DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2019 | May 09, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Amendment Flag | false | |
Entity Registrant Name | AXA Equitable Holdings, Inc. | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Central Index Key | 0001333986 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 491,138,042 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $49,117 and $46,801) | $ 50,305 | $ 46,279 | |
Mortgage loans on real estate (net of valuation allowance of $0 and $7) | 12,117 | 11,835 | |
Real estate under development | [1] | 68 | 52 |
Policy loans | 3,766 | 3,779 | |
Other equity investments | [1] | 1,321 | 1,334 |
Trading securities, at fair value | 13,127 | 16,017 | |
Other invested assets | [1] | 2,244 | 2,037 |
Total investments | 82,948 | 81,333 | |
Cash and cash equivalents | [1] | 5,129 | 4,469 |
Cash and securities segregated, at fair value | 1,262 | 1,170 | |
Broker-dealer related receivables | 2,122 | 2,209 | |
Deferred policy acquisition costs | 6,018 | 6,745 | |
Goodwill and other intangible assets, net | 4,769 | 4,780 | |
Amounts due from reinsurers | 4,850 | 4,895 | |
GMIB reinsurance contract asset, at fair value | 1,740 | 1,732 | |
Other assets | 3,787 | 3,127 | |
Separate Accounts assets | 120,194 | 110,337 | |
Total Assets | 232,819 | 220,797 | |
LIABILITIES | |||
Policyholders’ account balances | 52,197 | 49,923 | |
Future policy benefits and other policyholders' liabilities | 31,462 | 30,998 | |
Broker-dealer related payables | 494 | 431 | |
Securities sold under agreements to repurchase | 0 | 573 | |
Customer related payables | 2,999 | 3,095 | |
Amounts due to reinsurers | 1,372 | 1,438 | |
Short-term and Long-term debt | 4,949 | 4,955 | |
Current and deferred income taxes | 482 | 68 | |
Other liabilities | [1] | 3,781 | 3,360 |
Separate Accounts liabilities | 120,194 | 110,337 | |
Total Liabilities | 217,930 | 205,178 | |
Redeemable noncontrolling interest | [1] | 207 | 187 |
Commitments and contingent liabilities | |||
Equity attributable to Holdings: | |||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 552,896,328 and 561,000,000 shares issued, 491,015,901 and 528,861,758 shares outstanding, respectively | 5 | 5 | |
Additional paid-in capital | 1,881 | 1,908 | |
Treasury stock, at cost, 61,880,427 and 32,138,242 shares, respectively | (1,234) | (640) | |
Retained earnings | 13,004 | 13,989 | |
Accumulated other comprehensive income (loss) | (513) | (1,396) | |
Total equity attributable to Holdings | 13,143 | 13,866 | |
Noncontrolling interest | 1,539 | 1,566 | |
Total Equity | 14,682 | 15,432 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 232,819 | $ 220,797 | |
[1] | See Note 2 for details of balances with variable interest entities. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fixed maturities available-for-sale, amortized cost | $ 49,117 | $ 46,801 |
Mortgage loans on real estate, valuation allowances | $ 0 | $ 7 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 552,896,328 | 561,000,000 |
Common stock outstanding (in shares) | 491,138,042 | 528,861,758 |
Treasury stock (in shares) | 61,880,427 | 32,138,242 |
Fixed Maturities | ||
Fixed maturities available-for-sale, amortized cost | $ 49,117 | $ 46,801 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES | ||
Policy charges and fee income | $ 931 | $ 966 |
Premiums | 283 | 279 |
Net derivative gains (loss) | (1,630) | (236) |
Net investment income (loss) | 1,015 | 591 |
Investment gains (losses), net | (11) | 102 |
Investment management and service fees | 999 | 1,055 |
Other income | 127 | 117 |
Total revenues | 1,714 | 2,874 |
BENEFITS AND OTHER DEDUCTIONS | ||
Policyholders’ benefits | 880 | 594 |
Interest credited to policyholders’ account balances | 304 | 271 |
Compensation and benefits | 509 | 579 |
Commissions and distribution-related payments | 281 | 291 |
Interest expense | 56 | 46 |
Amortization of deferred policy acquisition costs | 198 | 172 |
Other operating costs and expenses | 410 | 493 |
Total benefits and other deductions | 2,638 | 2,446 |
Income (loss) from continuing operations, before income taxes | (924) | 428 |
Income tax (expense) benefit | 215 | (91) |
Net income (loss) | (709) | 337 |
Less: Net (income) loss attributable to the noncontrolling interest | (66) | (123) |
Net income (loss) attributable to Holdings | $ (775) | $ 214 |
Earnings per share - Common stock: | ||
Basic (in dollars per share) | $ (1.50) | $ 0.38 |
Diluted (in dollars per share) | $ (1.50) | $ 0.38 |
Weighted average common shares outstanding: | ||
Weighted average common shares outstanding - basic (in shares) | 518 | 561 |
Weighted average common shares outstanding - diluted (in shares) | 518 | 561 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (709) | $ 337 | |
Other comprehensive income (loss) net of income taxes: | |||
Change in unrealized gains (losses), net of reclassification adjustment (1) | [1] | 834 | (962) |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 49 | 133 | |
Foreign currency translation adjustment | [1] | (1) | (3) |
Total other comprehensive income (loss), net of income taxes | 882 | (832) | |
Comprehensive income (loss) | 173 | (495) | |
Less: Comprehensive (income) loss attributable to the noncontrolling interest | (65) | (129) | |
Comprehensive income (loss) attributable to Holdings | $ 108 | $ (624) | |
[1] | A reclassification of $2 million has been made to the previously reported amounts for the three months ended March 31, 2018 to conform to the current period’s presentation. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Comprehensive Income [Abstract] | ||
Reclassification adjustment | $ (2) | $ (7) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Total Holdings Equity | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated other comprehensive income (loss) | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of adoption of revenue recognition standard ASC 606 | Accounting Standards Update 2014-09 | $ 32 | $ 13 | $ 13 | $ 19 | ||||
Beginning of year at Dec. 31, 2017 | 16,518 | 13,421 | $ 5 | $ 1,299 | $ 0 | 12,225 | $ (108) | 3,097 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Capital contribution from parent | 695 | 695 | 695 | |||||
Stock compensation and other | 57 | 57 | 57 | |||||
Repurchase of AB Holding units | (1) | (1) | ||||||
Dividends paid to noncontrolling interest | (135) | (135) | ||||||
Stockholder dividends | (15) | (15) | (15) | |||||
Net income (loss) | 317 | 214 | 214 | 103 | ||||
Other comprehensive income (loss) | (832) | (838) | (838) | 6 | ||||
Other | (54) | (54) | ||||||
End of year at Mar. 31, 2018 | 16,582 | 13,547 | 5 | 2,051 | 0 | 12,437 | (946) | 3,035 |
Beginning of year at Dec. 31, 2018 | 15,432 | 13,866 | 5 | 1,908 | (640) | 13,989 | (1,396) | 1,566 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock compensation and other | (10) | (19) | (19) | 9 | ||||
Purchase of treasury stock | (594) | (594) | 594 | |||||
Retirement of common stock | (142) | (142) | (142) | |||||
Repurchase of AB Holding units | (21) | (21) | ||||||
Dividends paid to noncontrolling interest | (68) | (68) | ||||||
Stockholder dividends | (68) | (68) | (68) | |||||
Net income (loss) | (721) | (775) | (775) | (54) | ||||
Other comprehensive income (loss) | 882 | 883 | 883 | (1) | ||||
Other | (8) | 8 | (8) | 0 | ||||
End of year at Mar. 31, 2019 | $ 14,682 | $ 13,143 | $ 5 | $ 1,881 | $ (1,234) | $ 13,004 | $ (513) | $ 1,539 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) Parenthetical - $ / shares | Aug. 10, 2018 | Mar. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in usd per share) | $ 0.13 | $ 0.13 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Statement of Cash Flows [Abstract] | ||||
Net income (loss) | $ (709) | $ 337 | ||
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: | ||||
Interest credited to policyholders’ account balances | 304 | 271 | ||
Policy charges and fee income | (931) | (966) | ||
Net derivative (gains) losses | 1,630 | 236 | ||
Investment (gains) losses, net | 11 | (102) | ||
Realized and unrealized (gains) losses on trading securities | (294) | 120 | ||
Non-cash long term incentive compensation expense | [1] | 42 | 12 | |
Non-cash pension plan restructuring | 0 | 102 | ||
Amortization and depreciation | [1] | 239 | 164 | |
Equity (income) loss from limited partnerships | (13) | (38) | ||
Changes in: | ||||
Net broker-dealer and customer related receivables/payables | (221) | 283 | ||
Reinsurance recoverable | [1] | (18) | 29 | |
Segregated cash and securities, net | (93) | (208) | ||
Capitalization of deferred policy acquisition costs | [1] | (173) | (162) | |
Future policy benefits | 22 | (248) | ||
Current and deferred income taxes | 183 | 115 | ||
Other, net | [1] | (88) | (192) | |
Net cash provided by (used in) operating activities | (109) | (247) | ||
Proceeds from the sale/maturity/prepayment of: | ||||
Fixed maturities, available-for-sale | 2,900 | 4,288 | ||
Mortgage loans on real estate | 216 | 68 | ||
Trading account securities | 3,843 | 1,629 | ||
Real estate joint ventures | 1 | 140 | ||
Short-term investments | [1] | 794 | 1,684 | |
Other | 48 | 54 | ||
Payment for the purchase/origination of: | ||||
Fixed maturities, available for sale | (5,187) | (3,245) | ||
Mortgage loans on real estate | (517) | (447) | ||
Trading account securities | (536) | (2,613) | ||
Short-term investments | [1] | (685) | (731) | |
Other | (74) | (48) | ||
Cash settlements related to derivative instruments | (1,005) | (674) | ||
Repayments of loans to affiliates | 0 | 346 | ||
Investment in capitalized software, leasehold improvements and EDP equipment | (16) | (24) | ||
Other, net | [1] | 148 | (311) | |
Net cash provided by (used in) investing activities | (70) | 116 | ||
Policyholders’ account balances: | ||||
Deposits | 2,430 | 2,041 | ||
Withdrawals | (1,067) | (1,100) | ||
Transfers (to) from Separate Accounts | 424 | 431 | ||
Change in short-term financings | (6) | 167 | ||
Repayment of loans from affiliates | 0 | (470) | ||
Change in collateralized pledged assets | (6) | 17 | ||
Change in collateralized pledged liabilities | 631 | 56 | ||
Increase (decrease) in overdrafts payable | (65) | 7 | ||
Cash contribution from parent company | 0 | 8 | ||
Shareholder dividend paid | (68) | (15) | ||
Cash paid to repurchase common stock | (744) | 0 | ||
Repurchase of AB Holding units from noncontrolling interest | 0 | (1) | ||
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds | 0 | 373 | ||
Distribution to noncontrolling interest of consolidated subsidiaries | (68) | (135) | ||
Increase (decrease) in securities sold under agreement to repurchase | (573) | 17 | ||
Other, net | (50) | 4 | ||
Net cash provided by (used in) financing activities | 838 | 1,400 | ||
Effect of exchange rate changes on cash and cash equivalents | 1 | 8 | ||
Change in cash and cash equivalents | 660 | 1,277 | ||
Cash and cash equivalents, beginning of year | 4,469 | [2] | 4,814 | |
Cash and cash equivalents, end of period | 5,129 | [2] | 6,091 | |
Non-cash transactions during the period: | ||||
Capital contribution from parent company | 0 | 622 | ||
(Settlement) issuance of long-term debt | 0 | (202) | ||
Transfer of assets to reinsurer | 0 | (604) | ||
Contribution of 0.5% minority interest in AXA Financial | 0 | 65 | ||
Repayment of loans from affiliates | $ 0 | $ (622) | ||
[1] | Prior period amounts have been reclassified to conform to current period’s presentation. See Note 16 for further information. | |||
[2] | See Note 2 for details of balances with variable interest entities. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) | Mar. 31, 2018 |
AXF | |
Minority interest in AXF (as a percent) | 0.50% |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION AXA Equitable Holdings, Inc. (“Holdings” and, collectively with its consolidated subsidiaries, the “Company”) is the holding company for a diversified financial services organization. As of March 31, 2019 and December 31, 2018 , AXA S.A. (“AXA”), a French holding company for the AXA Group, owned approximately 48% and 59% , respectively, of the outstanding common stock of Holdings. The Company conducts operations in four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Company’s management evaluates the performance of each of these segments independently. • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities and not-for-profit entities as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels—Institutional, Retail and Private Wealth Management—and distributes its institutional research products and solutions through Bernstein Research Services. The Investment Management and Research segment reflects the business of AllianceBernstein Holding L.P. (“AB Holding”), AllianceBernstein L.P. (“ABLP”) and their subsidiaries (collectively, “AB”). • The Protection Solutions segment includes the Company’s life insurance and group employee benefits businesses. The life insurance business offers a variety of variable universal life, indexed universal life and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of life, short- and long-term disability, dental and vision insurance products to small and medium-size businesses across the United States. The Company reports certain activities and items that are not included in our segments in Corporate and Other. Corporate and Other includes certain of our financing and investment expenses. It also includes: the AXA Advisors broker-dealer business, closed block of life insurance (the “Closed Block”), run-off variable annuity reinsurance business, run-off group pension business, run-off health business, benefit plans for our employees, certain strategic investments and certain unallocated items, including capital and related investments, interest expense and corporate expense. AB’s results of operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB. At March 31, 2019 and December 31, 2018 , the Company’s economic interest in AB was approximately 66% and 65% , respectively. The general partner of AB, AllianceBernstein Corporation (the “General Partner”), is a wholly-owned subsidiary of the Company. Because the General Partner has the authority to manage and control the business of AB, AB is consolidated in the Company’s financial statements for all periods. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . The terms “ first quarter 2019 ” or “first three months of 2019 ” and “ first quarter 2018 ” or “first three months of 2018 ” refer to the three months ended March 31, 2019 and 2018 , respectively. Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2017-12: Derivatives and Hedging (Topic 815) The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. On January 1, 2019, the Company adopted the new hedging guidance. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. On January 1, 2019, the Company adopted the new guidance on accounting for certain premiums on callable debt securities. As the Company’s existing accounting practices aligned with the guidance in the ASU, adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. ASU 2016-02: Leases (Topic 842) This ASU contains revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. On January 1, 2019, the Company adopted the new leases standard using the simplified modified retrospective transition method, as of the adoption date. Prior comparable periods will not be adjusted or presented under this method. We applied several practical expedients offered by ACS 842 upon adoption of this standard. These included continuing to account for existing leases based on judgment made under legacy U.S. GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used the practical expedient to use hindsight in determining lease terms (using knowledge and expectations as of the standard’s adoption date instead of the previous assumptions under legacy U.S. GAAP) and evaluated impairment of our right-of-use (“RoU”) assets in the transition period (using most up-to-date information.) Adoption of this standard resulted in the recognition, as of January 1, 2019, of additional RoU operating lease assets of $799 million reported in Other assets and operating lease liabilities of $1,024 million reported in Other liabilities in accompanying consolidated balance sheets. The operating RoU assets recognized as of January 1, 2019 are net of deferred rent of $105 million and liabilities associated with previously recognized impairments of $120 million. See Note 8 for additional information. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities This ASU provides guidance requiring that indirect interests held through related parties in common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. Effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. All entities are required to apply the amendments in this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-13: Fair Value Measurement (Topic 820) This ASU improves the effectiveness of fair value disclosures in the notes to financial statements. Amendments in this ASU modify disclosure requirements in Topic 820, including the removal of certain disclosure requirements, modification of certain disclosures, and the addition of new requirements. Effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, with the option to early adopt amendments to remove or modify disclosures, with full adoption of additional requirements delayed until their effective date. Amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Management currently is evaluating the impact of the guidance on the Company’s financial statement disclosures but has concluded that this guidance will not impact the Company’s consolidated financial position or results of operations. ASU 2018-12: Financial Services—Insurance (Topic 944) This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary update, cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. Effective for fiscal years beginning after December 31, 2020. Early adoption is permitted. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on our consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Amortization of deferred policy acquisition costs. The ASU simplifies the amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services—Insurance (Topic 944), Continued Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, Separate Accounts liabilities and deferred policy acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For deferred policy acquisition costs, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for the liability for future policyholder benefits for traditional and limited payment contracts. ASU 2016-13: Financial Instruments—Credit Losses (Topic 326) This ASU contains new guidance which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. Effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. These amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Accounting and Consolidation of Variable Interest Entities (“VIEs”) At March 31, 2019 , the Company held approximately $1.2 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including hedge funds, private equity funds and real estate-related funds. As an equity investor, the Company is considered to have a variable interest in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests or other financial arrangements, if any, the Company was not identified as primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheets as Other equity investments and to apply the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $168.6 billion at March 31, 2019 . The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1.2 billion and approximately $945 million of unfunded commitments at March 31, 2019 . The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At March 31, 2019 , the Company consolidated one real estate joint venture for which it was identified as primary beneficiary under the VIE model. The consolidated entity is jointly owned by AXA Equitable Life Insurance Company (“AXA Equitable Life”) and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheet at March 31, 2019 related to this VIE is $35 million of Real estate held for production of income. In addition, Real estate held for production of income reflects $16 million as related to two non-consolidated joint ventures at March 31, 2019 . Included in the Company’s consolidated balance sheet at March 31, 2019 are assets of $249 million , liabilities of $14 million and redeemable noncontrolling interest of $116 million associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheet at March 31, 2019 are assets of $170 million , liabilities of $16 million and redeemable noncontrolling interest of $40 million from consolidation of AB-sponsored investment funds under the Voting Interest Entity (“VOE”) model. Of the assets of these consolidated funds, $168 million are presented within Other invested assets and $2 million are presented in Cash and cash equivalents and $16 million liabilities of these consolidated funds are presented with Other liabilities in the Company’s consolidated balance sheet at March 31, 2019 . Ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interest, as appropriate. The Company is not required to provide financial support to these company-sponsored investment funds, and only the assets of such funds are available to settle each fund’s own liabilities. As of March 31, 2019 , the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $53.5 billion , and the Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $6 million at March 31, 2019 . The Company has no further commitments to or economic interest in these VIEs. Assumption Updates and Model Changes In 2018, the Company began conducting its annual review of the Company’s assumptions and models during the third quarter, consistent with industry practice. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for the Company’s insurance business, liabilities for future policyholder benefits, deferred policy acquisition cost (“DAC”) and deferred sales inducement (“DSI”) assets. Accordingly, t here were no material assumption changes in the first quarters of 2019 or 2018 . Reclassification of DAC Capitalization During the fourth quarter of 2018, the Company changed the presentation of the capitalization of DAC in the consolidated statements of income for all prior periods presented herein by netting the capitalized amounts within the applicable expense line items, such as Compensation and benefits, Commissions and distribution-related payments and Other operating costs and expenses. Previously, the Company had netted the capitalized amounts within the Amortization of DAC. There was no impact on Net income (loss) or Comprehensive income (loss) from this reclassification. The reclassification adjustments for the three months ended March 31, 2018 are presented in the table below. Capitalization of DAC reclassified to Compensation and benefits, Commissions and distribution-related payments, and Other operating costs and expenses reduced the amounts previously reported in those expense line items, while the capitalization of DAC reclassified from the Amortization of deferred policy acquisition costs line item increases that expense line item. Three Months Ended March 31, 2018 Individual Retirement Group Retirement Protection Solutions Consolidated (in millions) Reductions to expense line items: Compensation and benefits $ 19 $ 7 $ 15 $ 41 Commissions and distribution-related payments 72 14 34 120 Other operating costs and expenses — — 1 1 Total reductions $ 91 $ 21 $ 50 $ 162 Increase to expense line item: Amortization of deferred policy acquisition costs $ 91 $ 21 $ 50 $ 162 Revenue Recognition The table below presents the revenues recognized during the three months ended March 31, 2019 and 2018 , disaggregated by category: Three Months Ended March 31, 2019 2018 (in millions) Investment management, advisory and service fees: Base fees $ 705 $ 724 Performance-based fees 4 6 Research services 90 114 Distribution services 172 180 Shareholder services 18 20 Other 4 6 Total investment management and service fees $ 993 $ 1,050 Other income $ 120 $ 112 Revision of Prior Period Financial Statements D uring the third quarter of 2018, the Company revised its financial statements to reflect the correction of errors identified by the Company in its previously issued financial statements. The impact of these errors was not considered to be material. However, in order to improve the consistency and comparability of the financial statements, management revised the Company’s consolidated financial statements as of and for the three and six months ended March 31, 2018 and June 30, 2018, respectively. In addition, during the fourth quarter of 2018, the Company identified certain cash flows that were incorrectly classified in the Company’s consolidated statements of cash flows. The Company has determined that these misclassifications were not material to the financial statements of any period. The impact of the misclassifications detailed in the revision tables included in Note 16 on the consolidated statement of cash flows for the three months ended March 31, 2018 were corrected in the comparative consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 contained elsewhere in the financial statements. The misclassifications for the six and nine months ended June 30, 2018 and September 30, 2018 will be corrected in the Company’s comparative consolidated statements of cash flows to be included in the Form 10-Q filings as of and for the three and six months ended June 30, 2019 and as of and for the three and nine months ended September 30, 2019, respectively. See Note 16 for further information. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturities The following tables provide information relating to fixed maturities classified as available-for-sale (“AFS”). Available-for-Sale Securities by Classification Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (4) (in millions) March 31, 2019: Fixed Maturities: Corporate (1) $ 33,984 $ 936 $ 233 $ 34,687 $ — U.S. Treasury, government and agency 12,969 602 214 13,357 — States and political subdivisions 414 56 — 470 — Foreign governments 485 28 7 506 — Residential mortgage-backed (2) 217 11 — 228 — Asset-backed (3) 620 1 4 617 2 Redeemable preferred stock 428 16 4 440 — Total at March 31, 2019 $ 49,117 $ 1,650 $ 462 $ 50,305 $ 2 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (4) (in millions) December 31, 2018: Fixed Maturities: Corporate (1) $ 30,572 $ 406 $ 800 $ 30,178 $ — U.S. Treasury, government and agency 14,004 295 470 13,829 — States and political subdivisions 415 47 1 461 — Foreign governments 524 19 13 530 — Residential mortgage-backed (2) 225 10 1 234 — Asset-backed (3) 612 1 12 601 2 Redeemable preferred stock 449 15 18 446 — Total at December 31, 2018 $ 46,801 $ 793 $ 1,315 $ 46,279 $ 2 ______________ (1) Corporate fixed maturities include both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (4) Amounts represent OTTI losses in AOCI, which were not included in Net income (loss). The contractual maturities of AFS fixed maturities at March 31, 2019 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Contractual Maturities of Available-for-Sale Fixed Maturities Amortized Cost Fair Value (in millions) March 31, 2019: Due in one year or less $ 2,234 $ 2,246 Due in years two through five 11,686 11,900 Due in years six through ten 17,060 17,505 Due after ten years 16,872 17,369 Subtotal 47,852 49,020 Residential mortgage-backed 217 228 Asset-backed 620 617 Redeemable preferred stock 428 440 Total at March 31, 2019 $ 49,117 $ 50,305 The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 (in millions) Proceeds from sales $ 1,450 $ 3,880 Gross gains on sales $ 8 $ 155 Gross losses on sales $ (18 ) $ (52 ) Total OTTI $ — $ — Non-credit losses recognized in OCI — — Credit losses recognized in Net income (loss) $ — $ — The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts. Fixed Maturities - Credit Loss Impairments Three Months Ended March 31, 2019 2018 (in millions) Balances at January 1, $ (58 ) $ (18 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 32 — Recognized impairments on securities impaired to fair value this period (1) — — Impairments recognized this period on securities not previously impaired — — Additional impairments this period on securities previously impaired — — Increases due to passage of time on previously recorded credit losses — — Accretion of previously recognized impairments due to increases in expected cash flows — — Balances at March 31, $ (26 ) $ (18 ) ______________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. Net unrealized investment gains (losses) on fixed maturities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: Net Unrealized Gains (Losses) on Fixed Maturities Classified as AFS March 31, 2019 December 31, 2018 (in millions) Fixed maturities available-for-sale: With OTTI loss $ 1 $ — All other 1,187 (522 ) Net Unrealized Gains (Losses) $ 1,188 $ (522 ) Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net income (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturities on which an OTTI loss has been recognized and all other: Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balances at January 1, 2019 $ — $ — $ — $ — $ — Net investment gains (losses) arising during the period (11 ) — — — (11 ) Reclassification adjustment: Included in Net income (loss) 12 — — — 12 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — — — Policyholders’ liabilities — — — — — Balances at March 31, 2019 $ 1 $ — $ — $ — $ 1 Balances at January 1, 2018 $ 2 $ — $ (1 ) $ — $ 1 Net investment gains (losses) arising during the period — — — — — Reclassification adjustment: Included in Net income (loss) (2 ) — — — (2 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — — — Policyholders’ liabilities — — 1 — 1 Balances at March 31, 2018 $ — $ — $ — $ — $ — ______________ (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in Net income (loss) for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Deferred AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balances at January 1, 2019 $ (522 ) $ 100 $ (73 ) $ 104 $ (391 ) Net investment gains (losses) arising during the period 1,710 — — — 1,710 Reclassification adjustment: Included in Net income (loss) (1 ) — — — (1 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (701 ) — — (701 ) Deferred income taxes — — — (230 ) (230 ) Policyholders’ liabilities — — 85 — 85 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Deferred AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balances at March 31, 2019 $ 1,187 $ (601 ) $ 12 $ (126 ) $ 472 Balances at January 1, 2018 $ 1,871 $ (358 ) $ (238 ) $ (397 ) $ 878 Net investment gains (losses) arising during the period (1,546 ) — — — (1,546 ) Reclassification adjustment: Included in Net income (loss) (109 ) — — — (109 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 341 — — 341 Deferred income taxes — — — 253 253 Policyholders’ liabilities — — 110 — 110 Balances at March 31, 2018 $ 216 $ (17 ) $ (128 ) $ (144 ) $ (73 ) ______________ (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in Net income (loss) for securities with no prior OTTI losses. The following tables disclose the fair values and gross unrealized losses of the 770 issues at March 31, 2019 and the 1,700 issues at December 31, 2018 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) March 31, 2019: Fixed Maturities: Corporate $ 658 $ 6 $ 6,529 $ 227 $ 7,187 $ 233 U.S. Treasury, government and agency — — 3,392 214 3,392 214 Foreign governments 6 — 67 7 73 7 Asset-backed 344 2 112 2 456 4 Redeemable preferred stock 48 2 37 2 85 4 Total at March 31, 2019 $ 1,056 $ 10 $ 10,137 $ 452 $ 11,193 $ 462 December 31, 2018: Fixed Maturities: Corporate $ 8,964 $ 313 $ 8,244 $ 487 $ 17,208 $ 800 U.S. Treasury, government and agency 1,077 53 4,306 417 5,383 470 States and political subdivisions — — 19 1 19 1 Foreign governments 109 3 76 10 185 13 Residential mortgage-backed — — 29 1 29 1 Asset-backed 563 11 13 1 576 12 Redeemable preferred stock 165 13 33 5 198 18 Total at December 31, 2018 $ 10,878 $ 393 $ 12,720 $ 922 $ 23,598 $ 1,315 The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.7% of total investments. The largest exposures to a single issuer of corporate securities held at March 31, 2019 and December 31, 2018 were $237 million and $226 million , respectively, representing 1.6% and 1.5% of the consolidated equity of the Company. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the National Association of Insurance Commissioners (“NAIC”) designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). At March 31, 2019 and December 31, 2018 , respectively, approximately $1,288 million and $1,268 million , or 2.6% and 2.7% , of the $49,117 million and $46,801 million aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had net unrealized losses of $4 million and $31 million at March 31, 2019 and December 31, 2018 , respectively. At March 31, 2019 and December 31, 2018 , respectively, the $452 million and $922 million of gross unrealized losses of twelve months or more were concentrated in corporate and U.S. Treasury, government and agency securities. In accordance with the policy described in Note 2 , the Company concluded that an adjustment to income for OTTI for the three months ended March 31, 2019 or 2018 for these securities was not warranted. At March 31, 2019 and December 31, 2018 , the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis. At March 31, 2019 and December 31, 2018 , the fair value of the Company’s trading account securities was $13,127 million and $16,017 million , respectively. At March 31, 2019 and December 31, 2018 , trading account securities included the General Account’s investment in Separate Accounts which had carrying values of $51 million and $49 million , respectively. Net unrealized and realized gains (losses) on trading account equity securities are included in Net investment income (loss) in the Consolidated Statements of Income (Loss). The table below shows a breakdown of Net investment income (loss) from trading account securities during the three months ended March 31, 2019 and 2018 : Net Investment Income (Loss) from Trading Account Securities Three Months Ended March 31, 2019 2018 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 318 $ (121 ) Net investment gains (losses) recognized on securities sold during the period (24 ) 1 Net investment gains (losses) on trading securities arising during the period 294 (120 ) Interest and dividend income from trading securities 92 76 Net investment income (loss) from trading securities $ 386 $ (44 ) Mortgage Loans The payment terms of mortgage loans may from time to time be restructured or modified. At March 31, 2019 and December 31, 2018 , the carrying values of problem commercial mortgage loans on real estate that had been classified as non-accrual loans were $0 and $19 million , respectively. Valuation Allowances for Mortgage Loans: The change in the valuation allowance for credit losses for commercial mortgage loans during the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (in millions) Allowance for credit losses: Beginning balance, January 1, $ 7 $ 8 Charge-offs (7 ) — Recoveries — (1 ) Provision — — Ending balance, March 31, $ — $ 7 March 31, Individually Evaluated for Impairment $ — $ 7 There were no allowances for credit losses for agricultural mortgage loans for the three months ended March 31, 2019 and 2018 . The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at March 31, 2019 and December 31, 2018 . The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios Debt Service Coverage Ratio (1) Total Mortgage Loans Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x (in millions) March 31, 2019: Commercial Mortgage Loans 0% - 50% $ 781 $ 21 $ 215 $ 24 $ — $ — $ 1,041 50% - 70% 4,933 806 1,284 474 — — 7,497 70% - 90% 266 — 117 334 132 — 849 90% plus — — — — — — — Total Commercial Mortgage Loans $ 5,980 $ 827 $ 1,616 $ 832 $ 132 $ — $ 9,387 Agricultural Mortgage Loans 0% - 50% $ 278 $ 130 $ 276 $ 563 $ 350 $ 49 $ 1,646 50% - 70% 119 70 248 357 237 34 1,065 70% - 90% — — — 19 — — 19 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 397 $ 200 $ 524 $ 939 $ 587 $ 83 $ 2,730 Total Mortgage Loans 0% - 50% $ 1,059 $ 151 $ 491 $ 587 $ 350 $ 49 $ 2,687 50% - 70% 5,052 876 1,532 831 237 34 8,562 70% - 90% 266 — 117 353 132 — 868 90% plus — — — — — — — Total Mortgage Loans $ 6,377 $ 1,027 $ 2,140 $ 1,771 $ 719 $ 83 $ 12,117 Debt Service Coverage Ratio (1) Total Mortgage Loans Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x (in millions) December 31, 2018: Commercial Mortgage Loans 0% - 50% $ 797 $ 21 $ 247 $ 24 $ — $ — $ 1,089 50% - 70% 4,908 656 1,146 325 151 — 7,186 70% - 90% 260 — 117 370 98 — 845 90% plus — — — 27 — — 27 Total Commercial Mortgage Loans $ 5,965 $ 677 $ 1,510 $ 746 $ 249 $ — $ 9,147 Agricultural Mortgage Loans 0% - 50% $ 282 $ 147 $ 267 $ 543 $ 321 $ 51 $ 1,611 50% - 70% 112 46 246 379 224 31 1,038 70% - 90% — — — 19 27 — 46 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 394 $ 193 $ 513 $ 941 $ 572 $ 82 $ 2,695 Total Mortgage Loans 0% - 50% $ 1,079 $ 168 $ 514 $ 567 $ 321 $ 51 $ 2,700 50% - 70% 5,020 702 1,392 704 375 31 8,224 70% - 90% 260 — 117 389 125 — 891 90% plus — — — 27 — — 27 Total Mortgage Loans $ 6,359 $ 870 $ 2,023 $ 1,687 $ 821 $ 82 $ 11,842 ______________ (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. The following table provides information relating to the aging analysis of past due mortgage loans at March 31, 2019 and December 31, 2018 . Age Analysis of Past Due Mortgage Loans 30-59 Days 60-89 Days 90 Days or More Total Current Total Financing Receivables Recorded Investment 90 Days or More and Accruing (in millions) March 31, 2019 Commercial $ — $ — $ — $ — $ 9,387 $ 9,387 $ — Agricultural 9 26 55 90 2,640 2,730 54 Total Mortgage Loans $ 9 $ 26 $ 55 $ 90 $ 12,027 $ 12,117 $ 54 December 31, 2018 Commercial $ — $ — $ 27 $ 27 $ 9,120 $ 9,147 $ — Agricultural 18 8 42 68 2,627 2,695 40 Total Mortgage Loans $ 18 $ 8 $ 69 $ 95 $ 11,747 $ 11,842 $ 40 The following table provides information relating to impaired mortgage loans at March 31, 2019 and December 31, 2018 . Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (in millions) March 31, 2019: With no related allowance recorded: Agricultural mortgage loans $ 2 $ 2 $ — $ 2 $ — Total $ 2 $ 2 $ — $ 2 $ — With related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ 13 $ — Total $ — $ — $ — $ 13 $ — December 31, 2018: With no related allowance recorded: Agricultural mortgage loans $ 2 $ 2 $ — $ — $ — Total $ 2 $ 2 $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 31 $ (7 ) $ 27 $ — Total $ 27 $ 31 $ (7 ) $ 27 $ — ______________ (1) Represents a two-quarter and five-quarter average of recorded amortized cost at March 31, 2019 and December 31, 2018 , respectively. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. Derivatives are generally not accounted for using hedge accounting, with the exception of Treasury Inflation-Protected Securities (“TIPS”), which is discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options, credit and foreign exchange derivatives, as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of its hedging strategy, the Company targets an asset level for all variable annuity products at or above a CTE98 level under most economic scenarios (CTE is a statistical measure of tail risk which quantifies the total asset requirement to sustain a loss if an event outside a given probability level has occurred. CTE98 denotes the financial resources a company would need to cover the average of the worst 2% of scenarios.) Derivatives utilized to hedge exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer variable annuity products with GMxB features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB derivative features liability is that under-performance of the financial markets could result in the GMxB derivative features’ benefits being higher than what accumulated policyholders’ account balances would support. For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Additionally, the Company is party to total return swaps for which the reference U.S. Treasury securities are contemporaneously purchased from the market and sold to the swap counterparty. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. The Company has also purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company. Derivatives utilized to hedge crediting rate exposure on SCS, SIO, MSO and IUL products/investment options The Company hedges crediting rates in the Structured Capital Strategies (“SCS”) variable annuity, Structured Investment Option in the EQUI-VEST variable annuity series (“SIO”), Market Stabilizer Option (“MSO”) in the variable life insurance products and Indexed Universal Life (“IUL”) insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment. In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, thereby substantially reducing any exposure to market-related earnings volatility. Derivatives used for General Account Investment Portfolio The Company maintains a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible for investment under its investment guidelines through the sale of credit default swaps (“CDSs”). Under the terms of these swaps, the Company receives quarterly fixed premiums that, together with any initial amount paid or received at trade inception, replicate the credit spread otherwise currently obtainable by purchasing the referenced entity’s bonds of similar maturity. These credit derivatives generally have remaining terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in Net investment income (loss). The Company manages its credit exposure taking into consideration both cash and derivatives-based positions and selects the reference entities in its replicated credit exposures in a manner consistent with its selection of fixed maturities. In addition, the Company generally transacts the sale of CDSs in single name reference entities of investment grade credit quality and with counterparties subject to collateral posting requirements. If there is an event of default by the reference entity or other such credit event as defined under the terms of the swap contract, the Company is obligated to perform under the credit derivative and, at the counterparty’s option, either pay the referenced amount of the contract less an auction-determined recovery amount or pay the referenced amount of the contract and receive in return the defaulted or similar security of the reference entity for recovery by sale at the contract settlement auction. To date, there have been no events of default or circumstances indicative of a deterioration in the credit quality of the named referenced entities to require or suggest that the Company will have to perform under these CDSs. The maximum potential amount of future payments the Company could be required to make under these credit derivatives is limited to the par value of the referenced securities which is the U.S. dollar or euro-equivalent of the derivative’s notional amount. The Standard North American CDS Contract (“SNAC”) or Standard European Corporate Contract (“STEC”) under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative. The Company purchased 30-year TIPS and other sovereign bonds, both inflation linked and non-inflation linked, as General Account investments and enters into asset or cross-currency basis swaps, to result in payment of the given bond’s coupons and principal at maturity in the bond’s specified currency to the swap counterparty in return for fixed dollar amounts. These swaps, when considered in combination with the bonds, together result in a net position that is intended to replicate a dollar-denominated fixed-coupon cash bond with a yield higher than a term-equivalent U.S. Treasury bond. In 2016, the Company implemented a program to mitigate its duration gap using total return swaps for which the reference U.S. Treasury securities are sold to the swap counterparty under arrangements economically similar to repurchase agreements. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. Under this program, the Company derecognized approximately $3,905 million of U.S. Treasury securities for which the Company received proceeds of approximately $3,905 million at inception of the total return swap contract. Under the terms of these swaps, the Company retains ongoing exposure to the total returns of the underlying U.S. Treasury securities in exchange for a financing cost. At March 31, 2019 , the aggregate fair value of U.S. Treasury securities derecognized under this program was approximately $3,788 million . Reported in Other invested assets in the Company’s balance sheet at March 31, 2019 is approximately $87 million , representing the fair value of the total return swap contracts. The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category At March 31, 2019 Gains (Losses) Reported in Net Income (Loss) Three Months Ended March 31, 2019 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 7,514 $ — $ 2 $ (762 ) Swaps 8,158 6 371 (985 ) Options 37,544 3,494 1,311 1,111 Interest rate contracts: Swaps 28,253 912 211 648 Futures 16,758 — — 56 Credit contracts: Credit default swaps 1,338 23 3 7 Other freestanding contracts: Foreign currency contracts 1,853 31 8 10 Margin — 38 — — Collateral — 9 2,575 — Embedded Derivatives (2): GMIB reinsurance contracts — 1,740 — 18 GMxB derivative features liability (3) — — 6,126 (408 ) SCS, SIO, MSO and IUL indexed features (4) — — 2,067 (1,325 ) Total $ 101,418 $ 6,253 $ 12,674 $ (1,630 ) ______________ (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) SCS, SIO, MSO and IUL indexed features are reported in Policyholders’ account balances in the consolidated balance sheets. At December 31, 2018 Gains (Losses) Reported in Net Income (Loss) Three Months Ended March 31, 2018 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 11,143 $ 2 $ 3 $ (23 ) Swaps 7,796 143 168 114 Options 21,821 2,133 1,164 (18 ) Interest rate contracts: Swaps 27,116 634 196 (671 ) Futures 11,792 — — 40 Credit contracts: Credit default swaps 1,376 20 3 — Other freestanding contracts: Foreign currency contracts 2,184 35 22 (51 ) Margin — 18 5 — Collateral — 8 1,581 — Embedded Derivatives: GMIB reinsurance contracts (2) — 1,732 — (159 ) GMxB derivative features liability (2) (3) — — 5,614 505 SCS, SIO, MSO and IUL indexed features (2) (4) — — 715 27 Net derivative gains (loss) (236 ) Cross currency swaps (5) (6) — — — 9 Total $ 83,228 $ 4,725 $ 9,471 $ (227 ) ______________ (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) SCS, SIO, MSO and IUL indexed features are reported in Policyholders’ account balances in the consolidated balance sheets. (5) Reported in Other assets or Other liabilities in the consolidated balance sheets. (6) Reported in Other income in the consolidated statements of income (loss). Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts at March 31, 2019 are exchange-traded and net settled daily in cash. At March 31, 2019 , the Company had open exchange-traded futures positions on: (i) the S&P 500, Russell 2000, and Emerging Market indices, having initial margin requirements of $295 million , (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $35 million and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200, and European, Australasia, and Far East (“EAFE”) indices as well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S. dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial margin requirements of $25 million . Collateral Arrangements The Company generally has executed a Credit Support Annex (“CSA”) under the International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) it maintains with each of its over-the-counter (“OTC”) derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. At March 31, 2019 and December 31, 2018 , respectively, the Company held $2,575 million and $1,581 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in Other invested assets. The Company posted collateral of $9 million and $8 million at March 31, 2019 and December 31, 2018 , respectively, in the normal operation of its collateral arrangements. Securities Repurchase and Reverse Repurchase Transactions Securities repurchase and reverse repurchase transactions are conducted by the Company under a standardized securities industry master agreement, amended to suit the requirements of each respective counterparty. The Company’s securities repurchase and reverse repurchase agreements are accounted for as secured borrowing or lending arrangements, respectively, and are reported in the consolidated balance sheets on a gross basis. At March 31, 2019 and December 31, 2018 , the balance outstanding under securities repurchase transactions was $0 and $573 million , respectively. The Company utilized these repurchase and reverse repurchase agreements for asset liability and cash management purposes. For other instruments used for asset and liability management purposes, see Note 13 . The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments at March 31, 2019 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At March 31, 2019 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets (in millions) Assets (1) Total derivatives $ 4,514 $ 4,434 $ 80 Other financial instruments 2,164 — 2,164 Other invested assets $ 6,678 $ 4,434 $ 2,244 Liabilities (2) Total derivatives $ 4,434 $ 4,387 $ 47 Other financial liabilities 3,734 — 3,734 Other liabilities $ 8,168 $ 4,387 $ 3,781 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at March 31, 2019 . Collateral Amounts Not Offset in the Consolidated Balance Sheets At March 31, 2019 Net Amount Presented in the Balance Sheets Collateral (Received)/Held Financial Instruments Cash Net Amount (in millions) Assets (1) Total derivatives $ 2,561 $ 367 $ 2,114 $ 80 Other financial instruments 2,164 — — 2,164 Other invested assets $ 4,725 $ 367 $ 2,114 $ 2,244 Liabilities (2) Total derivatives $ 47 $ — $ — $ 47 Other financial liabilities 3,734 — — 3,734 Other liabilities $ 3,781 $ — $ — $ 3,781 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs . The Company had no securities sold under agreements to repurchase at March 31, 2019 . The following table presents information about the Company’s offsetting financial assets and liabilities and derivative instruments at December 31, 2018 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2018 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets (in millions) Assets (1) Total derivatives $ 2,993 $ 2,945 $ 48 Other financial instruments 1,989 — 1,989 Other invested assets $ 4,982 $ 2,945 $ 2,037 Liabilities (2) Total derivatives $ 3,142 $ 2,945 $ 197 Other financial liabilities 3,163 — 3,163 Other liabilities $ 6,305 $ 2,945 $ 3,360 Securities sold under agreement to repurchase (3) $ 571 $ — $ 571 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $2 million in Securities sold under agreement to repurchase on the consolidated balance sheets. The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2018 . Collateral Amounts Not Offset in the Consolidated Balance Sheets At December 31, 2018 Net Amount Presented in the Balance Sheets Collateral (Received)/Held Financial Instruments Cash Net Amount (in millions) Assets (1) Total derivatives $ 1,411 $ — $ (1,363 ) $ 48 Other financial instruments 1,989 — — 1,989 Other invested assets $ 3,400 $ — $ (1,363 ) $ 2,037 Liabilities (2) Total derivatives $ 197 $ — $ — $ 197 Other financial liabilities 3,163 — — 3,163 Other liabilities $ 3,360 $ — $ — $ 3,360 Securities sold under agreement to repurchase (3) (4) (5) $ 571 $ (588 ) $ — $ (17 ) ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $2 million in Securities sold under agreement to repurchase. (4) U.S. Treasury and agency securities are in Fixed maturities available-for-sale on the consolidated balance sheets. (5) Cash is included in Cash and cash equivalents on consolidated balance sheets. The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2018 . Repurchase Agreement Accounted for as Secured Borrowings At December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 days 30–90 days Greater Than 90 days Total (in millions) Securities sold under agreement to repurchase (1) U.S. Treasury and agency securities $ — $ 571 $ — $ — $ 571 Total $ — $ 571 $ — $ — $ 571 ______________ (1) Excludes expense of $2 million in Securities sold under agreement to repurchase on the consolidated balance sheets. |
CLOSED BLOCK
CLOSED BLOCK | 3 Months Ended |
Mar. 31, 2019 | |
Closed Block Disclosure [Abstract] | |
CLOSED BLOCK | CLOSED BLOCK Summarized financial information for the Company’s Closed Block is as follows: March 31, 2019 December 31, 2018 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,670 $ 6,709 Other liabilities 70 47 Total Closed Block liabilities 6,740 6,756 Assets Designated to the Closed Block: Fixed maturities, available-for-sale, at fair value (amortized cost of $3,606 and $3,680) 3,697 3,672 Mortgage loans on real estate, net of valuation allowance of $0 and $0 1,822 1,824 Policy loans 727 736 Cash and other invested assets 142 76 Other assets 171 179 Total assets designated to the Closed Block 6,559 6,487 Excess of Closed Block liabilities over assets designated to the Closed Block 181 269 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholders' dividend obligation of $0 and $0 105 8 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 286 $ 277 The Company’s Closed Block revenues and expenses are as follows: Three Months Ended March 31, 2019 2018 (in millions) Revenues: Premiums and other income $ 48 $ 51 Net investment income (loss) 67 73 Investment gains (losses), net (1 ) 1 Total revenues 114 125 Benefits and Other Deductions: Policyholders’ benefits and dividends 121 126 Other operating costs and expenses 1 1 Total benefits and other deductions 122 127 Net income (loss) before income taxes (8 ) (2 ) Income tax (expense) benefit (1 ) — Net income (loss) $ (9 ) $ (2 ) A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended March 31, 2019 2018 (in millions) Balances, beginning of year $ — $ 19 Unrealized investment gains (losses), net of DAC — (19 ) Balances, end of period $ — $ — |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
INSURANCE LIABILITIES | INSURANCE LIABILITIES Variable Annuity Contracts – GMDB, GMIB, GIB and GWBL and Other Features The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following: • Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); • Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); • Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; • Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or • Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life. Liabilities for Variable Annuity Contracts with GMDB and GMIB Features without No-Lapse Guarantee Rider (“NLG”) Feature The change in the liabilities for variable annuity contracts with GMDB and GMIB features and no NLG feature are summarized in the tables below. The amounts for the direct contracts (before reinsurance ceded) and assumed contracts are reflected in the consolidated balance sheets in Future policy benefits and other policyholders’ liabilities. The amounts for the ceded contracts are reflected in the consolidated balance sheets in Amounts due from reinsurers. Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature For the Three Months Ended March 31, 2019 and 2018 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance at January 1, 2019 $ 4,659 $ 82 $ (113 ) $ 3,743 $ 184 $ (1,732 ) Paid guarantee benefits (118 ) (6 ) 4 (56 ) (1 ) 21 Other changes in reserve 129 1 — 55 (1 ) (29 ) Balance at March 31, 2019 $ 4,670 $ 77 $ (109 ) $ 3,742 $ 182 $ (1,740 ) Balance at January 1, 2018 $ 4,059 $ 95 $ (108 ) $ 4,752 $ 195 $ (1,894 ) Paid guarantee benefits (101 ) (6 ) 4 (33 ) (21 ) 11 Other changes in reserve 123 (7 ) (2 ) (87 ) (1 ) 148 Balance at March 31, 2018 $ 4,081 $ 82 $ (106 ) $ 4,632 $ 173 $ (1,735 ) Liabilities for Embedded and Freestanding Insurance Related Derivatives The liability for the GMxB derivative features liability, the liability for SCS, SIO, MSO and IUL indexed features and the asset and liability for the GMIB reinsurance contracts are considered embedded or freestanding insurance derivatives and are reported at fair value. For the fair value of the assets and liabilities associated with these embedded or freestanding insurance derivatives, see Note 7 . Account Values and Net Amount at Risk Account Values and Net Amount at Risk (“NAR”) for direct and assumed variable annuity contracts in-force with GMDB and GMIB features as of March 31, 2019 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the related Account Values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive. Direct Variable Annuity Contracts with GMDB and GMIB Features At March 31, 2019 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ 14,178 $ 98 $ 60 $ 181 $ 14,517 Separate Accounts 45,599 9,001 3,134 32,609 90,343 Total Account Values $ 59,777 $ 9,099 $ 3,194 $ 32,790 $ 104,860 Net amount at risk, gross $ 143 $ 143 $ 2,025 $ 18,389 $ 20,700 Net amount at risk, net of amounts reinsured $ 143 $ 138 $ 1,414 $ 18,389 $ 20,084 Average attained age of policyholders (in years) 51.4 67.1 73.8 69.2 55.3 Percentage of policyholders over age 70 10.2 % 43.5 % 66.1 % 50.7 % 19.0 % Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 19 $ 245 $ 264 Separate Accounts — — 21,923 35,745 57,668 Total Account Values $ — $ — $ 21,942 $ 35,990 $ 57,932 Net amount at risk, gross $ — $ — $ 898 $ 8,287 $ 9,185 Net amount at risk, net of amounts reinsured $ — $ — $ 281 $ 7,515 $ 7,796 Average attained age of policyholders (in years) N/A N/A 69.0 69.0 69.0 Weighted average years remaining until annuitization N/A N/A 1.7 0.5 0.5 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Assumed Variable Annuity Contracts with GMDB and GMIB Features At March 31, 2019 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rates) Variable annuity contracts with GMDB features Reinsured account values $ 932 $ 5,327 $ 271 $ 1,700 $ 8,230 Net amount at risk assumed $ 6 $ 286 $ 20 $ 273 $ 585 Average attained age of policyholders (in years) 67 72 77 75 73 Percentage of policyholders over age 70 43.9 % 62.6 % 78.9 % 75.5 % 63.7 % Range of contractually specified interest rates (1) N/A N/A 3%-10% 5%-10% 3%-10% Variable annuity contracts with GMIB features Reinsured account values $ 898 $ 45 $ 244 $ 1,205 $ 2,392 Net amount at risk assumed $ 1 $ — $ 36 $ 267 $ 304 Average attained age of policyholders (in years) 71 74 72 69 70 Percentage of policyholders over age 70 63.1 % 64.1 % 59.3 % 50.7 % 56.5 % Range of contractually specified interest rates N/A N/A 3.3%-6.5% 6%-6% 3.3%-6.5% ______________ (1) In general, for policies with the highest contractual interest rate shown ( 10% ), the rate applied only for the first 10 years after issue, which has now elapsed. For more information about the reinsurance programs of the Company’s GMDB and GMIB exposure, see “Reinsurance Agreements” in Note 10 of the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2018. Separate Accounts Investments by Investment Category Underlying Variable Annuity Contracts with GMDB and GMIB Features The total account values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related account values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive. Investment in Variable Insurance Trust Mutual Funds As of March 31, 2019 As of December 31, 2018 GMDB GMIB GMDB GMIB (in millions) Equity $ 39,856 $ 17,692 $ 35,541 $ 15,759 Fixed income 5,206 2,825 5,173 2,812 Balanced 44,433 36,855 41,588 33,974 Other 848 296 852 290 Total $ 90,343 $ 57,668 $ 83,154 $ 52,835 Hedging Programs for GMDB, GMIB, GIB and Other Features The Company has a program intended to hedge certain risks associated first with the GMDB feature and with the GMIB feature of the Accumulator series of variable annuity products. The program has also been extended to cover other guaranteed benefits as they have been made available. This program utilizes derivative contracts, such as exchange-traded equity, currency and interest rate futures contracts, total return and/or equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the capital markets. At the present time, this program hedges certain economic risks on products sold from 2001 forward, to the extent such risks are not externally reinsured. These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in Net derivative gains (losses) in the period in which they occur, and may contribute to income (loss) volatility. Variable and Interest-Sensitive Life Insurance Policies - NLG The NLG feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The change in the NLG feature reflected in the General Account in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability (1) 2019 2018 (in millions) Balance at January 1, $ 812 $ 709 Paid guaranteed benefits (7 ) (8 ) Other changes in reserves 20 3 Balance at March 31, $ 825 $ 704 ______________ (1) There were no amounts of reinsurance ceded in any period presented. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. Assets and liabilities measured at fair value on a recurring basis are summarized below. At March 31, 2019 and December 31, 2018 , no assets were required to be measured at fair value on a non-recurring basis. Fair value measurements are required on a non-recurring basis for certain assets, including goodwill and mortgage loans on real estate, only when an OTTI or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. The Company recognizes transfers between valuation levels at the beginning of the reporting period. Fair Value Measurements at March 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Corporate (1) $ — $ 33,507 $ 1,180 $ 34,687 U.S. Treasury, government and agency — 13,357 — 13,357 States and political subdivisions — 430 40 470 Foreign governments — 506 — 506 Residential mortgage-backed (2) — 228 — 228 Asset-backed (3) — 83 534 617 Redeemable preferred stock 159 281 — 440 Total fixed maturities, available-for-sale 159 48,392 1,754 50,305 Other equity investments 12 — 74 86 Trading securities 484 12,608 35 13,127 Other invested assets: Short-term investments — 258 — 258 Assets of consolidated VIEs/VOEs 112 270 28 410 Swaps — 359 — 359 Credit default swaps — 20 — 20 Futures (1 ) — — (1 ) Options — 2,183 — 2,183 Total other invested assets 111 3,090 28 3,229 Cash equivalents 4,021 — — 4,021 Segregated securities — 1,262 — 1,262 GMIB reinsurance contract asset — — 1,740 1,740 Separate Accounts assets 116,829 2,764 383 119,976 Total Assets $ 121,616 $ 68,116 $ 4,014 $ 193,746 Liabilities GMxB derivative features’ liability $ — $ — $ 6,126 $ 6,126 SCS, SIO, MSO and IUL indexed features’ liability — 2,067 — 2,067 Liabilities of consolidated VIEs/VOEs — 6 — 6 Contingent payment arrangements — — 7 7 Total Liabilities $ — $ 2,073 $ 6,133 $ 8,206 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Corporate (1) $ — $ 28,992 $ 1,186 $ 30,178 U.S. Treasury, government and agency — 13,829 — 13,829 States and political subdivisions — 422 39 461 Foreign governments — 530 — 530 Residential mortgage-backed (2) — 234 — 234 Asset-backed (3) — 82 519 601 Redeemable preferred stock 167 279 — 446 Total fixed maturities, available-for-sale 167 44,368 1,744 46,279 Other equity investments 11 — 74 85 Trading securities 446 15,507 64 16,017 Other invested assets: Short-term investments — 515 — 515 Assets of consolidated VIEs/VOEs 92 259 27 378 Swaps — 426 — 426 Credit default swaps — 17 — 17 Futures (1 ) — — (1 ) Options — 968 — 968 Total other invested assets 91 2,185 27 2,303 Cash equivalents 3,482 — — 3,482 Segregated securities — 1,170 — 1,170 GMIB reinsurance contracts asset — — 1,732 1,732 Separate Accounts assets 106,994 2,747 374 110,115 Total Assets $ 111,191 $ 65,977 $ 4,015 $ 181,183 Liabilities GMxB derivative features’ liability $ — $ — $ 5,614 $ 5,614 SCS, SIO, MSO and IUL indexed features’ liability — 715 — 715 Liabilities of consolidated VIEs/VOEs — 7 — 7 Contingent payment arrangements — — 7 7 Total Liabilities $ — $ 722 $ 5,621 $ 6,343 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. The fair values of the Company’s public fixed maturities are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If as a result it is determined that the independent valuation service provider is able to reprice the security in a manner agreed as more consistent with current market observations, the security remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which the Company’s own assumptions about market-participant inputs would be used in pricing the security. The fair values of the Company’s private fixed maturities are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made. The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap (“OIS”) curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If as a result it is determined that the independent valuation service provider is able to reprice the derivative instrument in a manner agreed as more consistent with current market observations, the position remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which the Company’s own assumptions about market-participant inputs would be used in pricing the security. Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less, and are carried at cost as a proxy for fair value measurement due to their short-term nature. Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities and certain corporate debt securities, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Segregated securities classified as Level 2 are U.S. Treasury bills segregated by AB in a special reserve bank custody account for the exclusive benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange Act and for which fair values are based on quoted yields in secondary markets. Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. The Company’s AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors. Certain Company products such as the SCS and EQUI-VEST variable annuity products, and in the MSO fund available in some life contracts offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected can currently have 1, 3, 5, or 6 year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g. holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are accounted for as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers. The Company’s investments classified as Level 3 primarily include corporate debt securities, such as private fixed maturities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. The Company applies various due diligence procedures, as considered appropriate, to validate these non-binding broker quotes for reasonableness, based on its understanding of the markets, including use of internally-developed assumptions about inputs a market participant would use to price the security. In addition, asset-backed securities are classified as Level 3. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMIBNLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted. This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base. Level 3 also includes the GMIB reinsurance contract assets, which are accounted for as derivative contracts. The GMIB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios while GMxB derivative features liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to GMxB derivative features’ liability over a range of market-consistent economic scenarios. The valuations of the GMIB reinsurance contract asset and GMxB derivative features liability incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity Separate Accounts funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its GMIB reinsurance contract asset and GMxB derivative features liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the swap curve for non-performance risk is made to the fair values of the GMIB reinsurance contract asset and liabilities and GMIBNLG feature to reflect the claims-paying ratings of counterparties and the Company. Equity and fixed income volatilities were modeled to reflect current market volatilities. Due to the unique, long duration of the GMIBNLG feature, adjustments were made to the equity volatilities to remove the illiquidity bias associated with the longer tenors and risk margins were applied to the non-capital markets inputs to the GMIBNLG valuations. After giving consideration to collateral arrangements, the Company reduced the fair value of its GMIB reinsurance contract asset by $84 million and $112 million at March 31, 2019 and December 31, 2018 , respectively, to recognize incremental counterparty non-performance risk and reduced the fair value of its GMIB reinsurance contract liabilities by $31 million and $41 million at March 31, 2019 and December 31, 2018 , respectively, to recognize its own incremental non-performance risk. Lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. For valuing the embedded derivative, lapse rates vary throughout the period over which cash flows are projected. The Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2010, 2014 and 2016 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon revenue and discount rate projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. The Company’s consolidated VIEs/VOEs hold investments that are classified as Level 3, primarily corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities. During the three months ended March 31, 2019 , AFS fixed maturities with fair values of $69 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $17 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.6% of total equity at March 31, 2019 . During the three months ended March 31, 2018 , AFS fixed maturities with fair values of $16 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $67 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.5% of total equity at March 31, 2018 . The tables below present reconciliations for all Level 3 assets and liabilities for the three months ended March 31, 2019 and 2018 . Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions Asset-backed (in millions) Balance, January 1, 2019 $ 1,186 $ 39 $ 519 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 1 — — Other comprehensive income (loss) 9 1 4 Purchases 70 — 11 Sales (34 ) — — Transfers into Level 3 (1) 17 — — Transfers out of Level 3 (1) (69 ) — — Balance, March 31, 2019 $ 1,180 $ 40 $ 534 Balance, January 1, 2018 $ 1,150 $ 40 $ 541 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 1 — — Other comprehensive income (loss) (21 ) (1 ) — Purchases 189 — — Sales (117 ) — (1 ) Transfers into Level 3 (1) 67 — — Transfers out of Level 3 (1) (16 ) — — Balance, March 31, 2018 $ 1,253 $ 39 $ 540 ______________ (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. Redeemable Preferred Stock Other Equity Investments (2) GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2019 $ — $ 165 $ 1,732 $ 374 $ (5,614 ) $ (7 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Investment gains (losses), net — — — 7 — — Net derivative gains (losses), excluding non-performance risk — — (11 ) — 63 — Non-performance risk (1) — — 29 — (470 ) — Subtotal — — 18 7 (407 ) — Purchases (2) — 2 11 4 (111 ) — Sales (3) — — (21 ) — 6 — Settlements (4) — — — (1 ) — — Activity related to consolidated VIEs/VOEs — (1 ) — — — — Transfers out of Level 3 (5) — (29 ) — (1 ) — — Balance, March 31, 2019 $ — $ 137 $ 1,740 $ 383 $ (6,126 ) $ (7 ) Balance, January 1, 2018 $ 1 $ 99 $ 1,894 $ 349 (4,451 ) $ (15 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Investment gains (losses), net — — — 7 — — Net derivative gains (losses), excluding non-performance risk — — (155 ) — 457 — Non-performance risk (1) — — (4 ) — 48 — Subtotal — — (159 ) 7 505 — Other comprehensive income (loss) — 1 — — — — Purchases (2) — 4 10 3 (96 ) — Sales (3) (1 ) — (11 ) (1 ) 5 — Settlements (4) — — — (1 ) — 1 Activity related to consolidated VIEs/VOEs — 1 — — — — Transfers into Level 3 (5) — 5 — — — — Balance, March 31, 2018 $ — $ 110 $ 1,734 $ 357 (4,037 ) $ (14 ) ______________ (1) The Company’s non-performance risk is recorded through Net derivative gains (losses). (2) For the GMIB reinsurance contract asset and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for the GMxB derivative features liability, represents benefits paid. (4) For contingent payment arrangements, represents payments under the arrangement. (5) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. The table below details changes in unrealized gains (losses) for the three months ended March 31, 2019 and 2018 by category for Level 3 assets and liabilities still held at March 31, 2019 and 2018 . Level 3 Instruments Income (Loss) Investment Gains (Losses), Net Net Derivative Gains (Losses) OCI (in millions) Held at March 31, 2019: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 9 State and political subdivisions — — 1 Asset-backed — — 4 Subtotal — — 14 GMIB reinsurance contracts — 18 — Separate Accounts assets (1) 7 — — GMxB derivative features liability — (408 ) — Total $ 7 $ (390 ) $ 14 Held at March 31, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (19 ) Commercial mortgage-backed — — (1 ) Subtotal — — (20 ) GMIB reinsurance contracts — (159 ) — Separate Accounts assets (1) 7 — — GMxB derivative features liability — 505 — Total $ 7 $ 346 $ (20 ) ______________ (1) There is an investment expense that offsets this investment gain (loss). The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities at March 31, 2019 and December 31, 2018 . Quantitative Information about Level 3 Fair Value Measurements at March 31, 2019 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 102 Matrix pricing model Spread over benchmark 15 - 580 bps 115 bps 891 Market EBITDA multiples 3.9x - 25.5x 12.7x Other equity investments 35 Discounted cash flow Earnings multiple 9.4x Separate Accounts assets 359 Third party appraisal Capitalization rate 4.4% 1 Discounted cash flow Spread over U.S. Treasury curve 248 bps GMIB reinsurance contract asset 1,740 Discounted cash flow Lapse rates 1% - 6.27% Liabilities: GMIBNLG 5,847 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 149 bps Assumed GMIB Reinsurance Contracts 182 Discounted cash flow Lapse rates 1.1% - 11.2% GWBL/GMWB 137 Discounted cash flow Lapse rates 0.5% - 5.7% GIB (44 ) Discounted cash flow Lapse rates 0.5% - 5.7% GMAB 4 Discounted cash flow Lapse rates 0.5% - 11.0% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 99 Matrix pricing model Spread over benchmark 15 - 580 bps 109 bps 881 Market comparable companies EBITDA multiples 4.1x - 37.8x 12.1x Other equity investments 35 Discounted cash flow Earnings multiple 9.4x Separate Accounts assets 352 Third party appraisal Capitalization rate 4.4% 1 Discounted cash flow Spread over U.S. Treasury curve 248bps GMIB reinsurance contract asset 1,732 Discounted cash flow Lapse rates 1% - 6.27% Liabilities: GMIBNLG 5,341 Discounted cash flow Non-performance risk 189 bps Assumed GMIB Reinsurance Contracts 183 Discounted cash flow Lapse rates 1.1% - 11.2% GWBL/GMWB 130 Discounted cash flow Lapse rates 0.5% - 5.7% GIB (48 ) Discounted cash flow Lapse rates 0.5% - 5.7% GMAB 7 Discounted cash flow Lapse rates 0.5% - 11.0% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. Excluded from the tables above at March 31, 2019 and December 31, 2018 , respectively, are approximately $887 million and $915 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. These investments primarily consist of certain privately placed debt securities with limited trading activity, including residential mortgage- and asset-backed instruments, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Level 3 investments. The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique. The significant unobservable input to the matrix pricing model valuation technique is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. The significant unobservable input to the market comparable company valuation technique is the discount rate. Generally, a significant increase (decrease) in the discount rate would result in significantly lower (higher) fair value measurements of these securities. Residential mortgage-backed securities classified as Level 3 primarily consist of non-agency paper with low trading activity. Included in the tables above at March 31, 2019 and December 31, 2018 , there were no Level 3 securities that were determined by application of a matrix pricing model and for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Generally, a change in spreads would lead to directionally inverse movement in the fair value measurements of these securities. Asset-backed securities classified as Level 3 primarily consist of non-agency mortgage loan trust certificates, including subprime and Alt-A paper, credit tenant loans, and equipment financings. Included in the tables above at March 31, 2019 and December 31, 2018 , there were no securities that were determined by the application of matrix-pricing for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Significant increases (decreases) in spreads would result in significantly lower (higher) fair value measurements. Included in other equity investments classified as Level 3 are reporting entities’ venture capital securities in the Technology, Media and Telecommunications industries. The fair value measurements of these securities include significant unobservable inputs including an enterprise value to revenue multiples and a discount rate to account for liquidity and various risk factors. Significant increases (decreases) in the enterprise value to revenue multiple inputs in isolation would result in a significantly higher (lower) fair value measurement. Significant increases (decreases) in the discount |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For those leases with a term greater than one year, the Company recognizes on the balance sheet at the time of lease commencement or modification a right of use (“RoU”) operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the income statement over the lease term on a straight-line basis. RoU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company's lease population primarily consists of real estate leases for office space. The Company also has operating leases for various types of furniture and office equipment. For certain equipment leases, the Company applies a portfolio approach to effectively account for the operating lease RoU assets and liabilities. For certain lease agreements entered into or reassessed after the adoption of ASC 842, the Company elected to combine the lease and related non-lease components for its operating leases; however, the non-lease components associated with the Company’s operating leases are primarily variable in nature and as such are not included in the determination of the RoU asset and lease liability but are recognized in the period in which the obligation for those payments is incurred. The Company’s operating leases may include options to extend or terminate the lease, which are not included in the determination of the RoU asset or lease liability unless they are reasonably certain to be exercised. The Company's operating leases have remaining lease terms of one year to 12 years, some of which include options to extend the leases. The Company typically does not include its renewal options in its lease terms for calculating its RoU operating lease asset and lease liability as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain it will exercise these renewal options until close to the initial end date of the lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As the Company's leases do not provide an implicit rate, we used an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company primarily subleases floor space within our New Jersey and New York lease properties to various third parties. The lease term for the subleases typically corresponds to the head lease term. Balance Sheet Classification of Operating Lease Assets and Liabilities Balance Sheet Line Item March 31, 2019 (in millions) Assets Operating lease asset Other Assets $ 760 Liabilities Operating lease liability Other Liabilities $ 974 The table below summarizes the components of lease costs for the three months ended March 31, 2019 . Lease Costs Three Months Ended March 31, 2019 (in millions) Operating lease cost $ 81 Variable operating lease cost $ 13 Sublease income $ (19 ) Short-term lease expense $ 1 Maturities of lease liabilities as of March 31, 2019 are as follows: Maturities of Lease Liabilities March 31, 2019 (in millions) Operating Leases: 2019 $ 183 2020 203 2021 190 2022 172 2023 158 Thereafter 204 Total lease payments 1,110 Less: Interest (136 ) Present value of lease liabilities $ 974 As of March 31, 2019 , AXA Equitable Life entered into additional operating real estate leases that have not yet commenced with an estimated total base rent of approximately $10 million . These operating leases will commence in August 2019 with lease terms of 5 to 10 years. During October 2018, AB signed a lease, which commences in mid-2020, relating to 205,000 square feet of space at AB’s new Nashville headquarters. The estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 15 -year initial lease term is $126 million . During April 2019, AB signed a lease, which commences in 2024, relating to approximately 190,000 square feet of space in New York City. The estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 -year lease term is approximately $448 million . The below table shows the weighted-average operating lease term and discount rate for the Company and its subsidiaries. The averages presented are blended rates derived by weighting the calculated values from internal lease systems of our subsidiaries with the proportional value of their lease liabilities. Weighted Average of Lease Term and Discount Rate March 31, 2019 Weighted-average remaining operating lease term (years) 5.8 Weighted-average discount rate for operating leases 3.32 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Three Months Ended March 31, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 58 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 3 The following table presents the Company’s future minimum lease obligation under ASC 840 as of December 31, 2018: December 31, 2018 Calendar Year (in millions) 2019 $ 212 2020 $ 186 2021 $ 181 2022 $ 166 2023 $ 155 Thereafter $ 293 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Holdings sponsors the MONY Life Retirement Income Security Plan for Employees and AXA Equitable Life sponsors the AXA Equitable Retirement Plan (the “AXA Equitable Life QP”), both of which are frozen qualified defined benefit plans covering eligible employees and financial professionals. Holdings is primarily liable for both plans. AXA Equitable Life is secondarily liable for obligations under the AXA Equitable Life QP. AB maintains a qualified, noncontributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000. Benefits are based on years of credited service, average final base salary and primary Social Security benefits. Components of certain benefit costs for the Company were as follows: Three Months Ended March 31, 2019 2018 (in millions) Net Periodic Pension Expense (Qualified Plans): Service cost $ 2 $ 2 Interest cost 22 21 Expected return on assets (38 ) (43 ) Actuarial (gain) loss — — Net amortization 20 26 Partial settlement — 99 Total $ 6 $ 105 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three months ended March 31, 2019 and 2018 was computed using an estimated annual effective tax rate (“ETR”), with discrete items recognized in the period in which they occur. The estimated ETR is revised, as necessary, at the end of successive interim reporting periods. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company’s significant transactions during the three months ended March 31, 2019 with related parties are summarized below. Termination of Trademark License Agreement On March 28, 2019, AXA terminated the Trademark License Agreement, dated May 4, 2018, between Holdings and AXA (the “Trademark License Agreement”). Accordingly, we expect to rebrand and cease use, pursuant to the Trademark License Agreement, of the “AXA” brand, name and logo within 18 months (subject to such extensions as permitted under the Trademark License Agreement). AXA Secondary Offering of Holdings Common Stock and Holdings Share Buyback On March 25, 2019, AXA completed a follow-on secondary offering of 46 million shares of common stock of Holdings and the sale to Holdings of 30 million shares of common stock of Holdings. Following the completion of this secondary offering and the share buyback by Holdings, AXA owns 48.3% of the shares of common stock of Holdings. As a result, Holdings is no longer a majority owned subsidiary of AXA. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
EQUITY | EQUITY Dividends to Shareholders On February 27, 2019, Holdings’ Board of Directors declared a cash dividend on Holdings’ common stock of $0.13 per share, payable on March 15, 2019 to shareholders of record as of March 5, 2019. The payment of any future dividends will be at the discretion of Holdings’ Board of Directors and will depend on various factors. Share Repurchase In January 2019, Holdings entered into an Accelerated Share Repurchase agreement (the “ASR”) with a third-party financial institution to repurchase an aggregate of $150 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $150 million and received initial delivery of seven million shares. The ASR terminated during the first quarter of 2019, at which time an additional one million shares were delivered, at an average purchase price of $ 18.51 per share based on the volume-weighted average price of Holding’s common stock traded during the pricing period, less an agreed discount. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holding’s total issued shares as of March 31, 2019 . On February 27, 2019, Holdings’ Board of Directors authorized a $800 million share repurchase program. Under this authorization, Holdings, may, from time to time through December 31, 2019, purchase shares of its common stock through various means. Holdings may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate Holdings to purchase any particular number of shares. On March 25, 2019, AXA completed a secondary offering of 46 million shares of common stock of Holdings and the sale to Holdings of 30 million shares of common stock of Holdings. Following the completion of this secondary offering and the share buyback by Holdings, AXA owns 48.3% of the shares of common stock of Holdings. As a result, Holdings is no longer a majority owned subsidiary of AXA. Following the completion of the share buyback by Holdings, Holdings had approximately $200 million remaining under its share repurchase program authorization. Accumulated Other Comprehensive Income (Loss) AOCI represents cumulative gains (losses) on items that are not reflected in Net income (loss). The balances as of March 31, 2019 and 2018 follow: March 31, 2019 2018 (in millions) Unrealized gains (losses) on investments (1) $ 430 $ (137 ) Defined benefit pension plans (919 ) (822 ) Foreign currency translation adjustments (1) (63 ) (33 ) Total accumulated other comprehensive income (loss) (552 ) (992 ) Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 39 46 Accumulated other comprehensive income (loss) attributable to Holdings $ (513 ) $ (946 ) ______________ (1) A reclassification of $7 million has been made to the March 31, 2018 previously reported balances to conform to the current period’s presentation. The components of OCI, net of taxes for the three months ended March 31, 2019 and 2018 follow: Three Months Ended March 31, 2019 2018 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ 1,342 $ (1,221 ) (Gains) losses reclassified to Net income (loss) during the period (1) 9 (88 ) Net unrealized gains (losses) on investments 1,351 (1,309 ) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (2) (517 ) 347 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $218, and $(255)) 834 (962 ) Change in defined benefit plans: Less: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) 49 133 Change in defined benefit plans (net of deferred income tax expense (benefit) of $12 and $35) 49 133 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (2) (1 ) (3 ) Foreign currency translation adjustment (1 ) (3 ) Total other comprehensive income (loss), net of income taxes 882 (832 ) Less: Other comprehensive (income) loss attributable to noncontrolling interest 1 (6 ) Other comprehensive income (loss) attributable to Holdings $ 883 $ (838 ) ______________ (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts presented net of income tax expense (benefit) of $2 million , and $(23) million for the three months ended March 31, 2019 and 2018 , respectively. (2) A reclassification of $2 million has been made to the previously reported amounts for the three months ended March 31, 2018 to conform to the current period’s presentation. (3) These AOCI components are included in the computation of net periodic pension expenses. See Note 9 for further information. Investment gains and losses reclassified from AOCI to Net income (loss) primarily consist of realized gains (losses) on sales and OTTI of AFS securities and are included in Total investment gains (losses), net on the consolidated statements of income (loss). Amounts reclassified from AOCI to Net income (loss) as related to defined benefit plans primarily consist of amortizations of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in Compensation and benefit expenses in the consolidated statements of income (loss). Amounts presented in the table above are net of tax. |
COMMITMENT AND CONTINGENT LIABI
COMMITMENT AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Litigation Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek, or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including, among other things, insurers’ sales practices, alleged agent misconduct, alleged failure to properly supervise agents, contract administration, product design, features and accompanying disclosure, cost of insurance increases, the use of captive reinsurers, payments of death benefits and the reporting and escheatment of unclaimed property, alleged breach of fiduciary duties, alleged mismanagement of client funds and other matters. As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. The outcome of a litigation or regulatory matter is difficult to predict, and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period. For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of March 31, 2019 , the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $95 million . For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews. In August 2015, a lawsuit was filed in Connecticut Superior Court, Judicial Division of New Haven entitled Richard T. O’Donnell, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action on behalf of all persons who purchased variable annuities from AXA Equitable Life, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. Plaintiff asserts a claim for breach of contract alleging that AXA Equitable Life implemented the volatility management strategy in violation of applicable law. In November 2015, the Connecticut Federal District Court transferred this action to the United States District Court for the Southern District of New York. In March 2017, the Southern District of New York granted AXA Equitable Life’s motion to dismiss the complaint. In April 2017, the plaintiff filed a notice of appeal. In April 2018, the United States Court of Appeals for the Second Circuit reversed the trial court’s decision with instructions to remand the case to Connecticut state court. In September 2018, the Second Circuit issued its mandate, following AXA Equitable Life’s notification to the court that it would not file a petition for writ of certiorari. The case was transferred in December 2018 and is pending in Connecticut Superior Court, Judicial District of Stamford. We are vigorously defending this matter. In February 2016, a lawsuit was filed in the United States District Court for the Southern District of New York entitled Brach Family Foundation, Inc. v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action brought on behalf of all owners of universal life (“UL”) policies subject to AXA Equitable Life’s COI rate increase. In early 2016, AXA Equitable Life raised COI rates for certain UL policies issued between 2004 and 2007, which had both issue ages 70 and above and a current face value amount of $1 million and above. A second putative class action was filed in Arizona in 2017 and consolidated with the Brach matter. The current consolidated amended class action complaint alleges the following claims: breach of contract; misrepresentations by AXA Equitable Life in violation of Section 4226 of the New York Insurance Law; violations of New York General Business Law Section 349; and violations of the California Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs seek: (a) compensatory damages, costs, and, pre- and post-judgment interest; (b) with respect to their claim concerning Section 4226, a penalty in the amount of premiums paid by the plaintiffs and the putative class; and (c) injunctive relief and attorneys’ fees in connection with their statutory claims. Five other federal actions challenging the COI rate increase are also pending against AXA Equitable Life and have been coordinated with the Brach action for the purposes of pre-trial activities. They contain allegations similar to those in the Brach action as well as additional allegations for violations of various states’ consumer protection statutes and common law fraud. Two actions are also pending against AXA Equitable Life in New York state court. AXA Equitable Life is vigorously defending each of these matters. Obligation under funding agreements As a member of the FHLBNY, AXA Equitable Life has access to collateralized borrowings. It also may issue funding agreements to the FHLBNY. Both the collateralized borrowings and funding agreements would require AXA Equitable Life to pledge qualified mortgage-backed assets and/or government securities as collateral. AXA Equitable Life issues short-term funding agreements to the FHLBNY and uses the funds for asset, liability and cash management purposes. AXA Equitable Life issues long-term funding agreements to the FHLBNY and uses the funds for spread lending purposes. For other instruments used for asset liability management purposes see Note 4 . Funding agreements are reported in Policyholders’ account balances in the consolidated balance sheets. Change in FHLBNY Funding Agreements during the Three Months Ended March 31, 2019 Outstanding Balance at December 31, 2018 Issued During the Period Repaid During the Period Outstanding Balance at March 31, 2019 (in millions) Short-term funding agreements: Due in one year or less $ 1,640 $ 4,470 $ 4,470 $ 1,640 Long-term funding agreements: Due in years two through five 1,569 — — 1,569 Due in more than five years 781 — — 781 Total long-term funding agreements 2,350 — — 2,350 Total funding agreements (1) $ 3,990 $ 4,470 $ 4,470 $ 3,990 ______________ (1) The $11 million and $12 million difference between the funding agreements carrying value shown in fair value table at March 31, 2019 and December 31, 2018 , respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements’ borrowing rates. Credit Facilities Holdings has a $2.5 billion five -year senior unsecured revolving credit facility with a syndicate of banks. The revolving credit facility has a sub-limit of $1.5 billion for letters of credit issued to support the Company’s life insurance business reinsured by EQ AZ Life Re and to support the third-party GMxB variable annuity business retroceded to CS Life RE. As of March 31, 2019 , $125 million and $600 million o f undrawn letters of credit have been issued out of the $1.5 billion sub-limit for ACS Life and AXA Equitable Life, respectively, as beneficiaries. In addition to the letters of credit issued under the $2.5 billion revolving credit facility, as of March 31, 2019 , $1.9 billion of undrawn letters of credit have been issued related to reinsurance assumed by EQ AZ Life Re from AXA Equitable Life, USFL and MLOA. Other Commitments The Company had $955 million (including $336 million with affiliates) and $325 million of commitments under equity financing arrangements to certain limited partnership and existing mortgage loan agreements, respectively, at March 31, 2019 . |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has four reportable segments: Individual Retirement, Group Retirement, Investment Management and Research and Protection Solutions. These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. A brief description of these segments follows: • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities and not-for-profit entities as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth Management and distributes its institutional research products and solutions through Bernstein Research Services. • The Protection Solutions segment includes our life insurance and group employee benefits businesses. Our life insurance business offers a variety of variable universal life, universal life and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of dental, vision, life, and short- and long-term disability and other insurance products to small and medium-size businesses across the United States. Measurement Operating earnings (loss) is the financial measure which primarily focuses on the Company’s segments’ results of operations as well as the underlying profitability of the Company’s core business. By excluding items that can be distortive and unpredictable such as investment gains (losses) and investment income (loss) from derivative instruments, the Company believes Operating earnings (loss) by segment enhances the understanding of the Company’s underlying drivers of profitability and trends in the Company’s segments. In the first quarter of 2019, the Company updated its Operating earnings measure to exclude market value adjustments impacting the DAC amortization for its SCS variable annuity product in order to be consistent with the treatment of the market value adjustments on the SCS liability and with industry practice. The presentation of Operating earnings in prior periods was not revised to reflect this modification, however, the Company estimated that had the treatment in the Company’s Operating earnings measure of the Amortization of DAC for SCS been modified in the first quarter of 2018, the pre-tax impact on Operating earnings of excluding the SCS-related DAC amortization from Operating earnings would have been a decrease of $52 million , $17 million and $4 million during the first, second and third quarters of 2018, respectively, and an increase of $17 million during the fourth quarter of 2018. Operating earnings is calculated by adjusting each segment’s Net income (loss) attributable to Holdings for the following items: • Items related to variable annuity product features, which include certain changes in the fair value of the derivatives and other securities we use to hedge these features, the effect of benefit ratio unlock adjustments and changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization; • Investment (gains) losses, which includes other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations, and the one-time impact of the settlement of the defined benefit obligation; • Other adjustments, which includes restructuring costs related to severance, lease write-offs related to non-recurring restructuring activities, and separation costs; and • Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period and the impact of the Tax Reform Act. Revenues derived from any customer did not exceed 10% of revenues for the three months ended March 31, 2019 and 2018 . The table below presents Operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to Holdings for the three months ended March 31, 2019 and 2018 , respectively: Three Months Ended March 31, 2019 2018 (in millions) Net income (loss) attributable to Holdings $ (775 ) $ 214 Adjustments related to: Variable annuity product features (1) 1,540 176 Investment (gains) losses 11 (102 ) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 24 131 Other adjustments (2) 40 91 Income tax expense (benefit) related to above adjustments (3) (337 ) (55 ) Non-recurring tax items 6 28 Non-GAAP Operating Earnings (4) $ 509 $ 483 Operating earnings (loss) by segment: Individual Retirement (5) $ 370 $ 368 Group Retirement $ 81 $ 76 Investment Management and Research $ 77 $ 81 Protection Solutions $ 49 $ 35 Corporate and Other (6) $ (68 ) $ (77 ) ______________ (1) Had we modified the treatment of the amortization of DAC for SCS starting in the first quarter of 2018, the adjustment related to Variable annuity product features for the three months ended March 31, 2018 would have been $124 million . (2) Other adjustments include separation costs of $24 million and $61 million for the three months ended March 31, 2019 and 2018 , respectively. (3) Had we modified the treatment of the amortization of DAC for SCS starting in the first quarter of 2018, the adjustment related to Income tax expense (benefit) related to above adjustments for the three months ended March 31, 2018 would have been $(44) million . (4) Had we modified the treatment of the amortization of DAC for SCS starting in the first quarter of 2018, Non-GAAP Operating Earnings for the three months ended March 31, 2018 would have been $442 million . (5) Had we modified the treatment of the amortization of DAC for SCS starting in the first quarter of 2018, Operating earnings for the three months ended March 31, 2018 for the Individual Retirement segment would have been $327 million . (6) Includes interest expense of $52 million and $44 million for the three months ended March 31, 2019 and 2018 , respectively. Segment revenues is a measure of the Company’s revenue by segment as adjusted to exclude certain items. The following table reconciles segment revenues to Total revenues by excluding the following items: • Items related to variable annuity product features, which include certain changes in the fair value of the derivatives and other securities we use to hedge these features and changes in the fair value of the embedded derivatives reflected within the net derivative results of variable annuity product features; • Investment gains (losses), net, which include other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses, and valuation allowances; and • Other adjustments, which includes investment income (loss) from certain derivative instruments, excluding derivative instruments used to hedge risks associated with interest margins on interest sensitive life and annuity contracts and freestanding and embedded derivatives associated with products with GMxB features. The table below presents segment revenues for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 (in millions) Segment revenues: Individual Retirement (1) $ 1,007 $ 729 Group Retirement (1) 251 238 Investment Management and Research (2) 780 909 Protection Solutions (1) 831 814 Corporate and Other (1) 312 288 Adjustments related to: Variable annuity product features (1,478 ) (161 ) Investment gains (losses), net (11 ) 102 Other adjustments to segment revenues 22 (45 ) Total revenues $ 1,714 $ 2,874 ______________ (1) Includes investment expenses charged by AB of approximately $18 million for both of the three months ended March 31, 2019 and 2018 for services provided to the Company. (2) Inter-segment investment management and other fees of approximately $25 million for both of the three months ended March 31, 2019 and 2018 are included in total revenues of the Investment Management and Research segment. The table below presents Total assets by segment as of March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 (in millions) Total assets by segment: Individual Retirement $ 116,833 $ 105,532 Group Retirement 38,965 38,874 Investment Management and Research 10,348 10,294 Protection Solutions 42,122 44,633 Corporate and Other 24,551 21,464 Total assets $ 232,819 $ 220,797 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share (“EPS”) is calculated by dividing Net income (loss) attributable to Holdings common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated by dividing the Net income (loss) attributable to Holdings common shareholders, adjusted for the incremental dilution from AB, by the weighted-average number of common shares outstanding for the period plus the shares representing the dilutive effect of share-based awards. The following table presents the reconciliation of the numerator for the basic and diluted net income per share calculations: Three Months Ended March 31, 2019 2018 (in millions) Net income (loss) attributable to Holdings common shareholders: Net income (loss) attributable to Holdings common shareholders (basic) $ (775 ) $ 214 Net income (loss) attributable to Holdings common shareholders (diluted) $ (775 ) $ 214 The following table presents the number of weighted average shares used in calculating basic and diluted earnings per common share Three Months Ended March 31, 2019 2018 (number of shares, in millions) Weighted Average Shares: Weighted average common stock outstanding for basic earnings per common share 518.0 561.0 Weighted average common stock outstanding for diluted earnings per common share 518.0 561.0 For the three months ended March 31, 2019, approximately 5.3 million shares of outstanding stock awards were not included in the computation of diluted earnings per share because their effect was anti-dilutive. The following table presents both basic and diluted income (loss) per share for each period presented: Three Months Ended March 31, 2019 2018 (dollars per share) Net income (loss) attributable to Holdings per common share: Basic $ (1.50 ) $ 0.38 Diluted $ (1.50 ) $ 0.38 |
RESTATEMENT AND REVISION OF PRI
