously Reported | |||||||||
ASSETS | |||||||||
Reinsurance recoverable, net of allowance for credit losses | 5,588 | ||||||||
Goodwill | 4,642 | ||||||||
Prepaid expenses and other assets | 2,231 | ||||||||
Market risk benefits asset | 0 | ||||||||
Other intangible assets, net | 4,034 | ||||||||
Total | 16,495 | ||||||||
Liabilities: | |||||||||
Contractholder funds | 41,233 | ||||||||
Future policy benefits | 5,923 | ||||||||
Accounts payable and accrued liabilities | 2,352 | ||||||||
Market risk benefits liability | 0 | ||||||||
Total | 49,508 | ||||||||
Equity [Abstract] | |||||||||
Additional paid-in capital | 5,876 | ||||||||
Retained earnings | 4,714 | ||||||||
Accumulated other comprehensive loss | (2,862) | ||||||||
Non-controlling interests | 360 | ||||||||
Total | $ 8,088 | ||||||||
Revenues: | |||||||||
Escrow, title-related and other fees | $ 782 | $ 2,072 | |||||||
Expenses: | |||||||||
Benefits and other changes in policy reserves | (418) | (210) | |||||||
Market risk benefit gains | 0 | 0 | |||||||
Depreciation and amortization | 161 | 343 | |||||||
Income tax expense | 164 | 319 | |||||||
Net earnings attributable to FNF common shareholders | $ 382 | $ 779 | |||||||
Basic | |||||||||
Net earnings per share attributable to common shareholders, basic (in usd per share) | $ 1.37 | $ 2.79 | |||||||
Diluted | |||||||||
Net earnings per share attributable to common shareholders, basic (in usd per share) | $ 1.37 | $ 2.77 |
Summary of Reserve for Title _3
Summary of Reserve for Title Claim Losses - Summary (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Loss Contingencies [Line Items] | ||
Change in insurance recoverable | $ 27 | $ (209) |
Title | ||
Loss Contingencies [Line Items] | ||
Beginning balance | 1,810 | 1,883 |
Change in insurance recoverable | 0 | (108) |
Claim loss provision related to: | ||
Current year | 100 | 177 |
Total title claim loss provision | 100 | 177 |
Claims paid, net of recoupments related to: | ||
Current year | (4) | (7) |
Prior years | (125) | (102) |
Total title claims paid, net of recoupments | (129) | (109) |
Ending balance of claim loss reserve for title insurance | $ 1,781 | $ 1,843 |
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 | 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 | |||
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 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Fixed maturity securities available for sale | $ 38,029 | $ 33,095 | |
Derivative asset | 649 | 244 | |
Market risk benefits asset | 118 | 117 | $ 41 |
Total financial assets at fair value | 8,759 | 8,286 | |
Derivatives: | |||
Market risk benefits liability | 313 | 282 | $ 469 |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 3,136 | 2,286 | |
Short term investments | 801 | 2,590 | |
Derivative asset | 0 | 0 | |
Market risk benefits asset | 0 | 0 | |
Total financial assets at fair value | 5,437 | 6,210 | |
Derivatives: | |||
Market risk benefits liability | 0 | 0 | |
Total financial liabilities at fair value | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Short term investments | 45 | 0 | |
Derivative asset | 649 | 244 | |
Market risk benefits asset | 0 | 0 | |
Total financial assets at fair value | 30,694 | 25,720 | |
Derivatives: | |||
Market risk benefits liability | 0 | 0 | |
Total financial liabilities at fair value | 0 | 0 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Short term investments | 126 | 0 | |
Derivative asset | 0 | 0 | |
Market risk benefits asset | 118 | 117 | |
Total financial assets at fair value | 8,759 | 8,286 | |
Derivatives: | |||
Market risk benefits liability | 313 | 282 | |
Total financial liabilities at fair value | 4,134 | 3,397 | |
NAV | |||
Assets | |||
Total financial assets at fair value | 41 | 47 | |
Fair Value | |||
Assets | |||
Cash and cash equivalents | 3,136 | 2,286 | |
Short term investments | 972 | 2,590 | |
Derivative asset | 649 | 244 | |
Market risk benefits asset | 118 | 117 | |
Total financial assets at fair value | 44,931 | 40,263 | |
Derivatives: | |||
Market risk benefits liability | 313 | 282 | |
Total financial liabilities at fair value | 4,134 | 3,397 | |
Reinsurance related embedded derivative, included in other assets | Level 1 | |||
Assets | |||
Derivative asset | 0 | 0 | |
Reinsurance related embedded derivative, included in other assets | Level 2 | |||
Assets | |||
Derivative asset | 277 | 279 | |
Reinsurance related embedded derivative, included in other assets | Level 3 | |||
Assets | |||
Derivative asset | 0 | 0 | |
Reinsurance related embedded derivative, included in other assets | Fair Value | |||
Assets | |||
Derivative asset | 277 | 279 | |
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 | 3,821 | 3,115 | |
FIA/ IUL embedded derivatives, included in contractholder funds | Fair Value | |||
Derivatives: | |||
Derivative liability | 3,821 | 3,115 | |
Asset-backed securities | |||
Assets | |||
Fixed maturity securities available for sale | 12,840 | 11,467 | |
Asset-backed securities | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Asset-backed securities | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 6,330 | 5,204 | |
Asset-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 6,510 | 6,263 | |
Asset-backed securities | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 12,840 | 11,467 | |
Commercial mortgage-backed securities | |||
Assets | |||
Fixed maturity securities available for sale | 3,989 | 3,063 | |
Commercial mortgage-backed securities | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Commercial mortgage-backed securities | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 3,972 | 3,026 | |
Commercial mortgage-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 17 | 37 | |
Commercial mortgage-backed securities | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 3,989 | 3,063 | |
Corporates | |||
Assets | |||
Fixed maturity securities available for sale | 16,129 | 14,337 | |
Corporates | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 26 | 40 | |
Corporates | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 14,475 | 12,857 | |
Corporates | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 1,628 | 1,440 | |
Corporates | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 16,129 | 14,337 | |
Hybrids | |||
Assets | |||
Fixed maturity securities available for sale | 704 | 731 | |
Hybrids | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 95 | 93 | |
Hybrids | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 609 | 638 | |
Hybrids | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Hybrids | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 704 | 731 | |
Municipals | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Municipals | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 1,554 | 1,431 | |
Municipals | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 49 | 29 | |
Municipals | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 1,603 | 1,460 | |
Residential mortgage-backed securities | |||
Assets | |||
Fixed maturity securities available for sale | 2,016 | 1,527 | |
Residential mortgage-backed securities | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Residential mortgage-backed securities | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 1,988 | 1,225 | |
Residential mortgage-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 28 | 302 | |
Residential mortgage-backed securities | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 2,016 | 1,527 | |
U.S. Government | |||
Assets | |||
Fixed maturity securities available for sale | 484 | 271 | |
U.S. Government | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 468 | 260 | |
U.S. Government | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 16 | 11 | |
U.S. Government | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
U.S. Government | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 484 | 271 | |
Foreign Governments | |||
Assets | |||
Fixed maturity securities available for sale | 264 | 239 | |
Foreign Governments | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Foreign Governments | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 248 | 223 | |
Foreign Governments | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 16 | 16 | |
Foreign Governments | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 264 | 239 | |
Preferred securities | |||
Assets | |||
Equity and preferred securities | 804 | 903 | |
Preferred securities | Level 1 | |||
Assets | |||
Equity and preferred securities | 266 | 320 | |
Preferred securities | Level 2 | |||
Assets | |||
Equity and preferred securities | 531 | 582 | |
Preferred securities | Level 3 | |||
Assets | |||
Equity and preferred securities | 7 | 1 | |
Preferred securities | Fair Value | |||
Assets | |||
Equity and preferred securities | 804 | 903 | |
Equity securities | Level 1 | |||
Assets | |||
Equity and preferred securities | 645 | 621 | |
Equity securities | Level 2 | |||
Assets | |||
Equity and preferred securities | 0 | 0 | |
Equity securities | Level 3 | |||
Assets | |||
Equity and preferred securities | 14 | 10 | |
Equity securities | NAV | |||
Assets | |||
Equity and preferred securities | 41 | 47 | |
Equity securities | Fair Value | |||
Assets | |||
Equity and preferred securities | 700 | 678 | |
Investment in unconsolidated affiliates | Level 1 | |||
Assets | |||
Investment in unconsolidated affiliates | 0 | 0 | |
Investment in unconsolidated affiliates | Level 2 | |||
Assets | |||
Investment in unconsolidated affiliates | 0 | 0 | |
Investment in unconsolidated affiliates | Level 3 | |||
Assets | |||
Investment in unconsolidated affiliates | 197 | 23 | |
Investment in unconsolidated affiliates | Fair Value | |||
Assets | |||
Investment in unconsolidated affiliates | 197 | 23 | |
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 | 49 | 48 | |
Other long-term investments | Fair Value | |||
Assets | |||
Other long-term investments | $ 49 | $ 48 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) $ / Contract | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated affiliates | $ 3,039 | $ 2,642 |
Title | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated affiliates | $ 237 | $ 187 |
Credit linked note | Valuation, Income Approach | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, strike price | $ / Contract | 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 | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 8,759 | $ 8,286 |
Liabilities, fair value | 4,134 | 3,397 |
FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 3,821 | $ 3,115 |
Minimum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0 | 0 |
Minimum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Swap rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0381 | 0.0388 |
Minimum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
Minimum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0025 | 0.0025 |
Minimum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0200 | 0.0200 |
Minimum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0055 | 0.0048 |
Minimum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Option cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0007 | 0.0007 |
Maximum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.3003 | 0.2390 |
Maximum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Swap rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0547 | 0.0473 |
Maximum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
Maximum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.7000 | 0.7000 |
Maximum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.3448 | 0.2941 |
Maximum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0137 | 0.0144 |
Maximum | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Option cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0567 | 0.0497 |
Weighted Average | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0236 | 0.8700 |
Weighted Average | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Swap rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0464 | 0.0431 |
Weighted Average | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
Weighted Average | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0661 | 0.0657 |
Weighted Average | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0274 | 0.0273 |
Weighted Average | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0117 | 0.0130 |
Weighted Average | FIA/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Option cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0222 | 0.0189 |
Asset-backed securities | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 6,233 | $ 5,916 |
Asset-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 277 | $ 347 |
Asset-backed securities | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.547 | 0.5285 |
Asset-backed securities | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.3965 | 0.4143 |
Asset-backed securities | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.7190 | 1.1717 |
Asset-backed securities | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0177 | 2.1050 |
Asset-backed securities | Weighted Average | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9428 | 0.9418 |
Asset-backed securities | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.6208 | 0.6799 |
Commercial mortgage-backed securities | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 20 | |
Commercial mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 17 | $ 17 |
Commercial mortgage-backed securities | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0902 | |
Commercial mortgage-backed securities | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8476 | 0.7466 |
Commercial mortgage-backed securities | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0902 | |
Commercial mortgage-backed securities | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.7935 | 0.8848 |
Commercial mortgage-backed securities | Weighted Average | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0902 | |
Commercial mortgage-backed securities | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8861 | 0.8274 |
Corporates | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 789 | $ 602 |
Corporates | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 829 | 826 |
Corporates | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 10 | $ 12 |
Corporates | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.4639 | 0.7916 |
Corporates | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0 | 0 |
Corporates | Minimum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.4400 | 0.4400 |
Corporates | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0474 | 1.0253 |
Corporates | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0312 | 1.0496 |
Corporates | Maximum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1 | 1 |
Corporates | Weighted Average | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9587 | 0.9416 |
Corporates | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8985 | 0.8969 |
Corporates | Weighted Average | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.7480 | 0.7702 |
Municipals | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 18 | |
Municipals | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 31 | $ 29 |
Municipals | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0120 | |
Municipals | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0211 | 0.9395 |
Municipals | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0120 | |
Municipals | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0211 | 0.9395 |
Municipals | Weighted Average | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0120 | |
Municipals | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0211 | 0.9395 |
Residential mortgage-backed securities | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 25 | $ 302 |
Residential mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 3 | |
