DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 28, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Amendment Flag | false | ||
Entity Registrant Name | Equitable Holdings, Inc. | ||
Entity Central Index Key | 0001333986 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 463,711,392 | ||
Entity Public Float | $ 5.6 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $62,937 and $46,801) | $ 66,343 | $ 46,279 | |
Mortgage loans on real estate (net of valuation allowance of $0 and $7) | 12,107 | 11,835 | |
Real estate held for production of income | [1] | 27 | 52 |
Policy loans | 3,735 | 3,779 | |
Other equity investments | [1] | 1,344 | 1,334 |
Trading securities, at fair value | 7,031 | 16,017 | |
Other invested assets | [1] | 2,753 | 2,037 |
Total investments | 93,340 | 81,333 | |
Cash and cash equivalents | [1] | 4,405 | 4,469 |
Cash and securities segregated, at fair value | 1,095 | 1,170 | |
Broker-dealer related receivables | 1,987 | 2,209 | |
Deferred policy acquisition costs | 5,890 | 6,745 | |
Goodwill and other intangible assets, net | 4,751 | 4,780 | |
Amounts due from reinsurers | 4,592 | 4,895 | |
GMIB reinsurance contract asset, at fair value | 2,139 | 1,732 | |
Other assets | [1] | 3,799 | 3,127 |
Assets held-for-sale | 962 | 0 | |
Separate Accounts assets | 126,910 | 110,337 | |
Total Assets | 249,870 | 220,797 | |
LIABILITIES | |||
Policyholders’ account balances | 58,879 | 49,923 | |
Future policy benefits and other policyholders' liabilities | 34,587 | 30,998 | |
Broker-dealer related payables | 722 | 431 | |
Securities sold under agreements to repurchase | 0 | 573 | |
Customer related payables | 2,523 | 3,095 | |
Amounts due to reinsurers | 1,404 | 1,438 | |
Short-term and long-term debt | 4,111 | 4,955 | |
Current and deferred income taxes | 549 | 68 | |
Other liabilities | [1] | 3,970 | 3,360 |
Liabilities held-for-sale | 724 | 0 | |
Separate Accounts liabilities | 126,910 | 110,337 | |
Total Liabilities | 234,379 | 205,178 | |
Redeemable noncontrolling interest | [1],[2] | 365 | 187 |
Commitments and contingent liabilities | |||
Equity attributable to Holdings: | |||
Preferred stock and additional paid-in capital, par value $1.00 per share; $25,000 liquidation preference at December 31, 2019 | 775 | 0 | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 552,896,328 and 561,000,000 shares issued, respectively; 463,711,392 and 528,861,758 shares outstanding, respectively | 5 | 5 | |
Additional paid-in capital | 1,920 | 1,908 | |
Treasury stock, at cost, 89,184,936 and 32,138,242 shares, respectively | (1,832) | (640) | |
Retained earnings | 11,827 | 13,989 | |
Accumulated other comprehensive income (loss) | 840 | (1,396) | |
Total equity attributable to Holdings | 13,535 | 13,866 | |
Noncontrolling interest | 1,591 | 1,566 | |
Total Equity | 15,126 | 15,432 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 249,870 | $ 220,797 | |
[1] | See Note 2 for details of balances with variable interest entities. | ||
[2] | See Note 23 for details of Redeemable noncontrolling interest. |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturities available-for-sale, at fair value (amortized cost of $62,937 and $46,801) | $ 62,937,000,000 | $ 46,801,000,000 |
Mortgage loans on real estate (net of valuation allowance of $0 and $7) | $ 0 | $ 7,000,000 |
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) | 463,711,392 | 528,861,758 |
Preferred stock par value (in dollars per share) | $ 1 | |
Preferred stock, liquidation preference | $ 25,000 | |
Treasury stock (in shares) | 89,184,936 | 32,138,242 |
Fixed maturities | ||
Fixed maturities available-for-sale, at fair value (amortized cost of $62,937 and $46,801) | $ 62,937,000,000 | $ 46,801,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||
Policy charges and fee income | $ 3,738 | $ 3,824 | $ 3,693 |
Premiums | 1,147 | 1,094 | 1,124 |
Net derivative gains (losses) | (4,000) | (231) | 214 |
Net investment income (loss) | 3,699 | 2,693 | 3,082 |
Investment gains (losses), net: | |||
Total other-than-temporary impairment losses | 0 | (42) | (15) |
Other investment gains (losses), net | 73 | (44) | (176) |
Total investment gains (losses), net | 73 | (86) | (191) |
Investment management and service fees | 4,380 | 4,268 | 4,093 |
Other income | 554 | 516 | 445 |
Total revenues | 9,591 | 12,078 | 12,460 |
BENEFITS AND OTHER DEDUCTIONS | |||
Policyholders’ benefits | 4,370 | 2,915 | 4,366 |
Interest credited to policyholders’ account balances | 1,241 | 1,090 | 995 |
Compensation and benefits | 2,081 | 2,079 | 1,980 |
Commissions and distribution-related payments | 1,242 | 1,160 | 1,081 |
Interest expense | 221 | 231 | 160 |
Amortization of deferred policy acquisition costs | (579) | (333) | (503) |
Other operating costs and expenses | 1,892 | 1,809 | 2,069 |
Total benefits and other deductions | 11,626 | 9,617 | 11,154 |
Income (loss) from continuing operations, before income taxes | (2,035) | 2,461 | 1,306 |
Income tax (expense) benefit | 599 | (307) | (49) |
Net income (loss) | (1,436) | 2,154 | 1,257 |
Less: Net income (loss) attributable to the noncontrolling interest | 297 | 334 | 423 |
Net income (loss) attributable to Holdings | $ (1,733) | $ 1,820 | $ 834 |
Earnings per share - common stock: | |||
Basic (in usd per share) | $ (3.51) | $ 3.27 | $ 1.49 |
Diluted (in usd per share) | $ (3.51) | $ 3.27 | $ 1.49 |
Weighted average common shares outstanding (in millions): | |||
Basic (in shares) | 493.6 | 556.4 | 561 |
Diluted (in shares) | 493.6 | 556.5 | 561 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (1,436) | $ 2,154 | $ 1,257 | |
Other comprehensive income (loss) net of income taxes: | ||||
Change in unrealized gains (losses), net of reclassification adjustment | [1] | 2,242 | (1,334) | 693 |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | (15) | 189 | 100 | |
Foreign currency translation adjustment | [1] | 5 | (32) | 39 |
Total other comprehensive income (loss), net of income taxes | 2,232 | (1,177) | 832 | |
Comprehensive income (loss) | 796 | 977 | 2,089 | |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 293 | 349 | 442 | |
Comprehensive income (loss) attributable to Holdings | $ 503 | 628 | 1,647 | |
Reclassification adjustment, amount | $ 5 | $ 3 | ||
[1] | A reclassification of $5 million and $3 million has been made to the previously reported amounts for the years ended December 31, 2018 and 2017, respectively to conform to the current period’s presentation. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Parent | Preferred Stock and Additional Paid-In Capital | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | AOCI Attributable to Parent | Noncontrolling Interest |
Beginning of year at Dec. 31, 2016 | $ 14,549 | $ 11,407 | $ 5 | $ 932 | $ 0 | $ 11,391 | $ (921) | $ 3,142 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Repurchase of AB Holding units | (121) | (121) | |||||||
Dividends paid to noncontrolling interest | (348) | (348) | |||||||
Net income (loss) | 1,204 | 834 | 834 | 370 | |||||
Other comprehensive income (loss) | 832 | 813 | 813 | 19 | |||||
Other | 402 | 367 | 35 | ||||||
End 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] | |||||||||
Purchase of treasury stock | (648) | (648) | (648) | ||||||
Reissuance of treasury stock | 8 | (8) | |||||||
Repurchase of AB Holding units | (95) | (95) | |||||||
Dividends paid to noncontrolling interest | (346) | (346) | |||||||
Dividends | (157) | (157) | (157) | ||||||
Capital contribution from parent | 695 | 695 | 695 | ||||||
Purchase of AB Units by Holdings | (1,525) | (1,525) | |||||||
Purchase of AllianceBernstein Units from noncontrolling interest | 17 | 17 | 17 | ||||||
Net income (loss) | 2,136 | 1,820 | 1,820 | 316 | |||||
Other comprehensive income (loss) | (1,177) | (1,192) | (1,192) | 15 | |||||
Other | (18) | (103) | 85 | ||||||
End of year at Dec. 31, 2018 | 15,432 | 13,866 | $ 0 | 5 | 1,908 | (640) | 13,989 | (1,396) | 1,566 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 238 | 161 | 152 | 9 | 77 | ||||
Purchase of treasury stock | (1,345) | (1,345) | (1,343) | (2) | |||||
Retirement of common stock | 0 | 0 | 142 | (142) | |||||
Repurchase of AB Holding units | (173) | (112) | (112) | (61) | |||||
Dividends paid to noncontrolling interest | (256) | (256) | |||||||
Dividends | (285) | (285) | (285) | ||||||
Issuance of preferred stock | 775 | 775 | 775 | ||||||
Net income (loss) | (1,470) | (1,733) | (1,733) | 263 | |||||
Other comprehensive income (loss) | 2,232 | 2,236 | 2,236 | (4) | |||||
Other | (22) | (28) | (28) | 6 | |||||
End of year at Dec. 31, 2019 | $ 15,126 | $ 13,535 | $ 775 | $ 5 | $ 1,920 | $ (1,832) | $ 11,827 | $ 840 | $ 1,591 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash dividends declared per common share (in usd per share) | $ 0.58 | $ 0.26 |
Retained Earnings | ||
Cash dividends declared per common share (in usd per share) | $ 0.58 | $ 0.26 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ (1,436) | $ 2,154 | $ 1,257 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Interest credited to policyholders’ account balances | 1,241 | 1,090 | 995 |
Policy charges and fee income | (3,738) | (3,824) | (3,693) |
Net derivative (gains) losses | 4,000 | 231 | (214) |
Investment (gains) losses, net | (206) | 86 | 191 |
Loss on businesses held for sale | 133 | 0 | 0 |
Realized and unrealized (gains) losses on trading securities | (502) | 237 | (266) |
Non-cash long term incentive compensation expense | 278 | 228 | 247 |
Non-cash pension plan restructuring | 0 | 109 | 0 |
Amortization and depreciation | 657 | 257 | 399 |
Change in goodwill | 0 | 0 | 369 |
Equity (income) loss from limited partnerships | (92) | (119) | (155) |
Changes in: | |||
Net broker-dealer and customer related receivables/payables | (403) | 838 | (278) |
Reinsurance recoverable | (146) | (191) | 124 |
Segregated cash and securities, net | 75 | (345) | 130 |
Capitalization of deferred policy acquisition costs | (754) | (702) | (687) |
Future policy benefits | 947 | (399) | 1,097 |
Current and deferred income taxes | (108) | 633 | (10) |
Other, net | (162) | (222) | 251 |
Net cash provided by (used in) operating activities | (216) | 61 | (243) |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available for sale | 13,327 | 10,631 | 11,339 |
Mortgage loans on real estate | 952 | 768 | 934 |
Trading account securities | 10,717 | 9,340 | 11,231 |
Real estate joint ventures | 5 | 139 | 0 |
Short term investments | 2,643 | 6,267 | 4,556 |
Other | 306 | 330 | 228 |
Payment for the purchase/origination of: | |||
Fixed maturities, available for sale | (29,610) | (12,794) | (15,166) |
Mortgage loans on real estate | (1,240) | (1,642) | (2,108) |
Trading account securities | (1,123) | (11,401) | (13,328) |
Short term investments | (2,776) | (5,058) | (4,897) |
Other | (430) | (233) | (296) |
Purchase of business, net of cash acquired | 0 | 0 | (130) |
Cash settlements related to derivative instruments | (954) | 583 | (2,166) |
Repayments of loans to affiliates | 0 | 1,230 | 15 |
Investment in capitalized software, leasehold improvements and EDP equipment | (93) | (123) | (102) |
Other, net | (220) | (86) | 201 |
Net cash provided by (used in) investing activities | (8,496) | (2,049) | (9,689) |
Cash flows from financing activities: | |||
Deposits | 12,843 | 9,994 | 9,916 |
Withdrawals | (4,619) | (4,600) | (4,010) |
Transfers (to) from Separate Accounts | 1,769 | 1,724 | 1,486 |
Proceeds from loans from affiliates | 0 | 0 | 731 |
Change in short-term financings | (546) | (1,310) | 600 |
Change in collateralized pledged assets | (71) | 31 | 1,044 |
Change in collateralized pledged liabilities | 1,361 | (576) | 1,246 |
(Decrease) increase in overdrafts payable | (60) | 3 | 63 |
Repayment of loans from affiliates | 0 | (3,000) | (56) |
Issuance of long-term debt | 0 | 4,057 | 0 |
Repayment of long-term debt | (300) | 0 | 0 |
Shareholder dividends paid | (285) | (157) | 0 |
Issuance of preferred stock | 775 | 0 | 0 |
Purchase of AllianceBernstein Units | 0 | (1,340) | 0 |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards | (172) | (267) | (220) |
Purchase of treasury shares | (1,350) | (648) | 0 |
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds | 169 | (472) | 120 |
Distribution to noncontrolling interest of consolidated subsidiaries | (256) | (346) | (348) |
Increase (decrease) in securities sold under agreement to repurchase | (573) | (1,314) | (1,706) |
Purchase of shares in consolidated subsidiaries | 0 | 0 | (55) |
Capital contribution from parent company | 0 | 8 | 318 |
Other, net | 20 | (132) | (59) |
Net cash provided by (used in) financing activities | 8,705 | 1,655 | 9,070 |
Effect of exchange rate changes on cash and cash equivalents | 8 | (12) | 22 |
Change in cash and cash equivalents | 1 | (345) | (840) |
Cash and cash equivalents, beginning of year | 4,469 | 4,814 | 5,654 |
Change in cash of businesses held for sale | (65) | 0 | 0 |
Cash and cash equivalents, end of year | 4,405 | 4,469 | 4,814 |
Supplemental cash flow information: | |||
Interest paid | 273 | 178 | 119 |
Income taxes (refunded) paid | (506) | 57 | 31 |
Non-cash transactions: | |||
Capital contribution from parent company | 0 | 622 | 0 |
(Settlement) issuance of long-term debt | 0 | (202) | 202 |
Transfer of assets to reinsurer | 0 | (604) | 0 |
Contribution of 0.5% minority interest in AXA Financial, Inc. | 0 | 65 | 0 |
Repayment of loans from affiliates | $ 0 | $ (622) | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
AXA Financial | |||
Ownership percentage by noncontrolling interest | 0.50% | 0.50% | 0.50% |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 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 Fixed Maturities by Classification Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (4) (in millions) December 31, 2019 (5): Fixed Maturities: Corporate (1) $ 45,900 $ 2,361 $ 62 $ 48,199 $ — U.S. Treasury, government and agency 14,410 1,289 305 15,394 — States and political subdivisions 638 70 3 705 — Foreign governments 462 35 5 492 — Residential mortgage-backed (2) 178 13 — 191 — Asset-backed (3) 848 4 3 849 — Redeemable preferred stock 501 17 5 513 — Total at December 31, 2019 $ 62,937 $ 3,789 $ 383 $ 66,343 $ — 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). (5) Excludes amounts reclassified as Held-for-Sale . The contractual maturities of AFS fixed maturities at December 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) December 31, 2019 (1): Due in one year or less $ 3,921 $ 3,938 Due in years two through five 14,288 14,721 Due in years six through ten 18,391 19,585 Due after ten years 24,810 26,546 Subtotal 61,410 64,790 Residential mortgage-backed securities 178 191 Asset-backed securities 848 849 Redeemable preferred stock 501 513 Total at December 31, 2019 $ 62,937 $ 66,343 ______________ (1) Excludes amounts reclassified as Held-for-Sale. The following table shows proceeds from sales, gross gains (losses) from sales for AFS fixed maturities for the years ended December 31, 2019 , 2018 and 2017 : Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities Years Ended December 31, 2019 2018 2017 (in millions) Proceeds from sales $ 8,972 $ 8,523 $ 8,213 Gross gains on sales $ 234 $ 180 $ 107 Gross losses on sales $ (32 ) $ (215 ) $ (259 ) Total OTTI $ — $ (42 ) $ (15 ) Non-credit losses recognized in OCI — — — Credit losses recognized in net income (loss) $ — $ (42 ) $ (15 ) 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. Available-for-Sale Fixed Maturities - Credit Loss Impairments Years Ended December 31, 2019 2018 (in millions) Balance at January 1, $ (58 ) $ (18 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 37 2 Recognized impairments on securities impaired to fair value this period (1) — — Impairments recognized this period on securities not previously impaired — (42 ) 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 — — Balance at December 31, $ (21 ) $ (58 ) ______________ (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. 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: Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities 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) Balance, January 1, 2019 $ (522 ) $ 100 $ (73 ) $ 104 $ (391 ) Net investment gains (losses) arising during the period 4,188 — — — 4,188 Reclassification adjustment: Included in Net income (loss) (213 ) — — — (213 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (999 ) — — (999 ) Deferred income taxes — — — (601 ) (601 ) Policyholders’ liabilities — — (116 ) — (116 ) Net unrealized investment gains (losses) excluding OTTI losses 3,453 (899 ) (189 ) (497 ) 1,868 Net unrealized investment gains (losses) with OTTI losses — — — — — Balance, December 31, 2019 $ 3,453 $ (899 ) $ (189 ) $ (497 ) $ 1,868 Balance, January 1, 2018 $ 1,871 $ (358 ) $ (238 ) $ (397 ) $ 878 Net investment gains (losses) arising during the period (2,470 ) — — — (2,470 ) Reclassification adjustment: Included in Net income (loss) 77 — — — 77 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 458 — — 458 Deferred income taxes (2) — — — 501 501 Policyholders’ liabilities — — 165 — 165 Net unrealized investment gains (losses) excluding OTTI losses (522 ) 100 (73 ) 104 (391 ) Net unrealized investment gains (losses) with OTTI losses — — — — — Balance, December 31, 2018 $ (522 ) $ 100 $ (73 ) $ 104 $ (391 ) ______________ (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 loss. (2) Includes a $113 million benefit from the impact of adoption of ASU 2018-02. The following tables disclose the fair values and gross unrealized losses of the 413 securities at December 31, 2019 and the 1,700 securities at December 31, 2018 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: Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities 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) December 31, 2019 (1): Fixed Maturities: Corporate $ 2,773 $ 42 $ 373 $ 20 $ 3,146 $ 62 U.S. Treasury, government and agency 4,309 305 2 — 4,311 305 States and political subdivisions 112 3 — — 112 3 Foreign governments 11 — 47 5 58 5 Asset-backed 319 1 201 2 520 3 Redeemable preferred stock 29 — 49 5 78 5 Total at December 31, 2019 $ 7,553 $ 351 $ 672 $ 32 $ 8,225 $ 383 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 ______________ (1) Excludes amounts reclassified as Held-for-Sale. 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 0.6% of total corporate securities. The largest exposures to a single issuer of corporate securities held at December 31, 2019 and December 31, 2018 were $309 million and $226 million , respectively, representing 2.0% 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 December 31, 2019 and December 31, 2018 , respectively, approximately $1.4 billion and $1.3 billion , or 2.3% and 2.7% , of the $62.9 billion and $46.8 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $21 million and $31 million at December 31, 2019 and December 31, 2018 , respectively. At December 31, 2019 and December 31, 2018 , respectively, the $32 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 these securities was not warranted at either December 31, 2019 or December 31, 2018 . At December 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 December 31, 2019 and December 31, 2018 , respectively, the fair value of the Company’s trading account securities was $7.0 billion and $16.0 billion . At December 31, 2019 and December 31, 2018 , respectively, trading account securities included the General Account’s investment in Separate Accounts which had carrying values of $58 million a nd $49 million . Mortgage Loans The payment terms of mortgage loans may from time to time be restructured or modified. At December 31, 2019 and 2018 , the carrying values of problem commercial mortgage loans on real estate that had been classified as non-accrual loans were $0 million and $19 million , respectively. Allowances for credit losses for commercial mortgage loans were $0 million and $7 million for the years ended December 31, 2019 and 2018 , respectively . There were no allowances for credit losses for agricultural mortgage loans in 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 December 31, 2019 and 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 1.5x to 1.2x to 1.0x to Less than (in millions) December 31, 2019: Commercial Mortgage Loans: 0% - 50% $ 903 $ 38 $ 214 $ 25 $ — $ — $ 1,180 50% - 70% 4,097 1,195 1,118 795 242 — 7,447 70% - 90% 251 98 214 154 46 — 763 90% plus — — — — — — — Total Commercial Mortgage Loans $ 5,251 $ 1,331 $ 1,546 $ 974 $ 288 $ — $ 9,390 Agricultural Mortgage Loans: 0% - 50% $ 322 $ 104 $ 241 $ 545 $ 321 $ 50 $ 1,583 50% - 70% 82 87 236 426 251 33 1,115 70% - 90% — — — 19 — — 19 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 404 $ 191 $ 477 $ 990 $ 572 $ 83 $ 2,717 Total Mortgage Loans: 0% - 50% $ 1,225 $ 142 $ 455 $ 570 $ 321 $ 50 $ 2,763 50% - 70% 4,179 1,282 1,354 1,221 493 33 8,562 70% - 90% 251 98 214 173 46 — 782 90% plus — — — — — — — Total Mortgage Loans $ 5,655 $ 1,522 $ 2,023 $ 1,964 $ 860 $ 83 $ 12,107 Debt Service Coverage Ratio (1) Total Mortgage Loans Loan-to-Value Ratio (2): Greater than 2.0x 1.8x to 1.5x to 1.2x to 1.0x to Less than (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 most recent fair value estimate of the property. The fair 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 December 31, 2019 and 2018 , respectively. 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) December 31, 2019: Commercial $ — $ — $ — $ — $ 9,390 $ 9,390 $ — Agricultural 57 1 66 124 2,593 2,717 66 Total Mortgage Loans $ 57 $ 1 $ 66 $ 124 $ 11,983 $ 12,107 $ 66 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 Net Investment Income (Loss) The following table breaks out Net investment income (loss) by asset category: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities $ 2,060 $ 1,725 $ 1,629 Mortgage loans on real estate 541 494 454 Real estate held for the production of income (2 ) (6 ) 2 Other equity investments 142 147 186 Policy loans 211 215 221 Trading securities 796 105 553 Other investment income 24 85 109 Gross investment income (loss) 3,772 2,765 3,154 Investment expenses (73 ) (72 ) (72 ) Net investment income (loss) $ 3,699 $ 2,693 $ 3,082 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 years ended December 31, 2019 , 2018 and 2017 : Net Investment Income (Loss) from Trading Securities Years Ended December 31, 2019 2018 2017 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 487 $ (223 ) $ 247 Net investment gains (losses) recognized on securities sold during the period 15 (14 ) 19 Unrealized and realized gains (losses) on trading securities 502 (237 ) 266 Interest and dividend income from trading securities 294 342 287 Net investment income (loss) from trading securities $ 796 $ 105 $ 553 Investment Gains (Losses), Net Investment gains (losses), net including changes in the valuation allowances and OTTI are as follows: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities $ 205 $ (75 ) $ (194 ) Mortgage loans on real estate (1 ) — 2 Real estate held for the production of income 2 — — Other equity investments — — 2 Other (133 ) (11 ) (1 ) Investment gains (losses), net $ 73 $ (86 ) $ (191 ) For the years ended December 31, 2019 , 2018 , and 2017 , respectively, investment results passed through to certain participating group annuity contracts as Interest credited to policyholders’ account balances totaled $2 million , $3 million and $3 million . |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Equitable Holdings, Inc. (which removed “AXA” from its name on January 13, 2020, “Holdings” and, with its consolidated subsidiaries, the “Company”) is the holding company for a diversified financial services organization. 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: AXA Advisors, LLC (“Equitable 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. Prior to the closing of the initial public offering of shares of Holdings’ common stock on May 14, 2018 (the “IPO”), Holdings was a wholly-owned subsidiary of AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty, and health insurance and asset management. AXA sold approximately 158 million of Holdings common stock to the public in the IPO. On November 20, 2018, AXA sold an additional 60 million shares of Holdings common stock to the public in a registered offering, and concurrently Holdings repurchased 30 million shares of its common stock from AXA. On March 25, 2019, AXA sold an additional 40 million shares of Holdings common stock to the public in a registered offering, and concurrently Holdings repurchased 30 million shares of its common stock from AXA. On June 7, 2019, AXA sold an additional 40 million shares of Holdings common stock to the public in a registered offering. On November 13, 2019, AXA sold an additional 144 million shares of Holdings common stock to the public in a registered offering, and concurrently Holdings repurchased 24 million shares of its common stock from AXA which decreased AXA’s ownership in Holdings from approximately 39% to approximately 10% . As a result, A XA was deemed to no longer control or significantly influence EQH, and consequently AXA and its affiliates (collectively, “AXA Affiliates”) were no longer considered related parties of the Company . On December 10, 2019, AXA sold an additional 3 million shares of Holdings common stock. As of December 31, 2019 , AXA owns less than 10% of the outstanding common stock of Holdings. At both December 31, 2019 and December 31, 2018 , the Company’s economic interest in AB was approximately 65% . 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 | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation. Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The years “ 2019 ”, “ 2018 ” and “ 2017 ” refer to the years ended December 31, 2019 , 2018 and 2017 , respectively. Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2016-02: Leases (Topic 842) This ASU contains revised guidance to lease accounting that requires 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 remains 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 were not adjusted or presented under this method. We applied several practical expedients offered by ASC 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 $1.0 billion 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 10 for additional information. 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 2017-12: Derivatives and Hedging (Topic 815), as clarified and amended by ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments The amendments in these ASUs 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. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2016-13: Financial Instruments—Credit Losses (Topic 326), as clarified and amended by ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05: Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief, ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments-Credit Losses ASU 2016-13 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. ASU 2019-05 provides entities that have instruments within the scope of Subtopic 326-20 an option to irrevocably elect the fair value option on an instrument-by instrument basis upon adoption of Topic 326. ASU 2018-19, ASU 2019-04 and ASU 2019-11, clarified the codification guidance and did not materially change the standard. Effective for fiscal years beginning after December 15, 2019, 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. The Company will implement its updated expected credit loss models, processes and controls related to the identified financial assets that fall within the scope of the new standard as of the date of adoption, January 1, 2020. Management currently anticipates that the standard will have the most impact to its commercial and agricultural mortgage loan portfolios. Based on current economic conditions, the structure and size of the Company’s loan portfolio and other assets impacted by the standard as of December 31, 2019, the Company expects application of the current expected credit loss requirements will result in an immaterial reduction to retained earnings as of the date of adoption. ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2019-09: Financial Services - Insurance (Topic 944): Effective Date 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. In November 2019, ASU 2019-09 was issued which modified ASU 2018-12 to be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. 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. The Company is currently 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 the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2019-09: Financial Services - Insurance (Topic 944): Effective Date continued Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. 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 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 impact the disclosure requirements in Topic 820, including the removal, modification and addition to existing disclosure 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 disclosure requirements delayed until the stated 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. The Company elected to early adopt during 2019 the removed disclosures relating to transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and valuation processes for Level 3 fair value measurements. The Company will delay adoption of the additional disclosures until their effective date on January 1, 2020. 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. The Company will adopt this new standard effective for January 1, 2020. Management does not expect the adoption of this standard to materially impact the Company’s financial position or results of operations. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact adopting the guidance will have on the Company’s consolidated financial statements, however the adoption is not expected to materially impact the Company’s financial position, results of operation, or cash flows. Investments The carrying values of fixed maturities classified as available-for-sale (“AFS”) are reported at fair value. Changes in fair value are reported in other comprehensive income (“OCI”). The amortized cost of fixed maturities is adjusted for impairments in value deemed to be other than temporary which are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include real estate investment trusts (“REIT”), perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, monitors the investment performance of its portfolio and reviews AFS securities with unrealized losses for other-than-temporary impairments (“OTTI”). Integral to this review is an assessment made each quarter, on a security-by-security basis, by the Company’s Investments Under Surveillance (“IUS”) Committee, of various indicators of credit deterioration to determine whether the investment security is expected to recover. This assessment includes, but is not limited to, consideration of the duration and severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity and continued viability of the issuer. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting OTTI is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value . Real estate held for the production of income is stated at depreciated cost less valuation allowances. Depreciation of real estate held for production of income is computed using the straight-line method over the estimated useful lives of the properties, which generally range from 40 to 50 years. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag . Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss). Corporate owned life insurance (“COLI”) has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. At December 31, 2019 , 2018 and 2017 , the carrying value of COLI was $944 million , $872 million and $918 million , respectively, and is reported in Other invested assets in the consolidated balance sheets. Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act. All securities owned, including U.S. government and agency securities, mortgage-backed securities, futures and forwards transactions, are reported in the consolidated financial statements on a trade-date basis . Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the over-the-counter market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “Other invested assets” or as liabilities within “Other liabilities”. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related Credit Support Annex (“CSA”) have been executed. The Company uses derivatives to manage asset/liability risk and has designated some of those economic relationships under the criteria to qualify for hedge accounting treatment. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “Net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When those criteria are satisfied, the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. Securities Repurchase and Reverse Repurchase Agreements Securities repurchase and reverse repurchase transactions involve the temporary exchange of securities for cash or other collateral of equivalent value, with agreement to redeliver a like quantity of the same or similar securities at a future date prior to maturity at a fixed and determinable price. Transfers of securities under these agreements to repurchase or resell are evaluated by the Company to determine whether they satisfy the criteria for accounting treatment as secured borrowing or lending arrangements. Agreements not meeting the criteria would require recognition of the transferred securities as sales or purchases with related forward repurchase or resale commitments. All of the Company’s securities repurchase transactions are accounted for as collateralized borrowings with the related obligations distinctly captioned in the consolidated balance sheets. Earnings from investing activities related to the cash received under the Company’s securities repurchase arrangements are reported in the consolidated statements of income (loss) as “Net investment income” and the associated borrowing cost is reported as “Interest expense.” The Company has not actively engaged in securities reverse repurchase transactions. Commercial and Agricultural Mortgage Loans on Real Estate Mortgage loans are stated at unpaid principal balances, net of unamortized discounts, premiums and valuation allowances. Valuation allowances are based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value if the loan is collateral dependent. However, if foreclosure is or becomes probable, the collateral value measurement method is used. For commercial and agricultural mortgage loans, an allowance for credit loss is typically recommended when management believes it is probable that principal and interest will not be collected according to the contractual terms. Factors that influence management’s judgment in determining allowance for credit losses include the following: • Loan-to-value ratio – Derived from current loan balance divided by the fair market value of the property. An allowance for credit loss is typically recommended when the loan-to-value ratio is in excess of 100%. In the case where the loan-to-value is in excess of 100%, the allowance for credit loss is derived by taking the difference between the fair market value (less cost of sale) and the current loan balance. • Debt service coverage ratio – Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. • Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. • Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. • Maturity – Mortgage loans that are not fully amortizing and have upcoming maturities within the next 12 to 24 months are monitored in conjunction with the capital markets to determine the borrower’s ability to refinance the debt and/or pay off the balloon balance. • Borrower/tenant related issues – Financial concerns, potential bankruptcy or words or actions that indicate imminent default or abandonment of property. • Payment status (current vs. delinquent) – A history of delinquent payments may be a cause for concern. • Property condition – Significant deferred maintenance observed during the lenders annual site inspections. • Other – Any other factors such as current economic conditions may call into question the performance of the loan. Mortgage loans also are individually evaluated quarterly by the Company’s IUS Committee for impairment, including an assessment of related collateral value. Commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgages. Based on its monthly monitoring of mortgages, a class of potential problem mortgages are also identified, consisting of mortgage loans not currently classified as problem mortgages but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being restructured. The decision whether to classify a performing mortgage loan as a potential problem involves significant subjective judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. For problem mortgage loans, a valuation allowance is established to provide for the risk of credit losses inherent in the lending process. The allowance includes loan specific reserves for mortgage loans determined to be non-performing as a result of the loan review process. A non-performing loan is defined as a loan for which it is probable that amounts due according to the contractual terms of the loan agreement will not be collected. The loan-specific portion of the loss allowance is based on the Company’s assessment as to ultimate collectability of loan principal and interest. Valuation allowances for a non-performing loan are recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral if the loan is collateral dependent. The valuation allowance for mortgage loans can increase or decrease from period to period based on such factors. Impaired mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Changes in the present value attributable to changes in the amount or timing of expected cash flows are reported as investment gains or losses. Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is doubtful. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the valuation allowances are included in Investment gains (losses), net. Realized and unrealized holding gains (losses) on trading and equity securities are reflected in Net investment income (loss). Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies. Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. See Note 8 for additional information regarding determining the fair value of financial instruments. Recognition of Insurance Income and Related Expenses Deposits related to universal life (“UL”) and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances. Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC. For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit pay |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 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 Company bought interest rate swaptions during the second quarter of 2019 to reduce the impact of unfavorable changes in interest rates. 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. This reinsurance of the GMIB features is accounted for as a derivative. The Company has in place an economic hedge program using interest rate swaps and treasury futures to partially protect the overall profitability of future variable annuity sales against declining interest rates. 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 to Hedge Equity Market Risks Associated with the General Account’s Seed Money Investments in Retail Mutual Funds The Company’s General Account seed money investments in retail mutual funds expose us to market risk, including equity market risk which is partially hedged through equity-index futures contracts to minimize such risk. Derivatives Used to Hedge Universal Life Products with Secondary Guarantee Policy The Company implemented a hedge program using fixed income total return swaps to mitigate the interest rate exposure in ULSG statutory liability. 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 derivative gains (losses). 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 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 June 2019, the Company terminated 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. The Company terminated $3.9 billion , in notional, of total return swaps reported in other invested assets in the Company’s balance sheet. The terminated total return swaps had a gain of $121 million . 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 December 31, 2019 Fair Value Gains (Losses) Reported in Net Income (Loss) Year Ended December 31, 2019 Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 4,257 $ 1 $ 1 $ (1,311 ) Swaps 17,156 9 281 (2,426 ) Options 47,861 5,098 1,752 2,229 Interest rate contracts: Swaps 23,793 468 526 2,037 Futures 20,901 — — 145 Swaptions 3,201 16 — (35 ) Credit contracts: Credit default swaps 1,400 21 6 9 Other freestanding contracts: Foreign currency contracts 559 12 9 (9 ) Margin — 155 — — Collateral — 74 3,016 — Embedded Derivatives (2): GMIB reinsurance contracts 2,139 — 435 GMxB derivative features liability (3) — — 8,432 (2,432 ) SCS, SIO, MSO and IUL indexed features (4) — — 3,268 (2,642 ) Net derivative gains (losses) (4,000 ) Total $ 119,128 $ 7,993 $ 17,291 $ (4,000 ) ______________ (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. Derivative Instruments by Category At December 31, 2018 Fair Value Gains (Losses) Reported in Net Income (Loss) Year Ended December 31, 2018 Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 11,143 $ 2 $ 3 $ 541 Swaps 7,796 143 168 715 Options 21,821 2,133 1,164 (899 ) Interest rate contracts: Swaps 27,116 634 196 (656 ) Futures 11,792 — — 112 Credit contracts: Credit default swaps 1,376 20 3 (2 ) Other freestanding contracts: Foreign currency contracts 2,184 35 22 6 Margin — 18 5 — Collateral — 8 1,581 — Embedded Derivatives (2): GMIB reinsurance contracts — 1,732 — (162 ) GMxB derivative features liability (3) — — 5,614 (775 ) SCS, SIO, MSO and IUL indexed features (4) — — 715 889 Net derivative gains (losses) (231 ) Cross currency swaps (5) (6) — — — 9 Total $ 83,228 $ 4,725 $ 9,471 $ (222 ) ______________ (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 December 31, 2019 are exchange-traded and net settled daily in cash. At December 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 $252 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 $166 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 $60 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 December 31, 2019 and 2018 , respectively, the Company held $3.0 billion and $1.6 billion 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 $74 million and $8 million at December 31, 2019 and 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 December 31, 2019 and 2018 , the balance outstanding under securities repurchase transactions was $0 million 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 liability management purposes, see “Obligations under Funding Agreements” in Note 17 - Commitments and Contingent Liabilities . The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments at December 31, 2019 : Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2019 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Total derivatives (1) $ 5,852 $ 5,466 $ 386 $ (77 ) $ 309 Other financial instruments 2,367 — 2,367 — 2,367 Other invested assets $ 8,219 $ 5,466 $ 2,753 $ (77 ) $ 2,676 Liabilities: Total derivatives (2) $ 5,512 $ 5,466 $ 46 $ — $ 46 Other financial liabilities 3,924 — 3,924 — 3,924 Other liabilities $ 9,436 $ 5,466 $ 3,970 $ — $ 3,970 ______________ (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) Includes primarily financial instrument sent (held). The Company had no Securities sold under agreement to repurchase at December 31, 2019 . The following table presents information about the Company’s offsetting of 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 Gross Amount not Offset in the Balance Sheets (6) Net Amount (in millions) Assets: Total derivatives (1) $ 2,993 $ 2,945 $ 48 $ — $ 48 Other financial instruments 1,989 — 1,989 — 1,989 Other invested assets $ 4,982 $ 2,945 $ 2,037 $ — $ 2,037 Liabilities: Total derivatives (2) $ 3,142 $ 2,945 $ 197 $ — $ 197 Other financial liabilities 3,163 — 3,163 — 3,163 Other liabilities $ 6,305 $ 2,945 $ 3,360 $ — $ 3,360 Securities sold under agreement to repurchase (3) (4) (5) $ 571 $ — $ 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 included in Securities sold under agreement to repurchase on the consolidated balance sheets. (4) U.S. Treasury and agency securities are in Fixed maturities available for sale on consolidated balance sheets. (5) Cash is included in Cash and cash equivalents on consolidated balance sheets. (6) Includes primarily financial instrument sent (held). 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 Up to 30 days 30-90 days Greater Than 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. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of purchase price over the estimated fair value of identifiable net assets acquired in a business combination. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment. The carrying value of goodwill from the Company’s Investment Management reporting unit totaled $4.6 billion at both December 31, 2019 and 2018 , resulting from its investment in AB as well as direct strategic acquisitions of AB, including its purchase of Sanford C. Bernstein, Inc. For purpose of testing this goodwill for impairment, the Company applied a discounted cash flow valuation technique to measure the fair value of the reporting unit, sourcing the underlying cash flows and assumptions from AB’s current business plan projections and adjusting the result to reflect the noncontrolling interest in AB as well as incremental taxes at the Company level as related to the form and structure of its investment in AB. At December 31, 2019 and 2018 , the Company’s annual testing resulted in no impairment of this goodwill, as the fair value of the reporting unit exceeded its carrying amount at each respective date. The Company had recognized an impairment loss of $ 369 million on goodwill during the first quarter of 2017 as a result of the adoption of new goodwill guidance on January 1, 2017 as further described in Note 2 . Other Intangible Assets The Company’s intangible assets primarily relate to the Bernstein Acquisition and purchases of AB Units and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization. The gross carrying amount of AB-related intangible assets was $917 million at December 31, 2019 and $909 million at December 31, 2018 , and the accumulated amortization of these intangible assets was $746 million and $702 million at December 31, 2019 and 2018 , respectively. Amortization expense for AB-related intangible assets totaled $44 million , $43 million and $44 million for 2019 , 2018 and 2017 , respectively. Estimated annual amortization expense for each of the next five years is approximately $37 million , $21 million , $19 million , $17 million and $17 million , respectively. On June 20, 2014, AB acquired an 81.7% ownership interest in CPH Capital Fondsmaeglerselskab A/S (“CPH”), a Danish asset management firm that manages global core equity assets for institutional investors. AB purchased additional shares of CPH, bringing its ownership interest to 100% as of December 31, 2019 . The acquisitions described above did not have a significant impact on the Company’s consolidated revenues or net income. As a result, supplemental pro forma information has not been provided. Additional information regarding the contingent payment obligations associated with these and other acquisitions made by AB is included in Note 8 , Fair Value Disclosures. |
CLOSED BLOCK
CLOSED BLOCK | 12 Months Ended |
Dec. 31, 2019 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK As a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders. Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s General Account, any of its Separate Accounts or any affiliate of the Company without the approval of the New York State Department of Financial Services (the “NYDFS”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in AOCI) represents the expected maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, the Company has developed an actuarial calculation of the expected timing of the Closed Block’s earnings. If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block. Many expenses related to Closed Block operations, including amortization of DAC, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block. Summarized financial information for the Company’s Closed Block is as follows: December 31, 2019 2018 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,478 $ 6,709 Policyholder dividend obligation 2 — Other liabilities 38 47 Total Closed Block liabilities 6,518 6,756 Assets Designated to the Closed Block: Fixed maturities available-for-sale, at fair value (amortized cost of $3,558 and $3,680) 3,754 3,672 Mortgage loans on real estate, net of valuation allowance of $- and $- 1,759 1,824 Policy loans 706 736 Cash and other invested assets 82 76 Other assets 145 179 Total assets designated to the Closed Block 6,446 6,487 Excess of Closed Block liabilities over assets designated to the Closed Block 72 269 Amounts included in Accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $(2) and $0; and net of income tax: $41 and $0 164 8 Maximum future earnings to be recognized from closed block assets and liabilities $ 236 $ 277 The Company’s Closed Block revenues and expenses were as follows: Years ended December 31, 2019 2018 2017 (in millions) Revenues: Premiums and other income $ 182 $ 194 $ 224 Net investment income (loss) 278 291 314 Investment gains (losses), net (1 ) (3 ) (20 ) Total revenues 459 482 518 Benefits and Other Deductions: Policyholders’ benefits and dividends 439 471 537 Other operating costs and expenses 2 3 2 Total benefits and other deductions 441 474 539 Net income (loss), before income taxes 18 8 (21 ) Income tax (expense) benefit (2 ) (3 ) (36 ) Net income (loss) $ 16 $ 5 $ (57 ) A reconciliation of the Company’s policyholder dividend obligation follows: December 31, 2019 2018 2017 (in millions) Balance, beginning of year $ — $ 19 $ 52 Unrealized investment gains (losses) 2 (19 ) (33 ) Balance, end of year $ 2 $ — $ 19 |
DAC AND POLICYHOLDER BONUS INTE
DAC AND POLICYHOLDER BONUS INTEREST CREDITS | 12 Months Ended |
Dec. 31, 2019 | |
Contract holder Bonus Interest Credits [Abstract] | |
DAC and Policyholder Bonus Interest Credits | DAC AND POLICYHOLDER BONUS INTEREST CREDITS Changes in the deferred policy acquisition cost asset for the years ended December 31, 2019 , 2018 and 2017 were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Balance, beginning of year $ 6,745 $ 5,919 $ 6,049 Capitalization of commissions, sales and issue expenses 754 701 687 Amortization: Impact of assumptions updates and model changes 46 286 112 All other (625 ) (619 ) (615 ) Total amortization (579 ) (333 ) (503 ) Change in unrealized investment gains and losses (999 ) 458 (314 ) Reclassified to Assets held-for-sale (31 ) — — Balance, end of year $ 5,890 $ 6,745 $ 5,919 The deferred asset for policyholder bonus interest credits is reported in Other assets in the Consolidated balance sheets and changes in the deferred asset for policyholder bonus interest credits are reported in Interest credited to policyholders’ account balances . For the years ended December 31, 2019 , 2018 and 2017 changes were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Balance, beginning of year $ 426 $ 473 $ 504 Policyholder bonus interest credits deferred — 4 7 Amortization charged to income 4 (51 ) (38 ) Balance, end of year $ 430 $ 426 $ 473 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 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 December 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 impairment or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. Fair Value Measurements at December 31, 2019 (1) Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Corporate (2) $ — $ 46,942 $ 1,257 $ 48,199 U.S. Treasury, government and agency — 15,394 — 15,394 States and political subdivisions — 666 39 705 Foreign governments — 492 — 492 Residential mortgage-backed (3) — 191 — 191 Asset-backed (4) — 749 100 849 Redeemable preferred stock 239 274 — 513 Total fixed maturities, available-for-sale 239 64,708 1,396 66,343 Other equity investments 13 — 97 110 Trading securities 500 6,495 36 7,031 Other invested assets: Short-term investments — 490 — 490 Assets of consolidated VIEs/VOEs 132 457 17 606 Swaps — (327 ) — (327 ) Credit default swaps — 15 — 15 Options — 3,346 — 3,346 Swaptions — 16 — 16 Total other invested assets 132 3,997 17 4,146 Cash equivalents 3,497 — — 3,497 Segregated securities — 1,095 — 1,095 GMIB reinsurance contracts asset — — 2,139 2,139 Separate Accounts assets (5) 123,432 2,892 — 126,324 Total Assets $ 127,813 $ 79,187 $ 3,685 $ 210,685 Liabilities GMxB derivative features’ liability $ — $ — $ 8,432 $ 8,432 SCS, SIO, MSO and IUL indexed features’ liability — 3,268 — 3,268 Liabilities of consolidated VIEs and VOEs 1 9 — 10 Contingent payment arrangements — — 23 23 Total Liabilities $ 1 $ 3,277 $ 8,455 $ 11,733 ______________ (1) Excludes amounts reclassified as Held-for-Sale. (2) Corporate fixed maturities includes both public and private issues. (3) Includes publicly traded agency pass-through securities and collateralized obligations. (4) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. At December 31, 2019 the fair value of such investments was $356 million . 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 Level 1 Level 2 Level 3 Total (in millions) 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 (4) 106,994 2,747 21 109,762 Total Assets $ 111,191 $ 65,977 $ 3,662 $ 180,830 Liabilities GMxB derivative features’ liability $ — $ — $ 5,614 $ 5,614 SCS, SIO, MSO and IUL indexed features’ liability — 715 — 715 Liabilities of consolidated VIEs and 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. (4) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. At December 31, 2018 the fair value of such investments was $353 million . 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. 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. 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, IUL and 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 one, three, five or six 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 and asset-backed securities. 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 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 $110 million and $112 million at December 31, 2019 and 2018 , respectively, to recognize incremental counterparty non-performance risk and reduced the fair value of its GMIB reinsurance contract liabilities by $25 million and $41 million at December 31, 2019 and 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 2016 and 2019 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. In 2019 , AFS fixed maturities with fair values of $540 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 $14 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 3.7% of total equity at December 31, 2019 . In 2018 , AFS fixed maturities with fair values of $28 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 $89 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.8% of total equity at December 31, 2018 . The tables below present reconciliations for all Level 3 assets and liabilities at December 31, 2019 , 2018 and 2017 respectively: Level 3 Instruments - Fair Value Measurements Corporate State and Commercial Asset- Redeemable Preferred Stock (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) 4 — — — — Investment gains (losses), net — 1 — — — Subtotal 4 1 — — Other comprehensive income (loss) 5 2 — 1 — Purchases 274 — — 100 — Sales (122 ) (3 ) — (84 ) — Transfers into Level 3 (1) 14 — — — — Transfers out of Level 3 (1) (104 ) — — (436 ) — Balance, December 31, 2019 $ 1,257 $ 39 $ — $ 100 $ — Balance, January 1, 2018 $ 1,150 $ 40 $ — $ 541 $ 1 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 8 — — — — Investment gains (losses), net (9 ) — — — — Subtotal (1 ) — — — Other comprehensive income (loss) (21 ) (1 ) — (9 ) — Purchases 334 — — 17 — Sales (337 ) (1 ) — (30 ) (1 ) Transfers into Level 3 (1) 89 1 — — — Transfers out of Level 3 (1) (28 ) — — — — Balance, December 31, 2018 $ 1,186 $ 39 $ — $ 519 $ — Balance, January 1, 2017 $ 857 $ 42 $ 373 $ 120 $ 1 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 4 — (2 ) — — Investment gains (losses), net 1 — (95 ) 15 — Subtotal 5 — (97 ) 15 Other comprehensive income (loss) 4 (1 ) 78 (7 ) — Purchases 615 — — 434 — Sales (333 ) (1 ) (354 ) (21 ) — Transfers into Level 3 (1) 7 — — — — Transfers out of Level 3 (1) (5 ) — — — — Balance, December 31, 2017 $ 1,150 $ 40 $ — $ 541 $ 1 _____________ (1) Transfers into/out of the Level 3 classification are reflected at beginning of period fair values. Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2019 $ 165 $ 1,732 $ 21 $ (5,614 ) $ (7 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Investment gains (losses), net 4 — — — — Net derivative gains (losses), excluding non-performance risk — 412 — (3,240 ) — Non-performance risk (1) — 23 — 808 — Subtotal 4 435 — (2,432 ) — Other comprehensive income (loss) 24 — — — — Purchases (2) 14 44 — (427 ) (17 ) Sales (3) (16 ) (72 ) (1 ) 41 — Settlements (4) — — (2 ) — 1 Change in estimate — — — — 3 Activity related to consolidated VIEs/VOEs (3 ) — — — (3 ) Transfers into Level 3 (5) — — — — — Transfers out of Level 3 (5) (38 ) — (18 ) — — Balance, December 31, 2019 $ 150 $ 2,139 $ — $ (8,432 ) $ (23 ) Balance, January 1, 2018 $ 99 $ 1,894 $ 22 $ (4,451 ) $ (15 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Investment gains (losses), net (3 ) — — — — Net derivative gains (losses), excluding non-performance risk — (131 ) — (1,272 ) — Non-performance risk (1) — (33 ) — 497 — Subtotal (3 ) (164 ) — (775 ) — Other comprehensive income(loss) 15 — — — — Purchases (2) 62 46 5 (412 ) — Sales (3) (3 ) (44 ) (1 ) 24 — Settlements (4) — — (5 ) — 6 Change in estimate — — — — 2 Activity related to consolidated VIEs/VOEs (6 ) — — — — Transfers into Level 3 (5) 6 — — — — Transfers out of Level 3 (5) (5 ) — — — — Balance, December 31, 2018 $ 165 $ 1,732 $ 21 $ (5,614 ) $ (7 ) Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2017 $ 88 $ 1,735 $ 17 $ (5,731 ) $ (25 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — Investment gains (losses), net — — (1 ) — — Net derivative gains (losses), excluding non-performance risk — 171 — 1,809 — Non-performance risk (1) — 3 — (157 ) — Subtotal — 174 (1 ) 1,652 — Other comprehensive income (loss) 14 — — — — Purchases (2) 22 48 12 (393 ) — Sales (3) (3 ) (63 ) (2 ) 21 — Settlements (4) — — (4 ) — 10 Activity related to consolidated VIEs/VOEs (22 ) — — — — Transfers into Level 3 (5) — — — — — Transfers out of Level 3 (5) — — — — — Balance, December 31, 2017 $ 99 $ 1,894 $ 22 $ (4,451 ) $ (15 ) ______________ (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 GMxB derivative features liability represents benefits paid. (4) For contingent payment arrangements, it represents payments under the arrangement. (5) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. The table below details changes in unrealized gains (losses) for 2019 , 2018 and 2017 by category for Level 3 assets and liabilities still held at December 31, 2019 , 2018 and 2017 respectively. Change in Unrealized Gains (Losses) for Level 3 Instruments Earnings (Loss) Net Derivative Gains (Losses) OCI (in millions) Held at December 31, 2019: Change in unrealized gains (losses): Fixed maturities, available-for-sale Corporate $ — $ 4 State and political subdivisions — 3 Subtotal — 7 GMIB reinsurance contracts 435 — GMxB derivative features liability (2,432 ) — Total $ (1,997 ) $ 7 Earnings (Loss) Net Derivative Gains (Losses) OCI (in millions) Held at December 31, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale Corporate $ — $ (19 ) State and political subdivisions — (1 ) Asset-backed — (6 ) Subtotal — (26 ) GMIB reinsurance contracts (164 ) — GMxB derivative features liability (775 ) — Total $ (939 ) $ (26 ) Held at December 31, 2017: Change in unrealized gains (losses): Fixed maturities, available-for-sale Corporate $ — $ 5 State and political subdivisions — (1 ) Asset-backed — 1 Subtotal — 5 GMIB reinsurance contracts 174 — GMxB derivative features liability 1,652 — Total $ 1,826 $ 5 The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities at December 31, 2019 and 2018 , respectively. Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 57 Matrix pricing model Spread over Benchmark 65 - 580 bps 184 bps 1,025 Market EBITDA multiples 3.3x - 56.7x 14.3x Other equity investments 36 Discounted cash flow Earnings multiple 8.0x GMIB reinsurance contract asset 2,139 Discounted cash flow Non-performance risk 55 - 109 bps Liabilities: GMIBNLG 8,128 Discounted cash flow Non-performance risk 124 bps Assumed GMIB Reinsurance Contracts 186 Discounted cash flow Non-performance risk 0.61% - 1.41% GWBL/GMWB 109 Discounted cash flow Non-performance risk 124.0 bps GIB 5 Discounted cash flow Non-performance risk 124.0 bps GMAB 4 Discounted cash flow Lapse rates 1.0% - 10.0% ______________ (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 GMIB reinsurance contract asset 1,732 Discounted Cash flow Non-performance risk 74 - 159 bps Liabilities: GMIBNLG 5,341 Discounted cash flow Non-performance risk 189 bps Assumed GMIB Reinsurance Contracts 183 Discounted cash flow Non-performance risk 1.1% - 2.4% GWBL/GMWB 130 Discounted cash flow Non-performance risk 189 bps GIB (48 ) Discounted cash flow Non-performance risk 189 bps 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 December 31, 2019 and 2018 , respectively, are approximately $428 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 December 31, 2019 and 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 December 31, 2019 and 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 have resulted 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 multipl |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 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 without no-NLG guarantee rider 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 Years Ended December 31, 2019 , 2018 and 2017 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance at January 1, 2017 $ 3,164 $ 121 $ (90 ) $ 3,802 $ 258 $ (1,737 ) Paid guarantee benefits (354 ) (21 ) 14 (151 ) (59 ) 63 Other changes in reserve 1,249 (5 ) (32 ) 1,101 (4 ) (220 ) Balance at December 31, 2017 4,059 95 (108 ) 4,752 195 (1,894 ) Paid guarantee benefits (393 ) (24 ) 16 (153 ) (12 ) 44 Other changes in reserve 993 11 (21 ) (856 ) 1 118 Balance at December 31, 2018 4,659 82 (113 ) 3,743 184 (1,732 ) GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Paid guarantee benefits (438 ) (21 ) 14 (256 ) 7 72 Other changes in reserve 563 15 (6 ) 1,204 (4 ) (479 ) Balance at December 31, 2019 $ 4,784 $ 76 $ (105 ) $ 4,691 $ 187 $ (2,139 ) 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 8 . 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 December 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 December 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 $ 14,571 $ 92 $ 58 $ 175 $ 14,896 Separate Accounts 48,920 9,258 3,190 33,120 94,488 Total Account Values $ 63,491 $ 9,350 $ 3,248 $ 33,295 $ 109,384 Net Amount at Risk, gross $ 108 $ 36 $ 1,833 $ 17,729 $ 19,706 Net Amount at Risk, net of amounts reinsured $ 108 $ 34 $ 1,280 $ 17,729 $ 19,151 Average attained age of policyholders (in years) 51.1 67.6 74.3 69.4 55.0 Percentage of policyholders over age 70 10.5 % 45.6 % 68.1 % 50.7 % 19.3 % Range of contractually specified interest rates N.A. N.A. 3% - 6% 3% - 6.5% 3% - 6.5% Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 19 $ 226 $ 245 Separate Accounts — — 23,572 35,776 59,348 Total Account Values $ — $ — $ 23,591 $ 36,002 $ 59,593 Net Amount at Risk, gross $ — $ — $ 857 $ 9,344 $ 10,201 Net Amount at Risk, net of amounts reinsured $ — $ — $ 270 $ 8,482 $ 8,752 Average attained age of policyholders (in years) N.A. N.A. 68.8 69.5 69.4 Weighted average years remaining until annuitization N.A. N.A. 1.6 0.3 0.4 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 December 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 $ 931 $ 5,278 $ 266 $ 1,155 $ 7,630 Net Amount at Risk assumed $ 5 $ 237 $ 16 $ 152 $ 410 Average attained age of policyholders (in years) 68 73 77 75 73 Percentage of policyholders over age 70 44.8 % 64.3 % 79.8 % 75.2 % 64.1 % 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 $ 900 $ 44 $ 239 $ 1,185 $ 2,368 Net Amount at Risk assumed $ 1 $ — $ 30 $ 281 $ 312 Average attained age of policyholders (in years) 72 74 72 69 71 Percentage of policyholders over age 70 64.1 % 62.1 % 60.9 % 52.8 % 58.1 % 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” in Note 11 . 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 December 31, 2019 2018 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 42,489 $ 17,941 $ 35,541 $ 15,759 Fixed income 5,263 2,699 5,173 2,812 Balanced 45,871 38,445 41,588 33,974 Other 865 263 852 290 Total $ 94,488 $ 59,348 $ 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 fair value of the NLG feature, reflected in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability (1) (in millions) Balance at January 1, 2017 $ 1,311 Paid guarantee benefits (24 ) Other changes in reserves (578 ) Balance at December 31, 2017 709 Paid guarantee benefits (23 ) Other changes in reserves 126 Balance at December 31, 2018 812 Paid guarantee benefits (20 ) Other changes in reserves 128 Balance at December 31, 2019 $ 920 ______________ (1) There were no amounts of reinsurance ceded in any period presented. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company does not record leases with an initial term of 12 months or less in its consolidated balance sheets, but instead recognizes lease expense for these leases on a straight-line basis over the lease term. For leases with a term greater than one year, the Company records in its consolidated balance sheets 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 consolidated statements of income over the lease term on a straight-line basis. RoU operating lease assets represent the Company’s right to use an underlying asset for the lease term and RoU operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company's operating leases primarily consist of real estate leases for office space. The Company also has operating leases for various types of office furniture and equipment. For certain equipment leases, the Company applies a portfolio approach to effectively account for the RoU operating lease assets and liabilities. For certain lease agreements entered into after the adoption of ASC 842 or for lease agreements for which the lease term or classification was reassessed after the occurrence of a change in the lease terms or a modification of the lease that did not result in a separate contract , 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 operating lease 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 operating asset or lease liability unless they are reasonably certain to be exercised. The Company's operating leases have remaining lease terms of 1 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 operating leases do not provide an implicit rate, the Company’s incremental borrowing rate, based on the information available at the lease commencement date, is used in determining the present value of lease payments. The Company primarily subleases floor space within its New Jersey and New York lease properties to various third parties. The lease term for these subleases typically corresponds to the original lease term. Balance Sheet Classification of Operating Lease Assets and Liabilities Balance Sheet Line Item December 31, 2019 (in millions) Assets: Operating lease assets Other Assets $ 687 Liabilities: Operating lease liabilities Other Liabilities $ 883 The table below summarizes the components of lease costs for the y ear ended December 31, 2019 . Lease Costs Year Ended December 31, 2019 (in millions) Operating lease cost $ 186 Variable operating lease cost 50 Sublease income (72 ) Short-term lease expense 2 Net lease cost $ 166 Maturities of lease liabilities as of December 31, 2019 are as follows: Maturities of Lease Liabilities December 31, 2019 (in millions) Operating Leases: 2020 $ 207 2021 198 2022 181 2023 164 2024 102 Thereafter 114 Total lease payments 966 Less: Interest (83 ) Present value of lease liabilities $ 883 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 . During December 2018, Equitable Life entered into one additional operating real estate lease with an estimated total base rent of $ 11 million. This operating lease commenced in August 2019 with a lease term of 10 years. During October 2018, AB signed a lease, which commences in mid-2020, relating to 218,976 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 $134 million . The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate. Weighted Averages - Remaining Operating Lease Term and Discount Rate December 31, 2019 Weighted-average remaining operating lease term 6 years Weighted-average discount rate for operating leases 3.32 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Year Ended December 31, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 222 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 50 The following table presents the Company’s future minimum lease obligation under ASC 840 as of December 31, 2018 : December 31, 2018 (in millions) Calendar Year 2019 $ 212 2020 $ 186 2021 $ 181 2022 $ 166 2023 $ 155 Thereafter $ 293 |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Agreements | REINSURANCE The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability. The following table summarizes the effect of reinsurance: Years Ended December 31, 2019 2018 2017 (in millions) Direct premiums $ 1,068 $ 1,012 $ 1,038 Reinsurance assumed 220 214 225 Reinsurance ceded (141 ) (132 ) (139 ) Premiums $ 1,147 $ 1,094 $ 1,124 Direct charges and fee income $ 4,157 $ 4,242 $ 4,074 Reinsurance ceded (419 ) (418 ) (381 ) Policy charges and fee income $ 3,738 $ 3,824 $ 3,693 Direct policyholders’ benefits $ 4,696 $ 3,269 $ 4,562 Reinsurance assumed 240 226 461 Reinsurance ceded (566 ) (580 ) (657 ) Policyholders’ benefits $ 4,370 $ 2,915 $ 4,366 Direct Interest credited to policyholders’ account balances $ 1,300 $ 1,140 $ 1,041 Reinsurance ceded (59 ) (50 ) (46 ) Interest credited to policyholders’ account balances $ 1,241 $ 1,090 $ 995 Ceded Reinsurance The Company reinsures most of its new variable life, UL and term life policies on an excess of retention basis. The Company generally retains on a per life basis up to $25 million for single lives and $30 million for joint lives with the excess 100% reinsured. The Company also reinsures risk on certain substandard underwriting risks and in certain other cases. Effective February 1, 2018, Equitable Life entered into a coinsurance reinsurance agreement (the “Coinsurance Agreement”) to cede 90% of its single premium deferred annuities (“SPDA”) products issued between 1978-2001 and its Guaranteed Growth Annuity (“GGA”) single premium deferred annuity products issued between 2001-2014. As a result of this agreement, Equitable Life transferred securities with a market value of $604 million and cash of $31 million to equal the statutory reserves of approximately $635 million . As the risks transferred by Equitable Life to the reinsurer under the Coinsurance Agreement are not considered insurance risks and therefore do not qualify for reinsurance accounting, Equitable Life applied deposit accounting. Accordingly, Equitable Life recorded the transferred assets of $635 million as a deposit asset recorded in Other assets, net of the ceding commissions paid to the reinsurer. At December 31, 2019 and 2018 , the Company had reinsured with non-affiliates in the aggregate approximately 2.8% and 2.9% , respectively, of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 14.2% and 15.5% of its current liability exposure, respectively, resulting from the GMIB feature. For additional information, see Note 9 . Based on management’s estimates of future contract cash flows and experience, the estimated net fair values of the ceded GMIB reinsurance contracts, considered derivatives, were $2.1 billion and $1.7 billion at December 31, 2019 and 2018 , respectively. The estimated fair values increased $407 million and $159 million during 2019 and 2017 , respectively, and decreased $162 million during 2018 . Third-party reinsurance recoverables related to insurance contracts amounted to $4.6 billion and $4.9 billion at December 31, 2019 and 2018 , respectively. Additionally, $2.6 billion and $2.8 billion of the amounts due from reinsurers relates to two reinsurers, Zurich Insurance Company, Ltd. ( AA- rating by S&P) and Protective Life Insurance Company ( AA- rating by S&P). At December 31, 2019 and 2018 , amounts due to reinsurers were $1.4 billion and $1.4 billion , respectively. Included in this balance were policy loans ceded to RGA Reinsurance Company of $1.2 billion and $1.2 billion , respectively and policy loans ceded to Protective Life of $119 million and $125 million , respectively. The Company cedes substantially all of its group health business to a third-party insurer. Insurance liabilities ceded totaled $57 million and $62 million at December 31, 2019 and 2018 , respectively. The Company also cedes a portion of its extended term insurance and paid-up life insurance and substantially all of its individual disability income business through various coinsurance agreements. Assumed Reinsurance In addition to the sale of insurance products, the Company currently assumes risk from professional reinsurers. The Company also has a run-off portfolio of assumed reinsurance liabilities at AXA Corporate Soluiions Life Reinsurance Company (“ACS Life”). The Company assumes accident, life, health, annuity (including products covering GMDB and GMIB benefits), aviation, special risk and space risks by participating in or reinsuring various reinsurance pools and arrangements. Reinsurance assumed reserves were $1.1 billion at December 31, 2019 and 2018 and included assumed GMIB reserves that had an estimated net fair value of $186 million and $183 million at December 31, 2019 and 2018 , respectively. For reinsurance agreements with affiliates, see “Related Party Transactions” in Note 13 . |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Debt | SHORT-TERM AND LONG-TERM DEBT Short-term and long-term debt consists of the following: As of December 31, 2019 2018 (in millions) Short-term debt: AB revolving credit facility $ — $ 25 AB commercial paper — 521 Total short-term debt — 546 As of December 31, 2019 2018 (in millions) Long-term debt: Senior Notes (5.0%, due 2048) 1,480 1,480 Senior Notes (4.35%, due 2028) 1,487 1,486 Senior Notes (3.9%, due 2023) 795 794 Delayed Draw Term Loan (one-month LIBOR + 1.125%, due 2021) — 300 Senior Debentures, 7.0%, due 2028 349 349 Total long-term debt 4,111 4,409 Total short-term and long-term debt $ 4,111 $ 4,955 As of December 31, 2019 , the Company is in compliance with all debt covenants. Short-term Debt AB Commercial Paper As of December 31, 2019 , AB had no commercial paper outstanding. As of December 31, 2018, AB had $523 million , in commercial paper outstanding with a weighted average interest rate of approximately 2.7% . The commercial paper is short term in nature, and as such, recorded value is estimated to approximate fair value (and considered a Level 2 security in the fair value hierarchy). Average daily borrowings of commercial paper for the 317 days commercial paper was outstanding in 2019 was $439 million with a weighted average interest rate of 2.6% . Average daily borrowings for 2018 were $350 million with a weighted average interest rate of 2.0% . AB Credit Facility On December 1, 2016, AB entered into a $200 million , unsecured 364 -day senior revolving credit facility (the “AB Credit Facility”) with a leading international bank and the other lending institutions that may be party thereto. On November 16, 2018, AB amended and restated the AB Credit Facility, extending the maturity date from November 28, 2018 to November 16, 2021. There were no other significant changes included in the amendment. The AB Credit Facility is available for AB’s and SCB LLC’s business purposes, including the provision of additional liquidity to meet funding requirements primarily related to SCB LLC’s operations. Both AB and SCB LLC can draw directly under the AB Credit Facility and management expects to draw on the AB Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Credit Facility. The AB Credit Facility contains affirmative, negative and financial covenants which are identical to those of the AB Credit Facility described below. As of December 31, 2019 , AB had no amounts outstanding under the AB Credit Facility. As of December 31, 2018 , AB had $25 million outstanding under the AB Credit Facility with interest rates of 3.4% . Average daily borrowings for 2019 and 2018 were $24 million and $19 million , respectively, with weighted average interest rates of 3.2% and 2.8% , respectively. Contingent Funding Arrangements In April 2019, pursuant to separate Purchase Agreements among Holdings, 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 an off-balance sheet contingent funding arrangement that, upon Holdings’ election, gives Holdings 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. In return, Holdings will pay a semi-annual facility fee to the 2029 Trust and 2049 Trust calculated at a rate of 2.125% and 2.715% per annum, respectively, which will be applied to the unexercised portion of the contingent funding arrangement and Holdings will reimburse the Trusts for certain expenses. The facility fees are recorded in Other operating costs and expenses in the Consolidated Statements of Income (Loss). Long-term Debt Holdings Senior Notes On April 20, 2018, Holdings issued $800 million aggregate principal amount of 3.9% Senior Notes due 2023 , $1.5 billion aggregate principal amount of 4.35% Senior Notes due 2028 and $1.5 billion aggregate principal amount of 5.0% Senior Notes due 2048 (together, the “Notes”). These amounts are recorded net of original issue discount and issuance costs. Under the Registration Rights Agreement associated with the Notes, Holdings agreed to use reasonable best efforts to cause a registration statement to be filed with the SEC that, upon effectiveness, would permit holders of the notes to exchange them for new notes containing identical terms except for the restrictions on transfer contained in the original notes. The offer to exchange the notes was completed on January 23, 2019. As of December 31, 2019 and 2018 , these notes remain outstanding. As of December 31, 2019 and 2018 , Holdings had outstanding $349 million aggregate principal amount of 7.0% Senior Debentures due 2028 (the “Senior Debentures”). On October 1, 2018, AXA Financial merged with and into its direct parent, Holdings, with Holdings continuing as the surviving entity. As a result of the AXA Financial Merger, Holdings assumed AXA Financial’s obligations under the Senior Debentures. The Notes and Senior Debentures contain customary affirmative and negative covenants, including a limitation on certain liens and a limit on the Company’s ability to consolidate, merge or sell or otherwise dispose of all or substantially all of its assets. The Notes and Senior Debentures also include customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding Notes and Senior Debentures may be accelerated. At December 31, 2019 , the Company was not in breach of any of the covenants. Credit Facilities Holdings Three-Year Delayed Draw Term Loan On May 4, 2018, Holdings borrowed $300 million under a $500 million three -year senior unsecured delayed draw term loan agreement and terminated the remaining $200 million capacity at the date of the IPO. As of December 31, 2019 , there was no loan outstanding and as of December 31, 2018 , $300 million was outstanding. Commitments were terminated in December 2019. Holdings Revolving Credit Facility In February 2018, Holdings entered into 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 the issuance of letters of credit to support the life insurance business reinsured by EQ AZ Life Re and the third-party GMxB variable annuity business reinsured by CS Life RE Company (“CS Life RE”). At December 31, 2019 , the Company had $125 million and $475 million of undrawn letters of credit issued out of the $1.5 billion sub-limit for ACS Life and Equitable Life, respectively, as beneficiaries. See Note 18 for additional information regarding statutory reserve credits for reinsurance treaties with intercompany reinsurers that hold assets in irrevocable trusts. Bilateral Letter of Credit Facilities In February 2018, the Company entered into bilateral letter of credit facilities, each guaranteed by Holdings, with an aggregate principal amount of approximately $1.9 billion , with the following counterparties: • JP Morgan Chase Bank, N.A. ( $150 million ) • Citibank Europe PLC ( $175 million ) • Barclays Bank PLC ( $150 million ) • HSBC Bank USA, National Association ( $150 million ) • Credit Agricole Corporate and Investment Bank ( $400 million ) • Landesbank Hessen-Thuringen Girozentrale ( $300 million ) • Commerzbank AG, New York Branch ( $325 million ) • Natixis, New York Branch ( $250 million ) These facilities support the life insurance business reinsured by EQ AZ Life Re. As of December 31, 2019 and 2018 , $1.9 billion of undrawn letters of credit were issued under these facilities. While the facilities with JP Morgan Chase Bank, N.A. and Citibank Europe PLC mature on February 16, 2023, the rest of the facilities mature on February 16, 2024. AB Credit Facility AB has an $800 million committed, unsecured senior revolving credit facility (the “AB Credit Facility”) with a group of commercial banks and other lenders which matures on September 27, 2023. The credit facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $200 million . Any such increase is subject to the consent of the affected lenders. The AB Credit Facility is available for AB and SCB LLC for business purposes, including the support of AB’s commercial paper program. Both AB and SCB LLC can draw directly under the AB Credit Facility and AB management expects to draw on the AB Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Credit Facility. The AB Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including, among other things, restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2019 , AB was in compliance with these covenants. The AB Credit Facility also includes customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender’s commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the AB Credit Facility would automatically become immediately due and payable, and the lender’s commitments would automatically terminate. Amounts under the Credit Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. Voluntary prepayments and commitment reductions requested by AB are permitted at any time without a fee (other than customary breakage costs relating to the prepayment of any drawn loans) upon proper notice and subject to a minimum dollar requirement. Borrowings under the AB Credit Facility bear interest at a rate per annum, which will be, at AB’s option, a rate equal to an applicable margin, which is subject to adjustment based on the credit ratings of AB, plus one of the following indices: London Interbank Offered Rate; a floating base rate; or the Federal Funds rate. As of December 31, 2019 and 2018 , AB had no amounts outstanding under the AB Credit Facility. During the years ended the December 31, 2019 and 2018 , AB and SCB LLC did not draw upon the AB Credit Facility. In addition, SCB LLC currently has three uncommitted lines of credit with three financial institutions. Two of these lines of credit permit borrowing up to an aggregate of approximately $175 million , with AB named as an additional borrower, while the other line has no stated limit. As of December 31, 2019 and 2018 , SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings of bank loans during 2019 and 2018 were $ 1.9 million and $ 2.7 million, respectively, with weighted average interest rates of approximately 1.9% and 1.6% , respectively. Termination of AXA Financial’s Participation in AXA Facilities On the date of the IPO, AXA Financial terminated its participation in the following credit facilities guaranteed by AXA: (i) J.P. Morgan Chase Bank $250 million multi-currency revolving credit facility; (ii) Citibank $300 million multi-currency credit facility; (iii) Bank of America Merrill Lynch $300 million multi-currency revolving credit facility; and (iv) club deal unsecured revolving credit facility with a number of lending institutions for $1.3 billion . Also, AXA Financial, AXA RE Arizona Company (“AXA RE Arizona”) and CS Life RE terminated their participation in an unsecured revolving credit facility guaranteed by AXA totaling €1.6 billion (or its equivalent in optional currencies) with a number of major European lending institutions. On April 25, 2018, Equitable Life (as successor to AXA RE Arizona) canceled its $1.5 billion revolving credit facility with AXA. In the second quarter of 2018, AXA RE Arizona terminated its participation in the following credit facilities guaranteed by AXA: (i) $700 million letter of credit facility agreement with Commerzbank; (ii) $2.5 billion letter of credit facility agreement with Citibank Europe Plc; and (iii) $200 million letter of credit facility agreement with JP Morgan Europe Limits. AXA RE Arizona also terminated its participation in a $250 million letter of credit facility agreement with Helaba Landesbank Hessen-Thüringen. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions. Since transactions with related parties may raise potential or actual conflicts of interest between the related party and the Company, Holdings has implemented a related party transaction policy that requires related party transactions to be reviewed and approved by its Audit Committee. Following the decrease in AXA’s ownership interest in the Company from approximately 39% approximately 10% November 13, 2019 (the “November Offering”), AXA and its affiliates (collectively, “AXA Affiliates”) are no longer considered related parties of the Company. Transactions with AXA Affiliates continue to be reported as related party transactions for periods prior to the November Offering. See Note 1 for additional detail of AXA’s sales of EQH common stock. The Company also had entered into related party transactions with other related parties that are described herein. Transactions with AXA and its Affiliates: As former wholly-owned subsidiaries of AXA, Holdings and its subsidiaries have historically entered into various transactions with AXA Affiliates for services necessary to conduct its activities. Subsequent to the November Offering, certain of such services continued, as provided for under a Transitional Service Agreement (“TSA”) and other such agreements entered into in connection with the IPO. General Services Agreements with AXA Affiliates Prior to the IPO, Holdings entered into cost-sharing and general service agreements with various AXA Affiliates pursuant to which the parties provided general corporate services (IT, human resources, legal, finance, etc.) to each other. Reinsurance Assumed from AXA Affiliates Prior to 2019, AXA Global Life retroceded a quota share portion of certain life and health risks of various AXA Affiliates to Equitable Life and Equitable America on a one-year term basis. The agreement was closed effective December 31, 2018. Also, AXA Life Insurance Company Ltd. cedes a portion of its variable deferred annuity business to Equitable Life. Premiums earned in 2019 , 2018 and 2017 were $6 million , $8 million and $8 million , respectively. Claims and expenses paid in 2019 , 2018 and 2017 were $1 million , $3 million and $2 million , respectively. Reinsurance Ceded to AXA Affiliates Equitable Life entered into a stop loss reinsurance agreement with AXA Global Life (“AGL”) to protect Equitable Life with respect to a deterioration in its claims experience following the occurrence of an extreme mortality event. Equitable Life also accepts certain retrocession policies through reinsurance agreements with various reinsurers and retrocedes to AGL the excess of its first retention layer. In addition, certain of the Company’s subsidiaries entered into a Life Catastrophe Excess of Loss Reinsurance Agreement (the “Excess of Loss Agreement”) with a number of subscribing reinsurers, which included AGL. AGL participated as a subscribing reinsurer with 5% of the pool, pro rata, across the upper and lower layers through the contract period ending March 31, 2018. Premiums and expenses paid for the above agreements in 2019 , 2018 and 2017 were $3 million , $4 million and $4 million , respectively. On September 12, 2018 AXA Group acquired XL Catlin (“AXA XL Catlin”). The Company had previously ceded part of its disability income business to AXA XL Catlin. As of December 31, 2019 and 2018 , loss reserves ceded to AXA XL Catlin were $104 million and $93 million , respectively. Investments in Unconsolidated Equity Interests in AXA Affiliates As December 31, 2019 and 2018, respectively, the Company held approximately $265 million and $296 million of invested assets in the form of equity interests issued in non-corporate legal entities that were determined by the Company to be VIEs, as further described in Note 2 . These legal entities are related parties of Holdings. The Company reflects these equity interest in the consolidated Balance Sheets as Other equity investments. The net assets of these unconsolidated VIEs are approximately $10 billion and $10 billion at December 31, 2019 and 2018, respectively. The Company also has approximately $275 million and $304 million of unfunded commitments at December 31, 2019 and 2018 , respectively with these legal entities. In December 2017, AXA Tech, formerly a wholly-owned subsidiary of Holdings which merged into Holdings in November 2019, paid approximately $18 million to AXA US Holdings Inc., a U.S. subsidiary of AXA, which is not a subsidiary of Holdings, in exchange for AXA US Holdings Inc. assuming certain liabilities pertaining to its servicing of AXA companies within the United States and in Latin America valued at approximately $18 million , including costs and expenses associated with providing infrastructure services to AXA and its subsidiaries. Reorganization Transactions with AXA Affiliates Prior to the IPO, the Company engaged in a number of reorganization transactions with AXA Affiliates. Disposition of AXA CS Holdings formerly held 78.99% of the shares of AXA CS. AXA CS and its subsidiaries have been excluded from the historical Consolidated Financial Statements since they were operated independently from the other Holdings subsidiaries. In March 2018, Holdings sold its AXA CS shares to AXA for $630 million . In anticipation of this sale, in the fourth quarter of 2017, AXA made a short-term loan of $622 million to Holdings with interest calculated at three-month LIBOR plus 0.439% margin. Holdings’ repayment obligation to AXA in respect of this loan was set off against the purchase price for the AXA CS shares, and AXA paid Holdings the $8 million balance in cash. The net result of the sale was a decrease in Loans from affiliates of $622 million , an increase in cash of $8 million , and an increase in capital in excess of par of $630 million . Disposition of Real Estate Joint Ventures In March 2018, Equitable Life sold its interest in two consolidated real estate joint ventures to AXA France for a total purchase price of approximately $143 million . Acquisition of Noncontrolling Interest of AXA Financial In March 2018, AXA contributed the 0.5% noncontrolling interest in AXA Financial to Holdings, resulting in AXA Financial becoming a wholly-owned subsidiary of Holdings. The contribution is reflected as a $66 million capital contribution. Acquisition of Additional AB Units On April 23, 2018, Holdings purchased: (i) 100% of the shares of AXA-IM Holding U.S. Inc., which owned 42 million AB Units, for a purchase price of $1.1 billion ; and (ii) 8 million AB Units held by Coliseum Re for $217 million . On December 20, 2018, Holdings purchased 255 thousand AB Holdings units from a former AB executive. As a result of these two transactions, Holdings ownership of AB increased to approximately 65% , Noncontrolling interest decreased by $29 million , Capital in excess of par increased by $17 million and taxes payable increased by $174 million . Acquisition of 30.3% of AXA Venture Partners SAS On May 7, 2018, Holdings made a capital contribution of approximately $3 million to AXA Venture Partners SAS in exchange for approximately 30.3% of the shares of AXA Venture Partners SAS and certain rights and protections as a shareholder of the company, including the right to appoint two members of the management committee as well as consent rights over significant transactions. Post-IPO Transactions with AXA Affiliates Transitional Services Agreement Holdings and AXA entered into a Transitional Services Agreement, dated as of May 4, 2018 (the “TSA”), regarding the continued provision of services between the Company and AXA and its subsidiaries on a transitional basis. The TSA replaced existing cost-sharing and general service agreements with various AXA subsidiaries and governs the following types of services: • services AXA or its subsidiaries (other than the Company) receive pursuant to a contract with a third-party service provider, which AXA or its subsidiaries then provide to the Company on a pass-through basis; • services the Company receives pursuant to a contract with a third-party service provider, which the Company then provides to AXA or its subsidiaries (excluding the Company) on a pass-through basis; • certain services the Company receives directly from AXA or its subsidiaries (excluding the Company); and • certain services the Company provides directly to AXA or its subsidiaries (excluding the Company). The fees for each service vary and may be based on costs, usage, previously established rates or other factors. Generally, all services other than specified long-term services will be provided until the third anniversary of the date of a change in control of Holdings, unless the service recipient elects to terminate the service earlier upon 180 days written notice. The specified long-term services will be provided until specific end dates listed in the TSA. In addition to the above, prior to 2019, AXA allocated a portion of its corporate overhead expenses to the Company. There were no expenses allocated to the Company in 2019. Expenses associated with overhead costs in 2018 and 2017 were $34 million and $35 million , respectively. Termination of Trademark License Agreement On May 4, 2018, AXA and Holdings entered into a Trademark License Agreement (the “TLA”) that replaced the existing sub-licensing agreement between AXA Financial and AXA (the “Former TLA”). Under the TLA, AXA granted the Company a limited license to use certain trademarks (the “Licensed Marks”), including the name “AXA” and domain names, in the United States and Canada (the “Territory”). Under the TLA, the Company was obligated to pay AXA consideration for the grant of the license based on the same formula that applied under the Former TLA which took into account the Company’s revenue (excluding certain items) and a notoriety index for the Licensed Marks in the Territory. On March 28, 2019, AXA terminated the TLA. Accordingly, the Company expects to rebrand and cease use, pursuant to the TLA, of the “AXA” brand, name and logo within 18 months of March 28, 2019 (subject to such extensions as permitted under the TLA). Tax Sharing Agreement Holdings entered into a tax sharing agreement with AXA and AXA Investment Managers S.A. (“AXA IM SA”) on March 28, 2018 related to the sale of AXA-IM Holding U.S. Inc. and AXA CS, described above. The agreement generally allocates responsibility for the taxes of AXA-IM Holding U.S. Inc. and AXA CS to the seller of the applicable entity for taxable periods predating the sale and to the buyer of such entity for taxable periods postdating the sale, except that any taxes arising in connection with the sale transactions as a result of an adjustment by a taxing authority will instead be borne 90% by the seller and 10% by the buyer (or, if that taxes are attributable to any action or inaction of the seller or the buyer, 100% by the responsible party). Share Repurchase from AXA On November 20, 2018, Holdings repurchased approximately 30 million shares of its common stock from AXA at a total cost of approximately $592 million under the $800 million share repurchase authorization and pursuant to a share repurchase agreement. The repurchased common stock was recorded as treasury stock in the consolidated balance sheets. See Note 20 for more information. 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 at a total cost of approximately $600 million . On November 13, 2019, AXA completed another secondary offering of 144 million shares of common stock of Holdings and the sale to Holdings of 24 million shares of common stock of Holdings at a total cost of approximately $523 million . Investment Management and Administrative Services Provided by Equitable FMG to Related Trusts Equitable FMG provides investment management and administrative services to EQAT, VIP Trust, 1290 Funds and the Other AXA Trusts, all of which are considered related parties. Investment management and service fees earned are calculated as a percentage of assets under management and are recorded as revenue as the related services are performed. Investment Management and Related Services Provided by AB to Related Mutual Funds AB provides investment management and related services to mutual funds sponsored by AB. Revenues earned by AB from providing these services were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Investment management and services fees $ 1,276 $ 1,207 $ 1,148 Distribution revenues 441 404 398 Other revenues - shareholder servicing fees 75 74 73 Other revenues - other 7 7 7 Total $ 1,799 $ 1,692 $ 1,626 Revenues and Expenses of AXA and AXA Affiliated Transactions The table below summarizes the expenses reimbursed to/from the Company and the fees received/paid by the Company in connection with certain services described above for the years ended December 31, 2019 , 2018 and 2017 . Years Ended December 31, 2019 2018 2017 (in millions) Revenue received or accrued for: Investment management and administrative services provided to EQAT, VIP Trust, 1290 Funds and Other AXA Trusts $ 732 $ 727 $ 720 General services provided to AXA Affiliates — 6 27 Total $ 732 $ 733 $ 747 Expenses paid or accrued for: General services provided by AXA Affiliates $ 65 $ 146 $ 141 Investment management services provided by AXA IM, AXA REIM, and AXA Rosenberg 5 2 5 Investment management services provided by AXA Strategic Ventures Corporation (“ASV Corp”) 2 2 2 AXA Guarantees and AXA Credit Facility — 1 9 Total $ 72 $ 151 $ 157 Contribution to the Equitable Foundation In November 2019, Equitable Life made a $ 25 million funding contribution to the Equitable Foundation. The Equitable Foundation is the philanthropic arm of Equitable Life. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS As a result of the AXA Financial Merger, Holdings assumed all of AXA Financials’ liabilities, including its obligations under two assumption agreements pursuant to which it legally assumed primary liability for certain employee benefit plans of Equitable Life. Holdings also succeeded AXA Financial as the sponsor of the MONY Life Retirement Income Security Plan for Employees. Pension Plans Holdings and Equitable Life Retirement Plans Equitable Life sponsors the AXA Equitable 401(k) Plan, a qualified defined contribution plan for eligible employees and financial professionals. The plan provides for a company contribution, a company matching contribution, and a discretionary profit-sharing contribution. Expenses associated with this 401(k) Plan were $55 million , $36 million and $28 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Holdings sponsors the MONY Life Retirement Income Security Plan for Employees and 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. These pension plans are non-contributory, and their benefits are generally based on a cash balance formula and/or, for certain participants, years of service and average earnings over a specified period. Holdings and Equitable Life also sponsor certain nonqualified defined benefit plans, including the AXA Equitable Excess Retirement Plan, that provide retirement benefits in excess of the amount permitted under the tax law for the qualified plans. Holdings has assumed primary liability for both plans. Equitable Life remains secondarily liable for its obligations under the AXA Equitable Life QP and would recognize such liability in the event Holdings does not perform. On March 13, 2018, the Company signed a binding agreement with a third-party insurer to purchase two single premium, non-participating group annuity contracts with the intent of settling certain retiree liabilities under the MONY Life Retirement Income Security Plan for Employees and the AXA Equitable Life QP. Payment of the preliminary contribution amounts for the group annuity contracts was funded from plan assets on March 20, 2018, securing the third-party insurer’s irrevocable assumption of certain benefits obligations and commitment to issue the group annuity contracts. The annuity purchase transaction and consequent transfer of $254 million of the plans’ obligations to retirees or 10% of the aggregate pension benefit obligations resulted in a partial settlement of the plans. The Company remeasured the plans’ assets and obligations on March 20, 2018, as required in the event of an accounting settlement. For the year end December 31, 2018, the Company recognized a pre-tax settlement loss of $109 million , largely attributable to recognition of a pro rata portion of the plans’ unamortized net actuarial losses accumulated in other comprehensive income and routine lump-sum distributions totaling $36 million made from the AXA Equitable Life QP and the MONY Life Retirement Income Security Plan for Employees. Holdings and Equitable Life use a December 31 measurement date for their pension plans. AB Retirement Plans AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for federal income tax purposes. AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000 (the “AB Plan”). Benefits under the AB Plan are based on years of credited service, average final base salary, and primary Social Security benefits. AB uses a December 31 measurement date for the AB Plan. Contributions and Funding Policy The Company’s funding policy for its qualified pension plans is to satisfy its funding obligations each year in an amount not less than the minimum required by the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended by the Pension Protection Act of 2006 (the “Pension Act”), and not greater than the maximum the Company can deduct for federal income tax purposes. For 2019 , no cash contributions were made by Holdings or Equitable Life to their respective qualified pension plans. Based on the funded status of the plans at December 31, 2018 , AB contributed $4 million to the AB Plan during 2019 . AB currently estimates that it will not contribute to the AB Plan during 2020 . No minimum funding contributions under ERISA are required to be made to the Holdings and Equitable Life plans, and management does not expect to make any discretionary contributions to those plans during 2020 . Net Periodic Pension Expense Components of net periodic pension expense for the Company’s qualified and non-qualified plans were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Service cost $ 8 $ 8 $ 10 Interest cost 104 103 105 Expected return on assets (152 ) (163 ) (173 ) Actuarial (gain) loss 1 1 1 Net amortization 94 98 126 Impact of settlement — 109 — Net periodic pension expense $ 55 $ 156 $ 69 Changes in Projected Benefit Obligation (“PBO”) Changes in the PBO of the Company’s qualified and non-qualified plans were comprised of: 2019 2018 (in millions) Projected benefit obligation, beginning of year $ 2,874 $ 3,455 Service cost — — Interest cost 104 103 Actuarial (gains)/losses (1) 303 (204 ) Benefits paid (225 ) (190 ) Plan amendments and curtailments — — Settlements — (290 ) Projected benefit obligation, end of year $ 3,056 $ 2,874 ______________ (1) Actuarial gains and losses are a product of changes in the discount rate as shown below. The following table discloses the change in plan assets and the funded status of the Company’s qualified pension plans and non-qualified pension plans: 2019 2018 (in millions) Pension plan assets at fair value, beginning of year $ 2,341 $ 2,839 Actual return on plan assets 389 (53 ) Contributions 4 5 Benefits paid (183 ) (184 ) Annuity purchases — (266 ) Pension plan assets at fair value, end of year 2,552 2,341 PBO 3,056 2,874 Excess of PBO over pension plan assets, end of year $ 504 $ 533 Accrued pension costs of $504 million and $533 million at December 31, 2019 and 2018 , respectively, were recognized in the accompanying consolidated balance sheets to reflect the unfunded status of these plans. As of December 31, 2019 2018 (in millions) Projected benefit obligation $ 3,056 $ 2,874 Accumulated benefit obligation 3,056 2,874 Fair value of plan assets $ 2,552 $ 2,341 Unrecognized Net Actuarial (Gain) Loss The following table discloses the