RESTATEMENT AND REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RESTATEMENT AND REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS Reclassification of DAC Capitalization During the fourth quarter of 2018, the Company changed the presentation of the capitalization of DAC in the consolidated statements of income for all prior periods presented herein by netting the capitalized amounts within the applicable expense line items, such as Compensation and benefits, Commissions and distribution-related payments and Other operating costs and expenses. Previously, the Company had netted the capitalized amounts within the Amortization of DAC. There was no impact on Net income (loss) or Comprehensive income (loss) from this reclassification. See Note 2 for further details of this reclassification. Revisions of Prior Period Financial Statements D uring the third quarter of 2018, the Company revised its financial statements to reflect the correction of errors identified by the Company in its previously issued financial statements. The impact of these errors was not considered to be material. However, in order to improve the consistency and comparability of the financial statements, management revised the Company’s consolidated financial statements as of and for the three and six months ended March 31, 2018 and June 30, 2018, respectively. In addition, during the fourth quarter of 2018, the Company identified certain cash flows that were incorrectly classified in the Company’s consolidated statements of cash flows. The Company has determined that these misclassifications were not material to the financial statements of any period. The impact of the misclassifications detailed in the revision tables included on the consolidated statement of cash flows for the three months ended March 31, 2018 were corrected in the comparative consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 contained elsewhere in the financial statements. The misclassifications for the six and nine months ended June 30, 2018 and September 30, 2018 will be corrected in the Company’s comparative consolidated statements of cash flows to be included in the Form 10-Q filings as of and for the three and six months ended June 30, 2019 and as of and for the three and nine months ended September 30, 2019, respectively. Revision of Consolidated Financial Statements as of and for the Three Months Ended March 31, 2018 The following tables present line items of the consolidated financial statements as of and for the three months ended March 31, 2018 that have been affected by the revisions. This information has been corrected from the information previously presented in the Company’s March 31, 2018 Form 10-Q. For these items, the tables detail the amounts as previously reported and the impact upon those line items due to the reclassifications to conform to the current presentation, revisions and the amounts as currently revised. Prior period amounts have been reclassified to conform to current period presentation, where applicable, and are summarized in the accompanying tables. March 31, 2018 As Pre-viously Reported Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Balance Sheet: Assets: Deferred policy acquisition costs $ 6,288 $ — $ 6,288 $ (45 ) $ 6,243 Current and deferred income taxes 225 — 225 7 232 Total Assets $ 232,294 $ — $ 232,294 $ (38 ) $ 232,256 Liabilities: Future policy benefits and other policyholders’ liabilities 29,586 — 29,586 (20 ) 29,566 Total Liabilities $ 214,670 $ — $ 214,670 $ (20 ) $ 214,650 Equity: Retained earnings 12,455 — 12,455 (18 ) 12,437 Total equity attributable to Holdings 13,565 — 13,565 (18 ) 13,547 Total Equity 16,600 — 16,600 (18 ) 16,582 Total Liabilities, Redeemable Noncontrolling Interest and Equity $ 232,294 $ — $ 232,294 $ (38 ) $ 232,256 Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Policy charges and fee income $ 972 $ — $ 972 $ (6 ) $ 966 Net derivative gains (losses) (281 ) — (281 ) 45 (236 ) Total revenues 2,835 — 2,835 39 2,874 Benefits and other deductions: Policyholders’ benefits 608 — 608 (14 ) 594 Amortization of deferred policy acquisition costs 15 162 177 (5 ) 172 Total benefits and other deductions 2,465 — 2,465 (19 ) 2,446 Income (loss) from continuing operations, before income taxes 370 — 370 58 428 Income tax (expense) benefit (79 ) — (79 ) (12 ) (91 ) Net income (loss) 291 — 291 46 337 Net income (loss) attributable to Holdings $ 168 $ — $ 168 $ 46 $ 214 Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Statement of Comprehensive Income (Loss) Net income (loss) $ 291 $ — $ 291 $ 46 $ 337 Comprehensive income (loss) (541 ) — (541 ) 46 (495 ) Comprehensive income (loss) attributable to Holdings $ (670 ) $ — $ (670 ) $ 46 $ (624 ) Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Statement of Equity: Retained earnings, beginning of year $ 12,289 $ — $ 12,289 $ (64 ) $ 12,225 Net income (loss) attributable to Holdings 168 — 168 46 214 Retained earnings, end of period $ 12,455 $ — $ 12,455 $ (18 ) $ 12,437 Total Holdings’ equity, end of period $ 13,565 $ — $ 13,565 $ (18 ) $ 13,547 Total Equity, End of Period $ 16,600 $ — $ 16,600 $ (18 ) $ 16,582 Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income (loss) $ 291 $ — $ 291 $ 46 $ 337 Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Policy charges and fee income (972 ) — (972 ) 6 (966 ) Net derivative (gains) losses 281 — 281 (45 ) 236 Amortization of deferred sales commission 7 (7 ) — — — Amortization and depreciation (20 ) 189 169 (5 ) 164 Amortization of deferred cost of reinsurance asset 5 (5 ) — — — Distributions from joint ventures and limited partnerships 25 (25 ) — — — Equity (income) loss from limited partnerships — (38 ) (38 ) — (38 ) Changes in: Reinsurance recoverable 32 — 32 (3 ) 29 Capitalization of deferred policy acquisition costs 15 (177 ) (162 ) — (162 ) Future policy benefits (254 ) — (254 ) 6 (248 ) Current and deferred income taxes 103 — 103 12 115 Other, net (255 ) 63 (192 ) — (192 ) Net cash provided by (used in) operating activities $ (264 ) $ — $ (264 ) $ 17 $ (247 ) Cash flows from investing activities: Proceeds from the sale/maturity/prepayment of: Real estate joint ventures $ — $ — $ — $ 140 $ 140 Short-term investments — 1,607 1,607 77 1,684 Payment for the purchase/origination of: Short-term investments — (731 ) (731 ) — (731 ) Cash settlements related to derivative instruments (54 ) — (54 ) (620 ) (674 ) Change in short-term investments 876 (876 ) — — — Other, net (371 ) — (371 ) 60 (311 ) Net cash provided by (used in) investing activities $ 459 $ — $ 459 $ (343 ) $ 116 Cash flows from financing activities: Policyholders’ account balances: Deposits $ 2,532 $ — $ 2,532 $ (491 ) $ 2,041 Withdrawals (1,384 ) — (1,384 ) 284 (1,100 ) Transfers (to) from Separate Accounts (102 ) — (102 ) 533 431 Net cash provided by (used in) financing activities $ 1,074 $ — $ 1,074 $ 326 $ 1,400 Non-cash transactions during the period: Capital contribution from parent $ 630 $ — $ 630 $ (8 ) $ 622 (Settlement) issuance of long-term debt $ 202 $ — $ 202 $ (404 ) $ (202 ) Transfer of assets to reinsurer $ — $ — $ — $ (604 ) $ (604 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Contingent Funding Arrangements In April 2019, pursuant to separate Purchase Agreements among us, Credit Suisse Securities (USA) LLC, as representative of the several initial purchasers, and the Trusts (as defined below), Pine Street Trust I, a Delaware statutory trust (the “2029 Trust”), completed the issuance and sale of 600,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2029 (the “2029 P-Caps”) for an aggregate purchase price of $600 million and Pine Street Trust II, a Delaware statutory trust (the “2049 Trust” and, together with the 2029 Trust, the “Trusts”), completed the issuance and sale of 400,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2049 (the “2049 P-Caps” and, together with the 2029 P-Caps, the “P-Caps”) for an aggregate purchase price of $400 million , in each case to qualified institutional buyers in reliance on Rule 144A that are also “qualified purchasers” for purposes of Section 3(c)(7) of the Investment Company Act of 1940, as amended. The P-Caps are a contingent funding arrangement that, upon our election, gives us the right over a ten-year period (in the case of the 2029 Trust) or over a thirty-year period (in the case of the 2049 Trust) to issue senior notes to the Trusts. The Trusts each invested the proceeds from the sale of their P-Caps in separate portfolios of principal and/or interest strips of U.S. Treasury securities. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Adoption of New Accounting Pronouncements and Future Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2017-12: Derivatives and Hedging (Topic 815) The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. On January 1, 2019, the Company adopted the new hedging guidance. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. On January 1, 2019, the Company adopted the new guidance on accounting for certain premiums on callable debt securities. As the Company’s existing accounting practices aligned with the guidance in the ASU, adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. ASU 2016-02: Leases (Topic 842) This ASU contains revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. On January 1, 2019, the Company adopted the new leases standard using the simplified modified retrospective transition method, as of the adoption date. Prior comparable periods will not be adjusted or presented under this method. We applied several practical expedients offered by ACS 842 upon adoption of this standard. These included continuing to account for existing leases based on judgment made under legacy U.S. GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used the practical expedient to use hindsight in determining lease terms (using knowledge and expectations as of the standard’s adoption date instead of the previous assumptions under legacy U.S. GAAP) and evaluated impairment of our right-of-use (“RoU”) assets in the transition period (using most up-to-date information.) Adoption of this standard resulted in the recognition, as of January 1, 2019, of additional RoU operating lease assets of $799 million reported in Other assets and operating lease liabilities of $1,024 million reported in Other liabilities in accompanying consolidated balance sheets. The operating RoU assets recognized as of January 1, 2019 are net of deferred rent of $105 million and liabilities associated with previously recognized impairments of $120 million. See Note 8 for additional information. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities This ASU provides guidance requiring that indirect interests held through related parties in common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. Effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. All entities are required to apply the amendments in this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-13: Fair Value Measurement (Topic 820) This ASU improves the effectiveness of fair value disclosures in the notes to financial statements. Amendments in this ASU modify disclosure requirements in Topic 820, including the removal of certain disclosure requirements, modification of certain disclosures, and the addition of new requirements. Effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, with the option to early adopt amendments to remove or modify disclosures, with full adoption of additional requirements delayed until their effective date. Amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Management currently is evaluating the impact of the guidance on the Company’s financial statement disclosures but has concluded that this guidance will not impact the Company’s consolidated financial position or results of operations. ASU 2018-12: Financial Services—Insurance (Topic 944) This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary update, cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. Effective for fiscal years beginning after December 31, 2020. Early adoption is permitted. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on our consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Amortization of deferred policy acquisition costs. The ASU simplifies the amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services—Insurance (Topic 944), Continued Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, Separate Accounts liabilities and deferred policy acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For deferred policy acquisition costs, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for the liability for future policyholder benefits for traditional and limited payment contracts. ASU 2016-13: Financial Instruments—Credit Losses (Topic 326) This ASU contains new guidance which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. Effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. These amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. |
Accounting and Consolidation of VIEs | Accounting and Consolidation of Variable Interest Entities (“VIEs”) At March 31, 2019 , the Company held approximately $1.2 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including hedge funds, private equity funds and real estate-related funds. As an equity investor, the Company is considered to have a variable interest in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests or other financial arrangements, if any, the Company was not identified as primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheets as Other equity investments and to apply the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $168.6 billion at March 31, 2019 . The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1.2 billion and approximately $945 million of unfunded commitments at March 31, 2019 . The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At March 31, 2019 , the Company consolidated one real estate joint venture for which it was identified as primary beneficiary under the VIE model. The consolidated entity is jointly owned by AXA Equitable Life Insurance Company (“AXA Equitable Life”) and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheet at March 31, 2019 related to this VIE is $35 million of Real estate held for production of income. In addition, Real estate held for production of income reflects $16 million as related to two non-consolidated joint ventures at March 31, 2019 . Included in the Company’s consolidated balance sheet at March 31, 2019 are assets of $249 million , liabilities of $14 million and redeemable noncontrolling interest of $116 million associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheet at March 31, 2019 are assets of $170 million , liabilities of $16 million and redeemable noncontrolling interest of $40 million from consolidation of AB-sponsored investment funds under the Voting Interest Entity (“VOE”) model. Of the assets of these consolidated funds, $168 million are presented within Other invested assets and $2 million are presented in Cash and cash equivalents and $16 million liabilities of these consolidated funds are presented with Other liabilities in the Company’s consolidated balance sheet at March 31, 2019 . Ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interest, as appropriate. The Company is not required to provide financial support to these company-sponsored investment funds, and only the assets of such funds are available to settle each fund’s own liabilities. As of March 31, 2019 , the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $53.5 billion , and the Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $6 million at March 31, 2019 . The Company has no further commitments to or economic interest in these VIEs. |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements D uring the third quarter of 2018, the Company revised its financial statements to reflect the correction of errors identified by the Company in its previously issued financial statements. The impact of these errors was not considered to be material. However, in order to improve the consistency and comparability of the financial statements, management revised the Company’s consolidated financial statements as of and for the three and six months ended March 31, 2018 and June 30, 2018, respectively. In addition, during the fourth quarter of 2018, the Company identified certain cash flows that were incorrectly classified in the Company’s consolidated statements of cash flows. The Company has determined that these misclassifications were not material to the financial statements of any period. The impact of the misclassifications detailed in the revision tables included in Note 16 on the consolidated statement of cash flows for the three months ended March 31, 2018 were corrected in the comparative consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 contained elsewhere in the financial statements. The misclassifications for the six and nine months ended June 30, 2018 and September 30, 2018 will be corrected in the Company’s comparative consolidated statements of cash flows to be included in the Form 10-Q filings as of and for the three and six months ended June 30, 2019 and as of and for the three and nine months ended September 30, 2019, respectively. See Note 16 for further information. |
Fair Value Measurement | The accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2017-12: Derivatives and Hedging (Topic 815) The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. On January 1, 2019, the Company adopted the new hedging guidance. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. On January 1, 2019, the Company adopted the new guidance on accounting for certain premiums on callable debt securities. As the Company’s existing accounting practices aligned with the guidance in the ASU, adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. ASU 2016-02: Leases (Topic 842) This ASU contains revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. On January 1, 2019, the Company adopted the new leases standard using the simplified modified retrospective transition method, as of the adoption date. Prior comparable periods will not be adjusted or presented under this method. We applied several practical expedients offered by ACS 842 upon adoption of this standard. These included continuing to account for existing leases based on judgment made under legacy U.S. GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used the practical expedient to use hindsight in determining lease terms (using knowledge and expectations as of the standard’s adoption date instead of the previous assumptions under legacy U.S. GAAP) and evaluated impairment of our right-of-use (“RoU”) assets in the transition period (using most up-to-date information.) Adoption of this standard resulted in the recognition, as of January 1, 2019, of additional RoU operating lease assets of $799 million reported in Other assets and operating lease liabilities of $1,024 million reported in Other liabilities in accompanying consolidated balance sheets. The operating RoU assets recognized as of January 1, 2019 are net of deferred rent of $105 million and liabilities associated with previously recognized impairments of $120 million. See Note 8 for additional information. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities This ASU provides guidance requiring that indirect interests held through related parties in common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. Effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. All entities are required to apply the amendments in this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-13: Fair Value Measurement (Topic 820) This ASU improves the effectiveness of fair value disclosures in the notes to financial statements. Amendments in this ASU modify disclosure requirements in Topic 820, including the removal of certain disclosure requirements, modification of certain disclosures, and the addition of new requirements. Effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, with the option to early adopt amendments to remove or modify disclosures, with full adoption of additional requirements delayed until their effective date. Amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Management currently is evaluating the impact of the guidance on the Company’s financial statement disclosures but has concluded that this guidance will not impact the Company’s consolidated financial position or results of operations. ASU 2018-12: Financial Services—Insurance (Topic 944) This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary update, cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. Effective for fiscal years beginning after December 31, 2020. Early adoption is permitted. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on our consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Amortization of deferred policy acquisition costs. The ASU simplifies the amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services—Insurance (Topic 944), Continued Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, Separate Accounts liabilities and deferred policy acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For deferred policy acquisition costs, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for the liability for future policyholder benefits for traditional and limited payment contracts. ASU 2016-13: Financial Instruments—Credit Losses (Topic 326) This ASU contains new guidance which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. Effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. These amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. The reclassification adjustments for the three months ended March 31, 2018 are presented in the table below. Capitalization of DAC reclassified to Compensation and benefits, Commissions and distribution-related payments, and Other operating costs and expenses reduced the amounts previously reported in those expense line items, while the capitalization of DAC reclassified from the Amortization of deferred policy acquisition costs line item increases that expense line item. Three Months Ended March 31, 2018 Individual Retirement Group Retirement Protection Solutions Consolidated (in millions) Reductions to expense line items: Compensation and benefits $ 19 $ 7 $ 15 $ 41 Commissions and distribution-related payments 72 14 34 120 Other operating costs and expenses — — 1 1 Total reductions $ 91 $ 21 $ 50 $ 162 Increase to expense line item: Amortization of deferred policy acquisition costs $ 91 $ 21 $ 50 $ 162 |
Revenues Recognized, Disaggregated by Category | The table below presents the revenues recognized during the three months ended March 31, 2019 and 2018 , disaggregated by category: Three Months Ended March 31, 2019 2018 (in millions) Investment management, advisory and service fees: Base fees $ 705 $ 724 Performance-based fees 4 6 Research services 90 114 Distribution services 172 180 Shareholder services 18 20 Other 4 6 Total investment management and service fees $ 993 $ 1,050 Other income $ 120 $ 112 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities by Classification | The following tables provide information relating to fixed maturities classified as available-for-sale (“AFS”). Available-for-Sale Securities by Classification Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (4) (in millions) March 31, 2019: Fixed Maturities: Corporate (1) $ 33,984 $ 936 $ 233 $ 34,687 $ — U.S. Treasury, government and agency 12,969 602 214 13,357 — States and political subdivisions 414 56 — 470 — Foreign governments 485 28 7 506 — Residential mortgage-backed (2) 217 11 — 228 — Asset-backed (3) 620 1 4 617 2 Redeemable preferred stock 428 16 4 440 — Total at March 31, 2019 $ 49,117 $ 1,650 $ 462 $ 50,305 $ 2 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (4) (in millions) December 31, 2018: Fixed Maturities: Corporate (1) $ 30,572 $ 406 $ 800 $ 30,178 $ — U.S. Treasury, government and agency 14,004 295 470 13,829 — States and political subdivisions 415 47 1 461 — Foreign governments 524 19 13 530 — Residential mortgage-backed (2) 225 10 1 234 — Asset-backed (3) 612 1 12 601 2 Redeemable preferred stock 449 15 18 446 — Total at December 31, 2018 $ 46,801 $ 793 $ 1,315 $ 46,279 $ 2 ______________ (1) Corporate fixed maturities include both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (4) Amounts represent OTTI losses in AOCI, which were not included in Net income (loss) |
Available-for-sale Securities Fixed Maturities Contractual Maturities | The contractual maturities of AFS fixed maturities at March 31, 2019 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Contractual Maturities of Available-for-Sale Fixed Maturities Amortized Cost Fair Value (in millions) March 31, 2019: Due in one year or less $ 2,234 $ 2,246 Due in years two through five 11,686 11,900 Due in years six through ten 17,060 17,505 Due after ten years 16,872 17,369 Subtotal 47,852 49,020 Residential mortgage-backed 217 228 Asset-backed 620 617 Redeemable preferred stock 428 440 Total at March 31, 2019 $ 49,117 $ 50,305 |
Proceeds from Sales, Gross Gains (Losses) and OTTI for AFS Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 (in millions) Proceeds from sales $ 1,450 $ 3,880 Gross gains on sales $ 8 $ 155 Gross losses on sales $ (18 ) $ (52 ) Total OTTI $ — $ — Non-credit losses recognized in OCI — — Credit losses recognized in Net income (loss) $ — $ — |
Fixed Maturities - Credit Loss Impairments | The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts. Fixed Maturities - Credit Loss Impairments Three Months Ended March 31, 2019 2018 (in millions) Balances at January 1, $ (58 ) $ (18 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 32 — Recognized impairments on securities impaired to fair value this period (1) — — Impairments recognized this period on securities not previously impaired — — Additional impairments this period on securities previously impaired — — Increases due to passage of time on previously recorded credit losses — — Accretion of previously recognized impairments due to increases in expected cash flows — — Balances at March 31, $ (26 ) $ (18 ) ______________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
Net Unrealized Gain (Loss) on Fixed Maturities and Equity Securities Included in AOCI | Net unrealized investment gains (losses) on fixed maturities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: Net Unrealized Gains (Losses) on Fixed Maturities Classified as AFS March 31, 2019 December 31, 2018 (in millions) Fixed maturities available-for-sale: With OTTI loss $ 1 $ — All other 1,187 (522 ) Net Unrealized Gains (Losses) $ 1,188 $ (522 ) |
Net Unrealized Gain (Losses) on Fixed Maturities with OTTI Losses | Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balances at January 1, 2019 $ — $ — $ — $ — $ — Net investment gains (losses) arising during the period (11 ) — — — (11 ) Reclassification adjustment: Included in Net income (loss) 12 — — — 12 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — — — Policyholders’ liabilities — — — — — Balances at March 31, 2019 $ 1 $ — $ — $ — $ 1 Balances at January 1, 2018 $ 2 $ — $ (1 ) $ — $ 1 Net investment gains (losses) arising during the period — — — — — Reclassification adjustment: Included in Net income (loss) (2 ) — — — (2 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — — — Policyholders’ liabilities — — 1 — 1 Balances at March 31, 2018 $ — $ — $ — $ — $ — ______________ (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in Net income (loss) for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Deferred AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balances at January 1, 2019 $ (522 ) $ 100 $ (73 ) $ 104 $ (391 ) Net investment gains (losses) arising during the period 1,710 — — — 1,710 Reclassification adjustment: Included in Net income (loss) (1 ) — — — (1 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (701 ) — — (701 ) Deferred income taxes — — — (230 ) (230 ) Policyholders’ liabilities — — 85 — 85 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Deferred AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balances at March 31, 2019 $ 1,187 $ (601 ) $ 12 $ (126 ) $ 472 Balances at January 1, 2018 $ 1,871 $ (358 ) $ (238 ) $ (397 ) $ 878 Net investment gains (losses) arising during the period (1,546 ) — — — (1,546 ) Reclassification adjustment: Included in Net income (loss) (109 ) — — — (109 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 341 — — 341 Deferred income taxes — — — 253 253 Policyholders’ liabilities — — 110 — 110 Balances at March 31, 2018 $ 216 $ (17 ) $ (128 ) $ (144 ) $ (73 ) ______________ (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in Net income (loss) for securities with no prior OTTI losses. |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following tables disclose the fair values and gross unrealized losses of the 770 issues at March 31, 2019 and the 1,700 issues at December 31, 2018 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) March 31, 2019: Fixed Maturities: Corporate $ 658 $ 6 $ 6,529 $ 227 $ 7,187 $ 233 U.S. Treasury, government and agency — — 3,392 214 3,392 214 Foreign governments 6 — 67 7 73 7 Asset-backed 344 2 112 2 456 4 Redeemable preferred stock 48 2 37 2 85 4 Total at March 31, 2019 $ 1,056 $ 10 $ 10,137 $ 452 $ 11,193 $ 462 December 31, 2018: Fixed Maturities: Corporate $ 8,964 $ 313 $ 8,244 $ 487 $ 17,208 $ 800 U.S. Treasury, government and agency 1,077 53 4,306 417 5,383 470 States and political subdivisions — — 19 1 19 1 Foreign governments 109 3 76 10 185 13 Residential mortgage-backed — — 29 1 29 1 Asset-backed 563 11 13 1 576 12 Redeemable preferred stock 165 13 33 5 198 18 Total at December 31, 2018 $ 10,878 $ 393 $ 12,720 $ 922 $ 23,598 $ 1,315 |
Debt Securities, Trading, and Equity Securities, FV-NI | Net Investment Income (Loss) from Trading Account Securities Three Months Ended March 31, 2019 2018 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 318 $ (121 ) Net investment gains (losses) recognized on securities sold during the period (24 ) 1 Net investment gains (losses) on trading securities arising during the period 294 (120 ) Interest and dividend income from trading securities 92 76 Net investment income (loss) from trading securities $ 386 $ (44 ) |
Allowance for Credit Losses on Financing Receivables | The change in the valuation allowance for credit losses for commercial mortgage loans during the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (in millions) Allowance for credit losses: Beginning balance, January 1, $ 7 $ 8 Charge-offs (7 ) — Recoveries — (1 ) Provision — — Ending balance, March 31, $ — $ 7 March 31, Individually Evaluated for Impairment $ — $ 7 |
Debt Service Coverage Ratio | The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at March 31, 2019 and December 31, 2018 . The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios Debt Service Coverage Ratio (1) Total Mortgage Loans Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x (in millions) March 31, 2019: Commercial Mortgage Loans 0% - 50% $ 781 $ 21 $ 215 $ 24 $ — $ — $ 1,041 50% - 70% 4,933 806 1,284 474 — — 7,497 70% - 90% 266 — 117 334 132 — 849 90% plus — — — — — — — Total Commercial Mortgage Loans $ 5,980 $ 827 $ 1,616 $ 832 $ 132 $ — $ 9,387 Agricultural Mortgage Loans 0% - 50% $ 278 $ 130 $ 276 $ 563 $ 350 $ 49 $ 1,646 50% - 70% 119 70 248 357 237 34 1,065 70% - 90% — — — 19 — — 19 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 397 $ 200 $ 524 $ 939 $ 587 $ 83 $ 2,730 Total Mortgage Loans 0% - 50% $ 1,059 $ 151 $ 491 $ 587 $ 350 $ 49 $ 2,687 50% - 70% 5,052 876 1,532 831 237 34 8,562 70% - 90% 266 — 117 353 132 — 868 90% plus — — — — — — — Total Mortgage Loans $ 6,377 $ 1,027 $ 2,140 $ 1,771 $ 719 $ 83 $ 12,117 Debt Service Coverage Ratio (1) Total Mortgage Loans Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x (in millions) December 31, 2018: Commercial Mortgage Loans 0% - 50% $ 797 $ 21 $ 247 $ 24 $ — $ — $ 1,089 50% - 70% 4,908 656 1,146 325 151 — 7,186 70% - 90% 260 — 117 370 98 — 845 90% plus — — — 27 — — 27 Total Commercial Mortgage Loans $ 5,965 $ 677 $ 1,510 $ 746 $ 249 $ — $ 9,147 Agricultural Mortgage Loans 0% - 50% $ 282 $ 147 $ 267 $ 543 $ 321 $ 51 $ 1,611 50% - 70% 112 46 246 379 224 31 1,038 70% - 90% — — — 19 27 — 46 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 394 $ 193 $ 513 $ 941 $ 572 $ 82 $ 2,695 Total Mortgage Loans 0% - 50% $ 1,079 $ 168 $ 514 $ 567 $ 321 $ 51 $ 2,700 50% - 70% 5,020 702 1,392 704 375 31 8,224 70% - 90% 260 — 117 389 125 — 891 90% plus — — — 27 — — 27 Total Mortgage Loans $ 6,359 $ 870 $ 2,023 $ 1,687 $ 821 $ 82 $ 11,842 ______________ (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. |
Age Analysis Of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past due mortgage loans at March 31, 2019 and December 31, 2018 . Age Analysis of Past Due Mortgage Loans 30-59 Days 60-89 Days 90 Days or More Total Current Total Financing Receivables Recorded Investment 90 Days or More and Accruing (in millions) March 31, 2019 Commercial $ — $ — $ — $ — $ 9,387 $ 9,387 $ — Agricultural 9 26 55 90 2,640 2,730 54 Total Mortgage Loans $ 9 $ 26 $ 55 $ 90 $ 12,027 $ 12,117 $ 54 December 31, 2018 Commercial $ — $ — $ 27 $ 27 $ 9,120 $ 9,147 $ — Agricultural 18 8 42 68 2,627 2,695 40 Total Mortgage Loans $ 18 $ 8 $ 69 $ 95 $ 11,747 $ 11,842 $ 40 |
Impaired Mortgage Loans | The following table provides information relating to impaired mortgage loans at March 31, 2019 and December 31, 2018 . Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (in millions) March 31, 2019: With no related allowance recorded: Agricultural mortgage loans $ 2 $ 2 $ — $ 2 $ — Total $ 2 $ 2 $ — $ 2 $ — With related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ 13 $ — Total $ — $ — $ — $ 13 $ — December 31, 2018: With no related allowance recorded: Agricultural mortgage loans $ 2 $ 2 $ — $ — $ — Total $ 2 $ 2 $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 31 $ (7 ) $ 27 $ — Total $ 27 $ 31 $ (7 ) $ 27 $ — ______________ (1) Represents a two-quarter and five-quarter average of recorded amortized cost at March 31, 2019 and December 31, 2018 , respectively. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Financial Assets and Liabilities and Derivative Instruments | The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments at March 31, 2019 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At March 31, 2019 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets (in millions) Assets (1) Total derivatives $ 4,514 $ 4,434 $ 80 Other financial instruments 2,164 — 2,164 Other invested assets $ 6,678 $ 4,434 $ 2,244 Liabilities (2) Total derivatives $ 4,434 $ 4,387 $ 47 Other financial liabilities 3,734 — 3,734 Other liabilities $ 8,168 $ 4,387 $ 3,781 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. The following table presents information about the Company’s offsetting financial assets and liabilities and derivative instruments at December 31, 2018 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2018 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets (in millions) Assets (1) Total derivatives $ 2,993 $ 2,945 $ 48 Other financial instruments 1,989 — 1,989 Other invested assets $ 4,982 $ 2,945 $ 2,037 Liabilities (2) Total derivatives $ 3,142 $ 2,945 $ 197 Other financial liabilities 3,163 — 3,163 Other liabilities $ 6,305 $ 2,945 $ 3,360 Securities sold under agreement to repurchase (3) $ 571 $ — $ 571 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $2 million in Securities sold under agreement to repurchase on the consolidated balance sheets. |
Derivative Instruments by Category | The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category At March 31, 2019 Gains (Losses) Reported in Net Income (Loss) Three Months Ended March 31, 2019 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 7,514 $ — $ 2 $ (762 ) Swaps 8,158 6 371 (985 ) Options 37,544 3,494 1,311 1,111 Interest rate contracts: Swaps 28,253 912 211 648 Futures 16,758 — — 56 Credit contracts: Credit default swaps 1,338 23 3 7 Other freestanding contracts: Foreign currency contracts 1,853 31 8 10 Margin — 38 — — Collateral — 9 2,575 — Embedded Derivatives (2): GMIB reinsurance contracts — 1,740 — 18 GMxB derivative features liability (3) — — 6,126 (408 ) SCS, SIO, MSO and IUL indexed features (4) — — 2,067 (1,325 ) Total $ 101,418 $ 6,253 $ 12,674 $ (1,630 ) ______________ (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) SCS, SIO, MSO and IUL indexed features are reported in Policyholders’ account balances in the consolidated balance sheets. At December 31, 2018 Gains (Losses) Reported in Net Income (Loss) Three Months Ended March 31, 2018 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 11,143 $ 2 $ 3 $ (23 ) Swaps 7,796 143 168 114 Options 21,821 2,133 1,164 (18 ) Interest rate contracts: Swaps 27,116 634 196 (671 ) Futures 11,792 — — 40 Credit contracts: Credit default swaps 1,376 20 3 — Other freestanding contracts: Foreign currency contracts 2,184 35 22 (51 ) Margin — 18 5 — Collateral — 8 1,581 — Embedded Derivatives: GMIB reinsurance contracts (2) — 1,732 — (159 ) GMxB derivative features liability (2) (3) — — 5,614 505 SCS, SIO, MSO and IUL indexed features (2) (4) — — 715 27 Net derivative gains (loss) (236 ) Cross currency swaps (5) (6) — — — 9 Total $ 83,228 $ 4,725 $ 9,471 $ (227 ) ______________ (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) SCS, SIO, MSO and IUL indexed features are reported in Policyholders’ account balances in the consolidated balance sheets. (5) Reported in Other assets or Other liabilities in the consolidated balance sheets. (6) Reported in Other income in the consolidated statements of income (loss). |
Gross Collateral Amounts Not Offset in Consolidated Balance Sheets | The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at March 31, 2019 . Collateral Amounts Not Offset in the Consolidated Balance Sheets At March 31, 2019 Net Amount Presented in the Balance Sheets Collateral (Received)/Held Financial Instruments Cash Net Amount (in millions) Assets (1) Total derivatives $ 2,561 $ 367 $ 2,114 $ 80 Other financial instruments 2,164 — — 2,164 Other invested assets $ 4,725 $ 367 $ 2,114 $ 2,244 Liabilities (2) Total derivatives $ 47 $ — $ — $ 47 Other financial liabilities 3,734 — — 3,734 Other liabilities $ 3,781 $ — $ — $ 3,781 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs . The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2018 . Collateral Amounts Not Offset in the Consolidated Balance Sheets At December 31, 2018 Net Amount Presented in the Balance Sheets Collateral (Received)/Held Financial Instruments Cash Net Amount (in millions) Assets (1) Total derivatives $ 1,411 $ — $ (1,363 ) $ 48 Other financial instruments 1,989 — — 1,989 Other invested assets $ 3,400 $ — $ (1,363 ) $ 2,037 Liabilities (2) Total derivatives $ 197 $ — $ — $ 197 Other financial liabilities 3,163 — — 3,163 Other liabilities $ 3,360 $ — $ — $ 3,360 Securities sold under agreement to repurchase (3) (4) (5) $ 571 $ (588 ) $ — $ (17 ) ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $2 million in Securities sold under agreement to repurchase. (4) U.S. Treasury and agency securities are in Fixed maturities available-for-sale on the consolidated balance sheets. (5) Cash is included in Cash and cash equivalents on consolidated balance sheets. |
Repurchase Agreements Accounted for as Secured Borrowings | The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2018 . Repurchase Agreement Accounted for as Secured Borrowings At December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 days 30–90 days Greater Than 90 days Total (in millions) Securities sold under agreement to repurchase (1) U.S. Treasury and agency securities $ — $ 571 $ — $ — $ 571 Total $ — $ 571 $ — $ — $ 571 ______________ (1) Excludes expense of $2 million in Securities sold under agreement to repurchase on the consolidated balance sheets. |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Closed Block Disclosure [Abstract] | |