Debt securities | 0.9311 | |
Residential mortgage-backed securities | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0 | 0 |
Residential mortgage-backed securities | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9045 | 0.9104 |
Residential mortgage-backed securities | Weighted Average | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9000 | 0.8638 |
Foreign Governments | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 16 | $ 16 |
Foreign Governments | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9904 | 0.9978 |
Foreign Governments | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9968 | 1.0229 |
Foreign Governments | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9924 | 1.0056 |
Short term investments | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 126 | |
Short term investments | Minimum | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short term investments | 1 | |
Short term investments | Maximum | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short term investments | 1.0002 | |
Short term investments | Weighted Average | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short term investments | 1.0001 | |
Preferred securities | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 1 | |
Preferred securities | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 21.25 | |
Preferred securities | Minimum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 1 | |
Preferred securities | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 21.25 | |
Preferred securities | Maximum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 1 | |
Preferred securities | Weighted Average | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 21.25 | |
Preferred securities | Weighted Average | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 1 | |
Preferred securities | Affiliated Entity | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 6 | |
Preferred securities | Affiliated Entity | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1 | $ 1 |
Equity securities | Minimum | Broker quoted/Market Comparable | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 5.3 | 5.6 |
Equity securities | Maximum | Broker quoted/Market Comparable | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 5.3 | 5.6 |
Equity securities | Weighted Average | Broker quoted/Market Comparable | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 5.3 | 5.6 |
Equity securities | Affiliated Entity | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 7 | $ 6 |
Equity securities | Affiliated Entity | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 7 | $ 4 |
Equity securities | Affiliated Entity | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 66 | 64.25 |
Equity securities | Affiliated Entity | Minimum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 0.1260 | 0.1110 |
Equity securities | Affiliated Entity | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 66 | 64.25 |
Equity securities | Affiliated Entity | Maximum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 0.1260 | 0.1110 |
Equity securities | Affiliated Entity | Weighted Average | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 66 | 64.25 |
Equity securities | Affiliated Entity | Weighted Average | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 0.1260 | 0.1110 |
Available-for-sale embedded derivative | Black Scholes model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 26 | $ 23 |
Available-for-sale embedded derivative | Black Scholes model | Market Value of Fund | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative asset | 1 | 1 |
Secured borrowing receivable | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 10 | $ 10 |
Secured borrowing receivable | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Secured borrowing receivable | 1 | 1 |
Secured borrowing receivable | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Secured borrowing receivable | 1 | 1 |
Secured borrowing receivable | Weighted Average | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Secured borrowing receivable | 1 | 1 |
Credit linked note | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 13 | $ 15 |
Credit linked note | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit Linked Note | 0.9699 | 0.9623 |
Investment in unconsolidated affiliates | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 197 | $ 23 |
Investment in unconsolidated affiliates | Minimum | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 5 | |
Investment in unconsolidated affiliates | Minimum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 5 | |
Investment in unconsolidated affiliates | Maximum | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 14 | |
Investment in unconsolidated affiliates | Maximum | Broker quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 5.50 | |
Investment in unconsolidated affiliates | Weighted Average | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 12.1 | |
Market risk benefits asset | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 118 | $ 117 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0025 | 0.0025 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0200 | 0.0200 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0055 | 0.0048 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Minimum | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5000 | 0.5000 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.1000 | 0.1000 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.2174 | 0.2174 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0137 | 0.0144 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Maximum | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.6000 | 0.6000 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0503 | 0.0469 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0249 | 0.0249 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0117 | 0.0130 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5085 | 0.5094 |
Market risk benefits liability | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 313 | $ 282 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0025 | 0.0025 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0200 | 0.0200 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0055 | 0.0048 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Minimum | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5000 | 0.5000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.1000 | 0.1000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.2174 | 0.2174 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0137 | 0.0144 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Maximum | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.6000 | 0.6000 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0503 | 0.0469 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0249 | 0.0249 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0117 | 0.0130 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5089 | 0.5094 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fixed maturity securities available-for-sale: | ||||
Assets, Total Gains (Losses) Included in Earnings | $ (4) | $ (5) | ||
Assets, Total Gains (Losses) Included in AOCI | 0 | (214) | ||
Assets, Purchases | 723 | 1,144 | ||
Assets, Sales | (15) | (40) | ||
Assets, Settlements | (165) | (134) | ||
Assets, Net transfer In (Out) of Level 3 | (21) | (18) | ||
Change in Unrealized Included in OCI | (1) | (221) | ||
Liabilities | ||||
Liabilities, Total Gains (Losses) Included in Earnings | 197 | (575) | ||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | ||
Liabilities, Purchases | 93 | 146 | ||
Liabilities, Sales | 0 | 0 | ||
Liabilities, Settlements | (38) | (25) | ||
Liabilities, Net transfer In (Out) of Level 3 | $ 0 | 0 | ||
Change in Unrealized Gains (Losses) Included in OCI | $ 0 | |||
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Recognized gains and losses, net | Recognized gains and losses, net | Recognized gains and losses, net | Recognized gains and losses, net |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) |
Level 3 | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | $ 8,229 | $ 5,525 | $ 8,286 | $ 5,641 |
Balance at End of Period | 8,759 | 6,315 | 8,759 | 6,315 |
Liabilities | ||||
Balance at Beginning of Period | 3,893 | 3,881 | 3,397 | 4,352 |
Balance at End of Period | 4,134 | 3,233 | 4,134 | 3,233 |
FIA/ IUL embedded derivatives, included in contractholder funds | ||||
Liabilities | ||||
Balance at Beginning of Period | 3,569 | 3,395 | 3,115 | 3,883 |
Liabilities, Total Gains (Losses) Included in Earnings | 197 | (575) | 582 | (1,159) |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 |
Liabilities, Purchases | 93 | 146 | 189 | 272 |
Liabilities, Sales | 0 | 0 | 0 | 0 |
Liabilities, Settlements | (38) | (25) | (65) | (55) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 3,821 | 2,941 | 3,821 | 2,941 |
Change in Unrealized Gains (Losses) Included in OCI | 0 | 0 | 0 | 0 |
Asset-backed securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 6,300 | 4,161 | 6,263 | 3,959 |
Assets, Total Gains (Losses) Included in Earnings | (3) | 1 | (11) | 1 |
Assets, Total Gains (Losses) Included in AOCI | 15 | (142) | 33 | (272) |
Assets, Purchases | 379 | 827 | 795 | 1,227 |
Assets, Sales | (15) | (39) | (98) | (39) |
Assets, Settlements | (151) | (126) | (386) | (278) |
Assets, Net transfer In (Out) of Level 3 | (15) | (5) | (86) | 79 |
Balance at End of Period | 6,510 | 4,677 | 6,510 | 4,677 |
Change in Unrealized Included in OCI | 14 | (153) | 32 | (291) |
Commercial mortgage-backed securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 29 | 40 | 37 | 35 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | (3) | 1 | (5) |
Assets, Purchases | 0 | 0 | 12 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | (12) | 0 | (33) | 7 |
Balance at End of Period | 17 | 37 | 17 | 37 |
Change in Unrealized Included in OCI | 0 | (2) | 1 | (4) |
Corporates | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 1,544 | 1,141 | 1,440 | 1,135 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | (1) | 0 |
Assets, Total Gains (Losses) Included in AOCI | (33) | (64) | (56) | (137) |
Assets, Purchases | 127 | 307 | 261 | 386 |
Assets, Sales | 0 | 0 | (1) | 0 |
Assets, Settlements | (14) | (6) | (19) | (32) |
Assets, Net transfer In (Out) of Level 3 | 4 | (4) | 4 | 22 |
Balance at End of Period | 1,628 | 1,374 | 1,628 | 1,374 |
Change in Unrealized Included in OCI | (33) | (61) | (56) | (134) |
Municipals | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 32 | 37 | 29 | 43 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 17 | (4) | 20 | (10) |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 49 | 33 | 49 | 33 |
Change in Unrealized Included in OCI | 17 | (4) | 20 | (9) |
Residential mortgage-backed securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 12 | 302 | 0 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 1 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 8 | 0 |
Assets, Purchases | 24 | 9 | 32 | 9 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | (8) | 0 |
Assets, Net transfer In (Out) of Level 3 | (8) | 0 | (307) | 0 |
Balance at End of Period | 28 | 9 | 28 | 9 |
Change in Unrealized Included in OCI | 0 | 0 | 8 | 0 |
Foreign Governments | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 16 | 17 | 16 | 18 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | (1) | 0 | (2) |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 16 | 16 | 16 | 16 |
Change in Unrealized Included in OCI | 0 | (1) | 0 | (1) |
Investment in unconsolidated affiliates | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 107 | 21 | 23 | 21 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 |
Assets, Purchases | 90 | 0 | 174 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 197 | 21 | 197 | 21 |
Change in Unrealized Included in OCI | 0 | 0 | 0 | |
Short term investments | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 23 | 19 | 0 | 321 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | (1) |
Assets, Purchases | 103 | 0 | 126 | 20 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | (19) | 0 | (340) |
Balance at End of Period | 126 | 0 | 126 | 0 |
Change in Unrealized Included in OCI | 0 | 0 | 0 | (1) |
Preferred securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 1 | 1 | 1 | 2 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | (1) |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 6 | 0 | 6 | 0 |
Balance at End of Period | 7 | 1 | 7 | 1 |
Change in Unrealized Included in OCI | 0 | 0 | 0 | (1) |
Equity securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 11 | 10 | 10 | 9 |
Assets, Total Gains (Losses) Included in Earnings | (1) | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 |
Assets, Purchases | 0 | 1 | 1 | 1 |
Assets, Sales | 0 | (1) | (1) | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 4 | 0 | 4 | 0 |
Balance at End of Period | 14 | 10 | 14 | 10 |
Change in Unrealized Included in OCI | 0 | 0 | 0 | 0 |
Available-for-sale embedded derivative | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 25 | 30 | 23 | 34 |
Assets, Total Gains (Losses) Included in Earnings | 0 | (6) | 0 | (10) |
Assets, Total Gains (Losses) Included in AOCI | 1 | 0 | 3 | 0 |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | |
Balance at End of Period | 26 | 24 | 26 | 24 |
Change in Unrealized Included in OCI | 1 | 0 | 3 | 0 |
Credit linked note | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 13 | 19 | 15 | 23 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | (3) |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | (2) | (2) | (3) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 13 | 17 | 13 | 17 |
Change in Unrealized Included in OCI | 0 | 0 | 0 | 0 |
Secured borrowing receivable | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 10 | 0 | 10 | 0 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 10 | 0 | 10 |
Balance at End of Period | 10 | 10 | 10 | 10 |
Change in Unrealized Included in OCI | 0 | 0 | 0 | 0 |
Subtotal Level 3 assets at fair value | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 8,169 | 5,600 | ||
Assets, Total Gains (Losses) Included in Earnings | (11) | (9) | ||
Assets, Total Gains (Losses) Included in AOCI | 9 | (431) | ||
Assets, Purchases | 1,401 | 1,643 | ||
Assets, Sales | (100) | (39) | ||
Assets, Settlements | (415) | (313) | ||
Assets, Net transfer In (Out) of Level 3 | (412) | (222) | ||
Balance at End of Period | 8,641 | 6,229 | 8,641 | 6,229 |
Change in Unrealized Included in OCI | 8 | (441) | ||
Subtotal Level 3 assets at fair value | Level 3 | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 8,123 | 5,496 | ||
Balance at End of Period | 8,641 | 6,229 | 8,641 | 6,229 |
Market risk benefits asset | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at End of Period | 118 | 118 | ||
Market risk benefits asset | Level 3 | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 106 | 29 | 117 | 41 |
Balance at End of Period | 118 | 86 | 118 | 86 |
Subtotal Level 3 liabilities at fair value | ||||
Liabilities | ||||
Balance at Beginning of Period | 3,115 | 3,883 | ||
Liabilities, Total Gains (Losses) Included in Earnings | 582 | (1,159) | ||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | ||
Liabilities, Purchases | 189 | 272 | ||
Liabilities, Sales | 0 | 0 | ||
Liabilities, Settlements | (65) | (55) | ||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Balance at End of Period | 3,821 | 2,941 | 3,821 | 2,941 |
Change in Unrealized Gains (Losses) Included in OCI | 0 | 0 | 0 | |
Subtotal Level 3 liabilities at fair value | Level 3 | ||||
Liabilities | ||||
Balance at Beginning of Period | 3,569 | 3,395 | ||
Balance at End of Period | 3,821 | 2,941 | 3,821 | 2,941 |
Market risk benefits liability | Level 3 | ||||
Liabilities | ||||
Balance at Beginning of Period | 324 | 486 | 282 | 469 |