amounts included in AOCI at December 31, 2019 and 2018 that have not yet been recognized as components of net periodic pension cost. As of December 31, 2019 2018 (in millions) Unrecognized net actuarial (gain) loss $ 976 $ 1,123 Unrecognized prior service cost (credit) (1 ) 1 Unrecognized net transition obligation (asset) 1 — Total $ 976 $ 1,124 Pension Plan Assets The fair values of qualified pension plan assets are measured and ascribed to levels within the fair value hierarchy in a manner consistent with the fair values of the Company’s invested assets that are measured at fair value on a recurring basis. See Note 8 for a description of the fair value hierarchy. The following table discloses the allocation of the fair value of total qualified pension plan assets at December 31, 2019 and 2018 : As of December 31, 2019 2018 Fixed maturities 48.9 % 50.3 % Equity securities 27.6 22.9 Equity real estate 15.9 17.7 Cash and short-term investments 2.8 3.4 Other 4.8 5.7 Total 100.0 % 100.0 % Qualified pension plan assets are invested with the primary objective of return, giving consideration to prudent risk. Guidelines regarding the allocation of plan assets are established by the respective Investment Committees for the plans and are designed with a long-term investment horizon. At December 31, 2019 , the qualified pension plans continued their investment allocation strategy to target a 50%- 50% mix of long-duration bonds and “return-seeking” assets, including public equities, real estate, hedge funds, and private equity. The following tables disclose the fair values of qualified pension plan assets and their level of observability within the fair value hierarchy at December 31, 2019 and 2018 , respectively. Level 1 Level 2 Level 3 Total (in millions) December 31, 2019: Fixed Maturities: Corporate $ — $ 708 $ — $ 708 U.S. Treasury, government and agency — 508 — 508 States and political subdivisions — 24 — 24 Foreign governments — 2 — 2 Commercial mortgage-backed — — 1 1 Common equity, REITs and preferred equity 489 92 — 582 Mutual funds 54 — — 54 Collective Trust — 97 — 97 Cash and cash equivalents 23 — — 23 Short-term investments — 21 — 21 Level 1 Level 2 Level 3 Total (in millions) Total assets in the fair value hierarchy 567 1,453 1 2,020 Investments measured at Net Asset Value — — — 540 Investments at fair value $ 567 $ 1,453 $ 1 $ 2,560 December 31, 2018: Fixed Maturities: Corporate $ — $ 677 $ — $ 677 U.S. Treasury, government and agency — 467 — 467 States and political subdivisions — 23 — 23 Foreign governments — 2 — 2 Commercial mortgage-backed — — 1 1 Common and preferred equity 424 78 — 502 Mutual funds 53 — — 53 Private real estate investment trusts 1 — — 1 Cash and cash equivalents 34 — — 34 Short-term investments — 22 — 22 Total assets in the fair value hierarchy 512 1,269 1 1,782 Investments measured at Net Asset Value — — — 559 Investments at fair value $ 512 $ 1,269 $ 1 $ 2,341 The following table lists investments for which net asset value (“NAV”) is calculated; NAV is used as a practical expedient to determine the fair value of these investments at December 31, 2019 and 2018 . Practical Expedient Disclosure as of December 31, 2019 and 2018 Investment Fair Value Redemption Frequency (If currently eligible) Redemption Notice Period Unfunded Commitments (in millions) December 31, 2019: Private Equity Fund $ 64 N/A (1)(2) N/A $ 28 Private Real Estate Investment Trust 396 Quarterly One Quarter — Hedge Fund 80 Calendar Quarters (3) Previous Quarter End $ 3 Total (4) $ 540 December 31, 2018: Private Equity Fund $ 64 N/A (1)(2) N/A $ 33 Private Real Estate Investment Trust 402 Quarterly One Quarter — Hedge Fund 93 Calendar Quarters (3) Previous Quarter End $ 12 Total (4) $ 559 _______________ (1) Cannot sell or transfer ownership interest without prior written consent to transfer, and by meeting several criteria (e.g., does not adversely affect other investors). (2) Cannot sell interest in the vehicle without prior written consent of the managing member. (3) March, June, September and December. (4) Includes Equity method investments of $115 million and $128 million at December 31, 2019 and 2018, respectively. The table below presents a reconciliation for all Level 3 fair values of qualified pension plan assets at December 31, 2019 , 2018 and 2017 , respectively: Level 3 Instruments Fair Value Measurements Fixed Maturities — Commercial Mortgage-Backed (in millions) Balance, January 1, 2019 $ 2 Actual return on plan assets — Sales/Settlements (1 ) Balance, December 31, 2019 $ 1 Balance, January 1, 2018 $ 3 Actual return on plan assets — Sales/Settlements (1 ) Balance, December 31, 2018 $ 2 Balance, January 1, 2017 $ 5 Actual return on plan assets — Sales/Settlements (2 ) Balance, December 31, 2017 $ 3 At December 31, 2019 , assets classified as Level 1, Level 2 and Level 3 comprise approximately 22.1% , 56.7% and 0.0% , respectively, of qualified pension plan assets. At December 31, 2018 , assets classified as Level 1, Level 2 and Level 3 comprised approximately 29.7% , 51.5% and 0.1% , respectively, of qualified pension plan assets. There are no significant concentrations of credit risk arising within or across categories of qualified pension plan assets. Assumptions Discount Rate The benefits obligations and related net periodic costs of the Company’s qualified and non-qualified pension plans are measured using discount rate assumptions that reflect the rates at which the plans’ benefits could be effectively settled. Projected nominal cash outflows to fund expected annual benefits payments under each of the plans are discounted using a published high-quality bond yield curve as a practical expedient for a matching bond approach. Beginning in 2014, the Company uses the Citigroup Pension Above-Median-AA Curve (the “Citigroup Curve”) for this purpose. The Company has concluded that an adjustment to the Citigroup Curve is not required after comparing the projected benefit streams of the plans to the cash flows and duration of the reference bonds. Mortality In October 2016, the Society of Actuaries (“SOA”) released MP-2016, its second annual update to the “gold standard” mortality projection scale issued by the SOA in 2014, reflecting three additional years of historical U.S. population historical mortality data (2012 through 2014). Similar to its predecessor (MP-2015), MP-2016 indicated that, while mortality data continued to show longer lives, longevity was increasing at a slower rate and lagging behind that previously suggested both by MP-2015 and MP-2014. The Company considered this new data as well as observations made from current practice regarding how to best estimate improved trends in life expectancies and concluded to continue using the RP-2000 base mortality table projected on a full generational basis with Scale BB mortality improvements for purposes of measuring and reporting its consolidated defined benefit plan obligations at December 31, 2019 . The following table discloses assumptions used to measure the Company’s pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2019 and 2018 . As of December 31, 2019 2018 Discount rates: AXA Equitable Life QP 2.98% 4.07% AXA Equitable Excess Retirement Plan 2.9% 4.01% MONY Life Retirement Income Security Plan for Employees 3.19% 4.2% AB Qualified Retirement Plan 4.4% 3.9% Other defined benefit plans 2.58% — 3.07% 3.75% — 4.10% Periodic cost 3.75% — 4.20% 3.00% — 3.50% Cash balance interest crediting rate for pre-April 1, 2012 accruals 4.00% 4.00% Cash balance interest crediting rate for post-April 1, 2012 accruals 2.50% 2.50% Rates of compensation increase: Benefit obligation 5.98% 5.99% Periodic cost 6.38% 6.34% Expected long-term rates of return on pension plan assets (periodic cost) 6.75% 6.75% The expected long-term rate of return assumption on plan assets is based upon the target asset allocation of the plan portfolio and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. Prior to 1987, participants’ benefits under the AXA Equitable Life QP were funded through the purchase of non-participating annuity contracts from Equitable Life. Benefit payments under these contracts were approximately $5 million and $6 million for 2019 and 2018 , respectively. Post-Retirement Benefits The Company eliminated any subsidy for post-retirement medical and dental coverage for individuals retiring on or after May 1, 2012. The Company continues to contribute to the cost of post-retirement medical and dental coverage for certain individuals who retired prior to May 1, 2012 based on years of service and age, subject to rights reserved in the plans to change or eliminate these benefits. The Company funds these post-retirement benefits on a pay-as-you-go basis. The Company sponsors the AXA Equitable Executive Survivor Benefits Plan (the “ESB Plan”) which provides post-retirement life insurance benefits to eligible executives. Eligible executives may choose up to four levels of coverage with each level providing a benefit equal to the executive’s compensation, subject to an overall $25 million cap. Aside from the ESB Plan, the Company does not currently offer post-retirement life insurance benefits but continues to provide post-retirement life insurance benefits to certain active and retired employees who were eligible for such benefits under discontinued plans. The ESB Plan was closed to new participants on January 1, 2019. For 2019 and 2018 , post-retirement benefits payments were $33 million and $46 million , respectively, net of employee contributions. The Company uses a December 31 measurement date for its post-retirement plans. Components of Net Post-Retirement Benefits Costs Years Ended December 31, 2019 2018 2017 (in millions) Service cost $ 1 $ 2 $ 2 Interest cost 18 16 16 Net amortization 6 9 6 Net Periodic Post-Retirement Benefits Costs $ 25 $ 27 $ 24 Changes in the accumulated benefits obligation of the Company’s post-retirement plans recognized in the accompanying consolidated financial statements are described in the following table: Accumulated Post-Retirement Benefits Obligation December 31, 2019 2018 (in millions) Accumulated post-retirement benefits obligation, beginning of year $ 483 $ 529 (1) Service cost 1 2 Interest cost 18 16 Contributions and benefits paid (34 ) (46 ) Actuarial (gains) losses 49 (18 ) Accumulated post-retirement benefits obligation, end of year $ 517 $ 483 _______________ (1) Amount previously reported was $537 million . The post-retirement medical plan obligations of the Company are offset by an anticipated subsidy from Medicare Part D, which is assumed to increase with the healthcare cost trend. Assumed Healthcare Cost Trend Rates used to Measure the Expected Cost of Benefits December 31, 2019 2018 Following year 6.1% 10.2% Ultimate rate to which cost increase is assumed to decline 4.0% 4.3% Year in which the ultimate trend rate is reached 2092 2099 The following table discloses the amounts included in AOCI at December 31, 2019 and 2018 that have not yet been recognized as components of net periodic post-retirement benefits cost: December 31, 2019 2018 (in millions) Unrecognized net actuarial (gains) losses $ 158 $ 116 Unrecognized prior service (credit) — — Total $ 158 $ 116 The assumed discount rates for measuring the post-retirement benefit obligations at December 31, 2019 and 2018 were determined in substantially the same manner as described above for measuring the pension benefit obligations. The following table discloses the range of discrete single equivalent discount rates and related net periodic cost at and for the years ended December 31, 2019 and 2018 . December 31, 2019 2018 Discount rates: Benefit obligation 2.29% — 3.16% 3.52% — 3.89% Periodic cost 3.53% — 4.17% 3.00% — 3.50% The Company provides post-employment medical and life insurance coverage for certain disabled former employees. The accrued liabilities for these post-employment benefits were $8 million and $10 million , respectively, at December 31, 2019 and 2018 . Components of net post-employment benefits costs follow: Years Ended December 31, 2019 2018 2017 (in millions) Service cost $ 1 $ 2 $ 2 Interest cost — — — Net amortization — (1 ) (2 ) Net (gain) loss (1 ) — — Net periodic post-employment benefits costs $ — $ 1 $ — The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2020 , and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations at December 31, 2019 and include benefits attributable to estimated future employee service. Postretirement Benefits Health Calendar Year Pension Benefits Life Insurance Gross Estimate Payment Estimated Medicare Part D Subsidy Net Estimate Payment (in millions) 2020 $ 223 $ 25 $ 15 $ 2 $ 13 2021 $ 271 $ 24 $ 14 $ 2 $ 12 2022 $ 222 $ 24 $ 13 $ 2 $ 11 2023 $ 214 $ 24 $ 12 $ 2 $ 10 2024 $ 208 $ 24 $ 11 $ 2 $ 9 Years 2025 — 2030 $ 2,853 $ 523 $ 92 $ 4 $ 88 |
SHARE-BASED COMPENSATION PROGRA
SHARE-BASED COMPENSATION PROGRAMS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Programs | SHARE-BASED COMPENSATION PROGRAMS Compensation costs for 2019 , 2018 and 2017 for share-based payment arrangements as further described herein are as follows: Years Ended December 31, 2019 2018 2017 (in millions) Performance Shares $ 29 $ 11 $ 45 Stock Options 4 2 1 AXA Shareplan — — 13 Restricted Stock Units 243 215 185 Other Compensation Plans (1) — — 3 Total Compensation Expenses $ 276 $ 228 $ 247 _______________ (1) Includes stock appreciation rights and employee stock purchase plans . Since 2018, Holdings has granted equity awards under the Equitable Holdings, Inc. 2018 Omnibus Incentive Plan (the “2018 Omnibus Plan”) and the Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (the “2019 Omnibus Plan”) which were adopted by Holdings on April 25, 2018 and February 28, 2019 respectively. Awards under the 2018 and 2019 Omnibus Plans are linked to Holdings’ common stock. As of December 31, 2019 , the common stock reserved and available for issuance under the 2018 and 2019 Omnibus Plans was 12.5 million shares. Holdings may issue new shares or use common stock held in Treasury for awards linked to Holdings’ common stock. Retirement and Protection Equity awards for R&P employees, financial professionals and directors in 2019 and 2018 were granted under the 2019 and 2018 Omnibus Plans with the exception of the Holdings restricted stock units (“Holdings RSUs”) granted to financial professionals in 2018. All grants discussed in this section will be settled in shares of Holdings’ common stock except for the RSUs granted to financial professionals in 2019 and 2018 which will be settled in cash. For awards with graded vesting schedules and service-only vesting conditions, including Holdings RSUs and other forms of share-based payment awards, the Company applies a straight-line expense attribution policy for the recognition of compensation cost. Actual forfeitures with respect to the 2019 and 2018 grants were considered immaterial in the recognition of compensation cost. Annual Awards Under 2019 and 2018 Equity Programs Each year, the Compensation Committee of the Holdings’ Board of Directors approves an equity-based award program with awards under the program granted at its regularly scheduled meeting in February. Annual awards under Holdings’ 2019 and 2018 equity programs consisted of a mix of equity vehicles including Holdings restricted stock units (“RSUs”), Holdings stock options and Holdings performance shares. If Holdings pays any ordinary dividend in cash, all outstanding Holdings RSUs and performance shares will accrue dividend equivalents in the form of additional Holdings RSUs or performance shares to be settled or forfeited consistent with the terms of the related award. Holdings RSUs Holdings RSUs granted to R&P employees under the 2019 and 2018 equity programs vest ratably in equal annual installments over a three -year period. The fair value of the awards was measured using the closing price of the Holdings share on the grant date, and the resulting compensation expense will be recognized over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Cash-settled Holdings RSUs granted to eligible R&P financial professionals under the 2019 and 2018 equity programs vest ratably in equal installments over a three -year period. The cash payment for each RSU will equal the average closing price for a Holdings share on the NYSE over the 20 trading days immediately preceding the vesting date. These awards are liability-classified and require fair value remeasurement based upon the price of a Holdings share at the close of each reporting period. Holdings Stock Options Holdings stock options granted to R&P employees under the 2019 and 2018 equity programs have a three -year graded vesting schedule, with one-third vesting on each of the three anniversaries. The total grant date fair value of Holdings stock options will be charged to expense over the shorter of the vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Holdings Performance Shares Holdings performance shares granted to R&P employees under the 2019 and 2018 equity programs are subject to performance conditions and a three-year cliff-vesting. The performance shares consist of two distinct tranches; one based on the Company’s return-on-equity targets (the “ROE Performance Shares”) and the other based on the Holdings’ relative total shareholder return targets (the “TSR Performance Shares”), each comprising approximately one-half of the award. Participants may receive from 0% to 200% of the unearned performance shares granted. The grant-date fair value of the ROE Performance Shares will be established once all applicable Non-GAAP ROE targets are determined and approved. The grant-date fair value of the TSR Performance Shares was measured using a Monte Carlo approach. Under the Monte Carlo approach, stock returns were simulated for Holdings and the selected peer companies to estimate the payout percentages established by the conditions of the award. The aggregate grant-date fair value of the unearned TSR Performance Shares will be recognized as compensation expense over the shorter of the cliff-vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Director Awards Holdings granted unrestricted Holdings shares to non-employee directors of Holdings, Equitable Life and Equitable America in 2019 and 2018. The fair value of these awards was measured using the closing price of Holdings shares on the grant date. These awards immediately vest and all compensation expense is recognized at the grant date. One-Time Awards Granted in 2018 Transaction Incentive Awards On May 9, 2018, coincident with the IPO, Holdings granted one-time “Transaction Incentive Awards” to executive officers and certain other R&P employees in the form of 722 thousand Holdings RSUs. Fifty percent of the Holdings RSUs will vest based on service over a two -year period from the IPO date (the “Service Units”), and fifty percent will vest based on service and a market condition (the “Performance Units”). The market condition is based on share price growth of at least 130% or 150% within a two or five -year period, respectively. If the market condition is not achieved, 50% of the Performance Units may still vest based on five year of continued service and the remaining Performance Units will be forfeited. The grant-date fair value of half of the Performance Units, was at the $20 IPO price for a Holdings share as employees are still able to vest in these awards even if the share price growth targets are not achieved. The resulting compensation expense is recognized over the five -year requisite service period. The grant-date fair value of $16.47 was used to value the remaining half of the Performance Units that are subject to risk of forfeiture for non-achievement of the Holdings share price conditions. The grant date fair value was measured using Monte Carlo simulation from which a five -year requisite service period was derived, representing the median of the distribution of stock price paths on which the market condition is satisfied. Special IPO Grant Also, on May 9, 2018, Holdings made a grant of 357 thousand Holdings RSUs to R&P employees and financial professionals, or 50 restricted stock units to each eligible individual, that cliff vested on November 9, 2018. The grant-date fair value of the award was measured using the $20 IPO price for a Holdings share and all compensation expense was recognized as of November 9, 2018. Prior Equity Award Grants and Settlements In 2017 and prior years, equity awards for employees, financial professional and directors in our retirement and protection (“R&P”) businesses were available under the umbrella of AXA’s global equity program. Accordingly, equity awards granted in 2017 and prior years were linked to AXA’s stock. R&P employees were granted AXA ordinary share options each year under the AXA Stock Option Plan for AXA Financial Employees and Associates (the “Stock Option Plan”). There is no limitation in the Stock Option Plan on the number of shares that may be issued pursuant to option or other grants. R&P employees were also granted AXA performance shares under the AXA International Performance Shares Plan established for each year (the “Performance Share Plan”) and R&P financial professionals were granted performance units under the AXA Advisors Performance Unit Plan established for each year. The fair values of these prior awards are measured at the grant date by reference to the closing price of the AXA ordinary share, and the result, as adjusted for achievement of performance targets and pre-vesting forfeitures, generally is attributed over the shorter of the requisite service period, the performance period, if any, or to the date at which retirement eligibility is achieved and subsequent service no longer is required for continued vesting of the award. Remeasurements of fair value for subsequent price changes until settlement are made only for performance unit awards that are settled in cash. The fair value of performance units earned and reported in Other liabilities in the consolidated balance sheets at December 31, 2019 and 2018 was $43 million and $32 million , respectively. 2017 Performance Shares Grant Under the terms of the 2017 Performance Share Plan, AXA awarded performance shares to R&P employees. The extent to which 2017-2019 cumulative performance targets measuring the performance of AXA and select businesses are achieved will determine the number of performance shares earned. For all R&P employees, the number of performance shares earned may vary between 0% and 130% of the number of performance shares at stake. The performance shares earned during this performance period will vest and be settled on the fourth anniversary of the award date. 2017 Performance Units Grant Under the terms of the AXA Advisors Performance Unit Plan performance units were granted to R&P financial professionals. The performance units will be cash settled and are remeasured until settlement of the awards. The performance units will be earned based on meeting pre-established performance metrics tied to achievement of specific sale and earnings goals. For all awards, the number of performance units earned may vary between 0% and 130% of the number of performance units at stake. The performance units earned during this performance period will vest and be settled on the fourth anniversary of the award date. 2017 Stock Options Grant On June 21, 2017, 0.5 million options to purchase AXA ordinary shares were granted to R&P employees under the terms of the Stock Option Plan with a ten -year term. All of those options have a five -year graded schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total awarded on June 21, 2017, 0.3 million are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. Other Grants Prior to the IPO, non-officer directors of Holdings and certain subsidiaries were granted restricted AXA ordinary shares (prior to 2011, AXA ADRs) and unrestricted AXA ordinary shares (prior to March 15, 2010, AXA ADRs) annually under The Equity Plan for Directors. The Company has also granted AXA restricted stock units (“AXA RSUs”) to certain R&P executives. The AXA RSUs are phantom AXA ordinary shares that, once vested, entitle the recipient to a cash payment based on the average closing price of the AXA ordinary share over the twenty trading days immediately preceding the vesting date. Investment Management and Research Employees and directors in our Investment Management and Research business participate in several unfunded long-term incentive compensation plans maintained by AB. Awards under these plans are linked to AB Holding Units. Under the AB 2017 Long Term Incentive Plan (“2017 Plan”), which was adopted at a special meeting of AB Holding Unitholders held on September 29, 2017, the following forms of awards may be granted to AB employees and Directors: (i) restricted AB Holding Units or phantom restricted AB Holding Units (a “phantom” award is a contractual right to receive AB Holding Units at a later date or upon a specified event); (ii) options to buy AB Holding Units; and (iii) other AB Holding Unit-based awards (including, without limitation, AB Holding Unit appreciation rights and performance awards). The 2017 Plan will expire on September 30, 2027, and no awards under the 2017 Plan will be made after that date. Under the 2017 Plan, the aggregate number of AB Holding Units with respect to which awards may be granted is 60 million , including no more than 30 million newly-issued AB Holding Units. AB engages in open-market purchases of AB Holding Units to help fund anticipated obligations under its long-term incentive compensation plans and for other corporate purposes. During 2019 and 2018 , AB purchased 6.0 million and 9.3 million AB Holding Units for $173 million and $268 million , respectively. These amounts reflect open-market purchases of 2.9 million and 6.5 million AB Holding Units for $83 million and $183 million , respectively, with the remainder relating to purchases of AB Holding Units from AB employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, offset by AB Holding Units purchased by AB employees as part of a distribution reinvestment election. During 2019 and 2018 , AB granted 7.7 million and 8.7 million restricted AB Holding units to AB employees and directors, respectively. During 2019 and 2018 , AB Holding issued 0.5 million and 0.9 million AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $12 million and $17 million , respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Holding Units. As of December 31, 2019 , no options to buy AB Holding Units had been granted and 20.6 million AB Holding Units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or an equity compensation plan with similar terms that was canceled in 2017. AB Holding Unit-based awards (including options) in respect of 39.4 million AB Holding Units were available for grant as of December 31, 2019 . Summary of Stock Option Activity A summary of activity in the AXA and the Company option plans during 2019 follows: Options Outstanding EQH Shares AB Holding Units AXA Ordinary Shares AXA ADRs (2) Number Outstanding (in 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Number Weighted Number Weighted Options Outstanding at January 1, 2019 994 $ 21.34 671 $ 22.83 3,613 € 18.20 25 $ 15.37 Options granted 1,510 $ 18.74 — $ — 186 € 21.46 — $ — Options exercised (27 ) $ 21.34 (512 ) $ 22.49 (1,322 ) € 16.10 (25 ) $ 15.37 Options forfeited, net (159 ) $ 20.28 — $ — (243 ) € 18.99 — $ — Options expired — $ — — $ — — € — — $ — Options Outstanding at December 31, 2019 2,318 $ 19.72 159 $ 23.93 2,233 € 19.63 — $ — Aggregate Intrinsic $ 11,731 $ 1,009 € 12,239 $ — Weighted Average Remaining Contractual Term (in years) 8.86 2.14 4.88 — Options Exercisable at December 31, 2019 298 $ 21.34 141 $ 24.09 1,995 € 19.24 — $ — Aggregate Intrinsic $ 1,023 $ 870 € 11,702 $ — Weighted Average Remaining Contractual Term (in years) 8.43 2.11 4.52 — _______________ (1)Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2019 of the respective underlying shares over the strike prices of the option awards. For awards with strike prices higher than market prices, intrinsic value is shown as zero. (2)AXA ordinary shares will be delivered to participants in lieu of AXA ADRs at exercise or maturity. For the purpose of estimating the fair value of Holdings and AXA stock option awards, the Black-Scholes model is used. A Monte-Carlo simulation approach was used to model the fair value of the conditional vesting feature of the awards of options to purchase Holdings and AXA ordinary shares. Shown below are the relevant input assumptions used to derive the fair values of options awarded in 2019 , 2018 and 2017 , respectively. EQH Shares (1) AXA Ordinary Shares (2) 2019 2018 2019 2018 2017 Dividend yield 2.77 % 2.44 % N.A. N.A. 6.53 % Expected volatility 25.70 % 25.40 % N.A. N.A. 25.05 % Risk-free interest rates 2.49 % 2.83 % N.A. N.A. 0.59 % Expected life in years 5.8 9.7 N.A. N.A. 8.8 Weighted average fair value per option at grant date $ 3.82 $ 4.61 N.A. N.A. $ 2.01 _______________ (1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term. (2)The expected AXA dividend yield is based on market consensus. AXA share price volatility is estimated on the basis of implied volatility, which is checked against an analysis of historical volatility to ensure consistency. The risk-free interest rate is based on the Euro Swap Rate curve for the appropriate term. The effect of expected early exercise is taken into account through the use of an expected life assumption based on historical data. As of December 31, 2019 , approximately $0.5 million of unrecognized compensation cost related to AXA unvested stock option awards is expected to be recognized by the Company over a weighted-average period of 0.7 years. Approximately $4 million of unrecognized compensation cost related to Holdings unvested stock option awards is expected to be recognized by the Company over a weighted average period of 0.8 years. Restricted Awards The market price of a Holdings share is used as the basis for the fair value measure of a Holdings RSU. For purposes of determining compensation cost for stock-settled Holdings RSUs, fair value is fixed at the grant date until settlement, absent modification to the terms of the award. For liability-classified cash-settled Holdings and AXA RSUs, fair value is remeasured at the end of each reporting period. At December 31, 2019 , approximately 3.4 million Holdings RSUs and AXA ordinary share unit awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $36 million and is expected to be recognized over a weighted-average period of 1.08 years . At December 31, 2019 , approximately 19.3 million AB Holding Unit awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $102 million is expected to be recognized over a weighted-average period of 3.6 years. The following table summarizes Holdings restricted share units and AXA ordinary share unit activity for 2019 . Shares of Holdings Restricted Stock Units Weighted-Average Grant Date Fair Value Shares of AXA Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested as of January 1, 2019 2,272,910 $ 21.00 53,984 $ 20.38 Granted 1,982,820 $ 18.43 — $ — Forfeited 184,958 $ 19.84 — $ — Vested 660,591 $ 21.01 31,879 $ 21.17 Unvested as of December 31, 2019 3,410,181 $ 19.57 22,105 $ 19.23 Performance Awards At December 31, 2019 , approximately 5 million Holdings and AXA performance awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $17 million and is expected to be recognized over a weighted-average period of 0.64 years . The following table summarizes Holdings and AXA performance awards activity for 2019 . Shares of Holdings Performance Awards Weighted-Average Grant Date Shares of AXA Performance Awards Weighted-Average Grant Date Unvested as of January 1, 2019 197,763 $ 23.17 6,738,653 $ 21.10 Granted 293,237 $ 19.67 207,136 $ 20.62 Forfeited 31,014 $ 21.76 345,735 $ 20.45 Vested — $ — 2,066,118 $ 21.85 Unvested as of December 31, 2019 459,986 $ 21.03 4,533,936 $ 20.79 Employee Stock Purchase Plans Holdings Stock Purchase Plan Under the Equitable Holdings, Inc. Stock Purchase Program (“SPP”) participants are able to contribute up to 100% of their eligible compensation and receive a matching contribution in cash equal to 15% of their payroll contribution, which is used to purchase Holdings shares. Purchases are made at the end of each month at the prevailing market rate. AXA Shareplan 2017 In 2017, eligible employees of participating subsidiaries were offered the opportunity to purchase newly issued AXA ordinary shares, subject to plan limits, under the terms of AXA Shareplan 2017. Investment Option A permitted participants to purchase AXA ordinary shares at a 20% formula discounted price of €20.19 per share. Investment Option B permitted participants to purchase AXA ordinary shares at an 8.98% formula discounted price of €22.96 per share on a leveraged basis with a guaranteed return of initial investment plus a portion of any appreciation in the undiscounted value of the total shares purchased. All subscriptions became binding and irrevocable on October 17, 2017. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income from operations before income taxes included income (loss) from domestic operations of $(2.2) billion , $2.3 billion and $1.2 billion for the years ended December 31, 2019 , 2018 and 2017 , and income from foreign operations of $131 million , $156 million and $143 million for the years ended December 31, 2019 , 2018 and 2017 . Approximately $34 million , $37 million and $30 million of the Company’s income tax expense is attributed to foreign jurisdictions for the years ended December 31, 2019 , 2018 and 2017 . A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows: Years Ended December 31, 2019 2018 2017 (in millions) Income tax (expense) benefit: Current (expense) benefit $ (71 ) $ 508 $ 119 Deferred (expense) benefit 670 (815 ) (168 ) Total $ 599 $ (307 ) $ (49 ) The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the earnings before income taxes and noncontrolling interest by the expected Federal income tax rate of 21% , 21% and 35% for 2019 , 2018 and 2017 , respectively. The sources of the difference and their tax effects are as follows: Years Ended December 31, 2019 2018 2017 (in millions) Expected income tax (expense) benefit $ 427 $ (516 ) $ (457 ) Noncontrolling interest 51 54 138 Non-taxable investment income 74 105 255 Tax audit interest (24 ) (22 ) (14 ) State income taxes (21 ) (18 ) (16 ) Tax settlements/uncertain tax position release 75 — 228 Change in tax law — 104 (32 ) Intangibles (3 ) (3 ) (138 ) Other 20 (11 ) (13 ) Income tax (expense) benefit $ 599 $ (307 ) $ (49 ) During the second quarter of 2019, the Company released a state income tax liability due to recently drafted regulations. The benefit recorded in the Company’s financial statements was $63 million . In accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), the Company recorded provisional estimates for the income tax effects of the Tax Cuts and Jobs Act (the “Tax Reform Act”) in 2017 and refined those estimates in 2018. The impact of the Tax Reform Act primarily related to the revaluation of deferred tax assets and liabilities. During the second quarter of 2017, the Company agreed to the Internal Revenue Service’s Revenue Agent’s Report for its consolidated 2008 and 2009 Federal corporate income tax returns. The impact on the Company’s financial statements and unrecognized tax benefits was a tax benefit of $228 million . The Company’s financial statements include a tax expense of $129 million related to non-deductible goodwill due to the Company’s early adoption of revised goodwill impairment guidance in the first quarter of 2017. The components of the net deferred income taxes are as follows: As of December 31, 2019 2018 Assets Liabilities Assets Liabilities (in millions) Compensation and related benefits $ 283 $ — $ 312 $ — Net operating loss 56 — 90 — Reserves and reinsurance 1,228 — 366 — DAC — 984 — 1,175 Unrealized investment gains/losses — 717 108 — Investments 46 — — 21 Tax credits — — 149 — Other — 111 — 108 Total $ 1,613 $ 1,812 $ 1,025 $ 1,304 The Company has Federal tax net operating loss carry forwards of $266 million and $429 million , which will expire at various dates from 2031 through 2034, for the years ending December 31, 2019 and 2018 , respectively. Realization is dependent on generating sufficient taxable income prior to expiration of the loss carry forwards. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. The Company had $140 million of AMT credits for the year ended December 31, 2018 and expects those credits to be currently utilized or refunded. The Company provides income taxes on the unremitted earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are indefinitely reinvested outside the United States. As of December 31, 2019 , $30 million of undistributed earnings of non-U.S. corporate subsidiaries were permanently invested outside the United States. At existing applicable income tax rates, additional taxes of approximately $8 million would need to be provided if such earnings are remitted. A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: 2019 2018 2017 (in millions) Balance at January 1, $ 539 $ 477 $ 729 Additions for tax positions of prior years 25 91 28 Reductions for tax positions of prior years (63 ) (29 ) (247 ) Additions for tax positions of current year — — — Settlements with tax authorities — — (33 ) Balance at December 31, $ 501 $ 539 $ 477 Unrecognized tax benefits that, if recognized, would impact the effective rate $ 369 $ 407 $ 317 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. Interest and penalties included in the amounts of unrecognized tax benefits at December 31, 2019 and 2018 were $96 million and $75 million , respectively. For 2019 , 2018 and 2017 , respectively, there were $21 million , $(8) million and $(43) million in interest expense (benefit) related to unrecognized tax benefits. It is reasonably possible that the total amount of unrecognized tax benefits will change within the next 12 months due to the conclusion of IRS proceedings and the addition of new issues for open tax years. The possible change in the amount of unrecognized tax benefits cannot be estimated at this time. As of December 31, 2019 , tax years 2010 and subsequent remain subject to examination by the IRS. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments 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 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, 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 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 December 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 $100 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 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 Equitable Life implemented the volatility management strategy in violation of applicable law. Plaintiff seeks an award of damages individually and on a classwide basis, and costs and disbursements, including attorneys’ fees, expert witness fees and other costs. 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 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 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 Equitable Life’s COI rate increase. In early 2016, 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 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 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. Three actions are also pending against Equitable Life in New York state court. Equitable Life is vigorously defending each of these matters. Debt Maturities The following table presents the contractual maturities of the Company’s long-term debt as of December 31, 2019 Calendar Year 2020 2021 2022 2023 2024 and thereafter (in millions) Long-term debt $ — $ — $ — $ 800 $ 3,350 Obligations under Funding Agreements Pre-Capitalized Trust Securities (“P-Caps”) In April 2019, pursuant to separate Purchase Agreements among Holdings, 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 an off-balance sheet contingent funding arrangement that, upon Holdings’ election, gives Holdings 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. In return, Holdings will pay a semi-annual facility fee to the 2029 Trust and 2049 Trust calculated at a rate of 2.125% and 2.715% per annum, respectively, which will be applied to the unexercised portion of the contingent funding arrangement and Holdings will reimburse the Trusts for certain expenses. The facility fees are recorded in Other operating costs and expenses in the Consolidated Statements of Income (Loss). Federal Home Loan Bank of New York As a member of the FHLBNY, 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 Equitable Life to pledge qualified mortgage-backed assets and/or government securities as collateral. Equitable Life issues short-term funding agreements to the FHLBNY and uses the funds for asset, liability, and cash management purposes. Equitable Life issues long-term funding agreements to the FHLBNY and uses the funds for spread lending purposes. Entering into FHLBNY membership, borrowings and funding agreements requires the ownership of FHLBNY stock and the pledge of assets as collateral. Equitable Life has purchased FHLBNY stock of $322 million and pledged collateral with a carrying value of $9.8 billion , as of December 31, 2019 . Funding agreements are reported in Policyholders’ account balances in the consolidated balance sheets. For other instruments used for asset/liability and cash management purposes, see “Derivative and offsetting assets and liabilities” included in Note 4 . The table below summarizes the Company’s activity of funding agreements with the FHLBNY. Change in FHLBNY Funding Agreements during the Year Ended December 31, 2019 Outstanding Balance at December 31, 2018 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Outstanding Balance at December 31, 2019 (in millions) Short-term funding agreements: Due in one year or less $ 1,640 $ 29,330 $ 26,420 $ 58 $ 4,608 Long-term funding agreements: Due in years two through five 1,569 — — 77 1,646 Due in more than five years 781 — — (135 ) 646 Total long-term funding agreements 2,350 — — (58 ) 2,292 Total funding agreements (1) $ 3,990 $ 29,330 $ 26,420 $ — $ 6,900 Outstanding Balance at December 31, 2017 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Outstanding Balance at December 31, 2018 (in millions) Short-term funding agreements: Due in one year or less $ 500 $ 7,980 $ (6,990 ) $ 150 $ 1,640 Long-term funding agreements: Due in years two through five 1,621 — — (52 ) 1,569 Due in more than five years 879 — — (98 ) 781 Total long-term funding agreements 2,500 — — (150 ) 2,350 Total funding agreements (1) $ 3,000 $ 7,980 $ (6,990 ) $ — $ 3,990 _____________ (1) The $9 million , $11 million and $14 million difference between the funding agreements carrying value shown in fair value table for 2019 , 2018 and 2017 , respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Restructuring AB has announced that they will establish their corporate headquarters in and relocate approximately 1,250 jobs currently located in the New York metro area to, Nashville, Tennessee. During the transition period, which began in 2018 and is expected to continue through 2024. AB incurred $33 million and $10 million of transition costs in 2019 and 2018 , respectively. These costs include employee relocation, severance, recruitment, and overlapping compensation and occupancy costs. Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. At December 31, 2019 , these arrangements include commitments by the Company to provide equity financing of $1 billion (including $275 million with affiliates) to certain limited partnerships and real estate joint ventures under certain conditions. Management believes the Company will not incur material losses as a result of these commitments. The Company is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, the Company owns single premium annuities issued by previously wholly-owned life insurance subsidiaries. The Company has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly-owned subsidiaries be unable to meet their obligations. Management believes the need for the Company to satisfy those obligations is remote. Holdings had $260 million of commitments under existing mortgage loan agreements at December 31, 2019 . |
INSURANCE GROUP STATUTORY FINAN
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Group Statutory Financial Information [Abstract] | |
Insurance Group Statutory Financial Information | INSURANCE GROUP STATUTORY FINANCIAL INFORMATION For 2019 , 2018 and 2017 , respectively, Equitable Life’s, Equitable America ’s, USFL’s, AXA Equitable Life and Annuity Company’s (“Equitable L&A”) and ACS Life’s combined statutory Net income (loss) totaled $3.8 billion , $3.0 billion and $942 million . Combined statutory Surplus, Capital stock and Asset Valuation Reserve (“AVR”) totaled $9.3 billion and $8.4 billion at December 31, 2019 and 2018 , respectively. At December 31, 2019 , Equitable Life, Equitable America , USFL, AXA Equitable L&A and ACS Life, in accordance with various government and state regulations, had $82 million of securities on deposit with such government or state agencies. In 2019 , Equitable Life paid to its direct parent which subsequently distributed such amount to Holdings an ordinary shareholder dividend of $1.0 billion . In 2018 , Equitable Life paid to its direct parent which subsequently distributed such amount to Holdings an ordinary shareholder dividend of $1.1 billion . Also in 2018, Equitable Life transferred its interests in ABLP, AB Holding and the General Partner to Alpha Units Holdings, Inc., a newly formed subsidiary, and distributed the shares of that subsidiary to its direct parent which subsequently distributed such shares to Holdings (the “AB Ownership Transfer”). The AB Ownership transfer was considered an extraordinary dividend of $1.7 billion representing the equity value of Alpha Units Holdings, Inc. In connection with the AB Ownership Transfer, Equitable Life paid an extraordinary cash dividend of $572 million and issued a surplus note to Holdings in the same amount. Equitable Life repaid the outstanding principal balance of the surplus note in March 2019. Dividend Restrictions As domestic insurance subsidiaries regulated by insurance laws of their respective domiciliary states, Equitable Life, Equitable America , USFL, Equitable Life and ACS Life are subject to restrictions as to the amounts they may pay as dividends and amounts they may repay of surplus notes to Holdings. With respect to Equitable Life, a New York domiciled insurance subsidiary which is also the Company’s primary insurance subsidiary, New York insurance law provides that a stock life insurer may not, without prior approval of the New York State Department of Financial Services (“NYDFS”), pay a dividend to its stockholders exceeding an amount calculated under one of two standards (the “Standards”). The first standard allows payment of an ordinary dividend out of the insurer’s earned surplus (as reported on the insurer’s most recent annual statement) up to a limit calculated pursuant to a statutory formula, provided that the NYDFS is given notice and opportunity to disapprove the dividend if certain qualitative tests are not met (the “Earned Surplus Standard”). The second standard allows payment of an ordinary dividend up to a limit calculated pursuant to a different statutory formula without regard to the insurer’s earned surplus. Dividends exceeding these prescribed limits require the insurer to file a notice of its intent to declare the dividends with the NYDFS and prior approval or non-disapproval from the NYDFS. In applying the Standards, Equitable Life could pay ordinary dividends up to approximately $2.4 billion during 2020. Intercompany Reinsurance Equitable Life, USFL and Equitable America receive statutory reserve credits for reinsurance treaties with EQ AZ Life Re to the extent EQ AZ Life Re holds assets in an irrevocable trust (the “EQ AZ Life Re Trust”). As of December 31, 2019 , EQ AZ Life Re holds $1.7 billion of assets in the EQ AZ Life Re Trust and letters of credit of $2.4 billion that are guaranteed by Holdings. Under the reinsurance transactions, EQ AZ Life Re is permitted to transfer assets from the EQ AZ Life Re Trust under certain circumstances. The level of statutory reserves held by EQ AZ Life Re fluctuate based on market movements, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust and/or additional letters of credit be secured, which could adversely impact EQ AZ Life Re’s liquidity. AXA Corporate Solutions receives statutory reserve credits for reinsurance treaties with CS Life RE to the extent CS Life RE holds assets in an irrevocable trust (the “CS Life RE Trust”). As of December 31, 2019 , CS Life RE holds $314 million of assets in the CS Life RE Trust and letters of credit of $125 million that are guaranteed by Holdings. Under the reinsurance transactions, CS Life RE is permitted to transfer assets from the CS Life RE Trust under certain circumstances. The level of statutory reserves held by CS Life RE fluctuate based on market movements, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust and/or additional letters of credit be secured, which could adversely impact CS Life RE’s liquidity. In addition, CS Life RE utilizes derivative instruments that are collectively managed in an effort to reduce the economic impact of unfavorable changes to GMDB and GMIB reserves. The use of such instruments is accompanied by agreements which specify the circumstances under which the parties are required to pledge collateral related to the decline in the estimated fair value of specified instruments. Moreover, under the terms of a majority of the transactions, payments to counterparties related to the change in fair value of the instruments may be required. The amount of collateral pledged, and the amount of payments required to be made pursuant to such transactions may increase under certain circumstances, which could adversely impact CS Life RE’s liquidity. Prescribed and Permitted Accounting Practices At December 31, 2019 and for the year then ended, for Equitable Life, Equitable America , USFL and Equitable L&A there were no differences in Net income (loss) and Capital and surplus resulting from practices prescribed and permitted by NYDFS, the Arizona Department of Insurance (the “AID”) and those prescribed by NAIC Accounting Practices and Procedures effective at December 31, 2019 . At December 31, 2019 , ACS Life had a difference in Capital and surplus based on the investment valuation of the Captive reinsurance subsidiary which follows a special purpose framework for Statutory reporting as agreed to with the AID from practices prescribed and permitted by the Delaware Department of Insurance and those prescribed by NAIC Accounting Practices and Procedures effective at December 31, 2019 . The impact of this permitted practice increased the statutory surplus and AVR of ACS Life by $106 million and $86 million at December 31, 2019 and 2018 , respectively. Equitable Life, USFL and Equitable America cede a portion of their statutory reserves to EQ AZ Life Re, a captive reinsurer, as part of the Company’s capital management strategy. EQ AZ Life Re prepares financial statements in a special purpose framework for statutory reporting. Differences between Statutory Accounting Principles and U.S. GAAP Accounting practices used to prepare statutory financial statements for regulatory filings of stock life insurance companies differ in certain instances from U.S. GAAP. The differences between statutory surplus and capital stock determined in accordance with Statutory Accounting Principles (“SAP”) and total equity under U.S. GAAP are primarily: (a) the inclusion in SAP of an AVR intended to stabilize surplus from fluctuations in the value of the investment portfolio; (b) future policy benefits and policyholders’ account balances under SAP differ from U.S. GAAP due to differences between actuarial assumptions and reserving methodologies; (c) certain policy acquisition costs are expensed under SAP but deferred under U.S. GAAP and amortized over future periods to achieve a matching of revenues and expenses; (d) under SAP, Federal income taxes are provided on the basis of amounts currently payable with limited recognition of deferred tax assets while under U.S. GAAP, deferred taxes are recorded for temporary differences between the financial statements and tax basis of assets and liabilities where the probability of realization is reasonably assured; (e) the valuation of assets under SAP and U.S. GAAP differ due to different investment valuation and depreciation methodologies, as well as the deferral of interest-related realized capital gains and losses on fixed income investments; (f) the valuation of the investment in AB and AB Holding under SAP reflects a portion of the market value appreciation rather than the equity in the underlying net assets as required under U.S. GAAP; (g) reporting the surplus notes as a component of surplus in SAP but as a liability in U.S. GAAP; (h) computer software development costs are capitalized under U.S. GAAP but expensed under SAP; (i) certain assets, primarily prepaid assets, are not admissible under SAP but are admissible under U.S. GAAP; and (j) cost of reinsurance which is recognized as expense under SAP and amortized over the life of the underlying reinsured policies under U.S. GAAP. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 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 2017, the pre-tax impact on Operating earnings of excluding the SCS-related DAC amortization from Operating earnings would have been a decrease of $56 million and $46 million for the years ended December 31, 2018 and 2017. 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 on our SCS product; • Investment (gains) losses, which includes other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Goodwill impairment, which includes a write-down of goodwill in 2017. • 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, permanent differences due to goodwill impairment and the Tax Reform Act. Revenues derived from any customer did not exceed 10% of revenues for the years ended December 31, 2019 , 2018 and 2017 . 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 years ended December 31, 2019 , 2018 and 2017 , respectively: Years Ended December 31, 2019 2018 2017 (in millions) Net income (loss) attributable to Holdings $ (1,733 ) $ 1,820 $ 834 Adjustments related to: Variable annuity product features (1) 4,878 (70 ) 1,107 Investment (gains) losses (73 ) 86 191 Goodwill impairment — — 369 Net actuarial (gains) losses related to pension and other postretirement benefit obligations 99 215 135 Other adjustments (2) 406 299 119 Income tax expense (benefit) related to above adjustments (3) (1,114 ) (111 ) (644 ) Non-recurring tax items (66 ) (73 ) (76 ) Non-GAAP Operating Earnings (4) $ 2,397 $ 2,166 $ 2,035 Operating earnings (loss) by segment: Individual Retirement (5) $ 1,577 $ 1,555 $ 1,252 Group Retirement $ 390 $ 389 $ 283 Investment Management and Research $ 381 $ 381 $ 211 Protection Solutions $ 396 $ 197 $ 502 Corporate and Other (6) $ (347 ) $ (356 ) $ (213 ) ______________ (1) Had we modified the treatment of the amortization of DAC for SCS starting in 2017, the adjustment related to Variable annuity product features for the years ended 2018 and 2017 would have been ($126) million and $1.1 billion. (2) Other adjustments include separation costs of $222 million , $213 million and $93 million in 2019 , 2018 and 2017 , respectively. (3) Had we modified the treatment of the amortization of DAC for SCS starting in 2017, the adjustment related to Income tax expense (benefit) related to above adjustments for the years ended 2018 and 2017 would have been ($99) million and ($634) million. (4) Had we modified the treatment of the amortization of DAC for SCS starting in 2017, Operating earnings for the years ended 2018 and 2017 would have been $2.1 billion and $2.0 billion. (5) Had we modified the treatment of the amortization of DAC for SCS starting in 2017, Operating earnings for the years ended 2018 and 2017 for the Individual Retirement segment would have been $1.5 billion and $1.2 billion. (6) Includes interest expense and financing fees of $228 million , $223 million and $138 million , in 2019 , 2018 and 2017 , 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 years ended December 31, 2019 , 2018 and 2017 . Years Ended December 31, 2019 2018 2017 (in millions) Segment revenues: Individual Retirement (1) $ 4,340 $ 4,054 $ 4,374 Group Retirement (1) 1,077 1,019 942 Investment Management and Research (2) 3,479 3,411 3,216 Protection Solutions (1) 3,325 3,232 3,057 Corporate and Other (1) 1,229 1,148 1,212 Adjustments related to: Variable annuity product features (3,939 ) (643 ) (214 ) Investment gains (losses), net 73 (86 ) (191 ) Other adjustments to segment revenues 7 (57 ) 64 Total revenues $ 9,591 $ 12,078 $ 12,460 ______________ (1) Includes investment expenses charged by AB of $76 million , $67 million and $68 million for 2019 , 2018 and 2017 , respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $104 million , $94 million and $96 million for 2019 , 2018 and 2017 , respectively, are included in segment revenues of the Investment Management and Research segment. The table below presents Total assets by segment as of December 31, 2019 and 2018 : December 31, 2019 2018 (in millions) Total assets by segment: Individual Retirement $ 123,626 $ 105,532 Group Retirement 43,588 38,874 Investment Management and Research 10,170 10,294 Protection Solutions 46,886 44,633 Corporate and Other 25,600 21,464 Total assets $ 249,870 $ 220,797 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Dividends to Shareholders Dividends declared per share of common stock were as follows for the periods indicated: Years Ended December 31, 2019 2018 2017 Dividends declared per share of common stock $ 0.58 $ 0.26 $ — 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 December 31, 2019 . On February 27, 2019, Holdings’ Board of Directors authorized an $800 million share repurchase program with an expiration date of December 31, 2019. On November 6, 2019, Holdings’ Board of Directors authorized a second $400 million share repurchase program which will expire on December 31, 2020. Each program authorized Holdings to repurchase its common stock from time to time through its expiration date. Neither program obligated Holdings to purchase any particular number of shares. Repurchases under both programs may be effected in the open market, through derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As of December 31, 2019 and 2018 , the Company repurchased approximately 65.6 million and 32.5 million shares of its common stock at a total cost of approximately $1.3 billion and $648 million , respectively. The repurchased common stock was recorded as treasury stock in the consolidated balance sheets. As of December 31, 2019 and 2018 , the Company reissued approximately 394 thousand and 400 thousand shares of its treasury stock, respectively. As of December 31, 2019 , the Company retired approximately 8.1 million shares of its treasury stock. The timing and amount of share repurchases are determined by management based upon market conditions and other considerations. Numerous factors could affect the timing and amount of any future repurchases under the share repurchase authorization, including increased capital needs of the Company due to changes in regulatory capital requirements, opportunities for growth and acquisitions, and the effect of adverse market conditions on the segments. Series A Fixed Rate Noncumulative Perpetual Preferred Stock In Novem ber and December 2019, Holdings’ issued a total of 32 million depositary shares, each representing a 1/1,000th interest in share of Holdings’ Series A Fixed Rate Noncumulative Perpetual Preferred Stock (“Series A Preferred Stock”), $1.00 par value per share, with a liquidation preference of $25,000 per share, for aggregate net cash proceeds of $775 million ( 800 million gross). The preferred stock ranks senior to Holdings’ common stock with respect to the payment of dividends and liquidation. Holdings’ will pay dividends on the Series A Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the board) and will be payable quarterly in arrears, at an annual rate of 5.25% on the stated amount per share. In connection with the issuance of the depositary shares and the underlying Series A Preferred Stock, Holdings’ incurred $ 25 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. The Series A Preferred Stock is redeemable at Holdings’ option in whole or in part, on or after December 15, 2024, at a redemption price of $25,000 per share of preferred stock, plus declared and unpaid dividends. Prior to December 25, 2024, the preferred stock is redeemable at Holdings’ option, in whole but not in part, within 90 days of the occurrence of certain rating agency events at a redemption price equal to $25,500 per share, plus declared and unpaid dividends or certain regulatory capital events at a redemption price equal to $25,000 per share, plus any declared and unpaid dividends. Accumulated Other Comprehensive Income (Loss) AOCI represents cumulative gains (losses) on items that are not reflected in Net income (loss). The balances as of December 31, 2019 , 2018 , and 2017 follow: December 31, 2019 2018 2017 (in millions) Unrealized gains (losses) on investments (1) (2) (4) $ 1,838 $ (404 ) $ 825 Defined benefit pension plans (3) (983 ) (968 ) (955 ) Foreign currency translation adjustments (1) (57 ) (62 ) (30 ) Total accumulated other comprehensive income (loss) 798 (1,434 ) (160 ) Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (42 ) (38 ) (52 ) Accumulated other comprehensive income (loss) attributable to Holdings $ 840 $ (1,396 ) $ (108 ) ______________ (1) A reclassification of $10 million and $5 million , respectively has been made to the December 31, 2018 and 2017 previously reported balances to conform to the current period’s presentation. (2) 2018 includes a $113 million decrease to Accumulated other comprehensive loss from the impact of adoption of ASU 2018-02. (3) 2018 includes a $202 million increase to Accumulated other comprehensive loss from the impact of adoption of ASU 2018-02. (4) 2018 includes a $7 million decrease to Accumulated other comprehensive loss from the impact of adoption of ASU 2016-01. The components of OCI, net of taxes for the years ended December 31, 2019 , 2018 , and 2017 follow: Years Ended December 31, 2019 2018 2017 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ 3,301 $ (1,952 ) $ 910 (Gains) losses reclassified to Net income (loss) during the period (1) (161 ) 60 10 Net unrealized gains (losses) on investments 3,140 (1,892 ) 920 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (2) (898 ) 558 (227 ) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $590, $(356) and $262) 2,242 (1,334 ) 693 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) (15 ) 189 100 Change in defined benefit plans (net of deferred income tax expense (benefit) of $10, $50 and $51) (15 ) 189 100 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (2) 5 (32 ) 39 (Gains) losses reclassified into net income (loss) during the period — — — Foreign currency translation adjustment 5 (32 ) 39 Years Ended December 31, 2019 2018 2017 (in millions) Total other comprehensive income (loss), net of income taxes 2,232 (1,177 ) 832 Less: Other comprehensive income (loss) attributable to noncontrolling interest (4 ) 15 19 Other comprehensive income (loss) attributable to Holdings $ 2,236 $ (1,192 ) $ 813 ______________ (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts presented net of income tax expense (benefit) of $(43) million , $13 million and $5 million for the years December 31, 2019, 2018 and 2017, respectively. (2) A reclassification of $5 million and $3 million has been made to the previously reported amounts for the years ended December 31, 2018 and 2017, respectively to conform to the current period’s presentation. (3) These AOCI components are included in the computation of net periodic costs (see “Employee Benefit Plans” in Note 14 ). 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings per share (“EPS”) basic 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. On April 24, 2018, a split of the common stock of Holdings of approximately 459 -for-1 was effected. All applicable share data, per share amounts and related information in the consolidated financial statements and notes thereto have been adjusted retroactively to give effect to the stock split. The following table presents the weighted-average shares outstanding, Earnings per common share — basic and diluted: Years Ended December 31, 2019 2018 2017 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 493.6 556.4 561.0 Effect of dilutive securities: Employee share awards (1) — 0.1 — Weighted-average common shares outstanding — diluted (2) 493.6 556.5 561.0 Net income (loss): Net income (loss) $ (1,436 ) $ 2,154 $ 1,257 Less: Net income (loss) attributable to the noncontrolling interest 297 334 423 Net income (loss) attributable to Holdings common shareholders (1,733 ) 1,820 834 Less: Incremental dilution from AB (3) — — 1 Net income (loss) attributable to Holdings common shareholders (diluted) $ (1,733 ) $ 1,820 $ 833 Earnings per common share: Basic $ (3.51 ) $ 3.27 $ 1.49 Diluted $ (3.51 ) $ 3.27 $ 1.49 _____________ (1) Calculated using the treasury stock method. (2) Shares in the diluted EPS calculation represent basic shares for the year ended 2019 due to the net loss in this period. The shares excluded from the calculation were 1.1 million . (3) The incremental dilution from AB represents the impact of AB’s dilutive units on the Company’s diluted earnings per share and is calculated based on the Company’s proportionate ownership interest in AB. Shares of outstanding stock awards not included in the computation of diluted earnings per share because their effect was anti-dilutive totaled 5.3 million and 2.7 million for the years ended December 31, 2019 and 2018 , respectively. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The unaudited quarterly financial information for the years ended December 31, 2019 and 2018 is summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 (in millions) 2019 Total revenues $ 1,714 $ 3,160 $ 3,028 $ 1,689 Total benefits and other deductions 2,638 2,719 3,468 2,801 Income (loss) from continuing operations, before income taxes (924 ) 441 (440 ) (1,112 ) Income tax (expense) benefit 215 (11 ) 124 271 Net income (loss) (709 ) 430 (316 ) (841 ) Less: Net income (loss) attributable to the noncontrolling interest 66 67 68 96 Net income (loss) attributable to Holdings $ (775 ) $ 363 $ (384 ) $ (937 ) Earnings per share - Common stock: Basic $ (1.50 ) $ 0.74 $ (0.78 ) $ (1.97 ) Diluted $ (1.50 ) $ 0.74 $ (0.78 ) $ (1.97 ) Three Months Ended March 31 June 30 September 30 December 31 (in millions) 2018 Total revenues $ 2,874 $ 2,966 $ 1,083 $ 5,155 Total benefits and other deductions 2,446 2,644 1,701 2,826 Income (loss) from continuing operations, before income taxes 428 322 (618 ) 2,329 Income tax (expense) benefit (91 ) (61 ) 175 (330 ) Net income (loss) 337 261 (443 ) 1,999 Less: Net income (loss) attributable to the noncontrolling interest 123 97 53 61 Net income (loss) attributable to Holdings $ 214 $ 164 $ (496 ) $ 1,938 Earnings per share - Common stock: Basic $ 0.38 $ 0.29 $ (0.89 ) $ 3.57 Diluted $ 0.38 $ 0.29 $ (0.89 ) $ 3.57 Net Income (Loss) Volatility The fluctuation in the Company’s quarterly Net income (loss) during 2019 and 2018 is not due to any specific events or transactions, but instead is driven primarily by the impact of changes in market conditions on the Company’s liabilities associated with GMxB features embedded in its variable annuity products, partially offset by derivatives the Company has in place to mitigate the movement in those liabilities. As those derivatives do not qualify for hedge accounting treatment, volatility in Net income (loss) results from the changes in fair value of the derivatives being recognized in the period in which they occur, with offsetting changes in the liabilities being partially recognized in the current period. An additional source of Net income (loss) volatility is the impact of the Company’s annual actuarial assumption review. See Note 2 - Significant Accounting Policies — Assumption Updates, for further detail of the impact of assumption updates on Net income (loss) in 2019 and 2018. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST The changes in the components of redeemable noncontrolling interests were: Years Ended December 31, 2019 2018 2017 (in millions) Balance, beginning of year $ 187 $ 626 $ 403 Net earnings (loss) attributable to redeemable noncontrolling interests 34 18 53 Purchase/change of redeemable noncontrolling interests 144 (457 ) 170 Balance, end of year $ 365 $ 187 $ 626 |
HELD-FOR-SALE
HELD-FOR-SALE | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