Summarized Financial Information for Closed Blocks | Summarized financial information for the Company’s Closed Block is as follows: March 31, 2019 December 31, 2018 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,670 $ 6,709 Other liabilities 70 47 Total Closed Block liabilities 6,740 6,756 Assets Designated to the Closed Block: Fixed maturities, available-for-sale, at fair value (amortized cost of $3,606 and $3,680) 3,697 3,672 Mortgage loans on real estate, net of valuation allowance of $0 and $0 1,822 1,824 Policy loans 727 736 Cash and other invested assets 142 76 Other assets 171 179 Total assets designated to the Closed Block 6,559 6,487 Excess of Closed Block liabilities over assets designated to the Closed Block 181 269 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholders' dividend obligation of $0 and $0 105 8 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 286 $ 277 |
Closed Block Revenues and Expenses | The Company’s Closed Block revenues and expenses are as follows: Three Months Ended March 31, 2019 2018 (in millions) Revenues: Premiums and other income $ 48 $ 51 Net investment income (loss) 67 73 Investment gains (losses), net (1 ) 1 Total revenues 114 125 Benefits and Other Deductions: Policyholders’ benefits and dividends 121 126 Other operating costs and expenses 1 1 Total benefits and other deductions 122 127 Net income (loss) before income taxes (8 ) (2 ) Income tax (expense) benefit (1 ) — Net income (loss) $ (9 ) $ (2 ) |
Reconciliation of Policy Holder Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended March 31, 2019 2018 (in millions) Balances, beginning of year $ — $ 19 Unrealized investment gains (losses), net of DAC — (19 ) Balances, end of period $ — $ — |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
GMDB and GMIB Liabilities and Other Policyholder's Liabilities | Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature For the Three Months Ended March 31, 2019 and 2018 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance at January 1, 2019 $ 4,659 $ 82 $ (113 ) $ 3,743 $ 184 $ (1,732 ) Paid guarantee benefits (118 ) (6 ) 4 (56 ) (1 ) 21 Other changes in reserve 129 1 — 55 (1 ) (29 ) Balance at March 31, 2019 $ 4,670 $ 77 $ (109 ) $ 3,742 $ 182 $ (1,740 ) Balance at January 1, 2018 $ 4,059 $ 95 $ (108 ) $ 4,752 $ 195 $ (1,894 ) Paid guarantee benefits (101 ) (6 ) 4 (33 ) (21 ) 11 Other changes in reserve 123 (7 ) (2 ) (87 ) (1 ) 148 Balance at March 31, 2018 $ 4,081 $ 82 $ (106 ) $ 4,632 $ 173 $ (1,735 ) |
Variable Annuity Contracts with GMDB and GMIB Features | Direct Variable Annuity Contracts with GMDB and GMIB Features At March 31, 2019 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ 14,178 $ 98 $ 60 $ 181 $ 14,517 Separate Accounts 45,599 9,001 3,134 32,609 90,343 Total Account Values $ 59,777 $ 9,099 $ 3,194 $ 32,790 $ 104,860 Net amount at risk, gross $ 143 $ 143 $ 2,025 $ 18,389 $ 20,700 Net amount at risk, net of amounts reinsured $ 143 $ 138 $ 1,414 $ 18,389 $ 20,084 Average attained age of policyholders (in years) 51.4 67.1 73.8 69.2 55.3 Percentage of policyholders over age 70 10.2 % 43.5 % 66.1 % 50.7 % 19.0 % Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 19 $ 245 $ 264 Separate Accounts — — 21,923 35,745 57,668 Total Account Values $ — $ — $ 21,942 $ 35,990 $ 57,932 Net amount at risk, gross $ — $ — $ 898 $ 8,287 $ 9,185 Net amount at risk, net of amounts reinsured $ — $ — $ 281 $ 7,515 $ 7,796 Average attained age of policyholders (in years) N/A N/A 69.0 69.0 69.0 Weighted average years remaining until annuitization N/A N/A 1.7 0.5 0.5 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Assumed Variable Annuity Contracts with GMDB and GMIB Features At March 31, 2019 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rates) Variable annuity contracts with GMDB features Reinsured account values $ 932 $ 5,327 $ 271 $ 1,700 $ 8,230 Net amount at risk assumed $ 6 $ 286 $ 20 $ 273 $ 585 Average attained age of policyholders (in years) 67 72 77 75 73 Percentage of policyholders over age 70 43.9 % 62.6 % 78.9 % 75.5 % 63.7 % Range of contractually specified interest rates (1) N/A N/A 3%-10% 5%-10% 3%-10% Variable annuity contracts with GMIB features Reinsured account values $ 898 $ 45 $ 244 $ 1,205 $ 2,392 Net amount at risk assumed $ 1 $ — $ 36 $ 267 $ 304 Average attained age of policyholders (in years) 71 74 72 69 70 Percentage of policyholders over age 70 63.1 % 64.1 % 59.3 % 50.7 % 56.5 % Range of contractually specified interest rates N/A N/A 3.3%-6.5% 6%-6% 3.3%-6.5% ______________ (1) In general, for policies with the highest contractual interest rate shown ( 10% ), the rate applied only for the first 10 years after issue, which has now elapsed. |
Investment in Variable Insurance Trust Mutual Funds | Investment in Variable Insurance Trust Mutual Funds As of March 31, 2019 As of December 31, 2018 GMDB GMIB GMDB GMIB (in millions) Equity $ 39,856 $ 17,692 $ 35,541 $ 15,759 Fixed income 5,206 2,825 5,173 2,812 Balanced 44,433 36,855 41,588 33,974 Other 848 296 852 290 Total $ 90,343 $ 57,668 $ 83,154 $ 52,835 |
GMDB, GMIB, GWBL and No Lapse Guarantee Features | The change in the NLG feature reflected in the General Account in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability (1) 2019 2018 (in millions) Balance at January 1, $ 812 $ 709 Paid guaranteed benefits (7 ) (8 ) Other changes in reserves 20 3 Balance at March 31, $ 825 $ 704 ______________ (1) There were no amounts of reinsurance ceded in any period presented. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. At March 31, 2019 and December 31, 2018 , no assets were required to be measured at fair value on a non-recurring basis. Fair value measurements are required on a non-recurring basis for certain assets, including goodwill and mortgage loans on real estate, only when an OTTI or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. The Company recognizes transfers between valuation levels at the beginning of the reporting period. Fair Value Measurements at March 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Corporate (1) $ — $ 33,507 $ 1,180 $ 34,687 U.S. Treasury, government and agency — 13,357 — 13,357 States and political subdivisions — 430 40 470 Foreign governments — 506 — 506 Residential mortgage-backed (2) — 228 — 228 Asset-backed (3) — 83 534 617 Redeemable preferred stock 159 281 — 440 Total fixed maturities, available-for-sale 159 48,392 1,754 50,305 Other equity investments 12 — 74 86 Trading securities 484 12,608 35 13,127 Other invested assets: Short-term investments — 258 — 258 Assets of consolidated VIEs/VOEs 112 270 28 410 Swaps — 359 — 359 Credit default swaps — 20 — 20 Futures (1 ) — — (1 ) Options — 2,183 — 2,183 Total other invested assets 111 3,090 28 3,229 Cash equivalents 4,021 — — 4,021 Segregated securities — 1,262 — 1,262 GMIB reinsurance contract asset — — 1,740 1,740 Separate Accounts assets 116,829 2,764 383 119,976 Total Assets $ 121,616 $ 68,116 $ 4,014 $ 193,746 Liabilities GMxB derivative features’ liability $ — $ — $ 6,126 $ 6,126 SCS, SIO, MSO and IUL indexed features’ liability — 2,067 — 2,067 Liabilities of consolidated VIEs/VOEs — 6 — 6 Contingent payment arrangements — — 7 7 Total Liabilities $ — $ 2,073 $ 6,133 $ 8,206 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Corporate (1) $ — $ 28,992 $ 1,186 $ 30,178 U.S. Treasury, government and agency — 13,829 — 13,829 States and political subdivisions — 422 39 461 Foreign governments — 530 — 530 Residential mortgage-backed (2) — 234 — 234 Asset-backed (3) — 82 519 601 Redeemable preferred stock 167 279 — 446 Total fixed maturities, available-for-sale 167 44,368 1,744 46,279 Other equity investments 11 — 74 85 Trading securities 446 15,507 64 16,017 Other invested assets: Short-term investments — 515 — 515 Assets of consolidated VIEs/VOEs 92 259 27 378 Swaps — 426 — 426 Credit default swaps — 17 — 17 Futures (1 ) — — (1 ) Options — 968 — 968 Total other invested assets 91 2,185 27 2,303 Cash equivalents 3,482 — — 3,482 Segregated securities — 1,170 — 1,170 GMIB reinsurance contracts asset — — 1,732 1,732 Separate Accounts assets 106,994 2,747 374 110,115 Total Assets $ 111,191 $ 65,977 $ 4,015 $ 181,183 Liabilities GMxB derivative features’ liability $ — $ — $ 5,614 $ 5,614 SCS, SIO, MSO and IUL indexed features’ liability — 715 — 715 Liabilities of consolidated VIEs/VOEs — 7 — 7 Contingent payment arrangements — — 7 7 Total Liabilities $ — $ 722 $ 5,621 $ 6,343 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The tables below present reconciliations for all Level 3 assets and liabilities for the three months ended March 31, 2019 and 2018 . Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions Asset-backed (in millions) Balance, January 1, 2019 $ 1,186 $ 39 $ 519 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 1 — — Other comprehensive income (loss) 9 1 4 Purchases 70 — 11 Sales (34 ) — — Transfers into Level 3 (1) 17 — — Transfers out of Level 3 (1) (69 ) — — Balance, March 31, 2019 $ 1,180 $ 40 $ 534 Balance, January 1, 2018 $ 1,150 $ 40 $ 541 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 1 — — Other comprehensive income (loss) (21 ) (1 ) — Purchases 189 — — Sales (117 ) — (1 ) Transfers into Level 3 (1) 67 — — Transfers out of Level 3 (1) (16 ) — — Balance, March 31, 2018 $ 1,253 $ 39 $ 540 ______________ (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. Redeemable Preferred Stock Other Equity Investments (2) GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2019 $ — $ 165 $ 1,732 $ 374 $ (5,614 ) $ (7 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Investment gains (losses), net — — — 7 — — Net derivative gains (losses), excluding non-performance risk — — (11 ) — 63 — Non-performance risk (1) — — 29 — (470 ) — Subtotal — — 18 7 (407 ) — Purchases (2) — 2 11 4 (111 ) — Sales (3) — — (21 ) — 6 — Settlements (4) — — — (1 ) — — Activity related to consolidated VIEs/VOEs — (1 ) — — — — Transfers out of Level 3 (5) — (29 ) — (1 ) — — Balance, March 31, 2019 $ — $ 137 $ 1,740 $ 383 $ (6,126 ) $ (7 ) Balance, January 1, 2018 $ 1 $ 99 $ 1,894 $ 349 (4,451 ) $ (15 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Investment gains (losses), net — — — 7 — — Net derivative gains (losses), excluding non-performance risk — — (155 ) — 457 — Non-performance risk (1) — — (4 ) — 48 — Subtotal — — (159 ) 7 505 — Other comprehensive income (loss) — 1 — — — — Purchases (2) — 4 10 3 (96 ) — Sales (3) (1 ) — (11 ) (1 ) 5 — Settlements (4) — — — (1 ) — 1 Activity related to consolidated VIEs/VOEs — 1 — — — — Transfers into Level 3 (5) — 5 — — — — Balance, March 31, 2018 $ — $ 110 $ 1,734 $ 357 (4,037 ) $ (14 ) ______________ (1) The Company’s non-performance risk is recorded through Net derivative gains (losses). (2) For the GMIB reinsurance contract asset and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for the GMxB derivative features liability, represents benefits paid. (4) For contingent payment arrangements, represents payments under the arrangement. (5) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. |
Fair Value Assets Unrealized Gains Losses By Category For Level 3 Assets And Liabilities Still Held | The table below details changes in unrealized gains (losses) for the three months ended March 31, 2019 and 2018 by category for Level 3 assets and liabilities still held at March 31, 2019 and 2018 . Level 3 Instruments Income (Loss) Investment Gains (Losses), Net Net Derivative Gains (Losses) OCI (in millions) Held at March 31, 2019: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 9 State and political subdivisions — — 1 Asset-backed — — 4 Subtotal — — 14 GMIB reinsurance contracts — 18 — Separate Accounts assets (1) 7 — — GMxB derivative features liability — (408 ) — Total $ 7 $ (390 ) $ 14 Held at March 31, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (19 ) Commercial mortgage-backed — — (1 ) Subtotal — — (20 ) GMIB reinsurance contracts — (159 ) — Separate Accounts assets (1) 7 — — GMxB derivative features liability — 505 — Total $ 7 $ 346 $ (20 ) ______________ (1) There is an investment expense that offsets this investment gain (loss). |
Fair Value Inputs Quantitative Information | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities at March 31, 2019 and December 31, 2018 . Quantitative Information about Level 3 Fair Value Measurements at March 31, 2019 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 102 Matrix pricing model Spread over benchmark 15 - 580 bps 115 bps 891 Market EBITDA multiples 3.9x - 25.5x 12.7x Other equity investments 35 Discounted cash flow Earnings multiple 9.4x Separate Accounts assets 359 Third party appraisal Capitalization rate 4.4% 1 Discounted cash flow Spread over U.S. Treasury curve 248 bps GMIB reinsurance contract asset 1,740 Discounted cash flow Lapse rates 1% - 6.27% Liabilities: GMIBNLG 5,847 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 149 bps Assumed GMIB Reinsurance Contracts 182 Discounted cash flow Lapse rates 1.1% - 11.2% GWBL/GMWB 137 Discounted cash flow Lapse rates 0.5% - 5.7% GIB (44 ) Discounted cash flow Lapse rates 0.5% - 5.7% GMAB 4 Discounted cash flow Lapse rates 0.5% - 11.0% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 99 Matrix pricing model Spread over benchmark 15 - 580 bps 109 bps 881 Market comparable companies EBITDA multiples 4.1x - 37.8x 12.1x Other equity investments 35 Discounted cash flow Earnings multiple 9.4x Separate Accounts assets 352 Third party appraisal Capitalization rate 4.4% 1 Discounted cash flow Spread over U.S. Treasury curve 248bps GMIB reinsurance contract asset 1,732 Discounted cash flow Lapse rates 1% - 6.27% Liabilities: GMIBNLG 5,341 Discounted cash flow Non-performance risk 189 bps Assumed GMIB Reinsurance Contracts 183 Discounted cash flow Lapse rates 1.1% - 11.2% GWBL/GMWB 130 Discounted cash flow Lapse rates 0.5% - 5.7% GIB (48 ) Discounted cash flow Lapse rates 0.5% - 5.7% GMAB 7 Discounted cash flow Lapse rates 0.5% - 11.0% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values at March 31, 2019 and December 31, 2018 for financial instruments not otherwise disclosed in Notes 3 and 4 are presented in the table below. Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) March 31, 2019: Mortgage loans on real estate $ 12,117 $ — $ — $ 12,019 $ 12,019 FHLBNY Funding Agreements $ 4,001 $ — $ 4,011 $ — $ 4,011 Policy loans $ 3,766 $ — $ — $ 4,611 $ 4,611 Policyholders’ liabilities: Investment contracts $ 2,132 $ — $ — $ 2,248 $ 2,248 Short-term and long-term debt $ 4,949 $ — $ 5,023 $ — $ 5,023 Separate Accounts liabilities $ 8,173 $ — $ — $ 8,173 $ 8,173 December 31, 2018: Mortgage loans on real estate $ 11,835 $ — $ — $ 11,494 $ 11,494 FHLBNY Funding Agreements $ 4,002 $ — $ 3,956 $ — $ 3,956 Policy loans $ 3,779 $ — $ — $ 4,183 $ 4,183 Policyholders’ liabilities: Investment contracts $ 2,127 $ — $ — $ 2,174 $ 2,174 Short-term and long-term debt $ 4,955 $ — $ 4,749 $ — $ 4,749 Separate Accounts liabilities $ 7,406 $ — $ — $ 7,406 $ 7,406 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Assets and Liabilities, Leases | Balance Sheet Classification of Operating Lease Assets and Liabilities Balance Sheet Line Item March 31, 2019 (in millions) Assets Operating lease asset Other Assets $ 760 Liabilities Operating lease liability Other Liabilities $ 974 |
Lease, Cost | Weighted Average of Lease Term and Discount Rate March 31, 2019 Weighted-average remaining operating lease term (years) 5.8 Weighted-average discount rate for operating leases 3.32 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Three Months Ended March 31, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 58 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 3 The table below summarizes the components of lease costs for the three months ended March 31, 2019 . Lease Costs Three Months Ended March 31, 2019 (in millions) Operating lease cost $ 81 Variable operating lease cost $ 13 Sublease income $ (19 ) Short-term lease expense $ 1 |
Lessee, Operating Lease, Liability, Maturity | Maturities of Lease Liabilities March 31, 2019 (in millions) Operating Leases: 2019 $ 183 2020 203 2021 190 2022 172 2023 158 Thereafter 204 Total lease payments 1,110 Less: Interest (136 ) Present value of lease liabilities $ 974 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table presents the Company’s future minimum lease obligation under ASC 840 as of December 31, 2018: December 31, 2018 Calendar Year (in millions) 2019 $ 212 2020 $ 186 2021 $ 181 2022 $ 166 2023 $ 155 Thereafter $ 293 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of certain benefit costs | Components of certain benefit costs for the Company were as follows: Three Months Ended March 31, 2019 2018 (in millions) Net Periodic Pension Expense (Qualified Plans): Service cost $ 2 $ 2 Interest cost 22 21 Expected return on assets (38 ) (43 ) Actuarial (gain) loss — — Net amortization 20 26 Partial settlement — 99 Total $ 6 $ 105 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI represents cumulative gains (losses) on items that are not reflected in Net income (loss). The balances as of March 31, 2019 and 2018 follow: March 31, 2019 2018 (in millions) Unrealized gains (losses) on investments (1) $ 430 $ (137 ) Defined benefit pension plans (919 ) (822 ) Foreign currency translation adjustments (1) (63 ) (33 ) Total accumulated other comprehensive income (loss) (552 ) (992 ) Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 39 46 Accumulated other comprehensive income (loss) attributable to Holdings $ (513 ) $ (946 ) ______________ (1) A reclassification of $7 million has been made to the March 31, 2018 previously reported balances to conform to the current period’s presentation. |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three months ended March 31, 2019 and 2018 follow: Three Months Ended March 31, 2019 2018 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ 1,342 $ (1,221 ) (Gains) losses reclassified to Net income (loss) during the period (1) 9 (88 ) Net unrealized gains (losses) on investments 1,351 (1,309 ) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (2) (517 ) 347 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $218, and $(255)) 834 (962 ) Change in defined benefit plans: Less: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) 49 133 Change in defined benefit plans (net of deferred income tax expense (benefit) of $12 and $35) 49 133 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (2) (1 ) (3 ) Foreign currency translation adjustment (1 ) (3 ) Total other comprehensive income (loss), net of income taxes 882 (832 ) Less: Other comprehensive (income) loss attributable to noncontrolling interest 1 (6 ) Other comprehensive income (loss) attributable to Holdings $ 883 $ (838 ) ______________ (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts presented net of income tax expense (benefit) of $2 million , and $(23) million for the three months ended March 31, 2019 and 2018 , respectively. (2) A reclassification of $2 million has been made to the previously reported amounts for the three months ended March 31, 2018 to conform to the current period’s presentation. (3) These AOCI components are included in the computation of net periodic pension expenses. See Note 9 for further information. |
COMMITMENT AND CONTINGENT LIA_2
COMMITMENT AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Obligation Under Funding Agreements | Outstanding Balance at December 31, 2018 Issued During the Period Repaid During the Period Outstanding Balance at March 31, 2019 (in millions) Short-term funding agreements: Due in one year or less $ 1,640 $ 4,470 $ 4,470 $ 1,640 Long-term funding agreements: Due in years two through five 1,569 — — 1,569 Due in more than five years 781 — — 781 Total long-term funding agreements 2,350 — — 2,350 Total funding agreements (1) $ 3,990 $ 4,470 $ 4,470 $ 3,990 ______________ (1) The $11 million and $12 million difference between the funding agreements carrying value shown in fair value table at March 31, 2019 and December 31, 2018 , respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements’ borrowing rates. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The table below presents Operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to Holdings for the three months ended March 31, 2019 and 2018 , respectively: Three Months Ended March 31, 2019 2018 (in millions) Net income (loss) attributable to Holdings $ (775 ) $ 214 Adjustments related to: Variable annuity product features (1) 1,540 176 Investment (gains) losses 11 (102 ) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 24 131 Other adjustments (2) 40 91 Income tax expense (benefit) related to above adjustments (3) (337 ) (55 ) Non-recurring tax items 6 28 Non-GAAP Operating Earnings (4) $ 509 $ 483 Operating earnings (loss) by segment: Individual Retirement (5) $ 370 $ 368 Group Retirement $ 81 $ 76 Investment Management and Research $ 77 $ 81 Protection Solutions $ 49 $ 35 Corporate and Other (6) $ (68 ) $ (77 ) ______________ (1) Had we modified the treatment of the amortization of DAC for SCS starting in the first quarter of 2018, the adjustment related to Variable annuity product features for the three months ended March 31, 2018 would have been $124 million . (2) Other adjustments include separation costs of $24 million and $61 million for the three months ended March 31, 2019 and 2018 , respectively. (3) Had we modified the treatment of the amortization of DAC for SCS starting in the first quarter of 2018, the adjustment related to Income tax expense (benefit) related to above adjustments for the three months ended March 31, 2018 would have been $(44) million . (4) Had we modified the treatment of the amortization of DAC for SCS starting in the first quarter of 2018, Non-GAAP Operating Earnings for the three months ended March 31, 2018 would have been $442 million . (5) Had we modified the treatment of the amortization of DAC for SCS starting in the first quarter of 2018, Operating earnings for the three months ended March 31, 2018 for the Individual Retirement segment would have been $327 million . (6) Includes interest expense of $52 million and $44 million for the three months ended March 31, 2019 and 2018 , respectively. |
Reconciliation of Revenue from Segments to Consolidated | The table below presents segment revenues for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 (in millions) Segment revenues: Individual Retirement (1) $ 1,007 $ 729 Group Retirement (1) 251 238 Investment Management and Research (2) 780 909 Protection Solutions (1) 831 814 Corporate and Other (1) 312 288 Adjustments related to: Variable annuity product features (1,478 ) (161 ) Investment gains (losses), net (11 ) 102 Other adjustments to segment revenues 22 (45 ) Total revenues $ 1,714 $ 2,874 ______________ (1) Includes investment expenses charged by AB of approximately $18 million for both of the three months ended March 31, 2019 and 2018 for services provided to the Company. (2) Inter-segment investment management and other fees of approximately $25 million for both of the three months ended March 31, 2019 and 2018 are included in total revenues of the Investment Management and Research segment. |
Reconciliation of Assets from Segment to Consolidated | The table below presents Total assets by segment as of March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 (in millions) Total assets by segment: Individual Retirement $ 116,833 $ 105,532 Group Retirement 38,965 38,874 Investment Management and Research 10,348 10,294 Protection Solutions 42,122 44,633 Corporate and Other 24,551 21,464 Total assets $ 232,819 $ 220,797 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents both basic and diluted income (loss) per share for each period presented: Three Months Ended March 31, 2019 2018 (dollars per share) Net income (loss) attributable to Holdings per common share: Basic $ (1.50 ) $ 0.38 Diluted $ (1.50 ) $ 0.38 The following table presents the reconciliation of the numerator for the basic and diluted net income per share calculations: Three Months Ended March 31, 2019 2018 (in millions) Net income (loss) attributable to Holdings common shareholders: Net income (loss) attributable to Holdings common shareholders (basic) $ (775 ) $ 214 Net income (loss) attributable to Holdings common shareholders (diluted) $ (775 ) $ 214 The following table presents the number of weighted average shares used in calculating basic and diluted earnings per common share Three Months Ended March 31, 2019 2018 (number of shares, in millions) Weighted Average Shares: Weighted average common stock outstanding for basic earnings per common share 518.0 561.0 Weighted average common stock outstanding for diluted earnings per common share 518.0 561.0 |
RESTATEMENT AND REVISION OF P_2
RESTATEMENT AND REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Financial Information Affected by Restatement and Revision | March 31, 2018 As Pre-viously Reported Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Balance Sheet: Assets: Deferred policy acquisition costs $ 6,288 $ — $ 6,288 $ (45 ) $ 6,243 Current and deferred income taxes 225 — 225 7 232 Total Assets $ 232,294 $ — $ 232,294 $ (38 ) $ 232,256 Liabilities: Future policy benefits and other policyholders’ liabilities 29,586 — 29,586 (20 ) 29,566 Total Liabilities $ 214,670 $ — $ 214,670 $ (20 ) $ 214,650 Equity: Retained earnings 12,455 — 12,455 (18 ) 12,437 Total equity attributable to Holdings 13,565 — 13,565 (18 ) 13,547 Total Equity 16,600 — 16,600 (18 ) 16,582 Total Liabilities, Redeemable Noncontrolling Interest and Equity $ 232,294 $ — $ 232,294 $ (38 ) $ 232,256 Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Policy charges and fee income $ 972 $ — $ 972 $ (6 ) $ 966 Net derivative gains (losses) (281 ) — (281 ) 45 (236 ) Total revenues 2,835 — 2,835 39 2,874 Benefits and other deductions: Policyholders’ benefits 608 — 608 (14 ) 594 Amortization of deferred policy acquisition costs 15 162 177 (5 ) 172 Total benefits and other deductions 2,465 — 2,465 (19 ) 2,446 Income (loss) from continuing operations, before income taxes 370 — 370 58 428 Income tax (expense) benefit (79 ) — (79 ) (12 ) (91 ) Net income (loss) 291 — 291 46 337 Net income (loss) attributable to Holdings $ 168 $ — $ 168 $ 46 $ 214 Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Statement of Comprehensive Income (Loss) Net income (loss) $ 291 $ — $ 291 $ 46 $ 337 Comprehensive income (loss) (541 ) — (541 ) 46 (495 ) Comprehensive income (loss) attributable to Holdings $ (670 ) $ — $ (670 ) $ 46 $ (624 ) Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Statement of Equity: Retained earnings, beginning of year $ 12,289 $ — $ 12,289 $ (64 ) $ 12,225 Net income (loss) attributable to Holdings 168 — 168 46 214 Retained earnings, end of period $ 12,455 $ — $ 12,455 $ (18 ) $ 12,437 Total Holdings’ equity, end of period $ 13,565 $ — $ 13,565 $ (18 ) $ 13,547 Total Equity, End of Period $ 16,600 $ — $ 16,600 $ (18 ) $ 16,582 Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income (loss) $ 291 $ — $ 291 $ 46 $ 337 Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: Three Months Ended March 31, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Policy charges and fee income (972 ) — (972 ) 6 (966 ) Net derivative (gains) losses 281 — 281 (45 ) 236 Amortization of deferred sales commission 7 (7 ) — — — Amortization and depreciation (20 ) 189 169 (5 ) 164 Amortization of deferred cost of reinsurance asset 5 (5 ) — — — Distributions from joint ventures and limited partnerships 25 (25 ) — — — Equity (income) loss from limited partnerships — (38 ) (38 ) — (38 ) Changes in: Reinsurance recoverable 32 — 32 (3 ) 29 Capitalization of deferred policy acquisition costs 15 (177 ) (162 ) — (162 ) Future policy benefits (254 ) — (254 ) 6 (248 ) Current and deferred income taxes 103 — 103 12 115 Other, net (255 ) 63 (192 ) — (192 ) Net cash provided by (used in) operating activities $ (264 ) $ — $ (264 ) $ 17 $ (247 ) Cash flows from investing activities: Proceeds from the sale/maturity/prepayment of: Real estate joint ventures $ — $ — $ — $ 140 $ 140 Short-term investments — 1,607 1,607 77 1,684 Payment for the purchase/origination of: Short-term investments — (731 ) (731 ) — (731 ) Cash settlements related to derivative instruments (54 ) — (54 ) (620 ) (674 ) Change in short-term investments 876 (876 ) — — — Other, net (371 ) — (371 ) 60 (311 ) Net cash provided by (used in) investing activities $ 459 $ — $ 459 $ (343 ) $ 116 Cash flows from financing activities: Policyholders’ account balances: Deposits $ 2,532 $ — $ 2,532 $ (491 ) $ 2,041 Withdrawals (1,384 ) — (1,384 ) 284 (1,100 ) Transfers (to) from Separate Accounts (102 ) — (102 ) 533 431 Net cash provided by (used in) financing activities $ 1,074 $ — $ 1,074 $ 326 $ 1,400 Non-cash transactions during the period: Capital contribution from parent $ 630 $ — $ 630 $ (8 ) $ 622 (Settlement) issuance of long-term debt $ 202 $ — $ 202 $ (404 ) $ (202 ) Transfer of assets to reinsurer $ — $ — $ — $ (604 ) $ (604 ) |
ORGANIZATION (Details)
ORGANIZATION (Details) | Mar. 25, 2019 | Mar. 31, 2019segmentclient_channel | Mar. 31, 2018 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||
Number of reportable segments | segment | 4 | |||
Number of main client channels | client_channel | 3 | |||
AXA Group | ||||
Class of Stock [Line Items] | ||||
Ownership percentage after initial public offering (as a percent) | 48.30% | 48.00% | 59.00% | |
AB | ||||
Class of Stock [Line Items] | ||||
Economic interest in subsidiary (as a percent) | 66.00% | 65.00% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Operating lease liability | $ 1,024 | $ 974 |
Operating lease asset | 799 | $ 760 |
Deferred rent | 105 | |
Lease impairments | $ 120 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Variable Interest Entity [Line Items] | |||
Redeemable non-controlling interest | [1] | $ 207 | $ 187 |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, nonconsolidated net assets | 168,600 | ||
Variable interest entity, maximum loss exposure | 1,200 | ||
Variable interest entity, unfunded commitments | 945 | ||
Total assets | 1,200 | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | 35 | ||
Operating income (loss) | 16 | ||
AB-Sponsored Investment Funds | VOE Consolidation Model | |||
Variable Interest Entity [Line Items] | |||
Total assets | 170 | ||
Total liabilities | 16 | ||
Redeemable non-controlling interest | 40 | ||
AB-Sponsored Investment Funds | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | 249 | ||
Total liabilities | 14 | ||
Redeemable non-controlling interest | 116 | ||
AB-Sponsored Investment Funds | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, nonconsolidated net assets | 53,500 | ||
Variable interest entity, maximum loss exposure | 6 | ||
Other invested assets | AB-Sponsored Investment Funds | VOE Consolidation Model | |||
Variable Interest Entity [Line Items] | |||
Total assets | 168 | ||
Cash and Cash Equivalents | AB-Sponsored Investment Funds | VOE Consolidation Model | |||
Variable Interest Entity [Line Items] | |||
Total assets | $ 2 | ||
[1] | See Note 2 for details of balances with variable interest entities. |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Reclassification of DAC Capitalized Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Amortization of deferred policy acquisition costs | $ 198 | $ 172 |
Reclassification Of DAC [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 162 | |
Amortization of deferred policy acquisition costs | 162 | |
Reclassification Of DAC [Member] | Individual Retirement (5) | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 91 | |
Amortization of deferred policy acquisition costs | 91 | |
Reclassification Of DAC [Member] | Group Retirement | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 21 | |
Amortization of deferred policy acquisition costs | 21 | |
Reclassification Of DAC [Member] | Protection Solutions | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 50 | |
Amortization of deferred policy acquisition costs | 50 | |
Reclassification Of DAC [Member] | Compensation and benefits | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 41 | |
Reclassification Of DAC [Member] | Compensation and benefits | Individual Retirement (5) | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 19 | |
Reclassification Of DAC [Member] | Compensation and benefits | Group Retirement | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 7 | |
Reclassification Of DAC [Member] | Compensation and benefits | Protection Solutions | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 15 | |
Reclassification Of DAC [Member] | Commissions and distribution-related payments | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 120 | |
Reclassification Of DAC [Member] | Commissions and distribution-related payments | Individual Retirement (5) | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 72 | |
Reclassification Of DAC [Member] | Commissions and distribution-related payments | Group Retirement | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 14 | |
Reclassification Of DAC [Member] | Commissions and distribution-related payments | Protection Solutions | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 34 | |
Reclassification Of DAC [Member] | Other operating costs and expenses | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 1 | |
Reclassification Of DAC [Member] | Other operating costs and expenses | Individual Retirement (5) | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 0 | |
Reclassification Of DAC [Member] | Other operating costs and expenses | Group Retirement | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | 0 | |
Reclassification Of DAC [Member] | Other operating costs and expenses | Protection Solutions | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total reductions | $ 1 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total investment management and service fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 993 | $ 1,050 |
Base fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 705 | 724 |
Performance-based fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4 | 6 |
Research services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 90 | 114 |
Distribution services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 172 | 180 |
Shareholder services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18 | 20 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4 | 6 |
Other income | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 120 | $ 112 |
INVESTMENTS - Available For Sal
INVESTMENTS - Available For Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | $ 1,650 | $ 793 |
Gross Unrealized Losses | 462 | 1,315 |
Fair Value | 50,305 | 46,279 |
OTTI in AOCI | 2 | 2 |
Amortized Cost | ||
Due in one year or less | 2,234 | |
Due in years two through five | 11,686 | |
Due in years six through ten | 17,060 | |
Due after ten years | 16,872 | |
Subtotal | 47,852 | |
March 31, 2019 | 49,117 | 46,801 |
Fair Value | ||
Due in one year or less | 2,246 | |
Due in years two through five | 11,900 | |
Due in years six through ten | 17,505 | |
Due after ten years | 17,369 | |
Subtotal | 49,020 | |
Total | 50,305 | |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 936 | 406 |
Gross Unrealized Losses | 233 | 800 |
Fair Value | 34,687 | 30,178 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
March 31, 2019 | 33,984 | 30,572 |
U.S. Treasury, government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 602 | 295 |
Gross Unrealized Losses | 214 | 470 |
Fair Value | 13,357 | 13,829 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
March 31, 2019 | 12,969 | 14,004 |
States and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 56 | 47 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 470 | 461 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
March 31, 2019 | 414 | 415 |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 28 | 19 |
Gross Unrealized Losses | 7 | 13 |
Fair Value | 506 | 530 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
March 31, 2019 | 485 | 524 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 11 | 10 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 228 | 234 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
Without single maturity date | 217 | |
March 31, 2019 | 217 | 225 |
Fair Value | ||
Without single maturity date | 228 | |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 4 | 12 |
Fair Value | 617 | 601 |
OTTI in AOCI | 2 | 2 |
Amortized Cost | ||