Balance at End of Period | $ 313 | $ 292 | $ 313 | $ 292 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments Carried at Other Than Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Investments in unconsolidated affiliates | $ 3,039 | $ 2,642 |
Trade and notes receivables, net of allowance | 465 | 467 |
Total | ||
Total Estimated Fair Value | ||
Assets | ||
FHLB common stock | 106 | 99 |
Commercial mortgage loans | 2,144 | 2,083 |
Residential mortgage loans | 2,377 | 1,892 |
Investments in unconsolidated affiliates | 2,606 | 2,432 |
Policy loans | 59 | 52 |
Other invested assets | 60 | 109 |
Company-owned life insurance | 387 | 363 |
Trade and notes receivables, net of allowance | 465 | 467 |
Total | 8,204 | 7,497 |
Liabilities | ||
Investment contracts, included in contractholder funds | 37,228 | 34,464 |
Debt | 3,252 | 2,776 |
Total | 40,480 | 37,240 |
Carrying Value | ||
Assets | ||
FHLB common stock | 106 | 99 |
Commercial mortgage loans | 2,457 | 2,406 |
Residential mortgage loans | 2,619 | 2,148 |
Investments in unconsolidated affiliates | 2,606 | 2,432 |
Policy loans | 59 | 52 |
Other invested assets | 60 | 109 |
Company-owned life insurance | 387 | 363 |
Trade and notes receivables, net of allowance | 465 | 467 |
Total | 8,759 | 8,076 |
Liabilities | ||
Investment contracts, included in contractholder funds | 41,249 | 38,412 |
Debt | 3,696 | 3,238 |
Total | 44,945 | 41,650 |
Level 1 | ||
Assets | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Investments in unconsolidated affiliates | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 59 | 93 |
Company-owned life insurance | 35 | 0 |
Trade and notes receivables, net of allowance | 0 | 0 |
Total | 94 | 93 |
Liabilities | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets | ||
FHLB common stock | 106 | 99 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Investments in unconsolidated affiliates | 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 | 106 | 99 |
Liabilities | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 3,252 | 2,776 |
Total | 3,252 | 2,776 |
Level 3 | ||
Assets | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 2,144 | 2,083 |
Residential mortgage loans | 2,377 | 1,892 |
Investments in unconsolidated affiliates | 8 | 5 |
Policy loans | 59 | 52 |
Other invested assets | 1 | 16 |
Company-owned life insurance | 352 | 363 |
Trade and notes receivables, net of allowance | 465 | 467 |
Total | 5,406 | 4,878 |
Liabilities | ||
Investment contracts, included in contractholder funds | 37,228 | 34,464 |
Debt | 0 | 0 |
Total | 37,228 | 34,464 |
NAV | ||
Assets | ||
Investments in unconsolidated affiliates | 2,598 | 2,427 |
Total | $ 2,598 | $ 2,427 |
Investments - Consolidated Inve
Investments - Consolidated Investments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Available-for-sale securities | ||
Amortized Cost | $ 42,312 | $ 37,708 |
Allowance for Expected Credit Losses | (35) | (39) |
Gross Unrealized Gains | 143 | 98 |
Gross Unrealized Losses | (4,391) | (4,672) |
Fair Value/Carrying Value | 38,029 | 33,095 |
Asset-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 13,492 | 12,209 |
Allowance for Expected Credit Losses | (7) | (8) |
Gross Unrealized Gains | 65 | 36 |
Gross Unrealized Losses | (710) | (770) |
Fair Value/Carrying Value | 12,840 | 11,467 |
Commercial mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 4,348 | 3,337 |
Allowance for Expected Credit Losses | (18) | (1) |
Gross Unrealized Gains | 4 | 11 |
Gross Unrealized Losses | (345) | (284) |
Fair Value/Carrying Value | 3,989 | 3,063 |
Corporates | ||
Available-for-sale securities | ||
Amortized Cost | 18,919 | 17,396 |
Allowance for Expected Credit Losses | (2) | (22) |
Gross Unrealized Gains | 46 | 32 |
Gross Unrealized Losses | (2,834) | (3,069) |
Fair Value/Carrying Value | 16,129 | 14,337 |
Hybrids | ||
Available-for-sale securities | ||
Amortized Cost | 773 | 806 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 4 | 9 |
Gross Unrealized Losses | (73) | (84) |
Fair Value/Carrying Value | 704 | 731 |
Municipals | ||
Available-for-sale securities | ||
Amortized Cost | 1,843 | 1,749 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 11 | 4 |
Gross Unrealized Losses | (251) | (293) |
Fair Value/Carrying Value | 1,603 | 1,460 |
Residential mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 2,127 | 1,638 |
Allowance for Expected Credit Losses | (8) | (8) |
Gross Unrealized Gains | 11 | 6 |
Gross Unrealized Losses | (114) | (109) |
Fair Value/Carrying Value | 2,016 | 1,527 |
U.S. Government | ||
Available-for-sale securities | ||
Amortized Cost | 499 | 287 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (16) | (16) |
Fair Value/Carrying Value | 484 | 271 |
Foreign Governments | ||
Available-for-sale securities | ||
Amortized Cost | 311 | 286 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (48) | (47) |
Fair Value/Carrying Value | $ 264 | $ 239 |
Investments - Narrative (Detail
Investments - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | |
Debt Securities, Available-for-sale [Line Items] | |||||
Accrued interest receivable | $ 422,000,000 | $ 422,000,000 | $ 365,000,000 | ||
FHLB collateral pledged | 3,543,000,000 | 3,543,000,000 | 3,387,000,000 | ||
Fixed maturity securities, available-for-sale securities, allowance for credit losses | 35,000,000 | 35,000,000 | 39,000,000 | ||
Purchases of PCD AFS securities | 0 | $ 0 | |||
Allowance for credit loss for securities in an unrealized loss position | $ 0 | $ 0 | |||
DSC ratio, amortization period | 25 years | ||||
Mortgage loans delinquent in principal or interest | loan | 1 | 1 | |||
Amortized cost of loans on non-accrual | $ 81,000,000 | $ 81,000,000 | $ 71,000,000 | ||
Gross investment income | 680,000,000 | 511,000,000 | 1,354,000,000 | $ 1,036,000,000 | |
Reinsurance agreement, recognized gains (losses) | 21,000,000 | 151,000,000 | (1,000,000) | 279,000,000 | |
Funds Withheld, Reinsurance Agreements | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Gross investment income | 76,000,000 | $ 20,000,000 | $ 134,000,000 | $ 38,000,000 | |
United States | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Residential mortgage loans, location percentage | 100% | ||||
Commercial mortgage loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Commercial mortgage loans, percentage of investments | 6% | 6% | |||
Mortgage loans delinquent in principal or interest | loan | 1 | ||||
Amortized cost of loans on non-accrual | $ 9,000,000 | $ 9,000,000 | $ 9,000,000 | ||
Commercial mortgage loans | Mortgage loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Allowance for expected credit loss, probability of loss/default model, projected loss, using reasonable forecast period | 2 years | ||||
Allowance for credit loss, probability of loss/default, using market historical loss experience, period | 3 years | ||||
Residential mortgage loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Residential mortgage loans, percentage of total investments | 6% | 6% | 5% | ||
Amortized cost of loans on non-accrual | $ 72,000,000 | $ 72,000,000 | $ 62,000,000 | ||
Loans in process of foreclosure | 35,000,000 | $ 35,000,000 | 38,000,000 | ||
Residential mortgage loans | Mortgage loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Allowance for expected credit loss, probability of loss/default model, projected loss, using reasonable forecast period | 2 years | ||||
Allowance for credit loss, probability of loss/default, using market historical loss experience, period | 3 years | ||||
Fixed maturity securities, available-for-sale | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Assets held by insurance regulators | $ 19,993,000,000 | $ 19,993,000,000 | $ 17,870,000,000 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Amortized Cost | $ 42,312 | $ 37,708 |
Fair Value | ||
Total fixed maturity available-for-sale securities, Fair Value | 38,029 | 33,095 |
Other securities, which provide for periodic payments: | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 19,993 | 17,210 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 18,872 | 16,083 |
Corporates, Non-structured Hybrids, Municipal and Government securities: | ||
Amortized Cost | ||
Due in one year or less | 594 | 536 |
Due after one year through five years | 4,202 | 3,288 |
Due after five years through ten years | 2,394 | 2,171 |
Due after ten years | 15,129 | 14,503 |
Subtotal, Amortized Cost | 22,319 | 20,498 |
Fair Value | ||
Due in one year or less | 581 | 527 |
Due after one year through five years | 4,001 | 3,089 |
Due after five years through ten years | 2,172 | 1,939 |
Due after ten years | 12,403 | 11,457 |
Subtotal, Fair Value | 19,157 | 17,012 |
Asset-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 13,492 | 12,209 |
Amortized Cost | 13,492 | 12,209 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 12,840 | 11,467 |
Total fixed maturity available-for-sale securities, Fair Value | 12,840 | 11,467 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 4,348 | 3,337 |
Amortized Cost | 4,348 | 3,337 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 3,989 | 3,063 |
Total fixed maturity available-for-sale securities, Fair Value | 3,989 | 3,063 |
Structured hybrids | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 26 | 26 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 27 | 26 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 2,127 | 1,638 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | $ 2,016 | $ 1,527 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions | Jun. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 13,081 | $ 21,860 |
Gross Unrealized Losses Less than 12 months | (712) | (2,667) |
Fair Value, 12 Months or longer | 19,690 | 8,463 |
Gross Unrealized Losses, 12 months or longer | (3,664) | (1,964) |
Total Fair Value | 32,771 | 30,323 |
Total Gross Unrealized Losses | $ (4,376) | $ (4,631) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | security | 2,196 | 3,114 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | security | 2,725 | 1,296 |
Total number of available-for-sale securities in an unrealized loss position | security | 4,921 | 4,410 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 4,219 | $ 7,001 |
Gross Unrealized Losses Less than 12 months | (182) | (410) |
Fair Value, 12 Months or longer | 6,220 | 3,727 |
Gross Unrealized Losses, 12 months or longer | (517) | (360) |
Total Fair Value | 10,439 | 10,728 |
Total Gross Unrealized Losses | (699) | (770) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 1,593 | 2,079 |
Gross Unrealized Losses Less than 12 months | (103) | (169) |
Fair Value, 12 Months or longer | 1,665 | 475 |
Gross Unrealized Losses, 12 months or longer | (243) | (116) |
Total Fair Value | 3,258 | 2,554 |
Total Gross Unrealized Losses | (346) | (285) |
Corporates | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 5,267 | 9,913 |
Gross Unrealized Losses Less than 12 months | (317) | (1,735) |
Fair Value, 12 Months or longer | 9,522 | 3,523 |
Gross Unrealized Losses, 12 months or longer | (2,517) | (1,330) |
Total Fair Value | 14,789 | 13,436 |
Total Gross Unrealized Losses | (2,834) | (3,065) |
Hybrids | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 194 | 628 |
Gross Unrealized Losses Less than 12 months | (15) | (83) |
Fair Value, 12 Months or longer | 457 | 3 |
Gross Unrealized Losses, 12 months or longer | (58) | (1) |
Total Fair Value | 651 | 631 |
Total Gross Unrealized Losses | (73) | (84) |
Municipals | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 557 | 998 |
Gross Unrealized Losses Less than 12 months | (69) | (180) |
Fair Value, 12 Months or longer | 831 | 352 |
Gross Unrealized Losses, 12 months or longer | (183) | (113) |
Total Fair Value | 1,388 | 1,350 |
Total Gross Unrealized Losses | (252) | (293) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 1,035 | 992 |
Gross Unrealized Losses Less than 12 months | (17) | (51) |
Fair Value, 12 Months or longer | 620 | 184 |
Gross Unrealized Losses, 12 months or longer | (93) | (22) |
Total Fair Value | 1,655 | 1,176 |
Total Gross Unrealized Losses | (110) | (73) |
U.S. Government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 150 | 130 |
Gross Unrealized Losses Less than 12 months | (3) | (7) |
Fair Value, 12 Months or longer | 189 | 140 |
Gross Unrealized Losses, 12 months or longer | (12) | (8) |
Total Fair Value | 339 | 270 |
Total Gross Unrealized Losses | (15) | (15) |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 66 | 119 |
Gross Unrealized Losses Less than 12 months | (6) | (32) |
Fair Value, 12 Months or longer | 186 | 59 |
Gross Unrealized Losses, 12 months or longer | (41) | (14) |
Total Fair Value | 252 | 178 |
Total Gross Unrealized Losses | $ (47) | $ (46) |
Investments - Schedule of Comme
Investments - Schedule of Commercial Mortgage Loan Investment (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||||||
Allowance for credit loss | $ (64) | $ (60) | $ (42) | $ (35) | $ (32) | $ (31) |
Total mortgage loans | 5,076 | 4,554 | ||||
Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | 2,470 | 2,416 | ||||
Allowance for credit loss | (13) | $ (12) | (10) | $ (6) | $ (6) | $ (6) |
Total mortgage loans | $ 2,457 | $ 2,406 | ||||
% of Total | 100% | 100% | ||||
East North Central | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 150 | $ 151 | ||||
% of Total | 6% | 6% | ||||
East South Central | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 76 | $ 76 | ||||
% of Total | 3% | 3% | ||||
Middle Atlantic | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 325 | $ 326 | ||||
% of Total | 13% | 13% | ||||
Mountain | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 353 | $ 355 | ||||
% of Total | 14% | 15% | ||||
New England | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 166 | $ 158 | ||||
% of Total | 7% | 7% | ||||
Pacific | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 726 | $ 708 | ||||
% of Total | 29% | 28% | ||||
South Atlantic | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 553 | $ 521 | ||||
% of Total | 22% | 22% | ||||
West North Central | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 4 | $ 4 | ||||
% of Total | 1% | 1% | ||||
West South Central | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 117 | $ 117 | ||||
% of Total | 5% | 5% | ||||
Hotel | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 18 | $ 18 | ||||
% of Total | 1% | 1% | ||||
Industrial | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 538 | $ 520 | ||||
% of Total | 22% | 22% | ||||
Mixed Use Property | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 12 | $ 12 | ||||
% of Total | 1% | 1% | ||||
Multifamily | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 1,012 | $ 1,013 | ||||
% of Total | 41% | 42% | ||||
Office | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 328 | $ 330 | ||||
% of Total | 13% | 14% | ||||
Retail | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 103 | $ 105 | ||||
% of Total | 4% | 4% | ||||
Student Housing | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 83 | $ 83 | ||||
% of Total | 3% | 3% | ||||
Other | Commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 376 | $ 335 | ||||
% of Total | 15% | 13% |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loans Segregated By Risk (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Credit Quality Indicator Prior Year [Abstract] | ||
Loans under development, amortized cost | $ 17 | |
Loans under development, fair value | 17 | |
Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 55 | $ 341 |
2022 | 338 | 1,300 |
2021 | 1,299 | 488 |
2020 | 487 | 0 |
2019 | 0 | 0 |
Prior | 274 | 278 |
Total | 2,453 | 2,407 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 350 | |
2021 | 1,300 | |
2020 | 488 | |
2019 | 0 | |
2018 | 0 | |
Prior | 278 | |
Total | 2,470 | 2,416 |
Loans under development, amortized cost | 9 | 9 |
Loans under development, fair value | 9 | 9 |