HELD-FOR-SALE | HELD-FOR-SALE : Assets and liabilities related to the business classified as held-for-sale are separately reported in the Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale. U.S. Financial Life Insurance Company and MONY Life Insurance Company of the Americas, Ltd On December 10, 2019, Holdings entered into a definitive agreement to sell U.S. Financial Life Insurance Company (“USFL”) and MONY Life Insurance Company of the Americas, Ltd (“MLICA”), indirect wholly-owned subsidiaries of Holdings. As a result of the agreement, an estimated impairment of $105 million , net of income tax, was recorded for the year ended December 31, 2019 and is included in Investment gains (losses), net in the Consolidated Statements of Income (Loss). The transaction is expected to close in first quarter of 2020 and is subject to regulatory approval and satisfaction of other closing conditions. At December 31, 2019 , USFL and MLICA had total assets of $962 million which is reported in Assets held-for-sale and $724 million of total liabilities reported in Liabilities held-for-sale. The assets held-for-sale are reported in the Protection Solutions segment. The following table summarizes the components of assets and liabilities held-for-sale on the Consolidated Balance Sheets at December 31, 2019: December 31, 2019 (in millions) Assets: Fixed maturity securities $ 896 Trading securities, at fair value 17 Policy loans 19 Cash and cash equivalents 65 Amounts due from reinsurers 43 Deferred policy acquisition costs 31 Other assets 24 Assets held-for-sale 1,095 Less: Loss accrual (133 ) Total assets held-for-sale $ 962 Liabilities: Policyholders’ account balances $ 286 Future policy benefits and other policyholders’ liabilities 421 Amounts due to reinsurers 6 Other liabilities 11 Total liabilities held-for-sale $ 724 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Cash Dividend Declared On February 26, 2020 , Holdings’ Board of Directors declared a cash dividend on Holdings’ common stock of $0.15 per share, payable on March 16, 2020 , to shareholders of record as of March 9, 2020 . The payment of any future dividends will be at the discretion of Holdings’ Board of Directors and will depend on our financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends by Holdings’ insurance subsidiaries and other factors deemed relevant by the Board. Share Repurchase Authorization Program On February 26, 2020 , Holding’s Board of Directors authorized an increase of $600 million to the capacity of its existing share repurchase program. Under this program, Holdings may, from time to time through March 31, 2021 , purchase up to $1 billion 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. |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments - Other than Investments in Related Parties | SCHEDULE I SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES AS OF DECEMBER 31, 2019 (1) Cost (2) Fair Value Carrying Value (in millions) Fixed Maturities: U.S. government, agencies and authorities $ 14,410 $ 15,394 $ 14,410 State, municipalities and political subdivisions 638 705 638 Foreign governments 462 492 462 Public utilities 5,010 5,305 5,010 All other corporate bonds 40,890 42,894 40,890 Residential mortgage-backed 178 191 178 Asset-backed 848 849 848 Redeemable preferred stocks 501 513 501 Total fixed maturities 62,937 66,343 62,937 Mortgage loans on real estate (3) 12,107 12,334 12,107 Real estate held for the production of income 27 27 27 Policy loans 3,735 4,707 3,735 Other equity investments 1,350 1,344 1,344 Trading securities 6,770 7,031 7,031 Other invested assets 2,753 2,753 2,753 Total Investments $ 89,679 $ 94,539 $ 89,934 ______________ (1) Excludes amounts reclassified as Held-for-Sale. (2) Cost for fixed maturities represents original cost, reduced by repayments and write-downs and adjusted for amortization of premiums or accretion of discount; cost for equity securities represents original cost reduced by write-downs; cost for other limited partnership interests represents original cost adjusted for equity in earnings and reduced by distributions. (3) Carrying value for mortgage loans on real estate represents original cost adjusted for amortization of premiums or accretion of discount and reduced by valuation allowance. |
SCHEDULE II - PARENT COMPANY
SCHEDULE II - PARENT COMPANY | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Parent Company | SCHEDULE II BALANCE SHEETS (PARENT COMPANY) DECEMBER 31, 2019 AND 2018 2019 2018 (in millions, except share amounts) ASSETS Investment in consolidated subsidiaries $ 15,966 $ 16,743 Fixed maturities available-for-sale, at fair value (amortized cost of $233 and $337) 236 336 Other equity investments 37 23 Other invested assets — 80 Total investments 16,239 17,182 Cash and cash equivalents 1,353 407 Goodwill and other intangible assets, net 1,258 1,265 Loans to affiliates 560 572 Other assets 829 766 Total Assets $ 20,239 $ 20,192 LIABILITIES Short-term and long-term debt $ 4,111 $ 4,408 Employee benefits liabilities 1,226 1,184 Loans from affiliates 1,200 600 Income taxes payable 68 16 Accrued liabilities 99 118 Total Liabilities $ 6,704 $ 6,326 EQUITY ATTRIBUTABLE TO HOLDINGS Preferred stock and additional paid-in capital, par value $1.00 per share; $25,000 liquidation preference at December 31, 2019 $ 775 $ — Common stock, $0.01 par value, 2,000,000,000 shares authorized; 552,896,328 and 561,000,000 shares issued, respectively; 463,711,392 and 528,861,758 shares outstanding, respectively 5 5 Additional paid-in capital 1,920 1,908 Treasury stock, at cost, 89,184,936 and 32,138,242 shares, respectively (1,832 ) (640 ) Retained earnings 11,827 13,989 Accumulated other comprehensive income (loss) 840 (1,396 ) Total equity attributable to Holdings 13,535 13,866 Total Liabilities and Equity Attributable to Holdings $ 20,239 $ 20,192 The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto. EQUITABLE HOLDINGS, INC. SCHEDULE II STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (PARENT COMPANY) YEARS ENDED DECEMBER 31, 2019 , 2018 , AND 2017 2019 2018 2017 (in millions) REVENUES Equity in income (losses) from continuing operations of consolidated subsidiaries $ (1,569 ) $ 2,404 $ 863 Net investment income (loss) 29 30 8 Investment gains (losses), net (1 ) (8 ) — Other income 12 (1 ) — Total revenues (1,529 ) 2,425 871 EXPENSES Interest expense 237 214 31 Other operating costs and expenses 83 123 22 Total expenses 320 337 53 Income (loss) from continuing operations, before income taxes (1,849 ) 2,088 818 Income tax (expense) benefit 116 (268 ) 16 Net income (loss) attributable to Holdings (1,733 ) 1,820 834 Other comprehensive income (loss) 2,236 (1,192 ) 816 Total Comprehensive income (loss) attributable to Holdings $ 503 $ 628 $ 1,647 The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto. EQUITABLE HOLDINGS, INC. SCHEDULE II STATEMENTS OF CASH FLOWS (PARENT COMPANY) YEARS ENDED DECEMBER 31, 2019 , 2018 , AND 2017 2019 2018 2017 (in millions) Net income (loss) attributable to Holdings $ (1,733 ) $ 1,820 $ 834 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in net (earnings) loss of subsidiaries 1,569 (2,404 ) (863 ) Non-cash long term incentive compensation expense 69 — — Amortization and depreciation 33 — — Equity (income) loss limited partnerships 1 — — Changes in: Current and deferred taxes 194 111 (14 ) Dividends from subsidiaries 1,341 1,838 20 Other, net (76 ) (264 ) 24 Net cash provided by (used in) operating activities $ 1,398 $ 1,101 $ 1 Cash flows from investing activities: Proceeds from the sale/maturity/prepayment of: Fixed maturities, available-for-sale $ 105 $ 18 $ — Short-term investments 80 1,038 — Payment for the purchase/origination of: Fixed maturities, available-for-sale — (355 ) — Short-term investments — (1,113 ) — Other (14 ) (16 ) — Repayments of loans to affiliates 572 1,045 — Issuance of loans to affiliates (560 ) (572 ) (900 ) Increase in cash and cash equivalents from merger of AXA Financial Inc. — 381 — Increase in cash and cash equivalents from merger of AXA Tech 11 — — Purchase of shares of consolidated subsidiaries — — (55 ) Other, net — (5 ) — Net cash provided by (used in) investing activities $ 194 $ 421 $ (955 ) Cash flows from financing activities: Issuance of preferred stock $ 775 $ — $ — Issuance of long-term debt — 4,057 — Repayment of long-term debt (300 ) — — Proceeds from loans from affiliates 900 800 731 Repayments of loans from affiliates (300 ) (200 ) (56 ) Shareholder dividends paid (285 ) (157 ) — Purchase of AllianceBernstein Units — (1,340 ) — Purchase of treasury shares (1,350 ) (648 ) — Capital Contribution from parent company — 8 318 Capital contribution to subsidiaries (86 ) (3,679 ) — Net cash provided by (used in) financing activities $ (646 ) $ (1,159 ) $ 993 Change in cash and cash equivalents 946 363 39 Cash and cash equivalents, beginning of year 407 44 5 Cash and cash equivalents, end of year $ 1,353 $ 407 $ 44 2019 2018 2017 (in millions) Non-cash transactions: Goodwill and intangible assets $ — $ 1,079 $ — Equity Investments $ — $ 8 $ — Other assets $ 4 $ 774 $ — Settlement of long-term debt $ — $ (349 ) $ — Employee benefit plans $ — $ (1,168 ) $ — Other liabilities $ (16 ) $ (20 ) $ — The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto. EQUITABLE HOLDINGS, INC. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS 1) BASIS OF PRESENTATION The financial information of Holdings should be read in conjunction with the Consolidated Financial Statements and Notes thereto. Equitable Holdings, Inc. (which changed its name from AXA Equitable Holdings, Inc. on January 13, 2020, “Holdings” and, with its consolidated subsidiaries, the “Company”) is the holding company for a diversified financial services organization. 2) LOANS TO AFFILIATES On November 4, 2019 , Holdings made available to AB a $900 million committed, unsecured senior credit facility (the “EQH Facility”). The EQH Facility matures on November 4, 2024 and is available for AB's general business purposes. Borrowings by AB under the EQH Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates. The EQH Facility contains affirmative, negative and financial covenants which are substantially similar to those in AB’s committed bank facilities. The EQH Facility also includes customary events of default substantially similar to those in AB’s committed bank facilities, including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or the lender’s commitment may be terminated. Amounts under the EQH Facility may be borrowed, repaid and re-borrowed by AB from time to time until the maturity of the facility. AB or Holdings may reduce or terminate the commitment at any time without penalty upon proper notice. Holdings also may terminate the facility immediately upon a change of control of the general partner. At December 31, 2019 $560 million was outstanding under the EQH Facility. In 2018, Equitable Life received a $572 million loan from Holdings. The loan had an interest rate of 3.75% and was repaid in March 2019. Interest income received in 2019 was $4 million . In 2013, Colisee Re received a $145 million loan from Holdings. The loan was repaid on March 26, 2018. 3) LOANS FROM AFFILIATES In March 2010 AXA Financial issued Subordinated Notes to Equitable Life Insurance Company LTD in the amount of $770 million . This loan was repaid on April 20, 2018 In December 2014, AXA Financial received a $2,727 million , three-month LIBOR plus 1.06% margin term loan from AXA. AXA Financial repaid $520 million of this loan in June 2015 and repaid an additional $1,200 million of this loan in 2016. On April 20, 2018, the remainder of this loan was repaid. In 2015, Holdings received a $366 million , three-month LIBOR plus 1.44% loan from AXA. This loan was repaid on April 20, 2018. In December 2013, Coliseum Re issued $242 million and $145 million of 4.75% Senior Unsecured Notes to Holdings. These loans were repaid on April 20, 2018. In 2017, Holdings received a $ 100 million and $ 10 million loan from AXA CS. The loans have interest rates of 1.86% and 1.76% , respectively, and were repaid on their maturity date of February 5, 2018. In December 2017, Holdings received a $622 million , three-month LIBOR plus 0.439% margin term loan from AXA. The loan was repaid on April 20, 2018. In April 2018, Holdings received a $800 million loan from Equitable Life. The loan has an interest rate of 3.69% and matures in April 2021. In December 2018, Holdings repaid $200 million of this loan. In December 2019, Holdings repaid $300 million . At December 2019, the amount outstanding was $300 million . In November 2019, Holdings received a $900 million loan from Equitable Life. The loan has an interest rate of one- month LIBOR plus 1.33% . The loan matures on November 4, 2024 . Interest cost related to these loans totaled $26 million , $48 million and $77 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. 4) RELATED PARTY TRANSACTIONS Disposition of AXA CS See Note 13 of the Notes to the Consolidated Financial Statements. Acquisition of Noncontrolling Interest of AXA Financial See Note 13 of the Notes to the Consolidated Financial Statements. Acquisition of Additional AB Units See Note 13 of the Notes to the Consolidated Financial Statements. Pre-IPO Transactions with AXA Affiliates See Note 13 of the Notes to the Consolidated Financial Statements. General Services Agreements with AXA Affiliates See Note 13 of the Notes to the Consolidated Financial Statements. 5) INCOME TAXES Holdings and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. Holdings has tax sharing agreements with certain of its subsidiaries and generally will either receive or pay these subsidiaries for utilization of the subsidiaries’ tax benefits or expense. Holdings settles these amounts annually. 6) ISSUANCE OF SERIES A FIXED RATE NONCUMULATIVE PERPETUAL PREFERRED STOCK See Note 20 of the Notes to the Consolidated Financial Statements. 7) SHARE REPURCHASE See Note 20 of the Notes to the Consolidated Financial Statements. 8) AXA FINANCIAL MERGER On October 1, 2018, AXA Financial merged with and into its direct parent, Holdings, with Holdings continuing as the surviving entity (the “AXA Financial Merger”). As a result of the AXA Financial Merger, Holdings assumed all of AXA Financials’ assets and liabilities, including its obligations under the Senior Debentures, two assumption agreements under which it legally assumed primary liability for certain employee benefit plans of AXA Equitable Life and various guarantees for its subsidiaries. Holdings also replaced AXA Financial as a party to the $2 billion commercial paper program initiated by AXA and AXA Financial in June 2009. Holdings was removed as an issuer under the program in October 2018. The following table discloses the assets and liabilities that Holdings assumed at the date of the merger. As of October 1, 2018 Assets Liabilities (in millions) Cash and cash equivalents $ 381 Goodwill and other intangibles assets, net 1,079 Other equity investments 13 Other assets 777 Total Assets $ 2,250 Employee benefit liabilities $ 1,168 Long-term debt 349 Income taxes payable 2,106 Other liabilities 20 Total Liabilities $ 3,643 |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2019 Individual Retirement Group Retirement Investment Management and Research Protection Solutions Corporate and Other Total (in millions) Deferred policy acquisition costs (3) $ 3,285 $ 657 $ — $ 1,935 $ 13 $ 5,890 Policyholders’ account balances (3) 26,146 12,068 — 14,090 6,575 58,879 Future policy benefits and other policyholders' liabilities (3) 20,352 7 — 4,157 10,071 34,587 Policy charges and premium revenue 2,085 279 — 2,107 414 4,885 Net investment income (loss) (1) (2,360 ) 599 61 939 460 (301 ) Policyholders’ benefits and interest credited 2,334 304 — 2,123 850 5,611 Amortization of deferred policy acquisition costs 327 37 — 210 5 579 All other operating expenses (2) 785 319 2,710 575 1,047 5,436 _____________ (1) Net investment income (loss) is allocated to segments. Includes net derivative gains (losses). (2) Operating expenses are allocated to segments. (3) Excludes amounts reclassified as Held-for-Sale. AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2018 Individual Retirement Group Retirement Investment Management and Research Protection Solutions Corporate and Other Total (in millions) Deferred policy acquisition costs $ 3,229 $ 657 $ — $ 2,706 $ 153 $ 6,745 Policyholders’ account balances 20,798 11,617 — 13,989 3,519 49,923 Future policy benefits and other policyholders' liabilities 16,076 6 — 4,556 10,360 30,998 Policy charges and premium revenue 2,124 271 — 2,103 420 4,918 Net investment income (loss) (1) 497 552 36 903 474 2,462 Policyholders’ benefits and interest credited 590 294 — 2,308 813 4,005 Amortization of deferred policy acquisition costs 183 (8 ) — 161 (3 ) 333 All other operating expenses (2) 764 325 2,538 561 1,091 5,279 _____________ (1) Net investment income (loss) is allocated to segments. Includes net derivative gains (losses). (2) Operating expenses are allocated to segments. AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2017 Individual Retirement Group Retirement Investment Management and Research Protection Solutions Corporate and Other Total (in millions) Policy charges and premium revenue $ 2,116 $ 248 $ — $ 1,995 $ 458 $ 4,817 Net investment income (loss) (1) 1,292 523 118 850 513 3,296 Policyholders’ benefits and interest credited 2,728 282 — 1,432 919 5,361 Amortization of deferred policy acquisition costs 114 25 — 374 (10 ) 503 All other operating expenses (2) 881 463 2,517 734 695 5,290 _____________ (1) Net investment income (loss) is allocated to segments. Includes net derivative gains (losses). (2) Operating expenses are allocated to segments. |
SCHEDULE IV - REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | SCHEDULE IV REINSURANCE (1) AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2019 , 2018 AND 2017 Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (in millions) 2019 Life insurance in-force $ 492,780 $ 65,427 $ 32,365 $ 459,718 7.0 % Premiums: Life insurance and annuities $ 971 $ 101 $ 211 $ 1,081 19.5 % Accident and health 97 40 9 66 13.6 % Total Premiums $ 1,068 $ 141 $ 220 $ 1,147 19.2 % 2018 Life insurance in-force $ 488,431 $ 69,255 $ 31,249 $ 450,425 6.9 % Premiums: Life insurance and annuities $ 963 $ 100 $ 204 $ 1,067 19.1 % Accident and health 49 32 10 27 37.0 % Total Premiums $ 1,012 $ 132 $ 214 $ 1,094 19.6 % 2017 Life insurance in-force $ 483,010 $ 73,049 $ 31,886 $ 441,847 7.2 % Premiums: Life insurance and annuities $ 984 $ 103 $ 216 $ 1,097 19.7 % Accident and health 54 36 9 27 33.3 % Total Premiums $ 1,038 $ 139 $ 225 $ 1,124 20.0 % ______________ (1) Includes amounts related to the discontinued group life and health business. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation. Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The years “ 2019 ”, “ 2018 ” and “ 2017 ” refer to the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Adoption of New and Future Accounting Pronouncements | Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2016-02: Leases (Topic 842) This ASU contains revised guidance to lease accounting that requires 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 remains 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 were not adjusted or presented under this method. We applied several practical expedients offered by ASC 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 $1.0 billion 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 10 for additional information. 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 2017-12: Derivatives and Hedging (Topic 815), as clarified and amended by ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments The amendments in these ASUs 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. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2016-13: Financial Instruments—Credit Losses (Topic 326), as clarified and amended by ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05: Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief, ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments-Credit Losses ASU 2016-13 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. ASU 2019-05 provides entities that have instruments within the scope of Subtopic 326-20 an option to irrevocably elect the fair value option on an instrument-by instrument basis upon adoption of Topic 326. ASU 2018-19, ASU 2019-04 and ASU 2019-11, clarified the codification guidance and did not materially change the standard. Effective for fiscal years beginning after December 15, 2019, 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. The Company will implement its updated expected credit loss models, processes and controls related to the identified financial assets that fall within the scope of the new standard as of the date of adoption, January 1, 2020. Management currently anticipates that the standard will have the most impact to its commercial and agricultural mortgage loan portfolios. Based on current economic conditions, the structure and size of the Company’s loan portfolio and other assets impacted by the standard as of December 31, 2019, the Company expects application of the current expected credit loss requirements will result in an immaterial reduction to retained earnings as of the date of adoption. ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2019-09: Financial Services - Insurance (Topic 944): Effective Date 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. In November 2019, ASU 2019-09 was issued which modified ASU 2018-12 to be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. 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. The Company is currently 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 the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2019-09: Financial Services - Insurance (Topic 944): Effective Date continued Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. 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 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 impact the disclosure requirements in Topic 820, including the removal, modification and addition to existing disclosure 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 disclosure requirements delayed until the stated 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. The Company elected to early adopt during 2019 the removed disclosures relating to transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and valuation processes for Level 3 fair value measurements. The Company will delay adoption of the additional disclosures until their effective date on January 1, 2020. 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. The Company will adopt this new standard effective for January 1, 2020. Management does not expect the adoption of this standard to materially impact the Company’s financial position or results of operations. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact adopting the guidance will have on the Company’s consolidated financial statements, however the adoption is not expected to materially impact the Company’s financial position, results of operation, or cash flows. |
Investments | Investments The carrying values of fixed maturities classified as available-for-sale (“AFS”) are reported at fair value. Changes in fair value are reported in other comprehensive income (“OCI”). The amortized cost of fixed maturities is adjusted for impairments in value deemed to be other than temporary which are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include real estate investment trusts (“REIT”), perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, monitors the investment performance of its portfolio and reviews AFS securities with unrealized losses for other-than-temporary impairments (“OTTI”). Integral to this review is an assessment made each quarter, on a security-by-security basis, by the Company’s Investments Under Surveillance (“IUS”) Committee, of various indicators of credit deterioration to determine whether the investment security is expected to recover. This assessment includes, but is not limited to, consideration of the duration and severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity and continued viability of the issuer. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting OTTI is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value . Real estate held for the production of income is stated at depreciated cost less valuation allowances. Depreciation of real estate held for production of income is computed using the straight-line method over the estimated useful lives of the properties, which generally range from 40 to 50 years. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag . Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss). Corporate owned life insurance (“COLI”) has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. At December 31, 2019 , 2018 and 2017 , the carrying value of COLI was $944 million , $872 million and $918 million , respectively, and is reported in Other invested assets in the consolidated balance sheets. Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act. All securities owned, including U.S. government and agency securities, mortgage-backed securities, futures and forwards transactions, are reported in the consolidated financial statements on a trade-date basis . |
Derivatives | Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the over-the-counter market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “Other invested assets” or as liabilities within “Other liabilities”. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related Credit Support Annex (“CSA”) have been executed. The Company uses derivatives to manage asset/liability risk and has designated some of those economic relationships under the criteria to qualify for hedge accounting treatment. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “Net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When those criteria are satisfied, the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. |
Securities Repurchase and Reverse Repurchase Agreements | Securities Repurchase and Reverse Repurchase Agreements Securities repurchase and reverse repurchase transactions involve the temporary exchange of securities for cash or other collateral of equivalent value, with agreement to redeliver a like quantity of the same or similar securities at a future date prior to maturity at a fixed and determinable price. Transfers of securities under these agreements to repurchase or resell are evaluated by the Company to determine whether they satisfy the criteria for accounting treatment as secured borrowing or lending arrangements. Agreements not meeting the criteria would require recognition of the transferred securities as sales or purchases with related forward repurchase or resale commitments. All of the Company’s securities repurchase transactions are accounted for as collateralized borrowings with the related obligations distinctly captioned in the consolidated balance sheets. Earnings from investing activities related to the cash received under the Company’s securities repurchase arrangements are reported in the consolidated statements of income (loss) as “Net investment income” and the associated borrowing cost is reported as “Interest expense.” The Company has not actively engaged in securities reverse repurchase transactions. |
Commercial and Agricultural Mortgage Loans on Real Estate | Commercial and Agricultural Mortgage Loans on Real Estate Mortgage loans are stated at unpaid principal balances, net of unamortized discounts, premiums and valuation allowances. Valuation allowances are based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value if the loan is collateral dependent. However, if foreclosure is or becomes probable, the collateral value measurement method is used. For commercial and agricultural mortgage loans, an allowance for credit loss is typically recommended when management believes it is probable that principal and interest will not be collected according to the contractual terms. Factors that influence management’s judgment in determining allowance for credit losses include the following: • Loan-to-value ratio – Derived from current loan balance divided by the fair market value of the property. An allowance for credit loss is typically recommended when the loan-to-value ratio is in excess of 100%. In the case where the loan-to-value is in excess of 100%, the allowance for credit loss is derived by taking the difference between the fair market value (less cost of sale) and the current loan balance. • Debt service coverage ratio – Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. • Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. • Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. • Maturity – Mortgage loans that are not fully amortizing and have upcoming maturities within the next 12 to 24 months are monitored in conjunction with the capital markets to determine the borrower’s ability to refinance the debt and/or pay off the balloon balance. • Borrower/tenant related issues – Financial concerns, potential bankruptcy or words or actions that indicate imminent default or abandonment of property. • Payment status (current vs. delinquent) – A history of delinquent payments may be a cause for concern. • Property condition – Significant deferred maintenance observed during the lenders annual site inspections. • Other – Any other factors such as current economic conditions may call into question the performance of the loan. Mortgage loans also are individually evaluated quarterly by the Company’s IUS Committee for impairment, including an assessment of related collateral value. Commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgages. Based on its monthly monitoring of mortgages, a class of potential problem mortgages are also identified, consisting of mortgage loans not currently classified as problem mortgages but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being restructured. The decision whether to classify a performing mortgage loan as a potential problem involves significant subjective judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. For problem mortgage loans, a valuation allowance is established to provide for the risk of credit losses inherent in the lending process. The allowance includes loan specific reserves for mortgage loans determined to be non-performing as a result of the loan review process. A non-performing loan is defined as a loan for which it is probable that amounts due according to the contractual terms of the loan agreement will not be collected. The loan-specific portion of the loss allowance is based on the Company’s assessment as to ultimate collectability of loan principal and interest. Valuation allowances for a non-performing loan are recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral if the loan is collateral dependent. The valuation allowance for mortgage loans can increase or decrease from period to period based on such factors. Impaired mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Changes in the present value attributable to changes in the amount or timing of expected cash flows are reported as investment gains or losses. Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is doubtful. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. |
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) | Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the valuation allowances are included in Investment gains (losses), net. Realized and unrealized holding gains (losses) on trading and equity securities are reflected in Net investment income (loss). Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies. Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. |
Recognition of Insurance Income and Related Expenses | Recognition of Insurance Income and Related Expenses Deposits related to universal life (“UL”) and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances. Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC. For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments. Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided. |
DAC | DAC Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. In each reporting period, DAC amortization, net of the accrual of imputed interest on DAC balances, is recorded to Amortization of deferred policy acquisition costs. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. The determination of DAC, including amortization and recoverability estimates, is based on models that involve numerous assumptions and subjective judgments, including those regarding policyholder behavior, surrender and withdrawal rates, mortality experience, and other inputs including financial market volatility and market rates of return. After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings . Amortization Policy In accordance with the guidance for the accounting and reporting by insurance enterprises for certain long-duration contracts and participating contracts and for realized gains and losses from the sale of investments, current and expected future profit margins for products covered by this guidance are examined regularly in determining the amortization of DAC. DAC associated with certain variable annuity products is amortized based on estimated assessments, with DAC on the remainder of variable annuities, UL and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Accounts fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, embedded derivatives and changes in the reserve of products that have indexed features such as SCS IUL and MSO, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC is amortized using the present value of estimated assessments. The effect on the amortization of DAC of revisions to estimated gross profits or assessments is reflected in earnings (loss) in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. A significant assumption in the amortization of DAC on variable annuities and, to a lesser extent, on variable and interest-sensitive life insurance relates to projected future separate account performance. Management sets estimated future gross profit or assessment assumptions related to separate account performance using a long-term view of expected average market returns by applying a Reversion to the Mean (“RTM”) approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned resulting in higher expected future gross profits and lower DAC amortization for the period. The opposite occurs when returns are lower than expected. In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. At December 31, 2019 , the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0% ( 4.7% net of product weighted average Separate Accounts fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% ( 12.7% net of product weighted average Separate Accounts fees) and 0.0% ( 2.3% ) net of product weighted average Separate Accounts fees), respectively. The maximum duration over which these rate limitations may be applied is five years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions. In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated periodically to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization. Other significant assumptions underlying gross profit estimates for UL and investment type products relate to contract persistency and General Account investment spread. For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield. At December 31, 2019 , the average rate of assumed investment yields, excluding policy loans, for the Company was 4.6% grading to 4.3% over six years. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the accumulated amortization of DAC of revisions to estimated gross margins is reflected in earnings in the period such estimated gross margins are revised. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. Many of the factors that affect gross margins are included in the determination of the Company’s dividends to these policyholders. DAC adjustments related to participating traditional life policies do not create significant volatility in results of operations as the Closed Block recognizes a cumulative policyholder dividend obligation expense in “Policyholders’ dividends,” for the excess of actual cumulative earnings over expected cumulative earnings as determined at the time of demutualization. DAC associated with non-participating traditional life policies are amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in income (loss) in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy. DAC related to these policies are subject to recoverability testing as part of the Company’s premium deficiency testing. If a premium deficiency exists, DAC are reduced by the amount of the deficiency or to zero through a charge to current period earnings (loss). If the deficiency exceeds the DAC balance, the reserve for future policy benefits is increased by the excess, reflected in earnings (loss) in the period such deficiency occurs. For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially changes the contract, the associated DAC is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed . Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC and recognized as a component of other expenses on a basis consistent with the way the acquisition costs on the underlying reinsured contracts would be recognized. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as Premiums ceded (assumed); and Amounts due from reinsurers (Amounts due to reinsurers) are established. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. Premiums, Policy charges and fee income and Policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in GMIB reinsurance contract asset, at fair value with changes in estimated fair value reported in Net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in Other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. |