Without single maturity date | 620 | |
March 31, 2019 | 620 | 612 |
Fair Value | ||
Without single maturity date | 617 | |
Redeemable preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 16 | 15 |
Gross Unrealized Losses | 4 | 18 |
Fair Value | 440 | 446 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
Without single maturity date | 428 | |
March 31, 2019 | 428 | 449 |
Fair Value | ||
Without single maturity date | 440 | |
Fixed Maturities | ||
Amortized Cost | ||
March 31, 2019 | $ 49,117 | $ 46,801 |
INVESTMENTS - Credit Loss Impai
INVESTMENTS - Credit Loss Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 1,450 | $ 3,880 |
Gross gains on sales | 8 | 155 |
Gross losses on sales | (18) | (52) |
Total OTTI | 0 | 0 |
Non-credit losses recognized in OCI | 0 | 0 |
Credit losses recognized in Net income (loss) | 0 | 0 |
Fixed Maturities - Credit Loss Impairments | ||
Balances, beginning of period | (58) | (18) |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 32 | 0 |
Recognized impairments on securities impaired to fair value this period | 0 | 0 |
Impairments recognized this period on securities not previously impaired | 0 | 0 |
Additional impairments this period on securities previously impaired | 0 | 0 |
Increases due to passage of time on previously recorded credit losses | 0 | 0 |
Accretion of previously recognized impairments due to increases in expected cash flows | 0 | 0 |
Balances, end of period | $ (26) | $ (18) |
INVESTMENTS - Net Unrealized In
INVESTMENTS - Net Unrealized Investments (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Unrealized Net Investment Gain and Losses [Line Items] | |||
Unrealized gains (losses) on investments | $ 430,000,000 | $ (137,000,000) | |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | 15,432,000,000 | $ 16,518,000,000 | |
Impact of net unrealized investment gains (losses) on Deferred income taxes | (218,000,000) | 255,000,000 | |
End of year | 14,682,000,000 | 16,582,000,000 | |
Net Unrealized Gains (Losses) On Investments | |||
Unrealized Net Investment Gain and Losses [Line Items] | |||
Unrealized gains (losses) on investments | 1,188,000,000 | (522,000,000) | |
Fixed Maturities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses With OTTI Losses | |||
Unrealized Net Investment Gain and Losses [Line Items] | |||
Unrealized gains (losses) on investments | 1,000,000 | 0 | |
Fixed Maturities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses All Other | |||
Unrealized Net Investment Gain and Losses [Line Items] | |||
Unrealized gains (losses) on investments | 1,187,000,000 | $ (522,000,000) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses All Other | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | (522,000,000) | 1,871,000,000 | |
Net investment gains (losses) arising during the period | 1,710,000,000 | (1,546,000,000) | |
Included in Net income (loss) | (1,000,000) | (109,000,000) | |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | |
End of year | 1,187,000,000 | 216,000,000 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | DAC | Unrealized Investment Gains Losses All Other | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | 100,000,000 | (358,000,000) | |
Impact of net unrealized investment gains (losses) on DAC | (701,000,000) | 341,000,000 | |
End of year | (601,000,000) | (17,000,000) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Policyholders Liabilities | Unrealized Investment Gains Losses All Other | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | (73,000,000) | (238,000,000) | |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 85,000,000 | 110,000,000 | |
End of year | 12,000,000 | (128,000,000) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Deferred Income Tax Asset Liability | Unrealized Investment Gains Losses All Other | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | 104,000,000 | (397,000,000) | |
Impact of net unrealized investment gains (losses) on Deferred income taxes | (230,000,000) | 253,000,000 | |
End of year | (126,000,000) | (144,000,000) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses All Other | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | (391,000,000) | 878,000,000 | |
Net investment gains (losses) arising during the period | 1,710,000,000 | (1,546,000,000) | |
Included in Net income (loss) | (1,000,000) | (109,000,000) | |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | |
Impact of net unrealized investment gains (losses) on DAC | (701,000,000) | 341,000,000 | |
Impact of net unrealized investment gains (losses) on Deferred income taxes | (230,000,000) | 253,000,000 | |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 85,000,000 | 110,000,000 | |
End of year | 472,000,000 | (73,000,000) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Fixed Maturities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses With OTTI Losses | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | 0 | 2,000,000 | |
Net investment gains (losses) arising during the period | (11,000,000) | 0 | |
Included in Net income (loss) | 12,000,000 | (2,000,000) | |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | |
End of year | 1,000,000 | 0 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Fixed Maturities | DAC | Unrealized Investment Gains Losses With OTTI Losses | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | 0 | 0 | |
Impact of net unrealized investment gains (losses) on DAC | 0 | 0 | |
End of year | 0 | 0 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Fixed Maturities | Policyholders Liabilities | Unrealized Investment Gains Losses With OTTI Losses | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | 0 | (1,000,000) | |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 0 | 1,000,000 | |
End of year | 0 | 0 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Fixed Maturities | Deferred Income Tax Asset Liability | Unrealized Investment Gains Losses With OTTI Losses | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | 0 | 0 | |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 0 | 0 | |
End of year | 0 | 0 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Fixed Maturities | AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses With OTTI Losses | |||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | |||
Beginning of year | 0 | 1,000,000 | |
Net investment gains (losses) arising during the period | (11,000,000) | 0 | |
Included in Net income (loss) | 12,000,000 | (2,000,000) | |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | |
Impact of net unrealized investment gains (losses) on DAC | 0 | 0 | |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 0 | 0 | |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 0 | 1,000,000 | |
End of year | $ 1,000,000 | $ 0 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||||
Number of fixed maturities in an unrealized loss position greater than 12 months | security | 770 | 1,700 | ||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.70% | |||
Fixed maturities available-for-sale, amortized cost | $ 49,117 | $ 46,801 | ||
Net unrealized losses | (4) | |||
Trading securities, at fair value | 13,127 | 16,017 | ||
Separate account equity investment carrying value | 51 | 49 | ||
Financing receivable, allowance for credit losses | 0 | 7 | $ 7 | $ 8 |
Gross Unrealized Losses | 452 | 922 | ||
Corporate | ||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||||
Debt securities exposure in single issuer of total investments | $ 237 | $ 226 | ||
Debt securities exposure in single issuer of total investments, percent | 1.60% | 1.50% | ||
Fixed maturities available-for-sale, amortized cost | $ 33,984 | $ 30,572 | ||
Gross Unrealized Losses | 227 | 487 | ||
Fixed Maturities | ||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||||
Fixed maturities available-for-sale, amortized cost | 49,117 | 46,801 | ||
External Credit Rating, Non Investment Grade | Fixed Maturities | Other Than Investment Grade | ||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||||
Available-for-sale securities, amortized cost basis other than investment grade | $ 1,288 | $ 1,268 | ||
Percentage of available for sale securities | 2.60% | 2.70% | ||
Net unrealized losses | $ (31) | |||
Commercial Mortgage Loans | ||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||||
Financing receivable, recorded investment, nonaccrual status | $ 0 | $ 19 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 318 | $ (121) |
Net investment gains (losses) recognized on securities sold during the period | (24) | 1 |
Unrealized and realized gains (losses) on trading securities arising during the period | 294 | (120) |
Interest and dividend income from trading securities | 92 | 76 |
Net investment income (loss) from trading securities | $ 386 | $ (44) |
INVESTMENTS - Valuation Allowan
INVESTMENTS - Valuation Allowance For Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Allowance for credit losses: | |||
Beginning balance, January 1, | $ 7 | $ 8 | |
September 30, | 0 | 7 | |
September 30, Individually Evaluated for Impairment | 0 | $ 7 | |
Commercial Mortgage Loans | |||
Allowance for credit losses: | |||
Charge-offs | (7) | 0 | |
Recoveries | 0 | (1) | |
Provision | 0 | 0 | |
September 30, Individually Evaluated for Impairment | $ 0 | $ 7 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | $ 90 | $ 95 |
Financing receivables, recorded investment, current | 12,027 | 11,747 |
Total Mortgage Loans | 12,117 | 11,842 |
Total Financing Receivables | 12,117 | 11,842 |
Recorded Investment 90 Days or More and Accruing | 54 | 40 |
With no related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 2 | 2 |
Unpaid Principal Balance | 2 | 2 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2 | 0 |
Interest Income Recognized | 0 | 0 |
With related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 0 | 27 |
Unpaid Principal Balance | 0 | 31 |
Related Allowance | 0 | (7) |
Average Recorded Investment | 13 | 27 |
Interest Income Recognized | 0 | 0 |
30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 9 | 18 |
60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 26 | 8 |
90 Days or More | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 55 | 69 |
Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 6,377 | 6,359 |
Total Financing Receivables | 6,377 | 6,359 |
1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,027 | 870 |
Total Financing Receivables | 1,027 | 870 |
1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 2,140 | 2,023 |
Total Financing Receivables | 2,140 | 2,023 |
1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,771 | 1,687 |
Total Financing Receivables | 1,771 | 1,687 |
1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 719 | 821 |
Total Financing Receivables | 719 | 821 |
Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 83 | 82 |
Total Financing Receivables | 83 | 82 |
0% - 50% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 2,687 | |
Total Financing Receivables | 2,687 | |
0% - 50% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,059 | |
Total Financing Receivables | 1,059 | |
0% - 50% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 151 | |
Total Financing Receivables | 151 | |
0% - 50% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 491 | |
Total Financing Receivables | 491 | |
0% - 50% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 587 | |
Total Financing Receivables | 587 | |
0% - 50% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 350 | |
Total Financing Receivables | 350 | |
0% - 50% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 49 | |
Total Financing Receivables | 49 | |
50% - 70% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 8,562 | |
Total Financing Receivables | 8,562 | |
50% - 70% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 5,052 | |
Total Financing Receivables | 5,052 | |
50% - 70% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 876 | |
Total Financing Receivables | 876 | |
50% - 70% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,532 | |
Total Financing Receivables | 1,532 | |
50% - 70% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 831 | |
Total Financing Receivables | 831 | |
50% - 70% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 237 | |
Total Financing Receivables | 237 | |
50% - 70% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 34 | |
Total Financing Receivables | 34 | |
70% - 90% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 868 | |
Total Financing Receivables | 868 | |
70% - 90% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 266 | |
Total Financing Receivables | 266 | |
70% - 90% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
70% - 90% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 117 | |
Total Financing Receivables | 117 | |
70% - 90% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 353 | |
Total Financing Receivables | 353 | |
70% - 90% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 132 | |
Total Financing Receivables | 132 | |
70% - 90% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
90% plus | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
90% plus | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
90% plus | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
90% plus | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
90% plus | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
90% plus | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
90% plus | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
Commercial Mortgage Loans | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 0 | 27 |
Financing receivables, recorded investment, current | 9,387 | 9,120 |
Total Mortgage Loans | 9,387 | 9,147 |
Total Financing Receivables | 9,387 | 9,147 |
Recorded Investment 90 Days or More and Accruing | 0 | 0 |
Commercial Mortgage Loans | With related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 0 | 27 |
Unpaid Principal Balance | 0 | 31 |
Related Allowance | 0 | (7) |
Average Recorded Investment | 13 | 27 |
Interest Income Recognized | 0 | 0 |
Commercial Mortgage Loans | 30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 0 | 0 |
Commercial Mortgage Loans | 60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 0 | 0 |
Commercial Mortgage Loans | 90 Days or More | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 0 | 27 |
Commercial Mortgage Loans | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 5,980 | 5,965 |
Total Financing Receivables | 5,980 | 5,965 |
Commercial Mortgage Loans | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 827 | 677 |
Total Financing Receivables | 827 | 677 |
Commercial Mortgage Loans | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,616 | 1,510 |
Total Financing Receivables | 1,616 | 1,510 |
Commercial Mortgage Loans | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 832 | 746 |
Total Financing Receivables | 832 | 746 |
Commercial Mortgage Loans | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 132 | 249 |
Total Financing Receivables | 132 | 249 |
Commercial Mortgage Loans | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,041 | 1,089 |
Total Financing Receivables | 1,041 | 1,089 |
Commercial Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 781 | 797 |
Total Financing Receivables | 781 | 797 |
Commercial Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 21 | 21 |
Total Financing Receivables | 21 | 21 |
Commercial Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 215 | 247 |
Total Financing Receivables | 215 | 247 |
Commercial Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 24 | 24 |
Total Financing Receivables | 24 | 24 |
Commercial Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 50% - 70% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 7,497 | 7,186 |
Total Financing Receivables | 7,497 | 7,186 |
Commercial Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 4,933 | 4,908 |
Total Financing Receivables | 4,933 | 4,908 |
Commercial Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 806 | 656 |
Total Financing Receivables | 806 | 656 |
Commercial Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,284 | 1,146 |
Total Financing Receivables | 1,284 | 1,146 |
Commercial Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 474 | 325 |
Total Financing Receivables | 474 | 325 |
Commercial Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 151 |
Total Financing Receivables | 0 | 151 |
Commercial Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 70% - 90% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 849 | 845 |
Total Financing Receivables | 849 | 845 |
Commercial Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 266 | 260 |
Total Financing Receivables | 266 | 260 |
Commercial Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 117 | 117 |
Total Financing Receivables | 117 | 117 |
Commercial Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 334 | 370 |
Total Financing Receivables | 334 | 370 |
Commercial Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 132 | 98 |
Total Financing Receivables | 132 | 98 |
Commercial Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 27 |
Total Financing Receivables | 0 | 27 |
Commercial Mortgage Loans | 90% plus | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 27 |
Total Financing Receivables | 0 | 27 |
Commercial Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 90 | 68 |
Financing receivables, recorded investment, current | 2,640 | 2,627 |
Total Mortgage Loans | 2,730 | 2,695 |
Total Financing Receivables | 2,730 | 2,695 |
Recorded Investment 90 Days or More and Accruing | 54 | 40 |
Agricultural Mortgage Loans | With no related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 2 | 2 |
Unpaid Principal Balance | 2 | 2 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2 | 0 |
Interest Income Recognized | 0 | 0 |
Agricultural Mortgage Loans | 30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 9 | 18 |
Agricultural Mortgage Loans | 60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 26 | 8 |
Agricultural Mortgage Loans | 90 Days or More | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 55 | 42 |
Agricultural Mortgage Loans | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 397 | 394 |
Total Financing Receivables | 397 | 394 |
Agricultural Mortgage Loans | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 200 | 193 |
Total Financing Receivables | 200 | 193 |
Agricultural Mortgage Loans | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 524 | 513 |
Total Financing Receivables | 524 | 513 |
Agricultural Mortgage Loans | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 939 | 941 |
Total Financing Receivables | 939 | 941 |
Agricultural Mortgage Loans | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 587 | 572 |
Total Financing Receivables | 587 | 572 |
Agricultural Mortgage Loans | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 83 | 82 |
Total Financing Receivables | 83 | 82 |
Agricultural Mortgage Loans | 0% - 50% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,646 | 1,611 |
Total Financing Receivables | 1,646 | 1,611 |
Agricultural Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 278 | 282 |
Total Financing Receivables | 278 | 282 |
Agricultural Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 130 | 147 |
Total Financing Receivables | 130 | 147 |
Agricultural Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 276 | 267 |
Total Financing Receivables | 276 | 267 |
Agricultural Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 563 | 543 |
Total Financing Receivables | 563 | 543 |
Agricultural Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 350 | 321 |
Total Financing Receivables | 350 | 321 |
Agricultural Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 49 | 51 |
Total Financing Receivables | 49 | 51 |
Agricultural Mortgage Loans | 50% - 70% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,065 | 1,038 |
Total Financing Receivables | 1,065 | 1,038 |
Agricultural Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 119 | 112 |
Total Financing Receivables | 119 | 112 |
Agricultural Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 70 | 46 |
Total Financing Receivables | 70 | 46 |
Agricultural Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 248 | 246 |
Total Financing Receivables | 248 | 246 |
Agricultural Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 357 | 379 |
Total Financing Receivables | 357 | 379 |
Agricultural Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 237 | 224 |
Total Financing Receivables | 237 | 224 |
Agricultural Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 34 | 31 |
Total Financing Receivables | 34 | 31 |
Agricultural Mortgage Loans | 70% - 90% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 19 | 46 |
Total Financing Receivables | 19 | 46 |
Agricultural Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 19 | 19 |
Total Financing Receivables | 19 | 19 |
Agricultural Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 27 |
Total Financing Receivables | 0 | 27 |
Agricultural Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | 0 |
Total Financing Receivables | $ 0 | 0 |
Total Mortgages Loan | 0% - 50% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 2,700 | |
Total Financing Receivables | 2,700 | |
Total Mortgages Loan | 0% - 50% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,079 | |
Total Financing Receivables | 1,079 | |
Total Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 168 | |
Total Financing Receivables | 168 | |
Total Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 514 | |
Total Financing Receivables | 514 | |
Total Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 567 | |
Total Financing Receivables | 567 | |
Total Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 321 | |
Total Financing Receivables | 321 | |
Total Mortgages Loan | 0% - 50% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 51 | |
Total Financing Receivables | 51 | |
Total Mortgages Loan | 50% - 70% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 8,224 | |
Total Financing Receivables | 8,224 | |
Total Mortgages Loan | 50% - 70% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 5,020 | |
Total Financing Receivables | 5,020 | |
Total Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 702 | |
Total Financing Receivables | 702 | |
Total Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 1,392 | |
Total Financing Receivables | 1,392 | |
Total Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 704 | |
Total Financing Receivables | 704 | |
Total Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 375 | |
Total Financing Receivables | 375 | |
Total Mortgages Loan | 50% - 70% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 31 | |
Total Financing Receivables | 31 | |
Total Mortgages Loan | 70% - 90% | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 891 | |
Total Financing Receivables | 891 | |
Total Mortgages Loan | 70% - 90% | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 260 | |
Total Financing Receivables | 260 | |
Total Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
Total Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 117 | |
Total Financing Receivables | 117 | |
Total Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 389 | |
Total Financing Receivables | 389 | |
Total Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 125 | |
Total Financing Receivables | 125 | |
Total Mortgages Loan | 70% - 90% | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
Total Mortgages Loan | 90% plus | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 27 | |
Total Financing Receivables | 27 | |
Total Mortgages Loan | 90% plus | Greater than 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
Total Mortgages Loan | 90% plus | 1.8x to 2.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
Total Mortgages Loan | 90% plus | 1.5x to 1.8x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
Total Mortgages Loan | 90% plus | 1.2x to 1.5x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 27 | |
Total Financing Receivables | 27 | |
Total Mortgages Loan | 90% plus | 1.0x to 1.2x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | 0 | |
Total Mortgages Loan | 90% plus | Less than 1.0x | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Mortgage Loans | 0 | |
Total Financing Receivables | $ 0 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities AFS (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 1,056 | $ 10,878 |
Gross Unrealized Losses | 10 | 393 |
Fair Value | 10,137 | 12,720 |
Gross Unrealized Losses | 452 | 922 |
Fair Value | 11,193 | 23,598 |
Gross Unrealized Losses | 462 | 1,315 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 658 | 8,964 |
Gross Unrealized Losses | 6 | 313 |
Fair Value | 6,529 | 8,244 |
Gross Unrealized Losses | 227 | 487 |
Fair Value | 7,187 | 17,208 |
Gross Unrealized Losses | 233 | 800 |
U.S. Treasury, government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 1,077 |
Gross Unrealized Losses | 0 | 53 |
Fair Value | 3,392 | 4,306 |
Gross Unrealized Losses | 214 | 417 |
Fair Value | 3,392 | 5,383 |
Gross Unrealized Losses | 214 | 470 |
States and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 19 | |
Gross Unrealized Losses | 1 | |
Fair Value | 19 | |
Gross Unrealized Losses | 1 | |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 6 | 109 |
Gross Unrealized Losses | 0 | 3 |
Fair Value | 67 | 76 |
Gross Unrealized Losses | 7 | 10 |
Fair Value | 73 | 185 |
Gross Unrealized Losses | 7 | 13 |
Residential Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 29 | |
Gross Unrealized Losses | 1 | |
Fair Value | 29 | |
Gross Unrealized Losses | 1 | |
Asset- backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 344 | 563 |
Gross Unrealized Losses | 2 | 11 |
Fair Value | 112 | 13 |
Gross Unrealized Losses | 2 | 1 |
Fair Value | 456 | 576 |
Gross Unrealized Losses | 4 | 12 |
Redeemable Preferred Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 48 | 165 |
Gross Unrealized Losses | 2 | 13 |
Fair Value | 37 | 33 |
Gross Unrealized Losses | 2 | 5 |
Fair Value | 85 | 198 |
Gross Unrealized Losses | $ 4 | $ 18 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 101,418 | $ 83,228 | |
Fair Value, Assets Derivatives | 6,253 | 4,725 | |
Net Amount Presented in the Balance Sheets | 12,674 | 9,471 | |
Net derivative gains (loss) | (1,630) | $ (236) | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | (1,630) | (227) | |
Equity Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 7,514 | 11,143 | |
Fair Value, Assets Derivatives | 0 | 2 | |
Net Amount Presented in the Balance Sheets | 2 | 3 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | (762) | (23) | |
Equity Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 8,158 | 7,796 | |
Fair Value, Assets Derivatives | 6 | 143 | |
Net Amount Presented in the Balance Sheets | 371 | 168 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | (985) | 114 | |
Equity Option | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 37,544 | 21,821 | |
Fair Value, Assets Derivatives | 3,494 | 2,133 | |
Net Amount Presented in the Balance Sheets | 1,311 | 1,164 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | 1,111 | (18) | |
Interest Rate Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 28,253 | 27,116 | |
Fair Value, Assets Derivatives | 912 | 634 | |
Net Amount Presented in the Balance Sheets | 211 | 196 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | 648 | (671) | |
Interest Rate Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 16,758 | 11,792 | |
Fair Value, Assets Derivatives | 0 | 0 | |
Net Amount Presented in the Balance Sheets | 0 | 0 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | 56 | 40 | |
Credit default swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,338 | 1,376 | |
Fair Value, Assets Derivatives | 23 | 20 | |
Net Amount Presented in the Balance Sheets | 3 | 3 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | 7 | 0 | |
Foreign Currency Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,853 | 2,184 | |
Fair Value, Assets Derivatives | 31 | 35 | |
Net Amount Presented in the Balance Sheets | 8 | 22 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | 10 | (51) | |
Collateral | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value, Assets Derivatives | 38 | 18 | |
Net Amount Presented in the Balance Sheets | 0 | 5 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | 0 | 0 | |
Margin | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value, Assets Derivatives | 9 | 8 | |
Net Amount Presented in the Balance Sheets | 2,575 | 1,581 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | 0 | 0 | |
GMIB Reinsurance Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value, Assets Derivatives | 1,740 | 1,732 | |
Net Amount Presented in the Balance Sheets | 0 | 0 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | 18 | (159) | |
GMxB Derivative Features’ Liability | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value, Assets Derivatives | 0 | 0 | |
Net Amount Presented in the Balance Sheets | 6,126 | 5,614 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | (408) | 505 | |
SCS, SIO, MSO and IUL Indexed Features | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value, Assets Derivatives | 0 | 0 | |
Net Amount Presented in the Balance Sheets | 2,067 | 715 | |
Derivative Instruments Gain Loss Recognized In Income Net 1 | $ (1,325) | 27 | |
Embedded Derivative Financial Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments Gain Loss Recognized In Income Net 1 | (236) | ||
Cross Currency Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | ||
Fair Value, Assets Derivatives | 0 | ||
Net Amount Presented in the Balance Sheets | $ 0 | ||
Derivative Instruments Gain Loss Recognized In Income Net 1 | $ 9 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | |
Securities Sold under Agreements to Repurchase | ||
Net Amount Presented in the Balance Sheets | $ 573 | $ 0 |
Interest expense, securities sold under agreements to repurchase | 2 | |
Total derivatives | ||
Assets | ||
Gross Amount Recognized | 2,993 | 4,514 |
Gross Amount Offset in the Balance Sheets | 2,945 | 4,434 |
Net Amount Presented in the Balance Sheets | 48 | 80 |
Liabilities | ||
Gross Amount Recognized | 3,142 | 4,434 |
Gross Amount Offset in the Balance Sheets | 2,945 | 4,387 |
Net Amount Presented in the Balance Sheets | 197 | 47 |
Other financial instruments | ||
Assets | ||
Gross Amount Recognized | 1,989 | 2,164 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,989 | 2,164 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 4,982 | 6,678 |
Gross Amount Offset in the Balance Sheets | 2,945 | 4,434 |
Net Amount Presented in the Balance Sheets | 2,037 | 2,244 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 3,163 | 3,734 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 3,163 | 3,734 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 6,305 | 8,168 |
Gross Amount Offset in the Balance Sheets | 2,945 | 4,387 |
Net Amount Presented in the Balance Sheets | 3,360 | $ 3,781 |
Securities sold under agreements to repurchase | ||
Securities Sold under Agreements to Repurchase | ||
Gross Amount Recognized | 571 | |
Gross Amount Offset in Balance Sheets | 0 | |
Net Amount Presented in the Balance Sheets | $ 571 |
DERIVATIVES - Collateral Amount
DERIVATIVES - Collateral Amounts Not Offset in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | |
Assets | ||
Net Amount Presented in the Balance Sheets | $ 4,725 | $ 6,253 |
Liabilities | ||
Net Amount Presented in the Balance Sheets | 9,471 | 12,674 |
Securities Sold under Agreements to Repurchase | ||
Net Amount Presented in the Balance Sheets | 573 | 0 |
Interest expense, securities sold under agreements to repurchase | 2 | |
Total derivatives | ||
Assets | ||
Net Amount Presented in the Balance Sheets | 1,411 | 2,561 |
Collateral Held, Financial Instruments | 0 | 367 |
Collateral (Received) Held, Cash | 1,363 | 2,114 |
Net Amount | 48 | 80 |
Liabilities | ||
Net Amount Presented in the Balance Sheets | 197 | 47 |
Collateral Held, Financial Instruments | 0 | 0 |
Collateral Held, Cash | 0 | 0 |
Net Amount | 197 | 47 |
Other financial instruments | ||
Assets | ||
Net Amount Presented in the Balance Sheets | 1,989 | 2,164 |
Collateral Held, Financial Instruments | 0 | 0 |
Collateral (Received) Held, Cash | 0 | 0 |
Net Amount | 1,989 | 2,164 |
Other invested assets | ||
Assets | ||
Net Amount Presented in the Balance Sheets | 3,400 | 4,725 |
Collateral Held, Financial Instruments | 0 | 367 |
Collateral (Received) Held, Cash | 1,363 | 2,114 |
Net Amount | 2,037 | 2,244 |
Other financial liabilities | ||
Liabilities | ||
Net Amount Presented in the Balance Sheets | 3,163 | 3,734 |
Collateral Held, Financial Instruments | 0 | 0 |
Collateral Held, Cash | 0 | 0 |
Net Amount | 3,163 | 3,734 |
Other liabilities | ||
Liabilities | ||
Net Amount Presented in the Balance Sheets | 3,360 | 3,781 |
Collateral Held, Financial Instruments | 0 | 0 |
Collateral Held, Cash | 0 | 0 |
Net Amount | 3,360 | $ 3,781 |
Securities sold under agreements to repurchase | ||
Securities Sold under Agreements to Repurchase | ||
Net Amount Presented in the Balance Sheets | 571 | |
Collateral Held, Financial Instruments | (588) | |
Collateral Held, Cash | 0 | |
Net Amount | $ (17) |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Proceeds from sale of treasury stock | $ 3,905 | |
Cash and securities collateral for derivative contract | 2,575 | $ 1,581 |
Cash and securities collateral | 9 | 8 |
Securities Sold under Agreements to Repurchase | 0 | $ 573 |
US Treasury Securities | ||
Derivative [Line Items] | ||
Marketable securities | 3,788 | |
Total Return Swap | ||
Derivative [Line Items] | ||
Marketable securities | 87 | |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Exchange-traded future contract, initial margin requirement | 295 | |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Exchange-traded future contract, initial margin requirement | 35 | |
Euro Stoxx, FTSE100, EAFE And Topix Indices | ||
Derivative [Line Items] | ||
Exchange-traded future contract, initial margin requirement | $ 25 |
DERIVATIVES - Repurchase Agreem
DERIVATIVES - Repurchase Agreements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | $ 571 |
Interest expense, securities sold under agreements to repurchase | 2 |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
Up to 30 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 571 |
30–90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
Greater Than 90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
U.S. Treasury, government and agency | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 571 |
U.S. Treasury, government and agency | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
U.S. Treasury, government and agency | Up to 30 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 571 |
U.S. Treasury, government and agency | 30–90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
U.S. Treasury, government and agency | Greater Than 90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | $ 0 |
CLOSED BLOCK - Summarized Finan
CLOSED BLOCK - Summarized Financial Information (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Closed Block Liabilities: | ||||
Future policy benefits, policyholders’ account balances and other | $ 6,670 | $ 6,709 | ||
Policyholder dividend obligation | 0 | 0 | $ 0 | $ 19 |
Other liabilities | 70 | 47 | ||
Total Closed Block liabilities | 6,740 | 6,756 | ||
Assets Designated to the Closed Block: | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $3,606 and $3,680) | 3,697 | 3,672 | ||
Amortized cost of fixed maturities | 3,606 | 3,680 | ||
Mortgage loans on real estate, net of valuation allowance of $0 and $0 | 1,822 | 1,824 | ||
Mortgage loans, valuation allowance | 0 | 0 | ||
Policy loans | 727 | 736 | ||
Cash and other invested assets | 142 | 76 | ||
Other assets | 171 | 179 | ||
Total assets designated to the Closed Block | 6,559 | 6,487 | ||
Excess of Closed Block liabilities over assets designated to the Closed Block | 181 | 269 | ||
Amounts included in accumulated other comprehensive income (loss): | ||||
Net unrealized investment gains (losses), net of policyholders' dividend obligation of $0 and $0 | 105 | 8 | ||
Policyholder dividend obligation | 0 | 0 | $ 0 | $ 19 |
Maximum future earnings to be recognized from Closed Block assets and liabilities | $ 286 | $ 277 |
CLOSED BLOCK - Revenues and Exp
CLOSED BLOCK - Revenues and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Premiums and other income | $ 48 | $ 51 |