Commercial mortgage loans | Current (less than 30 days past due) | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 55 | |
2022 | 338 | |
2021 | 1,299 | |
2020 | 487 | |
2019 | 0 | |
Prior | 265 | |
Total | 2,444 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 350 | |
2021 | 1,300 | |
2020 | 488 | |
2019 | 0 | |
2018 | 0 | |
Prior | 269 | |
Total | 2,407 | |
Commercial mortgage loans | 30-89 days past due | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Total | 0 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Total | 0 | |
Commercial mortgage loans | 90 Days or more past due | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 9 | |
Total | $ 9 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 9 | |
Total | $ 9 |
Investments - Schedule of Inves
Investments - Schedule of Investment in CMLs by Loan to Value and Debt Service Coverage Ratios (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Loans under development, amortized cost | $ 17 | |
Loans under development, fair value | 17 | |
Commercial mortgage loans | ||
Schedule of Investments [Line Items] | ||
Total | $ 2,453 | $ 2,407 |
% of Total | 100% | 100% |
Loans under development, amortized cost | $ 9 | $ 9 |
Loans under development, fair value | 9 | 9 |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 55 | 341 |
2022 | 338 | 1,300 |
2021 | 1,299 | 488 |
2020 | 487 | 0 |
2019 | 0 | 0 |
Prior | 274 | 278 |
Total | 2,453 | 2,407 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 55 | 341 |
2021 | 338 | 1,300 |
2020 | 1,299 | 488 |
2019 | 487 | 0 |
2018 | 0 | 0 |
Prior | 274 | 278 |
Total | 2,453 | 2,407 |
Commercial mortgage loans | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 2,127 | $ 2,074 |
% of Total | 100% | 100% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 2,127 | $ 2,074 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 2,127 | 2,074 |
Commercial mortgage loans | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Total | $ 525 | $ 526 |
% of Total | 21% | 22% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 6 | $ 70 |
2022 | 67 | 120 |
2021 | 119 | 207 |
2020 | 207 | 0 |
2019 | 0 | |
Prior | 126 | 129 |
Total | 525 | 526 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 6 | 70 |
2021 | 67 | 120 |
2020 | 119 | 207 |
2019 | 207 | 0 |
2018 | 0 | |
Prior | 126 | 129 |
Total | 525 | 526 |
Commercial mortgage loans | Less than 50.00% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 491 | $ 490 |
% of Total | 23% | 24% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 491 | $ 490 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 491 | 490 |
Commercial mortgage loans | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Total | $ 740 | $ 706 |
% of Total | 30% | 29% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 27 | $ 149 |
2022 | 149 | 268 |
2021 | 267 | 158 |
2020 | 158 | 0 |
2019 | 0 | |
Prior | 139 | 131 |
Total | 740 | 706 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 27 | 149 |
2021 | 149 | 268 |
2020 | 267 | 158 |
2019 | 158 | 0 |
2018 | 0 | |
Prior | 139 | 131 |
Total | 740 | 706 |
Commercial mortgage loans | 50.00% to 59.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 649 | $ 615 |
% of Total | 30% | 30% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 649 | $ 615 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 649 | 615 |
Commercial mortgage loans | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Total | $ 1,170 | $ 1,157 |
% of Total | 48% | 48% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 22 | $ 113 |
2022 | 113 | 912 |
2021 | 913 | 123 |
2020 | 122 | 0 |
2019 | 0 | |
Prior | 0 | 9 |
Total | 1,170 | 1,157 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 22 | 113 |
2021 | 113 | 912 |
2020 | 913 | 123 |
2019 | 122 | 0 |
2018 | 0 | |
Prior | 0 | 9 |
Total | 1,170 | 1,157 |
Commercial mortgage loans | 60.00% to 74.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 973 | $ 955 |
% of Total | 46% | 45% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 973 | $ 955 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 973 | 955 |
Commercial mortgage loans | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Total | $ 18 | $ 18 |
% of Total | 1% | 1% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 0 | $ 9 |
2022 | 9 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | |
Prior | 9 | 9 |
Total | 18 | 18 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | 9 |
2021 | 9 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | |
Prior | 9 | 9 |
Total | 18 | 18 |
Commercial mortgage loans | 75.00% to 84.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 14 | $ 14 |
% of Total | 1% | 1% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 14 | $ 14 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 14 | 14 |
Greater than 1.25 | Commercial mortgage loans | ||
Schedule of Investments [Line Items] | ||
Total | 2,410 | 2,371 |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 48 | 329 |
2022 | 326 | 1,300 |
2021 | 1,299 | 488 |
2020 | 487 | 0 |
2019 | 0 | |
Prior | 250 | 254 |
Total | 2,410 | 2,371 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 48 | 329 |
2021 | 326 | 1,300 |
2020 | 1,299 | 488 |
2019 | 487 | 0 |
2018 | 0 | |
Prior | 250 | 254 |
Total | 2,410 | 2,371 |
Greater than 1.25 | Commercial mortgage loans | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Total | 510 | 511 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 510 | 511 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 510 | 511 |
Greater than 1.25 | Commercial mortgage loans | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Total | 740 | 706 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 740 | 706 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 740 | 706 |
Greater than 1.25 | Commercial mortgage loans | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Total | 1,160 | 1,154 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 1,160 | 1,154 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 1,160 | 1,154 |
Greater than 1.25 | Commercial mortgage loans | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Greater than 1.00 but less than 1.25 | Commercial mortgage loans | ||
Schedule of Investments [Line Items] | ||
Total | 14 | 7 |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 7 | 3 |
2022 | 3 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | |
Prior | 4 | 4 |
Total | 14 | 7 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 7 | 3 |
2021 | 3 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | |
Prior | 4 | 4 |
Total | 14 | 7 |
Greater than 1.00 but less than 1.25 | Commercial mortgage loans | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Total | 4 | 4 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 4 | 4 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 4 | 4 |
Greater than 1.00 but less than 1.25 | Commercial mortgage loans | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Greater than 1.00 but less than 1.25 | Commercial mortgage loans | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Total | 10 | 3 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 10 | 3 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 10 | 3 |
Greater than 1.00 but less than 1.25 | Commercial mortgage loans | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | Commercial mortgage loans | ||
Schedule of Investments [Line Items] | ||
Total | 29 | 29 |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | 9 |
2022 | 9 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | |
Prior | 20 | 20 |
Total | 29 | 29 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | 9 |
2021 | 9 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | |
Prior | 20 | 20 |
Total | 29 | 29 |
Less than 1.00 | Commercial mortgage loans | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Total | 11 | 11 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 11 | 11 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 11 | 11 |
Less than 1.00 | Commercial mortgage loans | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | Commercial mortgage loans | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | Commercial mortgage loans | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Total | 18 | 18 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 18 | 18 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | $ 18 | $ 18 |
Investments - Distribution of R
Investments - Distribution of Residential Mortgage Loans by State (Details) - Residential mortgage loans - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 2,670 | $ 2,180 |
% of Total | 100% | 100% |
Florida | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 152 | $ 324 |
% of Total | 5% | 15% |
Texas | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 215 | |
% of Total | 10% | |
New Jersey | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 172 | |
% of Total | 8% | |
Pennsylvania | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 153 | |
% of Total | 7% | |
California | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 123 | $ 139 |
% of Total | 5% | 6% |
NEW YORK | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 131 | $ 138 |
% of Total | 5% | 6% |
Georgia | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 125 | |
% of Total | 6% | |
All other states | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 2,264 | $ 914 |
% of Total | 85% | 42% |
Investments - Schedule of Resid
Investments - Schedule of Residential Mortgage Loans with Credit Quality Indicators, Performing or Nonperforming (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||||||
Allowance for credit loss | $ (64) | $ (60) | $ (42) | $ (35) | $ (32) | $ (31) |
Total mortgage loans | 5,076 | 4,554 | ||||
Residential mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 2,670 | $ 2,180 | ||||
% of Total | 100% | 100% | ||||
Allowance for credit loss | $ (51) | $ (48) | $ (32) | $ (29) | $ (26) | $ (25) |
Allowance for expected credit loss, % of Total | 0% | 0% | ||||
Total mortgage loans | $ 2,619 | $ 2,148 | ||||
Total residential mortgage loans, net of valuation allowance, % of Total | 100% | 100% | ||||
Performing Financial Instruments | Residential mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 2,598 | $ 2,118 | ||||
% of Total | 97% | 97% | ||||
Nonperforming Financial Instruments | Residential mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 72 | $ 62 | ||||
% of Total | 3% | 3% |
Investments - Schedule of Res_2
Investments - Schedule of Residential Loans Segregated by Risk Rating Exposure and Non-accrual Loans by Amortized Cost (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | $ 81 | $ 71 |
Residential mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 137 | 771 |
2022 | 976 | 900 |
2021 | 906 | 229 |
2020 | 220 | 223 |
2019 | 225 | 24 |
Prior | 206 | 33 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 137 | 771 |
2021 | 976 | 900 |
2020 | 906 | 229 |
2019 | 220 | 223 |
2018 | 225 | 24 |
Prior | 206 | 33 |
Total | 2,670 | 2,180 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 72 | 62 |
Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 350 | |
2022 | 1,300 | |
2021 | 488 | |
2020 | 0 | |
2019 | 0 | |
Prior | 278 | |
Total | 2,453 | 2,407 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 350 | |
2021 | 1,300 | |
2020 | 488 | |
2019 | 0 | |
2018 | 0 | |
Prior | 278 | |
Total | 2,470 | 2,416 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 9 | 9 |
Current (less than 30 days past due) | Residential mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 137 | 766 |
2022 | 963 | 884 |
2021 | 862 | 214 |
2020 | 200 | 185 |
2019 | 192 | 23 |
Prior | 199 | 33 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 137 | 766 |
2021 | 963 | 884 |
2020 | 862 | 214 |
2019 | 200 | 185 |
2018 | 192 | 23 |
Prior | 199 | 33 |
Total | 2,553 | 2,105 |
Current (less than 30 days past due) | Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 350 | |
2022 | 1,300 | |
2021 | 488 | |
2020 | 0 | |
2019 | 0 | |
Prior | 269 | |
Total | 2,444 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 350 | |
2021 | 1,300 | |
2020 | 488 | |
2019 | 0 | |
2018 | 0 | |
Prior | 269 | |
Total | 2,407 | |
30-89 days past due | Residential mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 0 | 2 |
2022 | 6 | 7 |
2021 | 24 | 0 |
2020 | 5 | 4 |
2019 | 4 | 0 |
Prior | 6 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | 2 |
2021 | 6 | 7 |
2020 | 24 | 0 |
2019 | 5 | 4 |
2018 | 4 | 0 |
Prior | 6 | 0 |
Total | 45 | 13 |
30-89 days past due | Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Total | 0 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Total | 0 | |
90 Days or more past due | Residential mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 0 | 3 |
2022 | 7 | 9 |
2021 | 20 | 15 |
2020 | 15 | 34 |
2019 | 29 | 1 |
Prior | 1 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | 3 |
2021 | 7 | 9 |
2020 | 20 | 15 |
2019 | 15 | 34 |
2018 | 29 | 1 |
Prior | 1 | 0 |
Total | 72 | 62 |
90 Days or more past due | Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 9 | |
Total | $ 9 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 9 | |
Total | $ 9 |
Investments - Changes in Allowa
Investments - Changes in Allowance for Expected Credit Losses on Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ (60) | $ (32) | $ (42) | $ (31) |
Provision for loan losses | (4) | (3) | (22) | (4) |
Ending Balance | (64) | (35) | (64) | (35) |
Residential mortgage loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (48) | (26) | (32) | (25) |
Provision for loan losses | (3) | (3) | (19) | (4) |
Ending Balance | (51) | (29) | (51) | (29) |
Commercial mortgage loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (12) | (6) | (10) | (6) |
Provision for loan losses | (1) | 0 | (3) | 0 |
Ending Balance | $ (13) | $ (6) | $ (13) | $ (6) |
Investments - Interest and Inve
Investments - Interest and Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Investments [Line Items] | ||||
Gross investment income | $ 680 | $ 511 | $ 1,354 | $ 1,036 |
Investment expense | (62) | (48) | (125) | (95) |
Interest and investment income | 618 | 463 | 1,229 | 941 |
Fixed maturity securities, available-for-sale | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 464 | 350 | 912 | 682 |
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 7 | 7 | 15 | 15 |
Preferred securities | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 15 | 20 | 28 | 35 |
Mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 57 | 49 | 108 | 88 |
Invested cash and short-term investments | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 34 | 13 | 67 | 18 |
Limited partnerships | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 45 | 58 | 103 | 171 |
Tax deferred property exchange income | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 40 | 10 | 83 | 14 |
Other investments | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | $ 18 | $ 4 | $ 38 | $ 13 |
Investments - Recognized Gains
Investments - Recognized Gains (Losses), net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Investments [Line Items] | ||||
Net realized losses on fixed maturity available-for-sale securities | $ (54) | $ (61) | $ (104) | $ (98) |
Realized losses on other invested assets | (24) | (9) | (29) | (10) |
Change in allowance for expected credit losses | (20) | (9) | (23) | (12) |
Realized (losses) gains on certain derivative instruments | (65) | (35) | (154) | 15 |
Unrealized gains (losses) on certain derivative instruments | 164 | (359) | 311 | (717) |
Change in fair value of other derivatives and embedded derivatives | 1 | (5) | 3 | (8) |
Realized gains (losses) on derivatives and embedded derivatives | 117 | (258) | 158 | (447) |
Recognized gains and losses, net | (16) | (676) | (11) | (1,145) |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | ||||
Schedule of Investments [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 17 | 141 | (2) | 263 |