Policyholder Bonus Interest Credits | Policyholder Bonus Interest Credits Policyholder bonus interest credits are offered on certain deferred annuity products in the form of either immediate bonus interest credited or enhanced interest crediting rates for a period of time. The interest crediting expense associated with these policyholder bonus interest credits is deferred and amortized over the lives of the underlying contracts in a manner consistent with the amortization of DAC. Unamortized balances are included in Other assets in the consolidated balance sheets and amortization is included in Interest credited to policyholders’ account balances in the consolidated statements of income (loss). |
Policyholder's Account Balances and Future Policy Benefits | Policyholders’ Account Balances and Future Policy Benefits and Other Policyholders’ Liabilities Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. For participating traditional life insurance policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial insurance assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Terminal dividends are accrued in proportion to gross margins over the life of the contract. For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 4.0% to 7.3% (weighted average of 5.0% ) for approximately 99.3% of life insurance liabilities and from 1.5% to 5.5% (weighted average of 4.1% ) for annuity liabilities. Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. While management believes its disability income (“DI”) reserves have been calculated on a reasonable basis and are adequate, there can be no assurance reserves will be sufficient to provide for future liabilities. When the liabilities for future policy benefits plus the present value of expected future gross premiums for a product are insufficient to provide for expected future policy benefits and expenses for that product, DAC is written off and thereafter, if required, a premium deficiency reserve is established by a charge to earnings. Obligations arising from funding agreements are also reported in Policyholders’ account balances in the consolidated balance sheets. As a member of the Federal Home Loan Bank of New York (“FHLBNY”), the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLBNY. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral. The Company has issued and continues to offer certain variable annuity products with guaranteed minimum death benefits (“GMDB”) and/or contain a guaranteed minimum living benefit (“GMLB,” and together with GMDB, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a guaranteed minimum income benefit (“GMIB”) base. The Company previously issued certain variable annuity products with and guaranteed income benefit (“GIB”) features, guaranteed withdrawal benefit for life (“GWBL”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”) features. The Company has also assumed reinsurance for products with GMxB features. Reserves for products that have GMIB features, but do not have no-lapse guarantee features, and products with GMDB features are determined by estimating the expected value of death or income benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). These reserves are recorded within Future policy benefits and other policyholders’ liabilities. The determination of this estimated future policy benefits liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding separate account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a RTM approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management’s estimates. Products that have a GMIB feature with a no-lapse guarantee rider (“GMIBNLG”), GIB, GWBL, GMWB and GMAB features and the assumed products with GMIB features (collectively “GMxB derivative features”) are considered either freestanding or embedded derivatives and discussed below under (“Embedded and Freestanding Insurance Derivatives”). After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. Premium deficiency reserves are recorded for the group single premium annuity business, certain interest-sensitive life contracts, structured settlements, individual disability income and major medical. Additionally, in certain instances the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. This pattern of profits followed by losses is exhibited in our variable interest-sensitive life (“VISL”) business and is generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. We accrue for these Profits Followed by Losses ("PFBL") using a dynamic approach that changes over time as the projection of future losses change. |
Policyholders Dividends | Policyholders’ Dividends The amount of policyholders’ dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by the board of directors of the issuing insurance company. The aggregate amount of policyholders’ dividends is related to actual interest, mortality, morbidity and expense experience for the year and judgment as to the appropriate level of statutory surplus to be retained by the Company. |
Embedded and Freestanding Insurance Derivatives | Embedded and Freestanding Insurance Derivatives Reserves for products considered either embedded or freestanding derivatives are measured at estimated fair value separately from the host variable annuity product, with changes in estimated fair value reported in Net derivative gains (losses). The estimated fair values of these derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees attributable to the guarantee. The projections of future benefits and future fees require capital markets and actuarial assumptions, including expectations concerning policyholder behavior. A risk-neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates. Additionally, the Company cedes and assumes reinsurance of products with GMxB features, which are considered either an embedded or freestanding derivative, and measured at fair value. The GMxB reinsurance contract asset and liabilities’ fair values reflect the present value of reinsurance premiums and recoveries and risk margins over a range of market-consistent economic scenarios. Changes in the fair value of embedded and freestanding derivatives are reported in Net derivative gains (losses). Embedded derivatives in direct and assumed reinsurance contracts are reported in Future policyholders’ benefits and other policyholders’ liabilities and embedded derivatives in ceded reinsurance contracts are reported in the GMIB reinsurance contract asset, at fair value in the consolidated balance sheets . Embedded derivatives fair values are determined based on the present value of projected future benefits minus the present value of projected future fees. At policy inception, a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits is attributed to the embedded derivative. The percentage of fees included in the fair value measurement is locked-in at inception. Fees above those amounts represent “excess” fees and are reported in Policy charges and fee income. |
Separate Accounts | Separate Accounts Generally, Separate Accounts established under New York State and Arizona State Insurance Law are not chargeable with liabilities that arise from any other business of the Company. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed separate accounts liabilities. Assets and liabilities of the Separate Account represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of policyholders, and for which the Company does not bear the investment risk. Separate Accounts assets and liabilities are shown on separate lines in the consolidated balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts 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. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such Separate Accounts are offset within the same line in the consolidated statements of income (loss). For 2019 , 2018 and 2017 , investment results of such Separate Accounts were gains (losses) of $23.4 billion , $(7.3) billion and $17.0 billion , respectively. Deposits to Separate Accounts are reported as increases in Separate Accounts assets and liabilities and are not reported in revenues or expenses. Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues. The Company reports the General Account’s interests in Separate Accounts as Other trading in the consolidated balance sheets. |
Broker-Dealer Revenues, Receivables and Payables | Broker-Dealer Revenues, Receivables and Payables Equitable Advisors and certain of the Company’s other subsidiaries provide investment management, brokerage and distribution services for affiliates and third parties. Third-party revenues earned from these services are reported in Other income in the Company’s consolidated statement of income (loss). Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill recorded by the Company represents the excess of purchase price over the estimated fair value of identifiable net assets of companies acquired in a business combination and relates principally to the acquisition of SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. (“Bernstein Acquisition”) and the purchase of units of the limited partnership interest in ABLP (“AB Units”). The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment. Effective January 1, 2017, the Company early-adopted new guidance that eliminated Step 2 testing from the goodwill impairment model and continued to limit the measurement of any goodwill impairment to the carrying value of the reporting unit’s goodwill. The Company’s intangible assets primarily relate to the Bernstein Acquisition and purchases of AB Units and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization. These intangible assets generally are amortized on a straight-line basis over their estimated useful life, ranging from six to twenty years. All intangible assets are periodically reviewed for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, impairment tests are performed to measure the amount of the impairment loss, if any. |
Deferred Sales Commissions, Net | Deferred Sales Commissions, Net Commissions paid to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge (“back-end load shares”) are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years for U.S. fund shares and four years for non-U.S. fund shares, the periods of time during which the deferred sales commissions are generally recovered. These commissions are recovered from distribution services fees received from those funds and from contingent deferred sales commissions (“CDSC”) received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Since January 31, 2009, AB sponsored U.S. mutual funds have not offered back-end load shares to new investors. Management periodically reviews the deferred sales commission asset for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If these factors indicate impairment in value, a comparison is made of the carrying value to the undiscounted cash flows expected to be generated by the asset over its remaining life. If it is determined the deferred sales commission asset is not fully recoverable, the asset will be deemed impaired and a loss will be recorded in the amount by which the recorded amount of the asset exceeds its estimated fair value. |
Internal-use Software | Internal-use Software Capitalized internal-use software, included in Other assets in the consolidated balance sheets, is amortized on a straight-line basis over the estimated useful life of the software that ranges between three and five years. Capitalized amounts are periodically tested for impairment in accordance with the guidance on impairment of long-lived assets. An immediate charge to earnings is recognized if capitalized software costs no longer are deemed to be recoverable. In addition, service potential is periodically reassessed to determine whether facts and circumstances have compressed the software’s useful life such that acceleration of amortization over a shorter period than initially determined would be required. |
Short-term and Long-term Debt | Short-term and Long-term Debt Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within Interest expense in the consolidated statements of income (loss). Short-term debt represents debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. See Note 12 for additional information regarding short-term and long-term debt. |
Income Taxes | Income Taxes The Company and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. The Company provides for federal and state income taxes currently payable, as well as those deferred due to temporary differences between the financial reporting and tax bases of assets and liabilities. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred tax assets will not be realized. Under accounting for uncertainty in income taxes guidance, the Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the consolidated financial statements. Tax positions are then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. ABLP is a private partnership for federal income tax purposes and, accordingly, is not subject to federal and state corporate income taxes. However, ABLP is subject to a 4.0% New York City unincorporated business tax (“UBT”). AB Holding is subject to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. Domestic corporate subsidiaries of AB are subject to federal, state and local income taxes. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located. |
Recognition of Investment Management and Service Fees and Related Expenses | Recognition of Investment Management and Service Fees and Related Expenses Investment management, advisory and service fees Investment management and service fees principally include the Investment Management and Research segment’s investment advisory and service fees, distribution revenues and institutional research services revenue. Investment advisory and service base fees, generally calculated as a percentage, referred to as basis points (“BPs”), of assets under management, are recorded as revenue as the related services are performed. Certain investment advisory contracts, including those associated with hedge funds, provide for a performance-based fee, in addition to or in lieu of a base fee which is calculated as either a percentage of absolute investment results or a percentage of the investment results in excess of a stated benchmark over a specified period of time. Investment management and administrative service fees are also earned by AXA Equitable Funds Management Group, LLC (“Equitable FMG”) and reported in the Individual Retirement, Group Retirement and Protection Solutions segments as well as certain asset-based fees associated with insurance contracts. AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, Equitable FMG provides investment management and administrative services, such as fund accounting and compliance services, to AXA Premier VIP Trust (“Equitable Trust”), EQ Advisors Trust (“EQAT”) and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of assets under management (“AUM”), are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and, therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in the fund’s market value and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated. Prior to adoption of the new revenue recognition guidance on January 1, 2018, the Company recognized performance-based fees at the end of the applicable measurement period when no risk of reversal remained and carried-interest distributions received as deferred revenues until no risk of reversal remained. Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in Other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis. Research services Research services revenue principally consists of brokerage transaction charges received by Sanford C. Bernstein & Co. LLC (“SCB LLC”), Sanford C. Bernstein Limited (“SCBL”) and AB’s other sell side subsidiaries for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured and significant reversal of such revenue is not probable. Distribution services Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is dependent upon the contractual arrangements with the customer and the specific product sold as further described below. Most open-end management investment companies, such as U.S. funds and the EQAT and VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares. The Company records 12b-1 fees monthly based upon a percentage of the net asset value (“NAV”) of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss). AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a contingent deferred sales charge (“CDSC”) if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions. AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds, earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices. Other revenues Also reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements and other brokerage income. Shareholder services, including transfer agency, administration and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved. Other income Revenues from contracts with customers reported as Other Income in the Company’s consolidated statements of income (loss) primarily consist of advisory account fees and brokerage commissions from the Company’s subsidiary broker-dealer operations and sales commissions from the Company’s general agent for the distribution of non-affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as AUM and product mix, are resolved and the transaction pricing no longer is variable such that the value of consideration can be determined. |
Accounting and Consolidation of VIE's | Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company (other than Collateralized Debt Obligations (“CDOs”)), the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then identifies the primary beneficiary of the VIE. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client assets under management (“AUM”) to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. At December 31, 2019 and 2018 , respectively, the Company held approximately $1.2 billion and $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 sheet as Other equity investments and to apply the equity method of accounting for these positions. The net assets of these nonconsolidated VIEs are approximately $160.2 billion and $166.1 billion at December 31, 2019 and 2018, respectively. 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 $1.2 billion and approximately $1.1 billion and $940 million of unfunded commitments at December 31, 2019 and 2018 , respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At December 31, 2019 and 2018 , the Company consolidated one real estate joint venture for which it was identified as the primary beneficiary under the VIE model. The consolidated entity is jointly owned by Equitable Life and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheets at December 31, 2019 and 2018 are total assets of $32 million and $36 million , respectively related to this VIE, primarily resulting from the consolidated presentation of Real estate held for production of income. In addition, Real estate held for production of income reflects $(5) million as related to one non-consolidated joint venture at December 31, 2019 and $16 million income as related to two non-consolidated joint ventures at December 31, 2018 . Included in the Company’s consolidated balance sheet at December 31, 2019 and 2018 , respectively, are assets of $424 million and $236 million , liabilities of $12 million and $5 million , and redeemable non-controlling interests of $273 million and $118 million associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets are assets of $188 million and $152 million , liabilities of $19 million and $17 million , and redeemable non-controlling interests of $52 million and $28 million from consolidation of AB-sponsored investment funds under the VOE model. The assets of these consolidated funds are presented within Other invested assets and cash and cash equivalents, and liabilities of these consolidated funds are presented with other liabilities on the face of the Company’s consolidated balance sheet at December 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. These redeemable noncontrolling interests are presented in mezzanine equity and non-redeemable noncontrolling interests are presented within permanent equity. 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 December 31, 2019 , the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $79.3 billion and the Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $8 million at December 31, 2019 . The Company has no further commitments to or economic interest in these VIEs. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Fixed Maturities by Classification | The following tables provide information relating to fixed maturities classified as Available-for-sale (“AFS”). Available-for-Sale Fixed Maturities by Classification Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (4) (in millions) December 31, 2019 (5): Fixed Maturities: Corporate (1) $ 45,900 $ 2,361 $ 62 $ 48,199 $ — U.S. Treasury, government and agency 14,410 1,289 305 15,394 — States and political subdivisions 638 70 3 705 — Foreign governments 462 35 5 492 — Residential mortgage-backed (2) 178 13 — 191 — Asset-backed (3) 848 4 3 849 — Redeemable preferred stock 501 17 5 513 — Total at December 31, 2019 $ 62,937 $ 3,789 $ 383 $ 66,343 $ — 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). (5) Excludes amounts reclassified as Held-for-Sale . |
Contractual Maturities of Available-for-Sale Fixed Maturities | Contractual Maturities of Available-for-Sale Fixed Maturities Amortized Cost Fair Value (in millions) December 31, 2019 (1): Due in one year or less $ 3,921 $ 3,938 Due in years two through five 14,288 14,721 Due in years six through ten 18,391 19,585 Due after ten years 24,810 26,546 Subtotal 61,410 64,790 Residential mortgage-backed securities 178 191 Asset-backed securities 848 849 Redeemable preferred stock 501 513 Total at December 31, 2019 $ 62,937 $ 66,343 ______________ (1) Excludes amounts reclassified as Held-for-Sale. |
Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales for AFS fixed maturities for the years ended December 31, 2019 , 2018 and 2017 : Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities Years Ended December 31, 2019 2018 2017 (in millions) Proceeds from sales $ 8,972 $ 8,523 $ 8,213 Gross gains on sales $ 234 $ 180 $ 107 Gross losses on sales $ (32 ) $ (215 ) $ (259 ) Total OTTI $ — $ (42 ) $ (15 ) Non-credit losses recognized in OCI — — — Credit losses recognized in net income (loss) $ — $ (42 ) $ (15 ) |
Available-for-Sale Fixed Maturities - Credit Loss Impairments | Available-for-Sale Fixed Maturities - Credit Loss Impairments Years Ended December 31, 2019 2018 (in millions) Balance at January 1, $ (58 ) $ (18 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 37 2 Recognized impairments on securities impaired to fair value this period (1) — — Impairments recognized this period on securities not previously impaired — (42 ) 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 — — Balance at December 31, $ (21 ) $ (58 ) ______________ (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 Gains (Losses) on Available-for-Sale Fixed Maturities | The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI: Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities 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) Balance, January 1, 2019 $ (522 ) $ 100 $ (73 ) $ 104 $ (391 ) Net investment gains (losses) arising during the period 4,188 — — — 4,188 Reclassification adjustment: Included in Net income (loss) (213 ) — — — (213 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (999 ) — — (999 ) Deferred income taxes — — — (601 ) (601 ) Policyholders’ liabilities — — (116 ) — (116 ) Net unrealized investment gains (losses) excluding OTTI losses 3,453 (899 ) (189 ) (497 ) 1,868 Net unrealized investment gains (losses) with OTTI losses — — — — — Balance, December 31, 2019 $ 3,453 $ (899 ) $ (189 ) $ (497 ) $ 1,868 Balance, January 1, 2018 $ 1,871 $ (358 ) $ (238 ) $ (397 ) $ 878 Net investment gains (losses) arising during the period (2,470 ) — — — (2,470 ) Reclassification adjustment: Included in Net income (loss) 77 — — — 77 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 458 — — 458 Deferred income taxes (2) — — — 501 501 Policyholders’ liabilities — — 165 — 165 Net unrealized investment gains (losses) excluding OTTI losses (522 ) 100 (73 ) 104 (391 ) Net unrealized investment gains (losses) with OTTI losses — — — — — Balance, December 31, 2018 $ (522 ) $ 100 $ (73 ) $ 104 $ (391 ) ______________ (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 loss. (2) Includes a $113 million benefit from the impact of adoption of ASU 2018-02. |
Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 413 securities at December 31, 2019 and the 1,700 securities at December 31, 2018 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: Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities 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) December 31, 2019 (1): Fixed Maturities: Corporate $ 2,773 $ 42 $ 373 $ 20 $ 3,146 $ 62 U.S. Treasury, government and agency 4,309 305 2 — 4,311 305 States and political subdivisions 112 3 — — 112 3 Foreign governments 11 — 47 5 58 5 Asset-backed 319 1 201 2 520 3 Redeemable preferred stock 29 — 49 5 78 5 Total at December 31, 2019 $ 7,553 $ 351 $ 672 $ 32 $ 8,225 $ 383 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 ______________ (1) Excludes amounts reclassified as Held-for-Sale. |
Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios | The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at December 31, 2019 and 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 1.5x to 1.2x to 1.0x to Less than (in millions) December 31, 2019: Commercial Mortgage Loans: 0% - 50% $ 903 $ 38 $ 214 $ 25 $ — $ — $ 1,180 50% - 70% 4,097 1,195 1,118 795 242 — 7,447 70% - 90% 251 98 214 154 46 — 763 90% plus — — — — — — — Total Commercial Mortgage Loans $ 5,251 $ 1,331 $ 1,546 $ 974 $ 288 $ — $ 9,390 Agricultural Mortgage Loans: 0% - 50% $ 322 $ 104 $ 241 $ 545 $ 321 $ 50 $ 1,583 50% - 70% 82 87 236 426 251 33 1,115 70% - 90% — — — 19 — — 19 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 404 $ 191 $ 477 $ 990 $ 572 $ 83 $ 2,717 Total Mortgage Loans: 0% - 50% $ 1,225 $ 142 $ 455 $ 570 $ 321 $ 50 $ 2,763 50% - 70% 4,179 1,282 1,354 1,221 493 33 8,562 70% - 90% 251 98 214 173 46 — 782 90% plus — — — — — — — Total Mortgage Loans $ 5,655 $ 1,522 $ 2,023 $ 1,964 $ 860 $ 83 $ 12,107 Debt Service Coverage Ratio (1) Total Mortgage Loans Loan-to-Value Ratio (2): Greater than 2.0x 1.8x to 1.5x to 1.2x to 1.0x to Less than (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 most recent fair value estimate of the property. The fair 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 December 31, 2019 and 2018 , respectively. 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) December 31, 2019: Commercial $ — $ — $ — $ — $ 9,390 $ 9,390 $ — Agricultural 57 1 66 124 2,593 2,717 66 Total Mortgage Loans $ 57 $ 1 $ 66 $ 124 $ 11,983 $ 12,107 $ 66 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 |
Investment Income | The following table breaks out Net investment income (loss) by asset category: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities $ 2,060 $ 1,725 $ 1,629 Mortgage loans on real estate 541 494 454 Real estate held for the production of income (2 ) (6 ) 2 Other equity investments 142 147 186 Policy loans 211 215 221 Trading securities 796 105 553 Other investment income 24 85 109 Gross investment income (loss) 3,772 2,765 3,154 Investment expenses (73 ) (72 ) (72 ) Net investment income (loss) $ 3,699 $ 2,693 $ 3,082 |
Net Investment Income (Loss) from Trading Securities | The table below shows a breakdown of Net investment income (loss) from trading account securities during the years ended December 31, 2019 , 2018 and 2017 : Net Investment Income (Loss) from Trading Securities Years Ended December 31, 2019 2018 2017 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 487 $ (223 ) $ 247 Net investment gains (losses) recognized on securities sold during the period 15 (14 ) 19 Unrealized and realized gains (losses) on trading securities 502 (237 ) 266 Interest and dividend income from trading securities 294 342 287 Net investment income (loss) from trading securities $ 796 $ 105 $ 553 |
Realized Gain (Loss) on Investments | Investment gains (losses), net including changes in the valuation allowances and OTTI are as follows: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities $ 205 $ (75 ) $ (194 ) Mortgage loans on real estate (1 ) — 2 Real estate held for the production of income 2 — — Other equity investments — — 2 Other (133 ) (11 ) (1 ) Investment gains (losses), net $ 73 $ (86 ) $ (191 ) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 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 2016-02: Leases (Topic 842) This ASU contains revised guidance to lease accounting that requires 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 remains 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 were not adjusted or presented under this method. We applied several practical expedients offered by ASC 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 $1.0 billion 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 10 for additional information. 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 2017-12: Derivatives and Hedging (Topic 815), as clarified and amended by ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments The amendments in these ASUs 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. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2016-13: Financial Instruments—Credit Losses (Topic 326), as clarified and amended by ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05: Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief, ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments-Credit Losses ASU 2016-13 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. ASU 2019-05 provides entities that have instruments within the scope of Subtopic 326-20 an option to irrevocably elect the fair value option on an instrument-by instrument basis upon adoption of Topic 326. ASU 2018-19, ASU 2019-04 and ASU 2019-11, clarified the codification guidance and did not materially change the standard. Effective for fiscal years beginning after December 15, 2019, 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. The Company will implement its updated expected credit loss models, processes and controls related to the identified financial assets that fall within the scope of the new standard as of the date of adoption, January 1, 2020. Management currently anticipates that the standard will have the most impact to its commercial and agricultural mortgage loan portfolios. Based on current economic conditions, the structure and size of the Company’s loan portfolio and other assets impacted by the standard as of December 31, 2019, the Company expects application of the current expected credit loss requirements will result in an immaterial reduction to retained earnings as of the date of adoption. ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2019-09: Financial Services - Insurance (Topic 944): Effective Date 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. In November 2019, ASU 2019-09 was issued which modified ASU 2018-12 to be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. 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. The Company is currently 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 the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2019-09: Financial Services - Insurance (Topic 944): Effective Date continued Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. 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 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 impact the disclosure requirements in Topic 820, including the removal, modification and addition to existing disclosure 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 disclosure requirements delayed until the stated 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. The Company elected to early adopt during 2019 the removed disclosures relating to transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and valuation processes for Level 3 fair value measurements. The Company will delay adoption of the additional disclosures until their effective date on January 1, 2020. 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. The Company will adopt this new standard effective for January 1, 2020. Management does not expect the adoption of this standard to materially impact the Company’s financial position or results of operations. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact adopting the guidance will have on the Company’s consolidated financial statements, however the adoption is not expected to materially impact the Company’s financial position, results of operation, or cash flows. The following table lists investments for which net asset value (“NAV”) is calculated; NAV is used as a practical expedient to determine the fair value of these investments at December 31, 2019 and 2018 . Practical Expedient Disclosure as of December 31, 2019 and 2018 Investment Fair Value Redemption Frequency (If currently eligible) Redemption Notice Period Unfunded Commitments (in millions) December 31, 2019: Private Equity Fund $ 64 N/A (1)(2) N/A $ 28 Private Real Estate Investment Trust 396 Quarterly One Quarter — Hedge Fund 80 Calendar Quarters (3) Previous Quarter End $ 3 Total (4) $ 540 December 31, 2018: Private Equity Fund $ 64 N/A (1)(2) N/A $ 33 Private Real Estate Investment Trust 402 Quarterly One Quarter — Hedge Fund 93 Calendar Quarters (3) Previous Quarter End $ 12 Total (4) $ 559 _______________ (1) Cannot sell or transfer ownership interest without prior written consent to transfer, and by meeting several criteria (e.g., does not adversely affect other investors). (2) Cannot sell interest in the vehicle without prior written consent of the managing member. (3) March, June, September and December. (4) Includes Equity method investments of $115 million and $128 million at December 31, 2019 and 2018, respectively. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 December 31, 2019 Fair Value Gains (Losses) Reported in Net Income (Loss) Year Ended December 31, 2019 Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 4,257 $ 1 $ 1 $ (1,311 ) Swaps 17,156 9 281 (2,426 ) Options 47,861 5,098 1,752 2,229 Interest rate contracts: Swaps 23,793 468 526 2,037 Futures 20,901 — — 145 Swaptions 3,201 16 — (35 ) Credit contracts: Credit default swaps 1,400 21 6 9 Other freestanding contracts: Foreign currency contracts 559 12 9 (9 ) Margin — 155 — — Collateral — 74 3,016 — Embedded Derivatives (2): GMIB reinsurance contracts 2,139 — 435 GMxB derivative features liability (3) — — 8,432 (2,432 ) SCS, SIO, MSO and IUL indexed features (4) — — 3,268 (2,642 ) Net derivative gains (losses) (4,000 ) Total $ 119,128 $ 7,993 $ 17,291 $ (4,000 ) ______________ (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. Derivative Instruments by Category At December 31, 2018 Fair Value Gains (Losses) Reported in Net Income (Loss) Year Ended December 31, 2018 Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 11,143 $ 2 $ 3 $ 541 Swaps 7,796 143 168 715 Options 21,821 2,133 1,164 (899 ) Interest rate contracts: Swaps 27,116 634 196 (656 ) Futures 11,792 — — 112 Credit contracts: Credit default swaps 1,376 20 3 (2 ) Other freestanding contracts: Foreign currency contracts 2,184 35 22 6 Margin — 18 5 — Collateral — 8 1,581 — Embedded Derivatives (2): GMIB reinsurance contracts — 1,732 — (162 ) GMxB derivative features liability (3) — — 5,614 (775 ) SCS, SIO, MSO and IUL indexed features (4) — — 715 889 Net derivative gains (losses) (231 ) Cross currency swaps (5) (6) — — — 9 Total $ 83,228 $ 4,725 $ 9,471 $ (222 ) ______________ (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). |