Net investment income (loss) | 67 | 73 |
Investment gains (losses), net | (1) | 1 |
Total revenues | 114 | 125 |
Benefits and Other Deductions: | ||
Policyholders’ benefits and dividends | 121 | 126 |
Other operating costs and expenses | 1 | 1 |
Total benefits and other deductions | 122 | 127 |
Net revenues (loss) before income taxes | (8) | (2) |
Income tax (expense) benefit | (1) | 0 |
Net income (loss) | $ (9) | $ (2) |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Balances, beginning of year | $ 0 | $ 19 |
Unrealized investment gains (losses), net of DAC | 0 | (19) |
Balances, end of period | $ 0 | $ 0 |
INSURANCE LIABILITIES - GMDB an
INSURANCE LIABILITIES - GMDB and GMIB Liabilities and Other Policyholder's Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
GMDB Direct [Member] | ||
Direct Liability | ||
Balance, beginning of period | $ 4,659 | $ 4,059 |
Paid guarantee benefits | (118) | (101) |
Other changes in reserves | 129 | 123 |
Balance, end of period | 4,670 | 4,081 |
GMDB Assumed [Member] | ||
Direct Liability | ||
Balance, beginning of period | 82 | 95 |
Paid guarantee benefits | (6) | (6) |
Other changes in reserves | 1 | (7) |
Balance, end of period | 77 | 82 |
GMDB | ||
Direct Liability | ||
Balance, beginning of period | (113) | (108) |
Paid guarantee benefits | 4 | 4 |
Other changes in reserve | 0 | (2) |
Balance, ending of period | (109) | (106) |
GMIB Ceded [Member] | ||
Direct Liability | ||
Balance, beginning of period | (1,732) | (1,894) |
Paid guarantee benefits | 21 | 11 |
Other changes in reserve | (29) | 148 |
Balance, ending of period | (1,740) | (1,735) |
GMIB Assumed [Member] | ||
Direct Liability | ||
Balance, beginning of period | 184 | 195 |
Paid guarantee benefits | (1) | (21) |
Other changes in reserves | (1) | (1) |
Balance, end of period | 182 | 173 |
GMIB Direct [Member] | ||
Direct Liability | ||
Balance, beginning of period | 3,743 | 4,752 |
Paid guarantee benefits | (56) | (33) |
Other changes in reserves | 55 | (87) |
Balance, end of period | $ 3,742 | $ 4,632 |
INSURANCE LIABILITIES - GMDB Re
INSURANCE LIABILITIES - GMDB Reinsurance Ceded (Details) - GMDB - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||
Balance, beginning of year | $ 113 | $ 108 |
Paid guarantee benefits | 4 | 4 |
Other changes in reserve | 0 | (2) |
Balance, end of period | $ 109 | $ 106 |
INSURANCE LIABILITIES - Direct
INSURANCE LIABILITIES - Direct Variable Annuity Contracts with GMDB and GMIB Features (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Account Values invested in: | ||
Policyholder age | 70 years | |
GMDB | ||
Account Values invested in: | ||
Separate Accounts | $ 90,343 | $ 83,154 |
Net Amount At Risk By Product And Guarantee, Account Value | 104,860 | |
GMDB | Return of Premium | ||
Account Values invested in: | ||
Net Amount At Risk By Product And Guarantee, Account Value | 59,777 | |
GMDB | Ratchet | ||
Account Values invested in: | ||
Net Amount At Risk By Product And Guarantee, Account Value | 9,099 | |
GMDB | Roll-Up | ||
Account Values invested in: | ||
Net Amount At Risk By Product And Guarantee, Account Value | 3,194 | |
GMDB | Combo | ||
Account Values invested in: | ||
Net Amount At Risk By Product And Guarantee, Account Value | 32,790 | |
GMIB | ||
Account Values invested in: | ||
General Account | 264 | |
Separate Accounts | 57,668 | $ 52,835 |
Net Amount At Risk By Product And Guarantee, Account Value | 57,932 | |
GMIB | Return of Premium | ||
Account Values invested in: | ||
General Account | 0 | |
Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
Net amount at risk, gross | 0 | |
Net amount at risk, net of amounts reinsured | 0 | |
GMIB | Ratchet | ||
Account Values invested in: | ||
General Account | 0 | |
Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
Net amount at risk, gross | 0 | |
Net amount at risk, net of amounts reinsured | 0 | |
GMIB | Roll-Up | ||
Account Values invested in: | ||
General Account | 19 | |
Separate Accounts | 21,923 | |
Net Amount At Risk By Product And Guarantee, Account Value | 21,942 | |
GMIB | Combo | ||
Account Values invested in: | ||
General Account | 245 | |
Separate Accounts | 35,745 | |
Net Amount At Risk By Product And Guarantee, Account Value | 35,990 | |
Direct Variable Annuity | GMDB | ||
Account Values invested in: | ||
General Account | 14,517 | |
Separate Accounts | 90,343 | |
Net amount at risk, gross | 20,700 | |
Net amount at risk, net of amounts reinsured | $ 20,084 | |
Average attained age of policyholders (in years) | 55 years 3 months 19 days | |
Percentage of policyholders over age 70 | 19.00% | |
Direct Variable Annuity | GMDB | Minimum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMDB | Maximum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 6.50% | |
Direct Variable Annuity | GMDB | Return of Premium | ||
Account Values invested in: | ||
General Account | $ 14,178 | |
Separate Accounts | 45,599 | |
Net amount at risk, gross | 143 | |
Net amount at risk, net of amounts reinsured | $ 143 | |
Average attained age of policyholders (in years) | 51 years 4 months 24 days | |
Percentage of policyholders over age 70 | 10.20% | |
Direct Variable Annuity | GMDB | Ratchet | ||
Account Values invested in: | ||
General Account | $ 98 | |
Separate Accounts | 9,001 | |
Net amount at risk, gross | 143 | |
Net amount at risk, net of amounts reinsured | $ 138 | |
Average attained age of policyholders (in years) | 67 years 1 month 6 days | |
Percentage of policyholders over age 70 | 43.50% | |
Direct Variable Annuity | GMDB | Roll-Up | ||
Account Values invested in: | ||
General Account | $ 60 | |
Separate Accounts | 3,134 | |
Net amount at risk, gross | 2,025 | |
Net amount at risk, net of amounts reinsured | $ 1,414 | |
Average attained age of policyholders (in years) | 73 years 9 months 18 days | |
Percentage of policyholders over age 70 | 66.10% | |
Direct Variable Annuity | GMDB | Roll-Up | Minimum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMDB | Roll-Up | Maximum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 6.00% | |
Direct Variable Annuity | GMDB | Combo | ||
Account Values invested in: | ||
General Account | $ 181 | |
Separate Accounts | 32,609 | |
Net amount at risk, gross | 18,389 | |
Net amount at risk, net of amounts reinsured | $ 18,389 | |
Average attained age of policyholders (in years) | 69 years 2 months 12 days | |
Percentage of policyholders over age 70 | 50.70% | |
Direct Variable Annuity | GMDB | Combo | Minimum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMDB | Combo | Maximum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 6.50% | |
Direct Variable Annuity | GMIB | ||
Account Values invested in: | ||
Net amount at risk, gross | $ 9,185 | |
Net amount at risk, net of amounts reinsured | $ 7,796 | |
Average attained age of policyholders (in years) | 69 years | |
Weighted average years remaining until annuitization | 6 months | |
Direct Variable Annuity | GMIB | Minimum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMIB | Maximum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 6.50% | |
Direct Variable Annuity | GMIB | Roll-Up | ||
Account Values invested in: | ||
Net amount at risk, gross | $ 898 | |
Net amount at risk, net of amounts reinsured | $ 281 | |
Average attained age of policyholders (in years) | 69 years | |
Weighted average years remaining until annuitization | 1 year 8 months 12 days | |
Direct Variable Annuity | GMIB | Roll-Up | Minimum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMIB | Roll-Up | Maximum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 6.00% | |
Direct Variable Annuity | GMIB | Combo | ||
Account Values invested in: | ||
Net amount at risk, gross | $ 8,287 | |
Net amount at risk, net of amounts reinsured | $ 7,515 | |
Average attained age of policyholders (in years) | 69 years | |
Weighted average years remaining until annuitization | 6 months | |
Direct Variable Annuity | GMIB | Combo | Minimum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMIB | Combo | Maximum | ||
Account Values invested in: | ||
Range of contractually specified interest rates | 6.50% |
INSURANCE LIABILITIES - Assumed
INSURANCE LIABILITIES - Assumed Variable Annuity Contracts with GMDB and GMIB Features (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Policyholder age | 70 years |
GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 264 |
GMIB | Return of Premium | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | 0 |
Net amount at risk assumed | 0 |
GMIB | Ratchet | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | 0 |
Net amount at risk assumed | 0 |
GMIB | Roll-Up | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | 19 |
GMIB | Combo | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | 245 |
Deferred Variable Annuity | GMDB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | 8,230 |
Net amount at risk assumed | $ 585 |
Average attained age of policyholders (in years) | 73 years |
Percentage of policyholders over age 70 | 63.70% |
Deferred Variable Annuity | GMDB | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 3.00% |
Deferred Variable Annuity | GMDB | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 10.00% |
Deferred Variable Annuity | GMDB | Return of Premium | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 932 |
Net amount at risk assumed | $ 6 |
Average attained age of policyholders (in years) | 67 years |
Percentage of policyholders over age 70 | 43.90% |
Deferred Variable Annuity | GMDB | Ratchet | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 5,327 |
Net amount at risk assumed | $ 286 |
Average attained age of policyholders (in years) | 72 years |
Percentage of policyholders over age 70 | 62.60% |
Deferred Variable Annuity | GMDB | Roll-Up | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 271 |
Net amount at risk assumed | $ 20 |
Average attained age of policyholders (in years) | 77 years |
Percentage of policyholders over age 70 | 78.90% |
Deferred Variable Annuity | GMDB | Roll-Up | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 3.00% |
Deferred Variable Annuity | GMDB | Roll-Up | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 10.00% |
Deferred Variable Annuity | GMDB | Combo | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 1,700 |
Net amount at risk assumed | $ 273 |
Average attained age of policyholders (in years) | 75 years |
Percentage of policyholders over age 70 | 75.50% |
Deferred Variable Annuity | GMDB | Combo | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 5.00% |
Deferred Variable Annuity | GMDB | Combo | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 10.00% |
Deferred Variable Annuity | GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 2,392 |
Net amount at risk assumed | $ 304 |
Average attained age of policyholders (in years) | 70 years |
Percentage of policyholders over age 70 | 56.50% |
Highest contractual interest rate | 10.00% |
Period after issue rate applied | 10 years |
Deferred Variable Annuity | GMIB | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 3.30% |
Deferred Variable Annuity | GMIB | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 6.50% |
Deferred Variable Annuity | GMIB | Return of Premium | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 898 |
Net amount at risk assumed | $ 1 |
Average attained age of policyholders (in years) | 71 years |
Percentage of policyholders over age 70 | 63.10% |
Deferred Variable Annuity | GMIB | Ratchet | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 45 |
Net amount at risk assumed | $ 0 |
Average attained age of policyholders (in years) | 74 years |
Percentage of policyholders over age 70 | 64.10% |
Deferred Variable Annuity | GMIB | Roll-Up | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 244 |
Net amount at risk assumed | $ 36 |
Average attained age of policyholders (in years) | 72 years |
Percentage of policyholders over age 70 | 59.30% |
Deferred Variable Annuity | GMIB | Roll-Up | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 3.30% |
Deferred Variable Annuity | GMIB | Roll-Up | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 6.50% |
Deferred Variable Annuity | GMIB | Combo | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured account values | $ 1,205 |
Net amount at risk assumed | $ 267 |
Average attained age of policyholders (in years) | 69 years |
Percentage of policyholders over age 70 | 50.70% |
Deferred Variable Annuity | GMIB | Combo | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 6.00% |
Deferred Variable Annuity | GMIB | Combo | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 6.00% |
INSURANCE LIABILITIES - Investm
INSURANCE LIABILITIES - Investment in Variable Insurance Trust Mutual Funds (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
GMDB | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | $ 90,343 | $ 83,154 |
GMDB | Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 39,856 | 35,541 |
GMDB | Fixed income | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 5,206 | 5,173 |
GMDB | Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 44,433 | 41,588 |
GMDB | Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 848 | 852 |
GMIB | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 57,668 | 52,835 |
GMIB | Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 17,692 | 15,759 |
GMIB | Fixed income | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 2,825 | 2,812 |
GMIB | Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 36,855 | 33,974 |
GMIB | Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | $ 296 | $ 290 |
INSURANCE LIABILITIES - Summary
INSURANCE LIABILITIES - Summary of No-Lapse Guarantee Liabilities and Other Policyholder's Liabilities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Direct Liability | ||
Direct Liability | ||
Balance, beginning of period | $ 812,000,000 | $ 709,000,000 |
Paid guaranteed benefits | (7,000,000) | (8,000,000) |
Other changes in reserves | 20,000,000 | 3,000,000 |
Balance, end of period | 825,000,000 | 704,000,000 |
Ceded Liability | ||
Direct Liability | ||
Other changes in reserves | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Investments | ||
Total fixed maturities | $ 50,305 | $ 46,279 |
Trading securities | 13,127 | 16,017 |
U.S. Treasury, government and agency | ||
Investments | ||
Total fixed maturities | 13,357 | 13,829 |
States and political subdivisions | ||
Investments | ||
Total fixed maturities | 470 | 461 |
Foreign governments | ||
Investments | ||
Total fixed maturities | 506 | 530 |
Residential mortgage-backed | ||
Investments | ||
Total fixed maturities | 228 | 234 |
Asset-backed | ||
Investments | ||
Total fixed maturities | 617 | 601 |
Redeemable preferred stock | ||
Investments | ||
Total fixed maturities | 440 | 446 |
Fair Value, Measurements, Recurring | ||
Investments | ||
Total fixed maturities | 50,305 | 46,279 |
Other equity investments | 86 | 85 |
Trading securities | 13,127 | 16,017 |
Other invested assets | 3,229 | 2,303 |
Cash equivalents | 4,021 | 3,482 |
Segregated securities | 1,262 | 1,170 |
GMIB reinsurance contract asset | 1,740 | 1,732 |
Separate Accounts assets | 119,976 | 110,115 |
Total Assets | 193,746 | 181,183 |
Liabilities | ||
Contingent payment arrangements | 7 | 7 |
Total Liabilities | 8,206 | 6,343 |
Fair Value, Measurements, Recurring | Corporate (1) | ||
Investments | ||
Total fixed maturities | 34,687 | 30,178 |
Fair Value, Measurements, Recurring | U.S. Treasury, government and agency | ||
Investments | ||
Total fixed maturities | 13,357 | 13,829 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Investments | ||
Total fixed maturities | 470 | 461 |
Fair Value, Measurements, Recurring | Foreign governments | ||
Investments | ||
Total fixed maturities | 506 | 530 |
Fair Value, Measurements, Recurring | Residential mortgage-backed | ||
Investments | ||
Total fixed maturities | 228 | 234 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Investments | ||
Total fixed maturities | 617 | 601 |
Fair Value, Measurements, Recurring | Redeemable preferred stock | ||
Investments | ||
Total fixed maturities | 440 | 446 |
Fair Value, Measurements, Recurring | Short-term investments | ||
Investments | ||
Other invested assets | 258 | 515 |
Fair Value, Measurements, Recurring | Assets of consolidated VIEs/VOEs | ||
Investments | ||
Other invested assets | 410 | 378 |
Fair Value, Measurements, Recurring | Swaps | ||
Investments | ||
Other invested assets | 359 | 426 |
Fair Value, Measurements, Recurring | Credit default swaps | ||
Investments | ||
Other invested assets | 20 | 17 |
Fair Value, Measurements, Recurring | Futures | ||
Investments | ||
Other invested assets | (1) | (1) |
Fair Value, Measurements, Recurring | Options | ||
Investments | ||
Other invested assets | 2,183 | 968 |
Fair Value, Measurements, Recurring | GMxB derivative features’ liability | ||
Liabilities | ||
Features' liability | 6,126 | 5,614 |
Fair Value, Measurements, Recurring | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features' liability | 2,067 | 715 |
Fair Value, Measurements, Recurring | VIEs/VOEs | ||
Liabilities | ||
Features' liability | 6 | 7 |
Fair Value, Measurements, Recurring | Level 1 | ||
Investments | ||
Total fixed maturities | 159 | 167 |
Other equity investments | 12 | 11 |
Trading securities | 484 | 446 |
Other invested assets | 111 | 91 |
Cash equivalents | 4,021 | 3,482 |
Segregated securities | 0 | 0 |
GMIB reinsurance contract asset | 0 | 0 |
Separate Accounts assets | 116,829 | 106,994 |
Total Assets | 121,616 | 111,191 |
Liabilities | ||
Contingent payment arrangements | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate (1) | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury, government and agency | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign governments | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Redeemable preferred stock | ||
Investments | ||
Total fixed maturities | 159 | 167 |
Fair Value, Measurements, Recurring | Level 1 | Short-term investments | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Assets of consolidated VIEs/VOEs | ||
Investments | ||
Other invested assets | 112 | 92 |
Fair Value, Measurements, Recurring | Level 1 | Swaps | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Credit default swaps | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Futures | ||
Investments | ||
Other invested assets | (1) | (1) |
Fair Value, Measurements, Recurring | Level 1 | Options | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GMxB derivative features’ liability | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | VIEs/VOEs | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Investments | ||
Total fixed maturities | 48,392 | 44,368 |
Other equity investments | 0 | 0 |
Trading securities | 12,608 | 15,507 |
Other invested assets | 3,090 | 2,185 |
Cash equivalents | 0 | 0 |
Segregated securities | 1,262 | 1,170 |
GMIB reinsurance contract asset | 0 | 0 |
Separate Accounts assets | 2,764 | 2,747 |
Total Assets | 68,116 | 65,977 |
Liabilities | ||
Contingent payment arrangements | 0 | 0 |
Total Liabilities | 2,073 | 722 |
Fair Value, Measurements, Recurring | Level 2 | Corporate (1) | ||
Investments | ||
Total fixed maturities | 33,507 | 28,992 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury, government and agency | ||
Investments | ||
Total fixed maturities | 13,357 | 13,829 |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | ||
Investments | ||
Total fixed maturities | 430 | 422 |
Fair Value, Measurements, Recurring | Level 2 | Foreign governments | ||
Investments | ||
Total fixed maturities | 506 | 530 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed | ||
Investments | ||
Total fixed maturities | 228 | 234 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed | ||
Investments | ||
Total fixed maturities | 83 | 82 |
Fair Value, Measurements, Recurring | Level 2 | Redeemable preferred stock | ||
Investments | ||
Total fixed maturities | 281 | 279 |
Fair Value, Measurements, Recurring | Level 2 | Short-term investments | ||
Investments | ||
Other invested assets | 258 | 515 |
Fair Value, Measurements, Recurring | Level 2 | Assets of consolidated VIEs/VOEs | ||
Investments | ||
Other invested assets | 270 | 259 |
Fair Value, Measurements, Recurring | Level 2 | Swaps | ||
Investments | ||
Other invested assets | 359 | 426 |
Fair Value, Measurements, Recurring | Level 2 | Credit default swaps | ||
Investments | ||
Other invested assets | 20 | 17 |
Fair Value, Measurements, Recurring | Level 2 | Futures | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Options | ||
Investments | ||
Other invested assets | 2,183 | 968 |
Fair Value, Measurements, Recurring | Level 2 | GMxB derivative features’ liability | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features' liability | 2,067 | 715 |
Fair Value, Measurements, Recurring | Level 2 | VIEs/VOEs | ||
Liabilities | ||
Features' liability | 6 | 7 |
Fair Value, Measurements, Recurring | Level 3 | ||
Investments | ||
Total fixed maturities | 1,754 | 1,744 |
Other equity investments | 74 | 74 |
Trading securities | 35 | 64 |
Other invested assets | 28 | 27 |
Cash equivalents | 0 | 0 |
Segregated securities | 0 | 0 |
GMIB reinsurance contract asset | 1,740 | 1,732 |
Separate Accounts assets | 383 | 374 |
Total Assets | 4,014 | 4,015 |
Liabilities | ||
Contingent payment arrangements | 7 | 7 |
Total Liabilities | 6,133 | 5,621 |
Fair Value, Measurements, Recurring | Level 3 | Corporate (1) | ||
Investments | ||
Total fixed maturities | 1,180 | 1,186 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury, government and agency | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | ||
Investments | ||
Total fixed maturities | 40 | 39 |
Fair Value, Measurements, Recurring | Level 3 | Foreign governments | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed | ||
Investments | ||
Total fixed maturities | 534 | 519 |
Fair Value, Measurements, Recurring | Level 3 | Redeemable preferred stock | ||
Investments | ||
Total fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Short-term investments | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Assets of consolidated VIEs/VOEs | ||
Investments | ||
Other invested assets | 28 | 27 |
Fair Value, Measurements, Recurring | Level 3 | Swaps | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Credit default swaps | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Futures | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Options | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GMxB derivative features’ liability | ||
Liabilities | ||
Features' liability | 6,126 | 5,614 |
Fair Value, Measurements, Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | VIEs/VOEs | ||
Liabilities | ||
Features' liability | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Reduction to fair value of GMIB reinsurance contract asset | $ 84 | $ 112 | |
Reduction to fair value of GMIB reinsurance contract liability | 31 | 41 | |
AFS fixed maturities transferred out of Level 3 | 69 | $ 16 | |
AFS fixed maturities transferred out of Level 2 | $ 17 | $ 67 | |
Aggregated transfers as a percent of total equity | 0.60% | 0.50% | |
Corporate debt securities | Matrix pricing model or a market comparable valuation technique | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets classified as Level 3 | $ 102 | 99 | |
Separate Accounts Assets | Third party appraisal valuation technique | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets classified as Level 3 | 359 | 352 | |
AB | AB's 2016 acquisition | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Acquisition-related contingent consideration liability | $ 7 | 7 | |
Long-term revenue growth rate | AB | AB's 2016 acquisition | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Payment Arrangement, Measurement Input | 18.00% | 17.60% | |
Discount rate | AB | Minimum | AB's 2016 acquisition | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Payment Arrangement, Measurement Input | 3.20% | 3.20% | |
Discount rate | AB | Maximum | AB's 2016 acquisition | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Payment Arrangement, Measurement Input | 3.70% | 3.70% | |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | $ 887 | $ 915 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income (loss) as: | ||
Investment gains (losses), net | $ (11) | $ 102 |
Transfers into level 3 | 17 | 67 |
Transfers out of Level 3 | (69) | (16) |
Corporate | ||
Income (loss) as: | ||
Investment gains (losses), net | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Other comprehensive income (loss) | 9 | (19) |
Corporate | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 1,186 | 1,150 |
Income (loss) as: | ||
Net investment income (loss) | 1 | 1 |
Other comprehensive income (loss) | 9 | (21) |
Purchases | 70 | 189 |
Sales | (34) | (117) |
Transfers into level 3 | 17 | 67 |
Transfers out of Level 3 | (69) | (16) |
Closing Balance | 1,180 | 1,253 |
State and Political Sub- divisions | ||
Income (loss) as: | ||
Investment gains (losses), net | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Other comprehensive income (loss) | 1 | (1) |
State and Political Sub- divisions | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 39 | 40 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Other comprehensive income (loss) | 1 | (1) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 40 | 39 |
Asset- backed | ||
Income (loss) as: | ||
Investment gains (losses), net | 0 | |
Investment gains (losses), net | 0 | |
Other comprehensive income (loss) | 4 | |
Asset- backed | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 519 | 541 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Other comprehensive income (loss) | 4 | 0 |
Purchases | 11 | 0 |
Sales | 0 | (1) |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 534 | 540 |
Redeemable Preferred Stock | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 0 | 1 |
Income (loss) as: | ||
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses), excluding non-performance risk | 0 | 0 |
Non-performance risk | 0 | 0 |
Subtotal | 0 | 0 |
Other comprehensive income (loss) | 0 | |
Purchases | 0 | 0 |
Sales | 0 | (1) |
Settlements | 0 | 0 |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Closing Balance | 0 | 0 |
Other equity investments | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 165 | 99 |
Income (loss) as: | ||
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses), excluding non-performance risk | 0 | 0 |
Non-performance risk | 0 | 0 |
Subtotal | 0 | 0 |
Other comprehensive income (loss) | 1 | |
Purchases | 2 | 4 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Activity related to consolidated VIEs | (1) | 1 |
Transfers into level 3 | 5 | |
Transfers out of Level 3 | (29) | |
Closing Balance | 137 | 110 |
GMIB Reinsurance Contract Asset | ||
Income (loss) as: | ||
Investment gains (losses), net | 18 | (159) |
Investment gains (losses), net | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
GMIB Reinsurance Contract Asset | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 1,732 | 1,894 |
Income (loss) as: | ||
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses), excluding non-performance risk | (11) | (155) |
Non-performance risk | 29 | (4) |
Subtotal | 18 | (159) |
Other comprehensive income (loss) | 0 | |
Purchases | 11 | 10 |
Sales | (21) | (11) |
Settlements | 0 | 0 |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Closing Balance | 1,740 | 1,734 |
Separate Accounts Assets | ||
Income (loss) as: | ||
Investment gains (losses), net | 0 | 0 |
Investment gains (losses), net | 7 | 7 |
Other comprehensive income (loss) | 0 | 0 |
Separate Accounts Assets | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 374 | 349 |
Income (loss) as: | ||
Investment gains (losses), net | 7 | 7 |
Net derivative gains (losses), excluding non-performance risk | 0 | 0 |
Non-performance risk | 0 | 0 |
Subtotal | 7 | 7 |
Other comprehensive income (loss) | 0 | |
Purchases | 4 | 3 |
Sales | 0 | (1) |
Settlements | (1) | (1) |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | |
Transfers out of Level 3 | (1) | |
Closing Balance | 383 | 357 |
Guaranteed Income Benefit Guaranteed Withdrawal Benefit And Other Features Liability [Member] | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | (5,614) | (4,451) |
Income (loss) as: | ||
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses), excluding non-performance risk | 63 | 457 |
Non-performance risk | (470) | 48 |
Subtotal | (407) | 505 |
Other comprehensive income (loss) | 0 | |
Purchases | (111) | (96) |
Sales | 6 | 5 |
Settlements | 0 | 0 |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Closing Balance | (6,126) | (4,037) |
Contingent Payment Arrangement | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | (7) | (15) |
Income (loss) as: | ||
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses), excluding non-performance risk | 0 | 0 |
Non-performance risk | 0 | 0 |
Subtotal | 0 | 0 |
Other comprehensive income (loss) | 0 | |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 1 |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Closing Balance | $ (7) | $ (14) |
FAIR VALUE DISCLOSURES - Fair_2
FAIR VALUE DISCLOSURES - Fair Value Assets Unrealized Gains Losses By Category For Level 3 Assets And Liabilities Still Held (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | $ (11) | $ 102 |
Total Debt Maturities Available For Sale | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 7 | 7 |
Net Derivative Gains (losses) | (390) | 346 |
OCI | 14 | (20) |
Subtotal | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | |
Net Derivative Gains (losses) | 0 | |
OCI | 14 | (20) |
Corporate | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | 0 | 0 |
OCI | 9 | (19) |
Corporate | Level 3 | ||
Change in Accounting Estimate [Line Items] | ||
OCI | 9 | (21) |
States and political subdivisions | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | 0 | 0 |
OCI | 1 | (1) |
States and political subdivisions | Level 3 | ||
Change in Accounting Estimate [Line Items] | ||
OCI | 1 | (1) |
Asset-backed | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | |
Net Derivative Gains (losses) | 0 | |
OCI | 4 | |
Asset-backed | Level 3 | ||
Change in Accounting Estimate [Line Items] | ||
OCI | 4 | 0 |
GMIB reinsurance contract asset | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | 18 | (159) |
OCI | 0 | 0 |
GMIB reinsurance contract asset | Level 3 | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
OCI | 0 | |
Separate Accounts assets | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 7 | 7 |
Net Derivative Gains (losses) | 0 | 0 |
OCI | 0 | 0 |
Separate Accounts assets | Level 3 | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 7 | 7 |
OCI | 0 | |
GMxB derivative features liability | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | (408) | 505 |
OCI | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Fair_3
FAIR VALUE DISCLOSURES - Fair Value Inputs Quantitative Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Net Amount Presented in the Balance Sheets | $ 6,253 | $ 4,725 |
Level 3 | Corporate | Matrix pricing model | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Assets | $ 102 | $ 99 |
Level 3 | Corporate | Matrix pricing model | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Spread over industry yield curve (bps) | 0.015 | 0.0015 |
Level 3 | Corporate | Matrix pricing model | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Spread over industry yield curve (bps) | 0.0580 | 0.0580 |
Level 3 | Corporate | Matrix pricing model | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Spread over industry yield curve (bps) | 0.0115 | 0.0109 |
Level 3 | Corporate | Market comparable companies | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Assets | $ 891 | $ 881 |
Level 3 | Other equity investments | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Assets | $ 35 | $ 35 |
Discount years | 12 years | 12 years |
Level 3 | Separate Accounts assets | Third party appraisal | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Assets | $ 359 | $ 352 |
Level 3 | Separate Accounts assets | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Assets | $ 1 | $ 1 |
Spread over industry yield curve (bps) | 0.0248 | 0.0248 |
Level 3 | GMIB reinsurance contract asset | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Net Amount Presented in the Balance Sheets | $ 1,740 | $ 1,732 |
Level 3 | GMIBNLG | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 5,847 | 5,341 |
Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 182 | 183 |
Level 3 | GWBL/GMWB | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 137 | 130 |
Level 3 | GIB | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | (44) | (48) |
Level 3 | GMAB | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 4 | $ 7 |
EBITDA multiple | Level 3 | Corporate | Market comparable companies | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 3.9 | 5.3 |
EBITDA multiple | Level 3 | Corporate | Market comparable companies | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 25.5 | 27.9 |
EBITDA multiple | Level 3 | Corporate | Market comparable companies | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 12.7 | 12.1 |
Discount rate | Level 3 | Corporate | Market comparable companies | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 0.061 | 0.064 |
Discount rate | Level 3 | Corporate | Market comparable companies | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 0.165 | 0.165 |
Discount rate | Level 3 | Corporate | Market comparable companies | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 0.106 | 0.107 |
Discount rate | Level 3 | Other equity investments | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 0.100 | 0.100 |
Discount rate | Level 3 | Separate Accounts assets | Third party appraisal | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.064 | 0.065 |
Discount rate | Level 3 | Separate Accounts assets | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.048 | 0.05100 |
Cash flow multiples | Level 3 | Corporate | Market comparable companies | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 1.6 | 1.8 |
Cash flow multiples | Level 3 | Corporate | Market comparable companies | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 18 | 18 |
Cash flow multiples | Level 3 | Corporate | Market comparable companies | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 11.4 | 11.4 |
Revenue multiple | Level 3 | Other equity investments | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Equity securities, measurement input | 9.4 | 9.4 |
Cap rate | Level 3 | Separate Accounts assets | Third party appraisal | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.044 | 0.044 |
Exit capitalization rate | Level 3 | Separate Accounts assets | Third party appraisal | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.055 | 0.056 |
Lapse rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.010 | 0.010 |
Lapse rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.0627 | 0.063 |
Lapse rate | Level 3 | GMIBNLG | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.008 | 0.008 |
Lapse rate | Level 3 | GMIBNLG | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.262 | 0.262 |
Lapse rate | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.011 | 0.011 |
Lapse rate | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.112 | 0.112 |
Lapse rate | Level 3 | GWBL/GMWB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.005 | 0.005 |
Lapse rate | Level 3 | GWBL/GMWB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.057 | 0.057 |
Lapse rate | Level 3 | GIB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.005 | 0.005 |
Lapse rate | Level 3 | GIB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.057 | 0.057 |
Lapse rate | Level 3 | GMAB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.005 | 0.005 |
Lapse rate | Level 3 | GMAB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.110 | 0.110 |
Withdrawal rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
Withdrawal rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.080 | 0.080 |
Withdrawal rate | Level 3 | GMIBNLG | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
Withdrawal rate | Level 3 | GMIBNLG | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.121 | 0.121 |
Withdrawal rate | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.007 | 0.007 |
Withdrawal rate | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.222 | 0.222 |
Withdrawal rate | Level 3 | GWBL/GMWB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