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized (losses) gains on securities | (37) | (221) | (5) | (370) |
Valuation (losses) gains | (37) | (222) | 9 | (388) |
Preferred securities | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized (losses) gains on securities | 2 | (118) | (8) | (208) |
Valuation (losses) gains | $ 16 | $ (118) | $ 50 | $ (207) |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds | $ 609 | $ 802 | $ 1,098 | $ 1,835 |
Gross gains | 0 | 1 | 8 | 5 |
Gross losses | $ (33) | $ (61) | $ (90) | $ (69) |
Investments - VIE (Details)
Investments - VIE (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 21,274 | $ 18,107 |
Maximum Loss Exposure | 25,344 | 21,434 |
Investment in unconsolidated affiliates | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 2,803 | 2,427 |
Maximum Loss Exposure | 4,491 | 4,030 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 18,471 | 15,680 |
Maximum Loss Exposure | $ 20,853 | $ 17,404 |
Investments - Schedule of Inv_2
Investments - Schedule of Investment Concentrations (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Blackstone Wave Asset Holdco | Stockholders' Equity | Investment Risk Concentration | |
Schedule of Investments [Line Items] | |
Investment owned, at fair value | $ 738 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amounts of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Total asset derivatives | $ 952 | $ 546 |
Total liability derivatives | 3,821 | 3,115 |
Derivative investments | Call options | ||
Derivative [Line Items] | ||
Total asset derivatives | 649 | 244 |
Other long-term investments | Embedded derivatives | ||
Derivative [Line Items] | ||
Total asset derivatives | 26 | 23 |
Prepaid expenses and other assets | Embedded derivatives | ||
Derivative [Line Items] | ||
Total asset derivatives | 277 | 279 |
Contractholder funds | FIA/ IUL embedded derivatives, included in contractholder funds | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 3,821 | $ 3,115 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Call options | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | $ 98 | $ (395) | $ 153 | $ (709) |
Futures contracts | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 0 | (8) | 5 | (5) |
Foreign currency forwards | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 0 | 9 | (1) | 12 |
Other embedded derivatives | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 2 | (5) | 3 | (8) |
Reinsurance related embedded derivatives | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 17 | 141 | (2) | 263 |
Total net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 117 | (258) | 158 | (447) |
FIA/ IUL embedded derivatives (decrease) increase | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | $ 252 | $ (454) | $ 706 | $ (942) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) contract | Dec. 31, 2022 USD ($) contract | |
All Counterparties Except Merrill Lynch | ||
Derivative [Line Items] | ||
Counterparties, collateral required threshold | 0% | |
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 | $ 579 | $ 219 |
Maximum amount of loss due to credit risk | 81 | 33 |
Call options | Derivatives for Trading and Investment | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | 579 | 219 |
Maximum amount of loss due to credit risk | 81 | 33 |
Call options | Cash and Cash Equivalents | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 459 | $ 178 |
Futures contracts | ||
Derivative [Line Items] | ||
Number of instruments held | contract | 409,000,000 | 409,000,000 |
Collateral held | $ 4 | $ 3 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Exposure to Credit Loss on Call Options Held (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 952 | $ 546 |
Not Designated as Hedging Instrument | Call options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 25,372 | 23,297 |
Fair Value | 648 | 244 |
Collateral | 579 | 219 |
Net Credit Risk | 81 | 33 |
Not Designated as Hedging Instrument | Call options | Merrill Lynch | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,033 | 3,563 |
Fair Value | 69 | 23 |
Collateral | 26 | 0 |
Net Credit Risk | 43 | 23 |
Not Designated as Hedging Instrument | Call options | Morgan Stanley | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,375 | 1,699 |
Fair Value | 50 | 14 |
Collateral | 60 | 19 |
Net Credit Risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Barclay's Bank | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,137 | 6,049 |
Fair Value | 121 | 65 |
Collateral | 113 | 59 |
Net Credit Risk | 8 | 6 |
Not Designated as Hedging Instrument | Call options | Canadian Imperial Bank of Commerce | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,542 | 5,169 |
Fair Value | 204 | 68 |
Collateral | 180 | 64 |
Net Credit Risk | 24 | 4 |
Not Designated as Hedging Instrument | Call options | Wells Fargo | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,480 | 1,361 |
Fair Value | 54 | 17 |
Collateral | 53 | 17 |
Net Credit Risk | 1 | 0 |
Not Designated as Hedging Instrument | Call options | Goldman Sachs | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,212 | 1,133 |
Fair Value | 23 | 9 |
Collateral | 22 | 10 |
Net Credit Risk | 1 | 0 |
Not Designated as Hedging Instrument | Call options | Credit Suisse | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 266 | 1,039 |
Fair Value | 9 | 5 |
Collateral | 9 | 5 |
Net Credit Risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Truist | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,055 | 2,489 |
Fair Value | 89 | 35 |
Collateral | 85 | 36 |
Net Credit Risk | 4 | 0 |
Not Designated as Hedging Instrument | Call options | Citibank | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,272 | 795 |
Fair Value | 29 | 8 |
Collateral | 31 | 9 |
Net Credit Risk | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Apr. 19, 2023 | Aug. 31, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | |
Other Commitments [Line Items] | ||||
Estimated litigation liability | $ 8 | $ 12 | ||
Matter of FGL Holdings | ||||
Other Commitments [Line Items] | ||||
Number of shares in which statutory appraisal rights have been claimed (in shares) | 12,000,000 | |||
Matter of FGL Holdings | Settled Litigation | ||||
Other Commitments [Line Items] | ||||
Litigation amount awarded from other party | $ 4 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Investment Commitments (Details) - Commitment to Invest $ in Millions | Jun. 30, 2023 USD ($) |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 4,059 |
Limited partnerships | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,688 |
Whole loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,044 |
Fixed maturity securities, ABS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 247 |
Direct Lending | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 910 |
Other fixed maturity securities, AFS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 21 |
Commercial mortgage loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 16 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 125 |
Other invested assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 6 |
Committed amounts included in liabilities | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 2 |
Dividends (Details)
Dividends (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Aug. 08, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Subsequent Event [Line Items] | |||||
Cash dividend per common share (in dollars per share) | $ 0.45 | $ 0.44 | $ 0.90 | $ 0.88 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividend per common share (in dollars per share) | $ 0.45 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Title premiums | $ 1,254 | $ 2,062 | $ 2,232 | $ 3,928 | |
Other revenues | 1,212 | 786 | 2,092 | 2,078 | |
Revenues from external customers | 2,466 | 2,848 | 4,324 | 6,006 | |
Interest and investment income, including recognized gains and losses, net | 602 | (213) | 1,218 | (204) | |
Total revenues | 3,068 | 2,635 | 5,542 | 5,802 | |
Depreciation and amortization | 151 | 120 | 285 | 235 | |
Interest expense | 43 | 31 | 85 | 61 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 332 | 731 | 258 | 1,287 | |
Income tax expense (benefit) | 90 | 202 | 104 | 358 | |
Earnings before equity in earnings of unconsolidated affiliates | 242 | 529 | 154 | 929 | |
Equity in earnings (loss) of unconsolidated affiliates | 1 | 14 | 1 | 16 | |
Net earnings (loss) from continuing operations | 243 | 543 | 155 | 945 | |
Total | 73,021 | 61,012 | 73,021 | 61,012 | $ 65,143 |
Goodwill | 4,811 | 4,531 | 4,811 | 4,531 | $ 4,635 |
Operating Segments | Title | |||||
Segment Reporting Information [Line Items] | |||||
Title premiums | 1,254 | 2,062 | 2,232 | 3,928 | |
Other revenues | 581 | 706 | 1,052 | 1,371 | |
Revenues from external customers | 1,835 | 2,768 | 3,284 | 5,299 | |
Interest and investment income, including recognized gains and losses, net | 29 | (214) | 132 | (362) | |
Total revenues | 1,864 | 2,554 | 3,416 | 4,937 | |
Depreciation and amortization | 39 | 34 | 76 | 67 | |
Interest expense | 0 | 0 | 0 | 0 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 233 | 267 | 390 | 516 | |
Income tax expense (benefit) | 65 | 111 | 92 | 168 | |
Earnings before equity in earnings of unconsolidated affiliates | 168 | 156 | 298 | 348 | |
Equity in earnings (loss) of unconsolidated affiliates | 1 | 14 | 1 | 16 | |
Net earnings (loss) from continuing operations | 169 | 170 | 299 | 364 | |
Total | 8,145 | 9,309 | 8,145 | 9,309 | |
Goodwill | 2,770 | 2,516 | 2,770 | 2,516 | |
Operating Segments | F&G | |||||
Segment Reporting Information [Line Items] | |||||
Title premiums | 0 | 0 | 0 | 0 | |
Other revenues | 576 | 71 | 941 | 667 | |
Revenues from external customers | 576 | 71 | 941 | 667 | |
Interest and investment income, including recognized gains and losses, net | 592 | (1) | 1,096 | 153 | |
Total revenues | 1,168 | 70 | 2,037 | 820 | |
Depreciation and amortization | 104 | 80 | 194 | 156 | |
Interest expense | 25 | 9 | 47 | 17 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 163 | 482 | (40) | 827 | |
Income tax expense (benefit) | 33 | 97 | 25 | 203 | |
Earnings before equity in earnings of unconsolidated affiliates | 130 | 385 | (65) | 624 | |
Equity in earnings (loss) of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Net earnings (loss) from continuing operations | 130 | 385 | (65) | 624 | |
Total | 62,564 | 49,389 | 62,564 | 49,389 | |
Goodwill | 1,749 | 1,749 | 1,749 | 1,749 | |
Operating Segments | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Title premiums | 0 | 0 | 0 | 0 | |
Other revenues | 55 | 9 | 99 | 40 | |
Revenues from external customers | 55 | 9 | 99 | 40 | |
Interest and investment income, including recognized gains and losses, net | (19) | 2 | (10) | 5 | |
Total revenues | 36 | 11 | 89 | 45 | |
Depreciation and amortization | 8 | 6 | 15 | 12 | |
Interest expense | 18 | 22 | 38 | 44 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | (64) | (18) | (92) | (56) | |
Income tax expense (benefit) | (8) | (6) | (13) | (13) | |
Earnings before equity in earnings of unconsolidated affiliates | (56) | (12) | (79) | (43) | |
Equity in earnings (loss) of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Net earnings (loss) from continuing operations | (56) | (12) | (79) | (43) | |
Total | 2,312 | 2,314 | 2,312 | 2,314 | |
Goodwill | $ 292 | $ 266 | $ 292 | $ 266 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash paid for: | ||
Interest | $ 61 | $ 63 |
Income taxes | 54 | 202 |
Deferred sales inducements | 68 | 38 |
Non-cash investing and financing activities: | ||
Change in proceeds of sales of investments available for sale receivable in period | (132) | 151 |
Change in purchases of investments available for sale payable in period | 238 | 212 |
Change in contractholder deposits for FABN issuance | 0 | 300 |
Lease liabilities recognized in exchange for lease right-of-use assets | 21 | 42 |
Remeasurement of lease liabilities | 41 | 41 |
Liabilities assumed in connection with acquisitions | ||
Fair value of assets acquired | 299 | 0 |
Less: Total Purchase price | 293 | 0 |
Noncash or Part Noncash Acquisition, Liabilities Assumed and Noncontrolling Interest | $ 6 | $ 0 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 514 | $ 637 | $ 932 | $ 1,230 |
Interest and investment income | 618 | 463 | 1,229 | 941 |
Recognized gains and losses, net | (16) | (676) | (11) | (1,145) |
Total revenues | 3,068 | 2,635 | 5,542 | 5,802 |
Title | ||||
Disaggregation of Revenue [Line Items] | ||||
Loan subservicing revenue | 69 | 67 | 129 | 143 |
Title | Direct title insurance premiums | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 541 | 859 | 969 | 1,626 |
Title | Agency title insurance premiums | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 713 | 1,203 | 1,263 | 2,302 |
Title | Home warranty | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 37 | 43 | 67 | 77 |
Title | Insurance contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,867 | 2,176 | 3,240 | 4,672 |
Title | Escrow fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 219 | 294 | 379 | 559 |
Title | Other title-related fees and income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 169 | 210 | 315 | 406 |
Title | ServiceLink, excluding title premiums, escrow fees, and subservicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 87 | 92 | 162 | 186 |
F&G | Life insurance premiums, insurance and investment product fees, and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 576 | 71 | 941 | 667 |
Corporate and other | Real estate technology | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 39 | 41 | 76 | 79 |
Corporate and other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 16 | $ (32) | $ 23 | $ (39) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Home warranty contract, period | 1 year |
Revenue Recognition - Informati
Revenue Recognition - Information about Trade Receivables and Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables | $ 344 | $ 344 | $ 349 |
Deferred revenue (contract liabilities) | 313 | $ 313 | $ 271 |
Policy period | 1 year | ||
Revenue recognized | $ 38 | $ 59 |
Value of Business Acquired, D_3
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Reconciliation of Other Intangibles to Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | $ 1,529 | $ 1,615 | $ 1,704 | $ 1,743 |
DAC | 1,856 | 1,411 | ||
DSI | 258 | 200 | $ 159 | $ 127 |
Total Other intangible assets, net | 4,317 | 3,811 | ||
Indefinite lived tradenames and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite lived tradenames and other | 60 | 60 | ||
Customer relationships and contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 209 | 202 | ||
Value of distribution asset | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 93 | 100 | ||
Computer software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 280 | 196 | ||
Definite lived trademarks, tradenames, and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | $ 32 | $ 27 |
Value of Business Acquired, D_4
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - VOBA (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
VOBA | ||
VOBA at beginning of period | $ 1,615 | $ 1,743 |
Amortization | (86) | (91) |
Shadow Premium Deficiency Testing (“PDT”) | 52 | |
VOBA at end of period | 1,529 | 1,704 |
FIA | ||
VOBA | ||
VOBA at beginning of period | 1,166 | 1,314 |
Amortization | (71) | (76) |
Shadow Premium Deficiency Testing (“PDT”) | 0 | |
VOBA at end of period | 1,095 | 1,238 |
Fixed Rate Annuities | ||
VOBA | ||
VOBA at beginning of period | 32 | 39 |
Amortization | (3) | (3) |
Shadow Premium Deficiency Testing (“PDT”) | 0 | |
VOBA at end of period | 29 | 36 |
Immediate Annuities | ||
VOBA | ||
VOBA at beginning of period | 201 | 212 |
Amortization | (6) | (6) |
Shadow Premium Deficiency Testing (“PDT”) | 0 | |
VOBA at end of period | 195 | 206 |
Universal Life | ||
VOBA | ||
VOBA at beginning of period | 143 | 153 |
Amortization | (4) | (5) |
Shadow Premium Deficiency Testing (“PDT”) | 0 | |
VOBA at end of period | 139 | 148 |
Traditional Life | ||
VOBA | ||
VOBA at beginning of period | 73 | 25 |
Amortization | (2) | (1) |
Shadow Premium Deficiency Testing (“PDT”) | 52 | |
VOBA at end of period | $ 71 | $ 76 |
Value of Business Acquired, D_5
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
VOBA amortization | $ (86) | $ (91) |
DAC amortization | (83) | (42) |
DSI amortization | $ (10) | $ (6) |
Value of Business Acquired, D_6
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Reconciliation (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | $ 1,529 | $ 1,615 | $ 1,704 | $ 1,743 |
DAC | 1,856 | 1,411 | ||
DSI | 258 | 200 | 159 | 127 |
FIA | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 1,095 | 1,166 | 1,238 | 1,314 |
DAC | 1,173 | 971 | ||
DSI | 258 | 200 | 159 | 127 |
Fixed Rate Annuities | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 29 | 32 | 36 | 39 |
DAC | 233 | 83 | ||
Immediate Annuities | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 195 | 201 | 206 | 212 |
Universal Life | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 139 | 143 | 148 | 153 |
DAC | 441 | 348 | ||
Traditional Life | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 71 | 73 | $ 76 | $ 25 |
Funding Agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
DAC | $ 9 | $ 9 |
Value of Business Acquired, D_7
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - DAC (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
DAC | ||
DAC at beginning of period | $ 1,402 | $ 775 |
Capitalization | 449 | 332 |
Amortization | (83) | (42) |
Reinsurance related adjustments | 79 | |
DAC at end of period | 1,847 | 1,065 |
FIA | ||
DAC | ||
DAC at beginning of period | 971 | 564 |
Capitalization | 249 | 216 |
Amortization | (47) | (29) |
Reinsurance related adjustments | 0 | |
DAC at end of period | 1,173 | 751 |
Fixed Rate Annuities | ||
DAC | ||
DAC at beginning of period | 83 | 38 |
Capitalization | 91 | 25 |
Amortization | (20) | (4) |
Reinsurance related adjustments | 79 | |
DAC at end of period | 233 | 59 |
Universal Life | ||
DAC | ||
DAC at beginning of period | 348 | 173 |
Capitalization | 109 | 91 |
Amortization | (16) | (9) |
Reinsurance related adjustments | 0 | |
DAC at end of period | $ 441 | $ 255 |
Value of Business Acquired, D_8
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - DSI (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
DSI | ||
DSI at beginning of period | $ 200 | $ 127 |
Capitalization | 68 | 38 |
Amortization | (10) | (6) |
DSI at end of period | 258 | 159 |
FIA | ||
DSI | ||
DSI at beginning of period | 200 | 127 |
Capitalization | 68 | 38 |
Amortization | (10) | (6) |
DSI at end of period | $ 258 | $ 159 |
Value of Business Acquired, D_9
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 80 |
2024 | 151 |
2025 | 139 |
2026 | 128 |
2027 | 117 |
Thereafter | $ 914 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Premiums and other considerations: | ||||
Direct | $ 510 | $ 39 | $ 811 | $ 606 |
Ceded | (27) | (35) | (53) | (67) |
Net | 483 | 4 | 758 | 539 |
Benefits and Other Changes in Insurance Policy Reserves: | ||||
Direct | 862 | 204 | 1,734 | 709 |
Ceded | (45) | (581) | (105) | (883) |
Net | $ 817 | $ (377) | $ 1,629 | $ (174) |
F&G Reinsurance - Credit Loss (
F&G Reinsurance - Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | $ (10) | $ (20) | $ (10) | $ (20) |
Changes in the expected credit loss reserve | 1 | 1 | 1 | 1 |
Balance at Ending of Period | $ (9) | $ (19) | $ (9) | $ (19) |
F&G Reinsurance - Narrative (De
F&G Reinsurance - Narrative (Details) $ in Millions | 1 Months Ended | 6 Months Ended | |||
Sep. 01, 2022 USD ($) | Jan. 15, 2021 | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) policy | Dec. 31, 2022 USD ($) | |
Ceded Credit Risk [Line Items] | |||||
Number of policies reinsured by foreign company not engaged in insurance | policy | 0 | ||||
Net amount recoverable | $ 7,077 | $ 5,418 | |||
Aspida Re | |||||
Ceded Credit Risk [Line Items] | |||||
Funds withheld co-insurance basis, percentage | 50% | ||||
Funds withheld coinsurance basis policies ceded on quota share basis, monthly cession capped amount | $ 350 | $ 450 | |||
Aspida Re | AM Best, A- Rating | |||||
Ceded Credit Risk [Line Items] | |||||
Net amount recoverable | 4,857 | ||||
Aspida Re | Minimum | |||||
Ceded Credit Risk [Line Items] | |||||
Funds withheld co-insurance basis, percentage | 50% | ||||
Aspida Re | Maximum | |||||
Ceded Credit Risk [Line Items] | |||||
Funds withheld co-insurance basis, percentage | 75% | ||||
Wilton Reassurance Company | AM Best, A+ Rating | Fitch, A Rating | |||||
Ceded Credit Risk [Line Items] | |||||
Net amount recoverable | 1,157 | ||||
Somerset | AM Best, A- Rating | Standard & Poor's, BBB+ Rating | |||||
Ceded Credit Risk [Line Items] | |||||
Net amount recoverable | $ 543 |
F&G Insurance Subsidiary Fina_2
F&G Insurance Subsidiary Financial Information and Regulatory Matters (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Insurance [Abstract] | ||
Decrease in statutory capital and surplus | $ 202 | $ (152) |
Increase to statutory capital for investment carried at net asset value | 15 | 13 |
Change in statutory capital surplus increase (decrease) | 200 | 200 |
Statutory capital and surplus | $ 107 | $ 121 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2023 | Dec. 19, 2022 | Aug. 09, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 4,811 | $ 4,635 | $ 4,531 | |||
TitlePoint | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 224 | |||||
Goodwill | 146 | |||||
Fair value estimates for other intangibles | 73 | |||||
Fair value estimate for other assets | $ 5 | |||||
AllFirst Title Insurance Agency | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 10 | $ 130 | ||||
Goodwill | 104 | |||||
Fair value estimates for other intangibles | 55 | |||||
Preliminary fair value allocation, other intangible assets | 55 | |||||
Preliminary fair value allocation, other assets | 40 | |||||
Preliminary fair value allocation, other liabilities | 18 | |||||
Preliminary fair value allocation, noncontrolling interest | $ 46 | |||||
Percentage of outstanding equity acquired | 6% | 74% |
Acquisitions - Carrying Value a
Acquisitions - Carrying Value and Estimated Useful Lives (Details) - USD ($) $ in Millions | Jan. 01, 2023 | Aug. 09, 2022 |
TitlePoint | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 73 | |
TitlePoint | Customer relationships | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 9 | |
Weighted Average Estimated Useful Life (in years) | 10 years | |
TitlePoint | Trade name | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 4 | |
Weighted Average Estimated Useful Life (in years) | 10 years | |
TitlePoint | Software | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 60 | |
Weighted Average Estimated Useful Life (in years) | 7 years | |
AllFirst Title Insurance Agency | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 55 | |
AllFirst Title Insurance Agency | Customer relationships | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 46 | |
Weighted Average Estimated Useful Life (in years) | 10 years | |
AllFirst Title Insurance Agency | Trade name | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 7 | |
Weighted Average Estimated Useful Life (in years) | 10 years | |
AllFirst Title Insurance Agency | Non-compete agreements | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 1 | |
Weighted Average Estimated Useful Life (in years) | 5 years | |
AllFirst Title Insurance Agency | Software | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Value | $ 1 | |
Weighted Average Estimated Useful Life (in years) | 2 years |
Notes Payable - Schedule of Lon
Notes Payable - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jan. 13, 2023 | Dec. 31, 2022 | Nov. 22, 2022 | Sep. 17, 2021 | Sep. 15, 2020 | Aug. 13, 2018 |
Debt Instrument [Line Items] | |||||||
Notes payable | $ 3,696 | $ 3,238 | |||||
4.50% Notes, net of discount | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||
4.50% Notes, net of discount | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||
Notes payable | $ 445 | 445 | |||||
3.40% Notes, net of discount | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 3.40% | ||||||
Notes payable | $ 644 | 644 | |||||
2.45% Notes, net of discount | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 2.45% | ||||||
2.45% Notes, net of discount | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 2.45% | ||||||
Notes payable | $ 594 | 594 | |||||
3.20% Notes, net of discount | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 3.20% | ||||||
3.20% Notes, net of discount | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 3.20% | ||||||
Notes payable | $ 444 | 444 | |||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable | 2 | 3 | |||||
F&G Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable | $ 511 | 547 | |||||
7.40% F&G Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 7.40% | 7.40% | |||||
Notes payable | $ 495 | 0 | |||||
5.50% F&G Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 5.50% | ||||||
Notes payable | $ 565 | $ 567 | |||||
5.50% F&G Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 5.50% |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) - USD ($) | 6 Months Ended | ||||||||||
Feb. 21, 2023 | Nov. 22, 2022 | Sep. 17, 2021 | Sep. 15, 2020 | Jun. 12, 2020 | Apr. 20, 2018 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 13, 2023 | Jun. 01, 2020 | Aug. 13, 2018 | |
Debt Instrument [Line Items] | |||||||||||
Outstanding principal | $ 3,711,000,000 | ||||||||||
Repayment of principal borrowed | $ 35,000,000 | $ 0 | |||||||||
7.40% F&G Senior Notes | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 7.40% | 7.40% | |||||||||
F&G Credit Agreement | Revolving Credit Facility | Fed Funds Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 0.05% | ||||||||||
F&G Credit Agreement | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date, principal amount , maximum | $ 150,000,000 | ||||||||||
F&G Credit Agreement | Line of Credit | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility | $ 665,000,000 | $ 550,000,000 | |||||||||
Debt, period prior to maturity date (days) | 91 days | ||||||||||
Prior debt redeemed or paid and any refinancing of debt incurred matures period (at least) | 91 days | ||||||||||
Period from effective date | 3 years | ||||||||||
Credit facility, increase in borrowing commitments | $ 115,000,000 | ||||||||||
F&G Credit Agreement | Line of Credit | Revolving Credit Facility | Condition One | Minimum | Secured Overnight Financing Rate (SOFR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 0.30% | ||||||||||
F&G Credit Agreement | Line of Credit | Revolving Credit Facility | Condition One | Maximum | Secured Overnight Financing Rate (SOFR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 0.80% | ||||||||||
F&G Credit Agreement | Line of Credit | Revolving Credit Facility | Condition Two | Minimum | Secured Overnight Financing Rate (SOFR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 1.30% | ||||||||||
F&G Credit Agreement | Line of Credit | Revolving Credit Facility | Condition Two | Maximum | Secured Overnight Financing Rate (SOFR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as percent) | 1.80% | ||||||||||
5.50% F&G Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | ||||||||||
5.50% F&G Notes | F&G | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | ||||||||||
Price as percent of par on offering of unsecured Notes | 99.50% | ||||||||||
Proceeds from issuance of senior notes | $ 547,000,000 | ||||||||||
5.50% F&G Notes | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | ||||||||||
3.20% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 450,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 3.20% | ||||||||||
Proceeds from issuance debt | $ 443,000,000 | ||||||||||
3.20% Notes | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 3.20% | ||||||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding principal | $ 0 | ||||||||||
Debt issuance costs | 2,000,000 | ||||||||||
Remaining borrowing capacity | $ 800,000,000 | ||||||||||
2.45% Notes, net of discount | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 600,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 2.45% | ||||||||||
Proceeds from issuance debt | $ 593,000,000 | ||||||||||
2.45% Notes, net of discount | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 2.45% | ||||||||||
Term Loan | Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of all outstanding indebtedness under term loan credit agreement | $ 260,000,000 | ||||||||||
Repayment of principal borrowed | $ 640,000,000 | ||||||||||
3.40% Notes due June 15, 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 650,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 3.40% | ||||||||||
Proceeds from issuance debt | $ 642,000,000 | ||||||||||
4.50 % Notes due August 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 450,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||||||
Price as percent of par on offering of unsecured Notes | 99.252% | ||||||||||
Annual interest rate | 4.594% | ||||||||||
4.50 % Notes due August 2028 | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 4.50% |
Notes Payable - Principal Matur
Notes Payable - Principal Maturities of Notes Payable (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Maturities of Long-term Debt [Abstract] | |
2023 (remaining) | $ 511 |
2024 | 0 |
2025 | 550 |
2026 | 0 |
2027 | 0 |
Thereafter | 2,650 |
Total long term debt | $ 3,711 |
Market Risk Benefits - Balances
Market Risk Benefits - Balances and Changes in Market Risk Benefit (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Market Risk Benefit [Line Items] | |||
Balance beginning of period | $ 165 | $ 428 | |
Balance, end of period | 195 | 165 | $ 428 |
As Previously Reported | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 531 | ||
FIA | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 164 | 426 | 478 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 102 | 280 | 320 |
Issuances and benefit payments | (8) | (21) | (9) |
Attributed fees collected and interest accrual | 68 | 107 | 99 |
Actual policyholder behavior different from expected | 11 | 43 | (22) |
Changes in assumptions and other | 1 | (76) | 0 |
Effects of market related movements | (38) | (231) | (108) |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 102 | 280 | |
Effect of changes in the instrument-specific credit risk | 58 | 62 | 146 |
Balance, end of period | $ 194 | $ 164 | $ 426 |
Weighted-average attained age of policyholders weighted by total AV (years) | 68 years 4 months 28 days | 68 years 7 months 2 days | 68 years 11 months 12 days |
Net amount at risk | $ 1,006 | $ 952 | $ 1,304 |
FIA | As Previously Reported | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 531 | ||
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 102 | 280 | |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 136 | 102 | 280 |
Fixed Rate Annuities | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 1 | 2 | 1 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 1 | 1 | 1 |
Issuances and benefit payments | 0 | 0 | 0 |
Attributed fees collected and interest accrual | 0 | 1 | 1 |
Actual policyholder behavior different from expected | 0 | 0 | 0 |
Changes in assumptions and other | 0 | 0 | 0 |
Effects of market related movements | 0 | (1) | (1) |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 1 | 1 | |
Effect of changes in the instrument-specific credit risk | 0 | 0 | 1 |
Balance, end of period | $ 1 | $ 1 | $ 2 |
Weighted-average attained age of policyholders weighted by total AV (years) | 72 years 8 months 1 day | 72 years 10 months 17 days | 73 years 1 month 6 days |