Withdrawal rate | Level 3 | GWBL/GMWB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.070 | 0.070 |
Withdrawal rate | Level 3 | GIB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
Withdrawal rate | Level 3 | GIB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.080 | 0.080 |
Utilization rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
Utilization rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.160 | 0.160 |
Utilization rate | Level 3 | GMIBNLG | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
Utilization rate | Level 3 | GMIBNLG | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
Utilization rate | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
Utilization rate | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.300 | 0.30 |
Utilization rate | Level 3 | GWBL/GMWB | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
Utilization rate | Level 3 | GIB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
Utilization rate | Level 3 | GIB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.160 | 0.160 |
Non-performance | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.0052 | 0.0074 |
Non-performance | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.0129 | 0.0159 |
Non-performance | Level 3 | GMIBNLG | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.019 | |
Non-performance | Level 3 | GMIBNLG | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0 | |
Non-performance | Level 3 | GMIBNLG | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.019 | |
Non-performance | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.0075 | 0.011 |
Non-performance | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.0199 | 0.024 |
Equity volatility | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.070 | 0.100 |
Equity volatility | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.320 | 0.340 |
Equity volatility | Level 3 | GMIBNLG | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.200 | 0.200 |
Equity volatility | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.100 | 0.100 |
Equity volatility | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.340 | 0.340 |
Equity volatility | Level 3 | GWBL/GMWB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.060 | 0.100 |
Equity volatility | Level 3 | GWBL/GMWB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.310 | 0.340 |
Equity volatility | Level 3 | GIB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.070 | 0.100 |
Equity volatility | Level 3 | GIB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.320 | 0.340 |
Equity volatility | Level 3 | GMAB | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.070 | 0.100 |
Equity volatility | Level 3 | GMAB | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.320 | 0.340 |
Forfeiture rate | Level 3 | GMIBNLG | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.008 | 0.0055 |
Forfeiture rate | Level 3 | GMIBNLG | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.012 | 0.021 |
Withdrawal rate 2 | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.013 | 0.013 |
Withdrawal rate 2 | Level 3 | Assumed GMIB Reinsurance Contracts | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
Ages 0-40 | Mortality rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.0001 | 0.0001 |
Ages 0-40 | Mortality rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.0018 | 0.0018 |
Ages 0-40 | Mortality rate | Level 3 | GMIBNLG | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.0001 | |
Ages 0-40 | Mortality rate | Level 3 | GMIBNLG | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.0019 | |
Ages 41-60 | Mortality rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.0007 | 0.0007 |
Ages 41-60 | Mortality rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.0054 | 0.0054 |
Ages 41-60 | Mortality rate | Level 3 | GMIBNLG | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.0006 | |
Ages 41-60 | Mortality rate | Level 3 | GMIBNLG | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.0053 | |
Ages 60-115 | Mortality rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.0042 | 0.0042 |
Ages 60-115 | Mortality rate | Level 3 | GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing asset, measurement input | 0.420 | 0.4200 |
Ages 60-115 | Mortality rate | Level 3 | GMIBNLG | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.0041 | |
Ages 60-115 | Mortality rate | Level 3 | GMIBNLG | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Servicing liability, measurement input | 0.412 |
FAIR VALUE DISCLOSURES - Fair_4
FAIR VALUE DISCLOSURES - Fair Value Disclosure Financial Instruments Not Carried At Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | $ 12,117 | $ 11,835 |
Policyholders’ liabilities: Investment contracts | 52,197 | 49,923 |
Policy loans | 3,766 | 3,779 |
Separate Accounts liabilities | 120,194 | 110,337 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 12,117 | 11,835 |
Policyholders’ liabilities: Investment contracts | 2,132 | 2,127 |
Total short-term debt | 4,949 | 4,955 |
FHLBNY Funding Agreements | 4,001 | 4,002 |
Policy loans | 3,766 | 3,779 |
Separate Accounts liabilities | 8,173 | 7,406 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 12,019 | 11,494 |
Policyholders’ liabilities: Investment contracts | 2,248 | 2,174 |
Total short-term debt | 5,023 | 4,749 |
FHLBNY Funding Agreements | 4,011 | 3,956 |
Policy loans | 4,611 | 4,183 |
Separate Accounts liabilities | 8,173 | 7,406 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
Total short-term debt | 0 | 0 |
FHLBNY Funding Agreements | 0 | 0 |
Policy loans | 0 | 0 |
Separate Accounts liabilities | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
Total short-term debt | 5,023 | 4,749 |
FHLBNY Funding Agreements | 4,011 | 3,956 |
Policy loans | 0 | 0 |
Separate Accounts liabilities | 0 | 0 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 12,019 | 11,494 |
Policyholders’ liabilities: Investment contracts | 2,248 | 2,174 |
Total short-term debt | 0 | 0 |
FHLBNY Funding Agreements | 0 | 0 |
Policy loans | 4,611 | 4,183 |
Separate Accounts liabilities | $ 8,173 | $ 7,406 |
LEASES - Balance Sheet Classifi
LEASES - Balance Sheet Classification (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease asset | $ 760 | $ 799 |
Operating lease liability | $ 974 | $ 1,024 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 81 |
Variable operating lease cost | 13 |
Sublease income | (19) |
Short-term lease expense | $ 1 |
LEASES - Lease Maturities (Deta
LEASES - Lease Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leases: | |||
2019 | $ 183 | ||
2020 | 203 | ||
2021 | 190 | ||
2022 | 172 | ||
2023 | 158 | ||
Thereafter | 204 | ||
Total lease payments | 1,110 | ||
Less: Interest | (136) | ||
Present value of lease liabilities | 974 | $ 1,024 | |
2019 | |||
2019 | $ 212 | ||
2020 | 186 | ||
2021 | 181 | ||
2022 | 166 | ||
2023 | $ 155 | ||
Thereafter | $ 293 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Weighted-average remaining operating lease term (years) | 5 years 9 months 18 days |
Weighted-average discount rate for operating leases | 3.32% |
Operating cash flows from operating leases | $ 58 |
Leased assets obtained in exchange for new operating lease liabilities | $ 3 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) ft² in Thousands, $ in Millions | Mar. 31, 2019USD ($)ft² | Jan. 01, 2019USD ($) |
Lessee, Lease, Description [Line Items] | ||
Operating lease liability | $ 974 | $ 1,024 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 12 years | |
AXA Equitable Life | ||
Lessee, Lease, Description [Line Items] | ||
Leases not yet commenced, amount | $ 10 | |
AXA Equitable Life | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 5 years | |
AXA Equitable Life | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 10 years | |
Nashville | AB | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 15 years | |
Area of property | ft² | 205 | |
Operating lease liability | $ 126 | |
New York City | AB | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 20 years | |
Area of property | ft² | 190 | |
Operating lease liability | $ 448 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Certain Benefit Costs (Details) - Net Periodic Pension Expense - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 2 |
Interest cost | 22 | 21 |
Expected return on assets | (38) | (43) |
Net amortization | 20 | 26 |
Partial settlement | 0 | 99 |
Total | $ 6 | $ 105 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - shares shares in Millions | Mar. 25, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
EQH | Secondary Offering | |||
Related Party Transaction [Line Items] | |||
Shares sold (in shares) | 30 | ||
AXA | |||
Related Party Transaction [Line Items] | |||
Ownership percentage after transaction | 48.30% | 48.00% | 59.00% |
AXA | Secondary Offering | |||
Related Party Transaction [Line Items] | |||
Shares sold (in shares) | 46 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Mar. 25, 2019 | Aug. 10, 2018 | Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Feb. 27, 2019 |
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 200 | ||||||
Dividends declared (in usd per share) | $ 0.13 | $ 0.13 | |||||
Share repurchase plan, authorized amount | $ 800 | ||||||
Purchase of treasury shares | $ 744 | $ 0 | |||||
AXA | |||||||
Class of Stock [Line Items] | |||||||
Ownership percentage after transaction | 48.30% | 48.00% | 59.00% | ||||
AXA | Secondary Offering | |||||||
Class of Stock [Line Items] | |||||||
Shares sold (in shares) | 46 | ||||||
EQH | Secondary Offering | |||||||
Class of Stock [Line Items] | |||||||
Shares sold (in shares) | 30 | ||||||
Accelerated Share Repurchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares repurchased (in shares) | 7 | 1 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 18.51 | ||||||
Share repurchase plan, authorized amount | $ 150 | ||||||
Purchase of treasury shares | $ 150 |
EQUITY - Cumulative Gains (Loss
EQUITY - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||||
Unrealized gains (losses) on investments | $ 430 | $ (137) | ||
Defined benefit pension plans | (919) | (822) | ||
Foreign currency translation adjustments | (63) | (33) | ||
Total accumulated other comprehensive income (loss) | (552) | (992) | ||
Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest | 39 | 46 | ||
Accumulated other comprehensive income (loss) attributable to Holdings | $ (513) | $ (946) | ||
Reclassification adjustment | $ (2) | $ (7) |
EQUITY - Components of OCI, Net
EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Equity [Abstract] | |||
Net unrealized gains (losses) arising during the period | $ 1,342,000,000 | $ (1,221,000,000) | |
(Gains) losses reclassified into net income (loss) during the period | 9,000,000 | (88,000,000) | |
Net unrealized gains (losses) on investments | 1,351,000,000 | (1,309,000,000) | |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | (517,000,000) | 347,000,000 | |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $218, and $(255)) | [1] | 834,000,000 | (962,000,000) |
Change in unrealized gains (losses), tax | 218,000,000 | (255,000,000) | |
Less: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | 49,000,000 | 133,000,000 | |
Change in defined benefit plans (net of deferred income tax expense (benefit) of $12 and $35) | 49,000,000 | 133,000,000 | |
Change in defined benefit plan, tax | 12,000,000 | 35,000,000 | |
Foreign currency translation gains (losses) arising during the period | (1,000,000) | (3,000,000) | |
Foreign currency translation adjustment | [1] | (1,000,000) | (3,000,000) |
Total other comprehensive income (loss), net of income taxes | 882,000,000 | (832,000,000) | |
Less: Other comprehensive (income) loss attributable to noncontrolling interest | 1,000,000 | (6,000,000) | |
Other comprehensive income (loss) attributable to Holdings | 883,000,000 | (838,000,000) | |
Reclassification adjustment | $ 2,000,000 | $ (23,000,000) | |
[1] | A reclassification of $2 million has been made to the previously reported amounts for the three months ended March 31, 2018 to conform to the current period’s presentation. |
COMMITMENT AND CONTINGENT LIA_3
COMMITMENT AND CONTINGENT LIABILITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Feb. 29, 2016 | |
Loss Contingencies [Line Items] | ||
Unaccrued amounts of reasonably possible range of losses | $ 95 | |
Equity financing arrangements with limited partnerships | 955 | |
Equity financing arrangements with affiliates | $ 336 | |
Holdings Revolving Credit Facility | Revolving Credit Facility | ||
Loss Contingencies [Line Items] | ||
Debt instrument, term | 5 years | |
Line of credit facility, maximum borrowing capacity | $ 2,500 | |
Holdings Revolving Credit Facility | Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 1,500 | |
Holdings Revolving Credit Facility | Letter of Credit | ACS Life | ||
Loss Contingencies [Line Items] | ||
Remaining capacity at termination | 125 | |
Holdings Revolving Credit Facility | Letter of Credit | AXA Equitable Life | ||
Loss Contingencies [Line Items] | ||
Remaining capacity at termination | 600 | |
Bilateral Letter Of Credit Facilities | Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 1,900 | |
Brach Family Foundation Litigation | ||
Loss Contingencies [Line Items] | ||
Liability for future policy benefits, amount per policy | $ 1 | |
Mortgage Loan Agreements | ||
Loss Contingencies [Line Items] | ||
Equity financing arrangements with limited partnerships | $ 325 |
COMMITMENT AND CONTINGENT LIA_4
COMMITMENT AND CONTINGENT LIABILITIES - Obligation Under Funding Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank Advances [Roll Forward] | ||
Beginning balance | $ 3,990 | |
Issued During the Period | 4,470 | |
Repaid During the Period | 4,470 | |
Ending balance | 3,990 | |
Funding Agreement, Difference Related To Remaining Amortization | 11 | $ 12 |
FHLBNY Short-Term Funding Agreements Maturing in Less than One Month | ||
Federal Home Loan Bank Advances [Roll Forward] | ||
Beginning balance | 1,640 | |
Issued During the Period | 4,470 | |
Repaid During the Period | 4,470 | |
Ending balance | 1,640 | |
FHLBNY Long-Term Funding Agreements Maturing in Less than Five Years | ||
Federal Home Loan Bank Advances [Roll Forward] | ||
Beginning balance | 1,569 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Ending balance | 1,569 | |
FHLBNY Long-Term Funding Agreements Maturing in Greater than Five Years | ||
Federal Home Loan Bank Advances [Roll Forward] | ||
Beginning balance | 781 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Ending balance | 781 | |
FHLBNY Long-Term Funding Agreements | ||
Federal Home Loan Bank Advances [Roll Forward] | ||
Beginning balance | 2,350 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Ending balance | $ 2,350 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net income (loss) | $ (709) | $ 337 | |||
Amortization of deferred policy acquisition costs, net | Pro Forma | SCS Variable Annuities | |||||
Segment Reporting Information [Line Items] | |||||
Net income (loss) | $ 17 | $ (4) | $ (17) | $ (52) |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segmentclient_channel | Mar. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 4 | |
Number of main client channels | client_channel | 3 | |
Segment Reporting Information [Line Items] | ||
Net income (loss) | $ (775) | $ 214 |
Adjustments related to: | ||
Non-GAAP Operating Earnings | 509 | 483 |
Interest expense | 56 | 46 |
Adjustments | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | (775) | 214 |
Adjustments related to: | ||
Variable annuity product features | 1,540 | 176 |
Investment (gains) losses | 11 | (102) |
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 24 | 131 |
Other adjustments | 40 | 91 |
Income tax expense (benefit) related to above adjustments | (337) | (55) |
Non-recurring tax items | 6 | 28 |
Separation Costs | 24 | 61 |
Operating Segments | Individual Retirement (5) | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 370 | 368 |
Operating Segments | Group Retirement | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 81 | 76 |
Operating Segments | Investment Management and Research | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 77 | 81 |
Operating Segments | Protection Solutions | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 49 | 35 |
Corporate and Other | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | (68) | (77) |
Interest expense | $ 52 | 44 |
Amortization of deferred policy acquisition costs, net | Pro Forma | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 442 | |
Amortization of deferred policy acquisition costs, net | Pro Forma | Adjustments | ||
Adjustments related to: | ||
Variable annuity product features | 124 | |
Income tax expense (benefit) related to above adjustments | (44) | |
Amortization of deferred policy acquisition costs, net | Pro Forma | Operating Segments | Individual Retirement (5) | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | $ 327 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Interest expense | $ 56 | $ 46 |
Total revenues | 1,714 | 2,874 |
Operating Segments | Individual Retirement (5) | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,007 | 729 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 251 | 238 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 780 | 909 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 831 | 814 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Interest expense | 52 | 44 |
Total revenues | 312 | 288 |
Adjustments | ||
Adjustments related to: | ||
Variable annuity product features | (1,478) | (161) |
Gain (Loss) On Investments, Adjustments | (11) | 102 |
Other adjustments to segment revenues | 22 | (45) |
Intersegment Eliminations | ||
Adjustments related to: | ||
Investment expenses | 18 | 18 |
Investment management and other fees | Intersegment Eliminations | ||
Adjustments related to: | ||
Revenues | $ 25 | $ 25 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 232,819 | $ 220,797 |
Operating Segments | Individual Retirement (5) | ||
Segment Reporting Information [Line Items] | ||
Total assets | 116,833 | 105,532 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 38,965 | 38,874 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,348 | 10,294 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total assets | 42,122 | 44,633 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 24,551 | $ 21,464 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Numerator (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income (loss) attributable to Holdings common shareholders: | ||
Net income (loss) | $ (775) | $ 214 |
Net income (loss) attributable to Holdings common shareholders (diluted) | $ (775) | $ 214 |
EARNINGS PER SHARE - Weighted A
EARNINGS PER SHARE - Weighted Average Shares (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Weighted Average Shares: | ||
Weighted average common shares outstanding - basic (in shares) | 518 | 561 |
Weighted average common shares outstanding - diluted (in shares) | 518 | 561 |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Earnings Per Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income (loss) attributable to Holdings per common share: | ||
Basic (in dollars per share) | $ (1.50) | $ 0.38 |
Diluted (in dollars per share) | $ (1.50) | $ 0.38 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2019shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities (in shares) | 5.3 |
RESTATEMENT AND REVISION OF P_3
RESTATEMENT AND REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Deferred policy acquisition costs | $ 6,018 | $ 6,745 | $ 6,243 | |
Current and deferred income taxes | 232 | |||
Total Assets | 232,819 | 220,797 | 232,256 | |
Liabilities: | ||||
Future policy benefits and other policyholders' liabilities | 31,462 | 30,998 | 29,566 | |
Total Liabilities | 217,930 | 205,178 | 214,650 | |
Equity: | ||||
Retained earnings | 13,004 | 13,989 | 12,437 | |
Total equity attributable to Holdings | 13,143 | 13,866 | 13,547 | |
Total Equity | 14,682 | 15,432 | 16,582 | $ 16,518 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 232,819 | $ 220,797 | 232,256 | |
As Previously Reported | ||||
Assets: | ||||
Deferred policy acquisition costs | 6,288 | |||
Current and deferred income taxes | 225 | |||
Total Assets | 232,294 | |||
Liabilities: | ||||
Future policy benefits and other policyholders' liabilities | 29,586 | |||
Total Liabilities | 214,670 | |||
Equity: | ||||
Retained earnings | 12,455 | |||
Total equity attributable to Holdings | 13,565 | |||
Total Equity | 16,600 | |||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 232,294 | |||
Presentation Reclassifications | ||||
Assets: | ||||
Deferred policy acquisition costs | 0 | |||
Current and deferred income taxes | 0 | |||
Total Assets | 0 | |||
Liabilities: | ||||
Future policy benefits and other policyholders' liabilities | 0 | |||
Total Liabilities | 0 | |||
Equity: | ||||
Retained earnings | 0 | |||
Total equity attributable to Holdings | 0 | |||
Total Equity | 0 | |||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 0 | |||
As Adjusted | ||||
Assets: | ||||
Deferred policy acquisition costs | 6,288 | |||
Current and deferred income taxes | 225 | |||
Total Assets | 232,294 | |||
Liabilities: | ||||
Future policy benefits and other policyholders' liabilities | 29,586 | |||
Total Liabilities | 214,670 | |||
Equity: | ||||
Retained earnings | 12,455 | |||
Total equity attributable to Holdings | 13,565 | |||
Total Equity | 16,600 | |||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 232,294 | |||
Impact of Revisions | ||||
Assets: | ||||
Deferred policy acquisition costs | (45) | |||
Current and deferred income taxes | 7 | |||
Total Assets | (38) | |||
Liabilities: | ||||
Future policy benefits and other policyholders' liabilities | (20) | |||
Total Liabilities | (20) | |||
Equity: | ||||
Retained earnings | (18) | |||
Total equity attributable to Holdings | (18) | |||
Total Equity | (18) | |||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ (38) |
RESTATEMENT AND REVISION OF P_4
RESTATEMENT AND REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Statements of Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Policy charges and fee income | $ 931 | $ 966 |
Net derivative gains (loss) | (1,630) | (236) |
Total revenues | 1,714 | 2,874 |
Benefits and Other Deductions | ||
Policyholders’ benefits | 880 | 594 |
Amortization of deferred policy acquisition costs, net | 198 | 172 |
Total benefits and other deductions | 2,638 | 2,446 |
Income (loss) from continuing operations, before income taxes | (924) | 428 |
Income tax (expense) benefit | 215 | (91) |
Net income (loss) | (709) | 337 |
Net income (loss) attributable to Holdings | $ (775) | 214 |
As Previously Reported | ||
Revenues: | ||
Policy charges and fee income | 972 | |
Net derivative gains (loss) | (281) | |
Total revenues | 2,835 | |
Benefits and Other Deductions | ||
Policyholders’ benefits | 608 | |
Amortization of deferred policy acquisition costs, net | 15 | |
Total benefits and other deductions | 2,465 | |
Income (loss) from continuing operations, before income taxes | 370 | |
Income tax (expense) benefit | (79) | |
Net income (loss) | 291 | |
Net income (loss) attributable to Holdings | 168 | |
Presentation Reclassifications | ||
Revenues: | ||
Policy charges and fee income | 0 | |
Net derivative gains (loss) | 0 | |
Total revenues | 0 | |
Benefits and Other Deductions | ||
Policyholders’ benefits | 0 | |
Amortization of deferred policy acquisition costs, net | 162 | |
Total benefits and other deductions | 0 | |
Income (loss) from continuing operations, before income taxes | 0 | |
Income tax (expense) benefit | 0 | |
Net income (loss) | 0 | |
Net income (loss) attributable to Holdings | 0 | |
As Adjusted | ||
Revenues: | ||
Policy charges and fee income | 972 | |
Net derivative gains (loss) | (281) | |
Total revenues | 2,835 | |
Benefits and Other Deductions | ||
Policyholders’ benefits | 608 | |
Amortization of deferred policy acquisition costs, net | 177 | |
Total benefits and other deductions | 2,465 | |
Income (loss) from continuing operations, before income taxes | 370 | |
Income tax (expense) benefit | (79) | |
Net income (loss) | 291 | |
Net income (loss) attributable to Holdings | 168 | |
Impact of Revisions | ||
Revenues: | ||
Policy charges and fee income | (6) | |
Net derivative gains (loss) | 45 | |
Total revenues | 39 | |
Benefits and Other Deductions | ||
Policyholders’ benefits | (14) | |
Amortization of deferred policy acquisition costs, net | (5) | |
Total benefits and other deductions | (19) | |
Income (loss) from continuing operations, before income taxes | 58 | |
Income tax (expense) benefit | (12) | |
Net income (loss) | 46 | |
Net income (loss) attributable to Holdings | $ 46 |
RESTATEMENT AND REVISION OF P_5
RESTATEMENT AND REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | $ (709) | $ 337 |
Comprehensive income (loss) | 173 | (495) |
Comprehensive income (loss) attributable to Holdings | $ 108 | (624) |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | 291 | |
Comprehensive income (loss) | (541) | |
Comprehensive income (loss) attributable to Holdings | (670) | |
Presentation Reclassifications | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | 0 | |
Comprehensive income (loss) | 0 | |
Comprehensive income (loss) attributable to Holdings | 0 | |
As Adjusted | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | 291 | |
Comprehensive income (loss) | (541) | |
Comprehensive income (loss) attributable to Holdings | (670) | |
Impact of Revisions | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | 46 | |
Comprehensive income (loss) | 46 | |
Comprehensive income (loss) attributable to Holdings | $ 46 |
RESTATEMENT AND REVISION OF P_6
RESTATEMENT AND REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Statements of Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | $ 15,432 | $ 16,518 |
Net income (loss) | (775) | 214 |
End of year | 14,682 | 16,582 |
As Previously Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net income (loss) | 168 | |
End of year | 16,600 | |
Presentation Reclassifications | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net income (loss) | 0 | |
End of year | 0 | |
As Adjusted | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net income (loss) | 168 | |
End of year | 16,600 | |
Impact of Revisions | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net income (loss) | 46 | |
End of year | (18) | |
Total Holdings Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 13,866 | 13,421 |
End of year | 13,143 | 13,547 |
Total Holdings Equity | As Previously Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
End of year | 13,565 | |
Total Holdings Equity | Presentation Reclassifications | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
End of year | 0 | |
Total Holdings Equity | As Adjusted | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
End of year | 13,565 | |
Total Holdings Equity | Impact of Revisions | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
End of year | (18) | |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 13,989 | 12,225 |
Net income (loss) | 214 | |
End of year | $ 13,004 | 12,437 |
Retained Earnings | As Previously Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 12,289 | |
Net income (loss) | 168 | |
End of year | 12,455 | |
Retained Earnings | Presentation Reclassifications | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 0 | |
Net income (loss) | 0 | |
End of year | 0 | |
Retained Earnings | As Adjusted | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 12,289 | |
Net income (loss) | 168 | |
End of year | 12,455 | |
Retained Earnings | Impact of Revisions | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | (64) | |
Net income (loss) | 46 | |
End of year | $ (18) |
RESTATEMENT AND REVISION OF P_7
RESTATEMENT AND REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Statements of Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income (loss) | $ (709) | $ 337 | |
Cash flow from operating activities: | |||
Policy charges and fee income | (931) | (966) | |
Net derivative (gains) losses | 1,630 | 236 | |
Amortization of deferred sales commission | 0 | ||
Amortization and depreciation | [1] | 239 | 164 |
Amortization of deferred cost of reinsurance asset | 0 | ||
Distributions from joint ventures and limited partnerships | 0 | ||
Equity (income) loss from limited partnerships | (13) | (38) | |
Changes in: | |||
Reinsurance recoverable | [1] | (18) | 29 |
Capitalization of deferred policy acquisition costs | [1] | (173) | (162) |
Future policy benefits | 22 | (248) | |
Current and deferred income taxes | 183 | 115 | |
Other, net | [1] | (88) | (192) |
Net cash provided by (used in) operating activities | (109) | (247) | |
Proceeds from the sale/maturity/prepayment of: | |||
Real estate joint ventures | 1 | 140 | |
Short-term investments | [1] | 794 | 1,684 |
Payment for the purchase/origination of: | |||
Short-term investments | [1] | (685) | (731) |
Cash settlements related to derivative instruments | (1,005) | (674) | |
Change in short-term investments | 0 | ||
Other, net | [1] | 148 | (311) |
Net cash provided by (used in) investing activities | (70) | 116 | |
Policyholders’ account balances: | |||
Deposits | 2,430 | 2,041 | |
Withdrawals | (1,067) | (1,100) | |
Transfers (to) from Separate Accounts | 424 | 431 | |
Net cash provided by (used in) financing activities | 838 | 1,400 | |
Non-cash transactions during the period: | |||
Capital contribution from parent company | 0 | 622 | |
(Settlement) issuance of long-term debt | 0 | (202) | |
Transfer of assets to reinsurer | $ 0 | (604) | |
As Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income (loss) | 291 | ||
Cash flow from operating activities: | |||
Policy charges and fee income | (972) | ||
Net derivative (gains) losses | 281 | ||
Amortization of deferred sales commission | 7 | ||
Amortization and depreciation | (20) | ||
Amortization of deferred cost of reinsurance asset | 5 | ||
Distributions from joint ventures and limited partnerships | 25 | ||
Equity (income) loss from limited partnerships | 0 | ||
Changes in: | |||
Reinsurance recoverable | 32 | ||
Capitalization of deferred policy acquisition costs | 15 | ||
Future policy benefits | (254) | ||
Current and deferred income taxes | 103 | ||
Other, net | (255) | ||
Net cash provided by (used in) operating activities | (264) | ||
Proceeds from the sale/maturity/prepayment of: | |||
Real estate joint ventures | 0 | ||
Short-term investments | 0 | ||
Payment for the purchase/origination of: | |||
Short-term investments | 0 | ||
Cash settlements related to derivative instruments | (54) | ||
Change in short-term investments | 876 | ||
Other, net | (371) | ||
Net cash provided by (used in) investing activities | 459 | ||
Policyholders’ account balances: | |||
Deposits | 2,532 | ||
Withdrawals | (1,384) | ||
Transfers (to) from Separate Accounts | (102) | ||
Net cash provided by (used in) financing activities | 1,074 | ||
Non-cash transactions during the period: | |||
Capital contribution from parent company | 630 | ||
(Settlement) issuance of long-term debt | 202 | ||
Transfer of assets to reinsurer | 0 | ||
Presentation Reclassifications | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income (loss) | 0 | ||
Cash flow from operating activities: | |||
Policy charges and fee income | 0 | ||
Net derivative (gains) losses | 0 | ||
Amortization of deferred sales commission | (7) | ||
Amortization and depreciation | 189 | ||
Amortization of deferred cost of reinsurance asset | (5) | ||
Distributions from joint ventures and limited partnerships | (25) | ||
Equity (income) loss from limited partnerships | (38) | ||
Changes in: | |||
Reinsurance recoverable | 0 | ||
Capitalization of deferred policy acquisition costs | (177) | ||
Future policy benefits | 0 | ||
Current and deferred income taxes | 0 | ||
Other, net | 63 | ||
Net cash provided by (used in) operating activities | 0 | ||
Proceeds from the sale/maturity/prepayment of: | |||
Real estate joint ventures | 0 | ||
Short-term investments | 1,607 | ||
Payment for the purchase/origination of: | |||
Short-term investments | (731) | ||
Cash settlements related to derivative instruments | 0 | ||
Change in short-term investments | (876) | ||
Other, net | 0 | ||
Net cash provided by (used in) investing activities | 0 | ||
Policyholders’ account balances: | |||
Deposits | 0 | ||
Withdrawals | 0 | ||
Transfers (to) from Separate Accounts | 0 | ||
Net cash provided by (used in) financing activities | 0 | ||
Non-cash transactions during the period: | |||
Capital contribution from parent company | 0 | ||
(Settlement) issuance of long-term debt | 0 | ||
Transfer of assets to reinsurer | 0 | ||
As Adjusted | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income (loss) | 291 | ||
Cash flow from operating activities: | |||
Policy charges and fee income | (972) | ||
Net derivative (gains) losses | 281 | ||
Amortization of deferred sales commission | 0 | ||
Amortization and depreciation | 169 | ||
Amortization of deferred cost of reinsurance asset | 0 | ||
Distributions from joint ventures and limited partnerships | 0 | ||
Equity (income) loss from limited partnerships | (38) | ||
Changes in: | |||
Reinsurance recoverable | 32 | ||
Capitalization of deferred policy acquisition costs | (162) | ||
Future policy benefits | (254) | ||
Current and deferred income taxes | 103 | ||
Other, net | (192) | ||
Net cash provided by (used in) operating activities | (264) | ||
Proceeds from the sale/maturity/prepayment of: | |||
Real estate joint ventures | 0 | ||
Short-term investments | 1,607 | ||
Payment for the purchase/origination of: | |||
Short-term investments | (731) | ||
Cash settlements related to derivative instruments | (54) | ||
Change in short-term investments | 0 | ||
Other, net | (371) | ||
Net cash provided by (used in) investing activities | 459 | ||
Policyholders’ account balances: | |||
Deposits | 2,532 | ||
Withdrawals | (1,384) | ||
Transfers (to) from Separate Accounts | (102) | ||
Net cash provided by (used in) financing activities | 1,074 | ||
Non-cash transactions during the period: | |||
Capital contribution from parent company | 630 | ||
(Settlement) issuance of long-term debt | 202 | ||
Transfer of assets to reinsurer | 0 | ||
Impact of Revisions | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income (loss) | 46 | ||
Cash flow from operating activities: | |||
Policy charges and fee income | 6 | ||
Net derivative (gains) losses | (45) | ||
Amortization of deferred sales commission | 0 | ||
Amortization and depreciation | (5) | ||
Amortization of deferred cost of reinsurance asset | 0 | ||
Distributions from joint ventures and limited partnerships | 0 | ||
Equity (income) loss from limited partnerships | 0 | ||
Changes in: | |||
Reinsurance recoverable | (3) | ||
Capitalization of deferred policy acquisition costs | 0 | ||
Future policy benefits | 6 | ||
Current and deferred income taxes | 12 | ||
Other, net | 0 | ||
Net cash provided by (used in) operating activities | 17 | ||
Proceeds from the sale/maturity/prepayment of: | |||
Real estate joint ventures | 140 | ||
Short-term investments | 77 | ||
Payment for the purchase/origination of: | |||
Short-term investments | 0 | ||
Cash settlements related to derivative instruments | (620) | ||
Change in short-term investments | 0 | ||
Other, net | 60 | ||
Net cash provided by (used in) investing activities | (343) | ||
Policyholders’ account balances: | |||
Deposits | (491) | ||
Withdrawals | 284 | ||
Transfers (to) from Separate Accounts | 533 | ||
Net cash provided by (used in) financing activities | 326 | ||
Non-cash transactions during the period: | |||
Capital contribution from parent company | (8) | ||
(Settlement) issuance of long-term debt | (404) | ||
Transfer of assets to reinsurer | $ (604) | ||
[1] | Prior period amounts have been reclassified to conform to current period’s presentation. See Note 16 for further information. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Millions | 1 Months Ended |
Apr. 30, 2019USD ($)shares | |
Pre-Capitalized Trust Securities, Redeemable February 15, 2029 | |
Subsequent Event [Line Items] | |
Shares sold (in shares) | shares | 600,000 |
Proceeds from offering | $ | $ 600 |
Pre-Capitalized Trust Securities, Redeemable February 15, 2049 | |
Subsequent Event [Line Items] | |
Shares sold (in shares) | shares | 400,000 |
Proceeds from offering | $ | $ 400 |