Net amount at risk | $ 3 | $ 3 | $ 4 |
Fixed Rate Annuities | As Previously Reported | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 0 | ||
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 1 | 1 | |
Balance, end of period, before effect of changes in the instrument-specific credit risk | $ 1 | $ 1 | $ 1 |
Market Risk Benefits - Reconcil
Market Risk Benefits - Reconciliation of Asset and Liability (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Market Risk Benefit [Line Items] | ||||
Market risk benefits asset | $ 118 | $ 117 | $ 41 | |
Market risk benefits liability | 313 | 282 | 469 | |
Net | 195 | 165 | 428 | |
FIA | ||||
Market Risk Benefit [Line Items] | ||||
Market risk benefits asset | 118 | 117 | 41 | |
Market risk benefits liability | 312 | 281 | 467 | |
Net | 194 | 164 | 426 | $ 478 |
Fixed Rate Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Market risk benefits asset | 0 | 0 | 0 | |
Market risk benefits liability | 1 | 1 | 2 | |
Net | $ 1 | $ 1 | $ 2 | $ 1 |
Contractholder Funds - Summary
Contractholder Funds - Summary of Balances and Changes in Contractholder Funds (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | $ 40,843 | |||||
Balance, end of year | $ 45,070 | 45,070 | $ 40,843 | |||
Change in fair value of other derivatives and embedded derivatives | 1 | $ (5) | 3 | $ (8) | ||
Gross Liability, end of period | 45,070 | 45,070 | 40,843 | $ 34,753 | ||
Less: Reinsurance | (7,077) | (7,077) | (5,418) | |||
FIA | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 24,766 | 21,997 | 21,997 | 18,703 | ||
Issuances | 2,415 | 4,462 | 4,400 | |||
Premiums received | 52 | 106 | 103 | |||
Policy charge | (87) | (166) | (148) | |||
Surrenders and withdrawals | (876) | (1,322) | (1,303) | |||
Benefit payments | (254) | (485) | (440) | |||
Interest credited | 69 | 198 | 686 | |||
Other | 23 | (24) | (4) | |||
Balance, end of year | 26,108 | 26,108 | 24,766 | 21,997 | ||
Change in fair value of other derivatives and embedded derivatives | 98 | (343) | 603 | |||
Gross Liability, end of period | 26,206 | 26,206 | 24,423 | 22,600 | ||
Less: Reinsurance | (17) | (17) | (17) | (17) | ||
Net Liability, after Reinsurance | $ 26,189 | $ 26,189 | $ 24,406 | $ 22,583 | ||
Weighted-average crediting rate | 1.10% | 1.10% | 0.85% | 3.43% | ||
Cash surrender value | $ 24,337 | $ 24,337 | $ 188 | $ 20,455 | ||
Fixed Rate Annuities | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 9,358 | 6,367 | 6,367 | 5,142 | ||
Issuances | 2,584 | 3,758 | 1,743 | |||
Premiums received | 1 | 3 | 3 | |||
Policy charge | 0 | (1) | (1) | |||
Surrenders and withdrawals | (520) | (797) | (543) | |||
Benefit payments | (118) | (192) | (145) | |||
Interest credited | 179 | 220 | 167 | |||
Other | (1) | 0 | 1 | |||
Balance, end of year | 11,483 | 11,483 | 9,358 | 6,367 | ||
Change in fair value of other derivatives and embedded derivatives | 0 | 0 | 0 | |||
Gross Liability, end of period | 11,483 | 11,483 | 9,358 | 6,367 | ||
Less: Reinsurance | (5,431) | (5,431) | (3,723) | (1,692) | ||
Net Liability, after Reinsurance | $ 6,052 | $ 6,052 | $ 5,635 | $ 4,675 | ||
Weighted-average crediting rate | 7.07% | 7.07% | 2.84% | 2.94% | ||
Cash surrender value | $ 10,707 | $ 10,707 | $ 5,992 | $ 5,992 | ||
Universal Life | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 2,112 | 1,907 | 1,907 | 1,696 | ||
Issuances | 99 | 167 | 114 | |||
Premiums received | 180 | 295 | 233 | |||
Policy charge | (124) | (209) | (167) | |||
Surrenders and withdrawals | (45) | (74) | (68) | |||
Benefit payments | (16) | (22) | (19) | |||
Interest credited | 20 | 48 | 118 | |||
Other | 0 | 0 | 0 | |||
Balance, end of year | 2,226 | 2,226 | 2,112 | 1,907 | ||
Change in fair value of other derivatives and embedded derivatives | 73 | 15 | 74 | |||
Gross Liability, end of period | 2,299 | 2,299 | 2,127 | 1,981 | ||
Less: Reinsurance | (924) | (924) | (947) | (984) | ||
Net Liability, after Reinsurance | $ 1,375 | $ 1,375 | $ 1,180 | $ 997 | ||
Weighted-average crediting rate | 3.85% | 3.85% | 2.39% | 6.77% | ||
Net amount at risk | $ 53,401 | $ 53,401 | $ 53,348 | $ 41,326 | ||
Cash surrender value | 1,760 | 1,760 | 1,698 | 1,572 | ||
Funding Agreements, FABN | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 2,613 | 1,904 | 1,904 | 0 | ||
Issuances | 0 | 700 | 1,899 | |||
Premiums received | 0 | 0 | 0 | |||
Policy charge | 0 | 0 | 0 | |||
Surrenders and withdrawals | 0 | 0 | 0 | |||
Benefit payments | (27) | (35) | (7) | |||
Interest credited | 27 | 45 | 12 | |||
Other | 0 | (1) | 0 | |||
Balance, end of year | 2,613 | 2,613 | 2,613 | 1,904 | ||
Change in fair value of other derivatives and embedded derivatives | 0 | 0 | 0 | |||
Gross Liability, end of period | 2,613 | 2,613 | 2,613 | 1,904 | ||
Less: Reinsurance | 0 | 0 | 0 | 0 | ||
Net Liability, after Reinsurance | 2,613 | 2,613 | 2,613 | 1,904 | ||
Federal Home Loan Bank Funding Agreements | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 1,982 | $ 1,543 | 1,543 | 1,203 | ||
Issuances | 456 | 1,192 | 759 | |||
Premiums received | 0 | 0 | 0 | |||
Policy charge | 0 | 0 | 0 | |||
Surrenders and withdrawals | 0 | 0 | 0 | |||
Benefit payments | (323) | (789) | (447) | |||
Interest credited | 25 | 36 | 30 | |||
Other | 3 | 0 | (2) | |||
Balance, end of year | 2,143 | 2,143 | 1,982 | 1,543 | ||
Change in fair value of other derivatives and embedded derivatives | 0 | 0 | 0 | |||
Gross Liability, end of period | 2,143 | 2,143 | 1,982 | 1,543 | ||
Less: Reinsurance | 0 | 0 | 0 | 0 | ||
Net Liability, after Reinsurance | $ 2,143 | $ 2,143 | $ 1,982 | $ 1,543 |
Contractholder Funds - Reconcil
Contractholder Funds - Reconciliation to Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 45,070 | $ 40,843 | $ 34,753 |
FIA | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 26,206 | 24,423 | 22,600 |
Fixed Rate Annuities | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 11,483 | 9,358 | 6,367 |
Immediate Annuities | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 317 | 332 | 352 |
Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,299 | 2,127 | 1,981 |
Traditional Life | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 5 | 5 | 5 |
Funding Agreements, FABN | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,613 | 2,613 | 1,904 |
Federal Home Loan Bank Funding Agreements | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,143 | 1,982 | 1,543 |
PRT | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 4 | $ 3 | $ 1 |
Contractholder Funds - Account
Contractholder Funds - Account Values by Range of Guaranteed Minimum Credit Rating (Details) $ in Millions | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | $ 45,070 | $ 40,843 | ||
FIA | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 26,108 | 24,766 | $ 21,997 | $ 18,703 |
FIA | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 24,243 | 23,400 | 20,764 | |
FIA | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 796 | 801 | 817 | |
FIA | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 406 | 414 | 416 | |
FIA | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 663 | 151 | 0 | |
FIA | 0.00% To 1.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 25,611 | 24,210 | 21,353 | |
FIA | 0.00% To 1.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 23,749 | 22,848 | 20,162 | |
FIA | 0.00% To 1.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 796 | 801 | 803 | |
FIA | 0.00% To 1.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 403 | 410 | 388 | |
FIA | 0.00% To 1.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 663 | 151 | 0 | |
FIA | 1.51% To 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 142 | 163 | 207 | |
FIA | 1.51% To 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 141 | 162 | 171 | |
FIA | 1.51% To 2.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 11 | |
FIA | 1.51% To 2.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1 | 1 | 25 | |
FIA | 1.51% To 2.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
FIA | Greater Than 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 355 | 393 | 437 | |
FIA | Greater Than 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 353 | 390 | 431 | |
FIA | Greater Than 2.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 3 | |
FIA | Greater Than 2.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 2 | 3 | 3 | |
FIA | Greater Than 2.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Fixed Rate Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 11,483 | 9,358 | 6,367 | 5,142 |
Fixed Rate Annuities | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 959 | 1,016 | 965 | |
Fixed Rate Annuities | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 46 | 50 | 185 | |
Fixed Rate Annuities | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1,870 | 1,905 | 1,990 | |
Fixed Rate Annuities | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 8,608 | 6,387 | 3,227 | |
Fixed Rate Annuities | 0.00% To 1.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 10,172 | 8,292 | 5,177 | |
Fixed Rate Annuities | 0.00% To 1.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 17 | 10 | 2 | |
Fixed Rate Annuities | 0.00% To 1.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 30 | 32 | 28 | |
Fixed Rate Annuities | 0.00% To 1.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1,838 | 1,871 | 1,928 | |
Fixed Rate Annuities | 0.00% To 1.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 8,287 | 6,379 | 3,219 | |
Fixed Rate Annuities | 1.51% To 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 362 | 54 | 62 | |
Fixed Rate Annuities | 1.51% To 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 8 | 9 | 9 | |
Fixed Rate Annuities | 1.51% To 2.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 13 | 14 | 15 | |
Fixed Rate Annuities | 1.51% To 2.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 28 | 30 | 37 | |
Fixed Rate Annuities | 1.51% To 2.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 313 | 1 | 1 | |
Fixed Rate Annuities | Greater Than 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 949 | 1,012 | 1,128 | |
Fixed Rate Annuities | Greater Than 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 934 | 997 | 954 | |
Fixed Rate Annuities | Greater Than 2.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 3 | 4 | 142 | |
Fixed Rate Annuities | Greater Than 2.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 4 | 4 | 25 | |
Fixed Rate Annuities | Greater Than 2.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 8 | 7 | 7 | |
Universal Life | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 2,226 | 2,112 | 1,907 | $ 1,696 |
Universal Life | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 2,168 | 2,047 | 1,845 | |
Universal Life | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 39 | 47 | 48 | |
Universal Life | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1 | 1 | 1 | |
Universal Life | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 18 | 17 | 13 | |
Universal Life | 0.00% To 1.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1,844 | 1,721 | 1,501 | |
Universal Life | 0.00% To 1.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1,822 | 1,701 | 1,486 | |
Universal Life | 0.00% To 1.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 4 | 3 | 2 | |
Universal Life | 0.00% To 1.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 0.00% To 1.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 18 | 17 | 13 | |
Universal Life | 1.51% To 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 1.51% To 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 1.51% To 2.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 1.51% To 2.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 1.51% To 2.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | Greater Than 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 382 | 391 | 406 | |
Universal Life | Greater Than 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 346 | 346 | 359 | |
Universal Life | Greater Than 2.50% | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 35 | 44 | 46 | |
Universal Life | Greater Than 2.50% | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1 | 1 | 1 | |
Universal Life | Greater Than 2.50% | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | $ 0 | $ 0 | $ 0 | |
Minimum | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 | 0.0001 | |
Minimum | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0051 | 0.0051 | 0.0051 | |
Minimum | Greater Than 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | 0.0150 | |
Maximum | Range from 0001 to 0050 | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 | 0.0050 | |
Maximum | Range from 0051 to 0150 | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 |
Future Policy Benefits - Summar
Future Policy Benefits - Summary Balances and Changes in the Present Value of Expected Net Premiums and Present Value (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Future policy benefits | $ 5,715 | $ 5,021 | $ 4,918 | |
Less: Reinsurance recoverable | $ 1,115 | |||
Traditional Life | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance, beginning of year | 797 | 1,020 | 1,152 | |
Beginning balance of original discount rate | 974 | 1,045 | 1,131 | |
Effect of actual variances from expected experience | 7 | 33 | 25 | |
Balance adjusted for variances from expectation | 981 | 1,078 | 1,156 | |
Interest accrual | 9 | 20 | 22 | |
Net premiums collected | (60) | (124) | (133) | |
Ending Balance at original discount rate | 930 | 974 | 1,045 | |
Effect of changes in discount rate assumptions | 167 | 177 | 25 | |
Balance, end of year | 763 | 797 | 1,020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of year | 2,151 | 2,772 | 3,105 | |
Beginning balance of original discount rate | 2,665 | 2,806 | 2,995 | |
Effect of actual variances from expected experience | (9) | 13 | (14) | |
Balance adjusted for variances from expectation | 2,656 | 2,819 | 2,981 | |
Interest accrual | 28 | 59 | 62 | |
Benefits payments | (99) | (213) | (237) | |
Ending Balance at original discount rate | 2,585 | 2,665 | 2,806 | |
Effect of changes in discount rate assumptions | 474 | 514 | 34 | |
Balance, end of year | 2,111 | 2,151 | 2,772 | |
Future policy benefits | 1,348 | 1,354 | 1,752 | |
Less: Reinsurance recoverable | 587 | 612 | 749 | 793 |
Liability for Future Policy Benefit, after Reinsurance, Total | $ 761 | $ 742 | $ 1,003 | |
Weighted-average duration of liability for future policyholder benefits (years) | 7 years 4 months 9 days | 7 years 6 months 29 days | 8 years 6 months 14 days | |
Immediate Annuities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of year | $ 1,429 | $ 1,954 | $ 2,153 | |
Beginning balance of original discount rate | 1,858 | 1,935 | 2,040 | |
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (17) | (26) | (47) | |
Balance adjusted for variances from expectation | 1,841 | 1,909 | 1,993 | |
Issuances | 10 | 26 | 18 | |
Interest accrual | 33 | 60 | 60 | |
Benefits payments | (65) | (137) | (136) | |
Ending Balance at original discount rate | 1,819 | 1,858 | 1,935 | |
Effect of changes in discount rate assumptions | (408) | 429 | (19) | |
Balance, end of year | 1,411 | 1,429 | 1,954 | |
Future policy benefits | 1,411 | 1,429 | 1,954 | |
Less: Reinsurance recoverable | 116 | 118 | 145 | 322 |
Liability for Future Policy Benefit, after Reinsurance, Total | $ 1,295 | $ 1,311 | $ 1,809 | |
Weighted-average duration of liability for future policyholder benefits (years) | 12 years 5 months 19 days | 11 years 9 months 3 days | 13 years 7 months 9 days | |
PRT | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of year | $ 2,165 | $ 1,148 | $ 0 | |
Beginning balance of original discount rate | 2,475 | 1,151 | 0 | |
Effect of changes in cash flow assumptions | (5) | (20) | ||
Effect of actual variances from expected experience | 0 | 2 | 0 | |
Balance adjusted for variances from expectation | 2,470 | 1,133 | $ 0 | |
Issuances | 755 | 1,418 | 1,155 | |
Interest accrual | 50 | 50 | 2 | |
Benefits payments | (115) | (126) | (6) | |
Ending Balance at original discount rate | 3,160 | 2,475 | 1,151 | |
Effect of changes in discount rate assumptions | (290) | 310 | 3 | |
Balance, end of year | 2,870 | 2,165 | 1,148 | |
Future policy benefits | 2,870 | 2,165 | 1,148 | |
Less: Reinsurance recoverable | 0 | 0 | 0 | |
Liability for Future Policy Benefit, after Reinsurance, Total | $ 2,870 | $ 2,165 | $ 1,148 | |
Weighted-average duration of liability for future policyholder benefits (years) | 8 years 2 months 23 days | 8 years 1 month 2 days | 8 years 9 months |
Future Policy Benefits - Summ_2
Future Policy Benefits - Summary of Balances and Changes in the Deferred Profit Liability (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Immediate Annuities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance, beginning of year | $ 69 | $ 57 | $ 22 | |
Effect of modeling changes | 4 | 0 | $ 0 | |
Effect of changes in cash flow assumptions | 0 | 0 | 0 | |
Effect of actual variances from expected experience | 10 | 16 | 39 | |
Balance adjusted for variances from expectation | 83 | 73 | 61 | |
Issuances | 1 | 1 | 0 | |
Interest accrual | 1 | 2 | 2 | |
Amortization | (3) | (7) | (6) | |
Balance, end of year | 82 | 69 | 57 | |
PRT | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance, beginning of year | 4 | 7 | 0 | |
Effect of modeling changes | 0 | 0 | 0 | |
Effect of changes in cash flow assumptions | 0 | (2) | 0 | |
Effect of actual variances from expected experience | 2 | 0 | 0 | |
Balance adjusted for variances from expectation | 6 | 5 | $ 0 | |
Issuances | 0 | 0 | 7 | |
Interest accrual | (1) | 0 | 0 | |
Amortization | (1) | (1) | 0 | |
Balance, end of year | $ 4 | $ 4 | $ 7 |
Future Policy Benefits - Reconc
Future Policy Benefits - Reconciliation of Net FPB to the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits | $ 5,715 | $ 5,021 | $ 4,918 | |
Traditional Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits | 1,348 | 1,354 | 1,752 | |
Immediate Annuities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits | 1,411 | 1,429 | 1,954 | |
Deferred profit liability | 82 | 69 | 57 | $ 22 |
PRT | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits | 2,870 | 2,165 | 1,148 | |
Deferred profit liability | 4 | 4 | 7 | $ 0 |
Immediate annuities DPL | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Deferred profit liability | 82 | 69 | 57 | |
PRT DPL | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Deferred profit liability | $ 4 | $ 4 | $ 7 |
Future Policy Benefits - Liabil
Future Policy Benefits - Liability For Future Policy Benefit Expected Future Policy Benefit Undiscounted (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | $ 2,686 | |
Expected future gross premiums | 1,091 | |
Traditional Life | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | $ 3,027 | 3,201 |
Expected future gross premiums | 1,114 | 1,245 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 2,089 | |
Expected future gross premiums | 803 | |
Immediate Annuities | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | 3,361 | 3,516 |
Expected future gross premiums | 0 | 0 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 1,411 | 1,907 |
Expected future gross premiums | 0 | 0 |
PRT | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | 4,724 | 2,265 |
Expected future gross premiums | 0 | 0 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 3,161 | 1,652 |
Expected future gross premiums | $ 0 | $ 0 |
Future Policy Benefits - Gross
Future Policy Benefits - Gross Premium Income and Interest Expense (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | $ 811 | $ 606 |
Interest expense | 102 | 69 |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 63 | 70 |
Interest expense | 19 | 20 |
Immediate Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 11 | 16 |
Interest expense | 33 | 30 |
PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 737 | 520 |
Interest expense | $ 50 | $ 19 |
Future Policy Benefits - Weight
Future Policy Benefits - Weighted Average Rates (Details) | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 2.33% | 2.32% | 2.29% |
Current discount rate | 4.63% | 5.37% | 2.41% |
Immediate Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 3.12% | 3.07% | 3.04% |
Current discount rate | 5.10% | 5.21% | 3.07% |
PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 4.04% | 3.20% | 1.20% |
Current discount rate | 5.28% | 5.40% | 2.79% |
Future Policy Benefits - Actual
Future Policy Benefits - Actual Experience and Expected Experience for Mortality and Lapses (Details) | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Actual experience | Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 1.40% | 1.50% | 1.70% |
Lapse rate | 0.10% | 0% | 0.10% |
Actual experience | Immediate Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 3.20% | 3% | 4.20% |
Lapse rate | 0% | 0% | 0% |
Actual experience | PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 2.30% | 1.90% | 0% |
Lapse rate | 0% | 0% | 0% |
Expected experience | Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 1.40% | 1.30% | 1.30% |
Lapse rate | 0.30% | 0.30% | 0.30% |
Expected experience | Immediate Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 1.60% | 1.90% | 2% |
Lapse rate | 0% | 0% | 0% |
Expected experience | PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 2.10% | 2.50% | 0% |
Lapse rate | 0% | 0% | 0% |
Future Policy Benefits - Additi
Future Policy Benefits - Additional Information, Cohort NPR (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Insurance [Abstract] | ||
Net Premium Ratio before capping | 100% | 100% |
Reserves before NP Ratio capping | $ 1,184 | $ 1,172 |
Reserves after NP Ratio capping | 1,185 | 1,173 |
Loss Expense | $ 1 | $ 0 |
ASU 2018-12 Transition - Narrat
ASU 2018-12 Transition - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment to increase opening retained earnings | $ 6,229 | $ 6,116 | |
Adjustments | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment to increase opening retained earnings | $ 75 |
ASU 2018-12 Transition - Balanc
ASU 2018-12 Transition - Balance of Changes in FPB due to Adoption of ASU 2018-012 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | $ 4,128 | ||||
Less: Reinsurance recoverable | 1,115 | ||||
As adjusted | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Balance, net of reinsurance | $ 3,013 | ||||
As Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | 4,005 | ||||
Cumulative effect of retrospective adoption | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | (78) | ||||
Effect of remeasurement of liability at current discount rate (2) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | 201 | ||||
Immediate Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | 2,175 | ||||
Less: Reinsurance recoverable | $ 116 | $ 118 | $ 145 | 322 | |
Immediate Annuities | As adjusted | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Balance, net of reinsurance | 1,853 | ||||
Immediate Annuities | As Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | 1,861 | ||||
Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | 1,953 | ||||
Less: Reinsurance recoverable | $ 587 | $ 612 | $ 749 | 793 | |
Traditional Life | As adjusted | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Balance, net of reinsurance | $ 1,160 | ||||
Traditional Life | As Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | 2,144 | ||||
FIA | Cumulative effect of retrospective adoption | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | 201 | ||||
FIA | Effect of remeasurement of liability at current discount rate (2) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | 113 | ||||
Fixed Rate Annuities | Cumulative effect of retrospective adoption | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | (279) | ||||
Fixed Rate Annuities | Effect of remeasurement of liability at current discount rate (2) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liability for future policy benefit | $ 88 |
ASU 2018-12 Transition - Bala_2
ASU 2018-12 Transition - Balance of Changes in VOBA, DAC, DSI and URL due to Adoption of ASU 2018-012 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | $ 1,529 | $ 1,615 | $ 1,704 | $ 1,743 | ||
DAC | 1,847 | 1,402 | 1,065 | 775 | ||
DSI | 258 | 200 | 159 | 127 | ||
URL | 313 | 271 | ||||
Immediate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 195 | 201 | 206 | 212 | ||
Traditional Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 71 | 73 | 76 | 25 | ||
FIA | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 1,095 | 1,166 | 1,238 | 1,314 | ||
DAC | 1,173 | 971 | 751 | 564 | ||
DSI | 258 | 200 | 159 | 127 | ||
Fixed Rate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 29 | 32 | 36 | 39 | ||
DAC | 233 | 83 | 59 | 38 | ||
Universal Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 139 | 143 | 148 | 153 | ||
DAC | $ 441 | $ 348 | $ 255 | $ 173 | ||
As Previously Reported | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | $ 1,466 | |||||
DAC | 222 | |||||
DSI | 36 | |||||
URL | 2 | |||||
As Previously Reported | Immediate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 86 | |||||
As Previously Reported | Traditional Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 18 | |||||
As Previously Reported | FIA | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 1,208 | |||||
DAC | 167 | |||||
DSI | 36 | |||||
As Previously Reported | Fixed Rate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 15 | |||||
DAC | 14 | |||||
As Previously Reported | Universal Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 139 | |||||
DAC | 41 | |||||
URL | 2 | |||||
Revision of Prior Period, Accounting Standards Update, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 232 | |||||
DAC | 25 | |||||
DSI | 5 | |||||
URL | 25 | |||||
Revision of Prior Period, Accounting Standards Update, Adjustment | Immediate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 0 | |||||
Revision of Prior Period, Accounting Standards Update, Adjustment | Traditional Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | (29) | |||||
Revision of Prior Period, Accounting Standards Update, Adjustment | FIA | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 208 | |||||
DAC | 15 | |||||
DSI | 5 | |||||
Revision of Prior Period, Accounting Standards Update, Adjustment | Fixed Rate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 24 | |||||
DAC | 2 | |||||
Revision of Prior Period, Accounting Standards Update, Adjustment | Universal Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 29 | |||||
DAC | 8 | |||||
URL | 25 | |||||
Revision of Prior Period, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 264 | |||||
Revision of Prior Period, Adjustment | Immediate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 145 | |||||
Revision of Prior Period, Adjustment | Traditional Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 43 | |||||
Revision of Prior Period, Adjustment | FIA | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 69 | |||||
Revision of Prior Period, Adjustment | Fixed Rate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 2 | |||||
Revision of Prior Period, Adjustment | Universal Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 5 | |||||
Adjustments | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | (22) | |||||
DAC | (2) | |||||
DSI | 4 | |||||
URL | 2 | |||||
Adjustments | Immediate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | (5) | |||||
Adjustments | Traditional Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | (1) | |||||
Adjustments | FIA | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | (14) | |||||
DAC | (1) | |||||
DSI | 4 | |||||
Adjustments | Fixed Rate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 7 | |||||
DAC | 0 | |||||
Adjustments | Universal Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | (9) | |||||
DAC | (1) | |||||
URL | 2 | |||||
As adjusted | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | $ 1,940 | |||||
DAC | 245 | |||||
DSI | 45 | |||||
URL | 29 | |||||
As adjusted | Immediate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 226 | |||||
As adjusted | Traditional Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 31 | |||||
As adjusted | FIA | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 1,471 | |||||
DAC | 181 | |||||
DSI | 45 | |||||
As adjusted | Fixed Rate Annuities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | 48 | |||||
DAC | 16 | |||||
As adjusted | Universal Life | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
VOBA | $ 164 | |||||
DAC | 48 | |||||
URL | $ 29 |
ASU 2018-12 Transition - Summar
ASU 2018-12 Transition - Summary Balance of Changes in Assets and Liability Position for Market Risk Benefit (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | $ 195 | $ 165 | $ 428 | |
Less: reinsured market risk benefits | $ 0 | |||
FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 194 | 164 | 426 | 478 |
Less: reinsured market risk benefits | 0 | |||
Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | $ 1 | $ 1 | $ 2 | 1 |
Less: reinsured market risk benefits | 0 | |||
As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 531 | |||
As Previously Reported | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 531 | |||
As Previously Reported | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 0 | |||
Adjustment for reversal of AOCI adjustments | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | (116) | |||
Adjustment for reversal of AOCI adjustments | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | (116) | |||
Adjustment for reversal of AOCI adjustments | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 0 | |||
Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | (95) | |||
Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | (96) | |||
Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 1 | |||
Adjustments | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 159 | |||
Adjustments | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 159 | |||
Adjustments | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 0 | |||
As adjusted | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 479 | |||
Balance, end of period, net of reinsurance | 479 | |||
As adjusted | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 478 | |||
Balance, end of period, net of reinsurance | 478 | |||
As adjusted | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 1 | |||
Balance, end of period, net of reinsurance | $ 1 |
ASU 2018-12 Transition - Effect
ASU 2018-12 Transition - Effect of Transition Adjustments on Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Contractholder funds | $ 45,070 | $ 45,070 | $ 40,843 | ||||
MRB | 195 | 195 | 165 | $ 428 | |||
VOBA | 1,529 | $ 1,704 | 1,529 | $ 1,704 | 1,615 | 1,743 | |
DAC | 1,847 | 1,065 | 1,847 | 1,065 | 1,402 | $ 775 | |
Income tax expense (benefit) | 90 | 202 | 104 | 358 | |||
Adjustment to increase opening retained earnings | $ 6,229 | $ 6,229 | 6,116 | ||||
Adjustments | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Contractholder funds | $ (390) | ||||||
MRB | $ 159 | ||||||
VOBA | (22) | ||||||
DAC | (2) | ||||||
Income tax expense (benefit) | 20 | $ 38 | $ 39 | ||||
Adjustments | Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Contractholder funds | 101 | ||||||
MRB | 30 | ||||||
FPB | (14) | ||||||
VOBA | (21) | ||||||
DAC | (1) | ||||||
Increase to Equity, gross of tax | 95 | ||||||
Adjustment to increase opening retained earnings | 75 | ||||||
Adjustments | Accumulated Other Comprehensive Earnings (Loss) | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Contractholder funds | 115 | ||||||
MRB | (160) | ||||||
FPB | (159) | ||||||
VOBA | 233 | ||||||
DAC | 5 | ||||||
Increase to Equity, gross of tax | 34 | ||||||
Income tax expense (benefit) | 9 | ||||||
Adjustment to increase opening retained earnings | $ 25 |