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 December 31, 2019 : Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2019 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Total derivatives (1) $ 5,852 $ 5,466 $ 386 $ (77 ) $ 309 Other financial instruments 2,367 — 2,367 — 2,367 Other invested assets $ 8,219 $ 5,466 $ 2,753 $ (77 ) $ 2,676 Liabilities: Total derivatives (2) $ 5,512 $ 5,466 $ 46 $ — $ 46 Other financial liabilities 3,924 — 3,924 — 3,924 Other liabilities $ 9,436 $ 5,466 $ 3,970 $ — $ 3,970 ______________ (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) Includes primarily financial instrument sent (held). The following table presents information about the Company’s offsetting of 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 Gross Amount not Offset in the Balance Sheets (6) Net Amount (in millions) Assets: Total derivatives (1) $ 2,993 $ 2,945 $ 48 $ — $ 48 Other financial instruments 1,989 — 1,989 — 1,989 Other invested assets $ 4,982 $ 2,945 $ 2,037 $ — $ 2,037 Liabilities: Total derivatives (2) $ 3,142 $ 2,945 $ 197 $ — $ 197 Other financial liabilities 3,163 — 3,163 — 3,163 Other liabilities $ 6,305 $ 2,945 $ 3,360 $ — $ 3,360 Securities sold under agreement to repurchase (3) (4) (5) $ 571 $ — $ 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 included in Securities sold under agreement to repurchase on the consolidated balance sheets. (4) U.S. Treasury and agency securities are in Fixed maturities available for sale on consolidated balance sheets. (5) Cash is included in Cash and cash equivalents on consolidated balance sheets. (6) Includes primarily financial instrument sent (held). |
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 Up to 30 days 30-90 days Greater Than 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) | 12 Months Ended |
Dec. 31, 2019 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company’s Closed Block is as follows: December 31, 2019 2018 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,478 $ 6,709 Policyholder dividend obligation 2 — Other liabilities 38 47 Total Closed Block liabilities 6,518 6,756 Assets Designated to the Closed Block: Fixed maturities available-for-sale, at fair value (amortized cost of $3,558 and $3,680) 3,754 3,672 Mortgage loans on real estate, net of valuation allowance of $- and $- 1,759 1,824 Policy loans 706 736 Cash and other invested assets 82 76 Other assets 145 179 Total assets designated to the Closed Block 6,446 6,487 Excess of Closed Block liabilities over assets designated to the Closed Block 72 269 Amounts included in Accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $(2) and $0; and net of income tax: $41 and $0 164 8 Maximum future earnings to be recognized from closed block assets and liabilities $ 236 $ 277 |
Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses were as follows: Years ended December 31, 2019 2018 2017 (in millions) Revenues: Premiums and other income $ 182 $ 194 $ 224 Net investment income (loss) 278 291 314 Investment gains (losses), net (1 ) (3 ) (20 ) Total revenues 459 482 518 Benefits and Other Deductions: Policyholders’ benefits and dividends 439 471 537 Other operating costs and expenses 2 3 2 Total benefits and other deductions 441 474 539 Net income (loss), before income taxes 18 8 (21 ) Income tax (expense) benefit (2 ) (3 ) (36 ) Net income (loss) $ 16 $ 5 $ (57 ) |
Closed Block Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: December 31, 2019 2018 2017 (in millions) Balance, beginning of year $ — $ 19 $ 52 Unrealized investment gains (losses) 2 (19 ) (33 ) Balance, end of year $ 2 $ — $ 19 |
DAC AND POLICYHOLDER BONUS IN_2
DAC AND POLICYHOLDER BONUS INTEREST CREDITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Contract holder Bonus Interest Credits [Abstract] | |
Contractholder Bonus Interest Credits | Changes in the deferred policy acquisition cost asset for the years ended December 31, 2019 , 2018 and 2017 were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Balance, beginning of year $ 6,745 $ 5,919 $ 6,049 Capitalization of commissions, sales and issue expenses 754 701 687 Amortization: Impact of assumptions updates and model changes 46 286 112 All other (625 ) (619 ) (615 ) Total amortization (579 ) (333 ) (503 ) Change in unrealized investment gains and losses (999 ) 458 (314 ) Reclassified to Assets held-for-sale (31 ) — — Balance, end of year $ 5,890 $ 6,745 $ 5,919 The deferred asset for policyholder bonus interest credits is reported in Other assets in the Consolidated balance sheets and changes in the deferred asset for policyholder bonus interest credits are reported in Interest credited to policyholders’ account balances . For the years ended December 31, 2019 , 2018 and 2017 changes were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Balance, beginning of year $ 426 $ 473 $ 504 Policyholder bonus interest credits deferred — 4 7 Amortization charged to income 4 (51 ) (38 ) Balance, end of year $ 430 $ 426 $ 473 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at December 31, 2019 (1) Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Corporate (2) $ — $ 46,942 $ 1,257 $ 48,199 U.S. Treasury, government and agency — 15,394 — 15,394 States and political subdivisions — 666 39 705 Foreign governments — 492 — 492 Residential mortgage-backed (3) — 191 — 191 Asset-backed (4) — 749 100 849 Redeemable preferred stock 239 274 — 513 Total fixed maturities, available-for-sale 239 64,708 1,396 66,343 Other equity investments 13 — 97 110 Trading securities 500 6,495 36 7,031 Other invested assets: Short-term investments — 490 — 490 Assets of consolidated VIEs/VOEs 132 457 17 606 Swaps — (327 ) — (327 ) Credit default swaps — 15 — 15 Options — 3,346 — 3,346 Swaptions — 16 — 16 Total other invested assets 132 3,997 17 4,146 Cash equivalents 3,497 — — 3,497 Segregated securities — 1,095 — 1,095 GMIB reinsurance contracts asset — — 2,139 2,139 Separate Accounts assets (5) 123,432 2,892 — 126,324 Total Assets $ 127,813 $ 79,187 $ 3,685 $ 210,685 Liabilities GMxB derivative features’ liability $ — $ — $ 8,432 $ 8,432 SCS, SIO, MSO and IUL indexed features’ liability — 3,268 — 3,268 Liabilities of consolidated VIEs and VOEs 1 9 — 10 Contingent payment arrangements — — 23 23 Total Liabilities $ 1 $ 3,277 $ 8,455 $ 11,733 ______________ (1) Excludes amounts reclassified as Held-for-Sale. (2) Corporate fixed maturities includes both public and private issues. (3) Includes publicly traded agency pass-through securities and collateralized obligations. (4) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. At December 31, 2019 the fair value of such investments was $356 million . 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 Level 1 Level 2 Level 3 Total (in millions) 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 (4) 106,994 2,747 21 109,762 Total Assets $ 111,191 $ 65,977 $ 3,662 $ 180,830 Liabilities GMxB derivative features’ liability $ — $ — $ 5,614 $ 5,614 SCS, SIO, MSO and IUL indexed features’ liability — 715 — 715 Liabilities of consolidated VIEs and 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. (4) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. At December 31, 2018 the fair value of such investments was $353 million . |
Reconciliation of Assets and Liabilities at Level 3 | Level 3 Instruments - Fair Value Measurements Corporate State and Commercial Asset- Redeemable Preferred Stock (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) 4 — — — — Investment gains (losses), net — 1 — — — Subtotal 4 1 — — Other comprehensive income (loss) 5 2 — 1 — Purchases 274 — — 100 — Sales (122 ) (3 ) — (84 ) — Transfers into Level 3 (1) 14 — — — — Transfers out of Level 3 (1) (104 ) — — (436 ) — Balance, December 31, 2019 $ 1,257 $ 39 $ — $ 100 $ — Balance, January 1, 2018 $ 1,150 $ 40 $ — $ 541 $ 1 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 8 — — — — Investment gains (losses), net (9 ) — — — — Subtotal (1 ) — — — Other comprehensive income (loss) (21 ) (1 ) — (9 ) — Purchases 334 — — 17 — Sales (337 ) (1 ) — (30 ) (1 ) Transfers into Level 3 (1) 89 1 — — — Transfers out of Level 3 (1) (28 ) — — — — Balance, December 31, 2018 $ 1,186 $ 39 $ — $ 519 $ — Balance, January 1, 2017 $ 857 $ 42 $ 373 $ 120 $ 1 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 4 — (2 ) — — Investment gains (losses), net 1 — (95 ) 15 — Subtotal 5 — (97 ) 15 Other comprehensive income (loss) 4 (1 ) 78 (7 ) — Purchases 615 — — 434 — Sales (333 ) (1 ) (354 ) (21 ) — Transfers into Level 3 (1) 7 — — — — Transfers out of Level 3 (1) (5 ) — — — — Balance, December 31, 2017 $ 1,150 $ 40 $ — $ 541 $ 1 _____________ (1) Transfers into/out of the Level 3 classification are reflected at beginning of period fair values. Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2019 $ 165 $ 1,732 $ 21 $ (5,614 ) $ (7 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Investment gains (losses), net 4 — — — — Net derivative gains (losses), excluding non-performance risk — 412 — (3,240 ) — Non-performance risk (1) — 23 — 808 — Subtotal 4 435 — (2,432 ) — Other comprehensive income (loss) 24 — — — — Purchases (2) 14 44 — (427 ) (17 ) Sales (3) (16 ) (72 ) (1 ) 41 — Settlements (4) — — (2 ) — 1 Change in estimate — — — — 3 Activity related to consolidated VIEs/VOEs (3 ) — — — (3 ) Transfers into Level 3 (5) — — — — — Transfers out of Level 3 (5) (38 ) — (18 ) — — Balance, December 31, 2019 $ 150 $ 2,139 $ — $ (8,432 ) $ (23 ) Balance, January 1, 2018 $ 99 $ 1,894 $ 22 $ (4,451 ) $ (15 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Investment gains (losses), net (3 ) — — — — Net derivative gains (losses), excluding non-performance risk — (131 ) — (1,272 ) — Non-performance risk (1) — (33 ) — 497 — Subtotal (3 ) (164 ) — (775 ) — Other comprehensive income(loss) 15 — — — — Purchases (2) 62 46 5 (412 ) — Sales (3) (3 ) (44 ) (1 ) 24 — Settlements (4) — — (5 ) — 6 Change in estimate — — — — 2 Activity related to consolidated VIEs/VOEs (6 ) — — — — Transfers into Level 3 (5) 6 — — — — Transfers out of Level 3 (5) (5 ) — — — — Balance, December 31, 2018 $ 165 $ 1,732 $ 21 $ (5,614 ) $ (7 ) Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2017 $ 88 $ 1,735 $ 17 $ (5,731 ) $ (25 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — Investment gains (losses), net — — (1 ) — — Net derivative gains (losses), excluding non-performance risk — 171 — 1,809 — Non-performance risk (1) — 3 — (157 ) — Subtotal — 174 (1 ) 1,652 — Other comprehensive income (loss) 14 — — — — Purchases (2) 22 48 12 (393 ) — Sales (3) (3 ) (63 ) (2 ) 21 — Settlements (4) — — (4 ) — 10 Activity related to consolidated VIEs/VOEs (22 ) — — — — Transfers into Level 3 (5) — — — — — Transfers out of Level 3 (5) — — — — — Balance, December 31, 2017 $ 99 $ 1,894 $ 22 $ (4,451 ) $ (15 ) ______________ (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 GMxB derivative features liability represents benefits paid. (4) For contingent payment arrangements, it represents payments under the arrangement. (5) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. The table below details changes in unrealized gains (losses) for 2019 , 2018 and 2017 by category for Level 3 assets and liabilities still held at December 31, 2019 , 2018 and 2017 respectively. Change in Unrealized Gains (Losses) for Level 3 Instruments Earnings (Loss) Net Derivative Gains (Losses) OCI (in millions) Held at December 31, 2019: Change in unrealized gains (losses): Fixed maturities, available-for-sale Corporate $ — $ 4 State and political subdivisions — 3 Subtotal — 7 GMIB reinsurance contracts 435 — GMxB derivative features liability (2,432 ) — Total $ (1,997 ) $ 7 Earnings (Loss) Net Derivative Gains (Losses) OCI (in millions) Held at December 31, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale Corporate $ — $ (19 ) State and political subdivisions — (1 ) Asset-backed — (6 ) Subtotal — (26 ) GMIB reinsurance contracts (164 ) — GMxB derivative features liability (775 ) — Total $ (939 ) $ (26 ) Held at December 31, 2017: Change in unrealized gains (losses): Fixed maturities, available-for-sale Corporate $ — $ 5 State and political subdivisions — (1 ) Asset-backed — 1 Subtotal — 5 GMIB reinsurance contracts 174 — GMxB derivative features liability 1,652 — Total $ 1,826 $ 5 |
Quantitative Information About Level 3 Fair Value Measurement | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities at December 31, 2019 and 2018 , respectively. Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 57 Matrix pricing model Spread over Benchmark 65 - 580 bps 184 bps 1,025 Market EBITDA multiples 3.3x - 56.7x 14.3x Other equity investments 36 Discounted cash flow Earnings multiple 8.0x GMIB reinsurance contract asset 2,139 Discounted cash flow Non-performance risk 55 - 109 bps Liabilities: GMIBNLG 8,128 Discounted cash flow Non-performance risk 124 bps Assumed GMIB Reinsurance Contracts 186 Discounted cash flow Non-performance risk 0.61% - 1.41% GWBL/GMWB 109 Discounted cash flow Non-performance risk 124.0 bps GIB 5 Discounted cash flow Non-performance risk 124.0 bps GMAB 4 Discounted cash flow Lapse rates 1.0% - 10.0% ______________ (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 GMIB reinsurance contract asset 1,732 Discounted Cash flow Non-performance risk 74 - 159 bps Liabilities: GMIBNLG 5,341 Discounted cash flow Non-performance risk 189 bps Assumed GMIB Reinsurance Contracts 183 Discounted cash flow Non-performance risk 1.1% - 2.4% GWBL/GMWB 130 Discounted cash flow Non-performance risk 189 bps GIB (48 ) Discounted cash flow Non-performance risk 189 bps 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 December 31, 2019 and 2018 for financial instruments not otherwise disclosed in Note 3 and Note 4 are presented in the table below. Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) December 31, 2019: Mortgage loans on real estate $ 12,107 $ — $ — $ 12,334 $ 12,334 Policy loans (1) $ 3,735 $ — $ — $ 4,707 $ 4,707 Policyholders’ liabilities: Investment contracts (1) $ 2,056 $ — $ — $ 2,167 $ 2,167 FHLBNY funding agreements $ 6,909 $ — $ 6,957 $ — $ 6,957 Short-term and long-term debt $ 4,111 $ — $ 4,476 $ — $ 4,476 Separate Accounts liabilities $ 9,041 $ — $ — $ 9,041 $ 9,041 December 31, 2018: Mortgage loans on real estate $ 11,835 $ — $ — $ 11,494 $ 11,494 Policy loans $ 3,779 $ — $ — $ 4,183 $ 4,183 Policyholders’ liabilities: Investment contracts $ 2,127 $ — $ — $ 2,174 $ 2,174 FHLBNY funding agreements $ 4,002 $ — $ 3,956 $ — $ 3,956 Short-term and long-term debt $ 4,955 $ — $ 4,749 $ — $ 4,749 Separate Accounts liabilities $ 7,406 $ — $ — $ 7,406 $ 7,406 ______________ (1) Excludes amounts reclassified as Held-for-Sale. |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Variable Annuity Contracts- GMDB GMIB | 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 Years Ended December 31, 2019 , 2018 and 2017 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance at January 1, 2017 $ 3,164 $ 121 $ (90 ) $ 3,802 $ 258 $ (1,737 ) Paid guarantee benefits (354 ) (21 ) 14 (151 ) (59 ) 63 Other changes in reserve 1,249 (5 ) (32 ) 1,101 (4 ) (220 ) Balance at December 31, 2017 4,059 95 (108 ) 4,752 195 (1,894 ) Paid guarantee benefits (393 ) (24 ) 16 (153 ) (12 ) 44 Other changes in reserve 993 11 (21 ) (856 ) 1 118 Balance at December 31, 2018 4,659 82 (113 ) 3,743 184 (1,732 ) GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Paid guarantee benefits (438 ) (21 ) 14 (256 ) 7 72 Other changes in reserve 563 15 (6 ) 1,204 (4 ) (479 ) Balance at December 31, 2019 $ 4,784 $ 76 $ (105 ) $ 4,691 $ 187 $ (2,139 ) |
Schedule of Net Amount of Risk by Product and Guarantee | Direct Variable Annuity Contracts with GMDB and GMIB Features at December 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 $ 14,571 $ 92 $ 58 $ 175 $ 14,896 Separate Accounts 48,920 9,258 3,190 33,120 94,488 Total Account Values $ 63,491 $ 9,350 $ 3,248 $ 33,295 $ 109,384 Net Amount at Risk, gross $ 108 $ 36 $ 1,833 $ 17,729 $ 19,706 Net Amount at Risk, net of amounts reinsured $ 108 $ 34 $ 1,280 $ 17,729 $ 19,151 Average attained age of policyholders (in years) 51.1 67.6 74.3 69.4 55.0 Percentage of policyholders over age 70 10.5 % 45.6 % 68.1 % 50.7 % 19.3 % Range of contractually specified interest rates N.A. N.A. 3% - 6% 3% - 6.5% 3% - 6.5% Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 19 $ 226 $ 245 Separate Accounts — — 23,572 35,776 59,348 Total Account Values $ — $ — $ 23,591 $ 36,002 $ 59,593 Net Amount at Risk, gross $ — $ — $ 857 $ 9,344 $ 10,201 Net Amount at Risk, net of amounts reinsured $ — $ — $ 270 $ 8,482 $ 8,752 Average attained age of policyholders (in years) N.A. N.A. 68.8 69.5 69.4 Weighted average years remaining until annuitization N.A. N.A. 1.6 0.3 0.4 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 December 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 $ 931 $ 5,278 $ 266 $ 1,155 $ 7,630 Net Amount at Risk assumed $ 5 $ 237 $ 16 $ 152 $ 410 Average attained age of policyholders (in years) 68 73 77 75 73 Percentage of policyholders over age 70 44.8 % 64.3 % 79.8 % 75.2 % 64.1 % 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 $ 900 $ 44 $ 239 $ 1,185 $ 2,368 Net Amount at Risk assumed $ 1 $ — $ 30 $ 281 $ 312 Average attained age of policyholders (in years) 72 74 72 69 71 Percentage of policyholders over age 70 64.1 % 62.1 % 60.9 % 52.8 % 58.1 % 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. |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Investment in Variable Insurance Trust Mutual Funds December 31, 2019 2018 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 42,489 $ 17,941 $ 35,541 $ 15,759 Fixed income 5,263 2,699 5,173 2,812 Balanced 45,871 38,445 41,588 33,974 Other 865 263 852 290 Total $ 94,488 $ 59,348 $ 83,154 $ 52,835 |
No Lapse Guarantee Liabilities | The change in the fair value of the NLG feature, reflected in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability (1) (in millions) Balance at January 1, 2017 $ 1,311 Paid guarantee benefits (24 ) Other changes in reserves (578 ) Balance at December 31, 2017 709 Paid guarantee benefits (23 ) Other changes in reserves 126 Balance at December 31, 2018 812 Paid guarantee benefits (20 ) Other changes in reserves 128 Balance at December 31, 2019 $ 920 ______________ (1) There were no amounts of reinsurance ceded in any period presented. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Assets and Liabilities, Leases | Balance Sheet Classification of Operating Lease Assets and Liabilities Balance Sheet Line Item December 31, 2019 (in millions) Assets: Operating lease assets Other Assets $ 687 Liabilities: Operating lease liabilities Other Liabilities $ 883 |
Lease, Cost | Weighted Averages - Remaining Operating Lease Term and Discount Rate December 31, 2019 Weighted-average remaining operating lease term 6 years Weighted-average discount rate for operating leases 3.32 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Year Ended December 31, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 222 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 50 The table below summarizes the components of lease costs for the y ear ended December 31, 2019 . Lease Costs Year Ended December 31, 2019 (in millions) Operating lease cost $ 186 Variable operating lease cost 50 Sublease income (72 ) Short-term lease expense 2 Net lease cost $ 166 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2019 are as follows: Maturities of Lease Liabilities December 31, 2019 (in millions) Operating Leases: 2020 $ 207 2021 198 2022 181 2023 164 2024 102 Thereafter 114 Total lease payments 966 Less: Interest (83 ) Present value of lease liabilities $ 883 |
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 (in millions) Calendar Year 2019 $ 212 2020 $ 186 2021 $ 181 2022 $ 166 2023 $ 155 Thereafter $ 293 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Schedule Of Effect Of Reinsurance | The following table summarizes the effect of reinsurance: Years Ended December 31, 2019 2018 2017 (in millions) Direct premiums $ 1,068 $ 1,012 $ 1,038 Reinsurance assumed 220 214 225 Reinsurance ceded (141 ) (132 ) (139 ) Premiums $ 1,147 $ 1,094 $ 1,124 Direct charges and fee income $ 4,157 $ 4,242 $ 4,074 Reinsurance ceded (419 ) (418 ) (381 ) Policy charges and fee income $ 3,738 $ 3,824 $ 3,693 Direct policyholders’ benefits $ 4,696 $ 3,269 $ 4,562 Reinsurance assumed 240 226 461 Reinsurance ceded (566 ) (580 ) (657 ) Policyholders’ benefits $ 4,370 $ 2,915 $ 4,366 Direct Interest credited to policyholders’ account balances $ 1,300 $ 1,140 $ 1,041 Reinsurance ceded (59 ) (50 ) (46 ) Interest credited to policyholders’ account balances $ 1,241 $ 1,090 $ 995 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Debt | Short-term and long-term debt consists of the following: As of December 31, 2019 2018 (in millions) Short-term debt: AB revolving credit facility $ — $ 25 AB commercial paper — 521 Total short-term debt — 546 As of December 31, 2019 2018 (in millions) Long-term debt: Senior Notes (5.0%, due 2048) 1,480 1,480 Senior Notes (4.35%, due 2028) 1,487 1,486 Senior Notes (3.9%, due 2023) 795 794 Delayed Draw Term Loan (one-month LIBOR + 1.125%, due 2021) — 300 Senior Debentures, 7.0%, due 2028 349 349 Total long-term debt 4,111 4,409 Total short-term and long-term debt $ 4,111 $ 4,955 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The table below summarizes the expenses reimbursed to/from the Company and the fees received/paid by the Company in connection with certain services described above for the years ended December 31, 2019 , 2018 and 2017 . Years Ended December 31, 2019 2018 2017 (in millions) Revenue received or accrued for: Investment management and administrative services provided to EQAT, VIP Trust, 1290 Funds and Other AXA Trusts $ 732 $ 727 $ 720 General services provided to AXA Affiliates — 6 27 Total $ 732 $ 733 $ 747 Expenses paid or accrued for: General services provided by AXA Affiliates $ 65 $ 146 $ 141 Investment management services provided by AXA IM, AXA REIM, and AXA Rosenberg 5 2 5 Investment management services provided by AXA Strategic Ventures Corporation (“ASV Corp”) 2 2 2 AXA Guarantees and AXA Credit Facility — 1 9 Total $ 72 $ 151 $ 157 Investment Management and Related Services Provided by AB to Related Mutual Funds AB provides investment management and related services to mutual funds sponsored by AB. Revenues earned by AB from providing these services were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Investment management and services fees $ 1,276 $ 1,207 $ 1,148 Distribution revenues 441 404 398 Other revenues - shareholder servicing fees 75 74 73 Other revenues - other 7 7 7 Total $ 1,799 $ 1,692 $ 1,626 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Components of Net Post-Retirement Benefits Costs Years Ended December 31, 2019 2018 2017 (in millions) Service cost $ 1 $ 2 $ 2 Interest cost 18 16 16 Net amortization 6 9 6 Net Periodic Post-Retirement Benefits Costs $ 25 $ 27 $ 24 Components of net periodic pension expense for the Company’s qualified and non-qualified plans were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Service cost $ 8 $ 8 $ 10 Interest cost 104 103 105 Expected return on assets (152 ) (163 ) (173 ) Actuarial (gain) loss 1 1 1 Net amortization 94 98 126 Impact of settlement — 109 — Net periodic pension expense $ 55 $ 156 $ 69 Components of net post-employment benefits costs follow: Years Ended December 31, 2019 2018 2017 (in millions) Service cost $ 1 $ 2 $ 2 Interest cost — — — Net amortization — (1 ) (2 ) Net (gain) loss (1 ) — — Net periodic post-employment benefits costs $ — $ 1 $ — |
Schedule of Accumulated and Projected Benefit Obligations | The following table discloses the change in plan assets and the funded status of the Company’s qualified pension plans and non-qualified pension plans: 2019 2018 (in millions) Pension plan assets at fair value, beginning of year $ 2,341 $ 2,839 Actual return on plan assets 389 (53 ) Contributions 4 5 Benefits paid (183 ) (184 ) Annuity purchases — (266 ) Pension plan assets at fair value, end of year 2,552 2,341 PBO 3,056 2,874 Excess of PBO over pension plan assets, end of year $ 504 $ 533 Changes in the accumulated benefits obligation of the Company’s post-retirement plans recognized in the accompanying consolidated financial statements are described in the following table: Accumulated Post-Retirement Benefits Obligation December 31, 2019 2018 (in millions) Accumulated post-retirement benefits obligation, beginning of year $ 483 $ 529 (1) Service cost 1 2 Interest cost 18 16 Contributions and benefits paid (34 ) (46 ) Actuarial (gains) losses 49 (18 ) Accumulated post-retirement benefits obligation, end of year $ 517 $ 483 Changes in the PBO of the Company’s qualified and non-qualified plans were comprised of: 2019 2018 (in millions) Projected benefit obligation, beginning of year $ 2,874 $ 3,455 Service cost — — Interest cost 104 103 Actuarial (gains)/losses (1) 303 (204 ) Benefits paid (225 ) (190 ) Plan amendments and curtailments — — Settlements — (290 ) Projected benefit obligation, end of year $ 3,056 $ 2,874 ______________ (1) Actuarial gains and losses are a product of changes in the discount rate as shown below. |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | As of December 31, 2019 2018 (in millions) Projected benefit obligation $ 3,056 $ 2,874 Accumulated benefit obligation 3,056 2,874 Fair value of plan assets $ 2,552 $ 2,341 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The following table discloses the amounts included in AOCI at December 31, 2019 and 2018 that have not yet been recognized as components of net periodic pension cost. As of December 31, 2019 2018 (in millions) Unrecognized net actuarial (gain) loss $ 976 $ 1,123 Unrecognized prior service cost (credit) (1 ) 1 Unrecognized net transition obligation (asset) 1 — Total $ 976 $ 1,124 The following table discloses the amounts included in AOCI at December 31, 2019 and 2018 that have not yet been recognized as components of net periodic post-retirement benefits cost: December 31, 2019 2018 (in millions) Unrecognized net actuarial (gains) losses $ 158 $ 116 Unrecognized prior service (credit) — — Total $ 158 $ 116 |
Schedule of Allocation of Plan Assets | The following table discloses the allocation of the fair value of total qualified pension plan assets at December 31, 2019 and 2018 : As of December 31, 2019 2018 Fixed maturities 48.9 % 50.3 % Equity securities 27.6 22.9 Equity real estate 15.9 17.7 Cash and short-term investments 2.8 3.4 Other 4.8 5.7 Total 100.0 % 100.0 % |
Schedule of Fair Values of Plan Assets Within Fair Value Hierarchy | The following tables disclose the fair values of qualified pension plan assets and their level of observability within the fair value hierarchy at December 31, 2019 and 2018 , respectively. Level 1 Level 2 Level 3 Total (in millions) December 31, 2019: Fixed Maturities: Corporate $ — $ 708 $ — $ 708 U.S. Treasury, government and agency — 508 — 508 States and political subdivisions — 24 — 24 Foreign governments — 2 — 2 Commercial mortgage-backed — — 1 1 Common equity, REITs and preferred equity 489 92 — 582 Mutual funds 54 — — 54 Collective Trust — 97 — 97 Cash and cash equivalents 23 — — 23 Short-term investments — 21 — 21 Level 1 Level 2 Level 3 Total (in millions) Total assets in the fair value hierarchy 567 1,453 1 2,020 Investments measured at Net Asset Value — — — 540 Investments at fair value $ 567 $ 1,453 $ 1 $ 2,560 December 31, 2018: Fixed Maturities: Corporate $ — $ 677 $ — $ 677 U.S. Treasury, government and agency — 467 — 467 States and political subdivisions — 23 — 23 Foreign governments — 2 — 2 Commercial mortgage-backed — — 1 1 Common and preferred equity 424 78 — 502 Mutual funds 53 — — 53 Private real estate investment trusts 1 — — 1 Cash and cash equivalents 34 — — 34 Short-term investments — 22 — 22 Total assets in the fair value hierarchy 512 1,269 1 1,782 Investments measured at Net Asset Value — — — 559 Investments at fair value $ 512 $ 1,269 $ 1 $ 2,341 |
Effects of Practical Expedient Application | Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2016-02: Leases (Topic 842) This ASU contains revised guidance to lease accounting that requires 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 remains 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 were not adjusted or presented under this method. We applied several practical expedients offered by ASC 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 $1.0 billion 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 10 for additional information. 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 2017-12: Derivatives and Hedging (Topic 815), as clarified and amended by ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments The amendments in these ASUs 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. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2016-13: Financial Instruments—Credit Losses (Topic 326), as clarified and amended by ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05: Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief, ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments-Credit Losses ASU 2016-13 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. ASU 2019-05 provides entities that have instruments within the scope of Subtopic 326-20 an option to irrevocably elect the fair value option on an instrument-by instrument basis upon adoption of Topic 326. ASU 2018-19, ASU 2019-04 and ASU 2019-11, clarified the codification guidance and did not materially change the standard. Effective for fiscal years beginning after December 15, 2019, 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. The Company will implement its updated expected credit loss models, processes and controls related to the identified financial assets that fall within the scope of the new standard as of the date of adoption, January 1, 2020. Management currently anticipates that the standard will have the most impact to its commercial and agricultural mortgage loan portfolios. Based on current economic conditions, the structure and size of the Company’s loan portfolio and other assets impacted by the standard as of December 31, 2019, the Company expects application of the current expected credit loss requirements will result in an immaterial reduction to retained earnings as of the date of adoption. ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2019-09: Financial Services - Insurance (Topic 944): Effective Date 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. In November 2019, ASU 2019-09 was issued which modified ASU 2018-12 to be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. 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. The Company is currently 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 the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2019-09: Financial Services - Insurance (Topic 944): Effective Date continued Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. 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 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 impact the disclosure requirements in Topic 820, including the removal, modification and addition to existing disclosure 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 disclosure requirements delayed until the stated 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. The Company elected to early adopt during 2019 the removed disclosures relating to transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and valuation processes for Level 3 fair value measurements. The Company will delay adoption of the additional disclosures until their effective date on January 1, 2020. 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. The Company will adopt this new standard effective for January 1, 2020. Management does not expect the adoption of this standard to materially impact the Company’s financial position or results of operations. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact adopting the guidance will have on the Company’s consolidated financial statements, however the adoption is not expected to materially impact the Company’s financial position, results of operation, or cash flows. The following table lists investments for which net asset value (“NAV”) is calculated; NAV is used as a practical expedient to determine the fair value of these investments at December 31, 2019 and 2018 . Practical Expedient Disclosure as of December 31, 2019 and 2018 Investment Fair Value Redemption Frequency (If currently eligible) Redemption Notice Period Unfunded Commitments (in millions) December 31, 2019: Private Equity Fund $ 64 N/A (1)(2) N/A $ 28 Private Real Estate Investment Trust 396 Quarterly One Quarter — Hedge Fund 80 Calendar Quarters (3) Previous Quarter End $ 3 Total (4) $ 540 December 31, 2018: Private Equity Fund $ 64 N/A (1)(2) N/A $ 33 Private Real Estate Investment Trust 402 Quarterly One Quarter — Hedge Fund 93 Calendar Quarters (3) Previous Quarter End $ 12 Total (4) $ 559 _______________ (1) Cannot sell or transfer ownership interest without prior written consent to transfer, and by meeting several criteria (e.g., does not adversely affect other investors). (2) Cannot sell interest in the vehicle without prior written consent of the managing member. (3) March, June, September and December. (4) Includes Equity method investments of $115 million and $128 million at December 31, 2019 and 2018, respectively. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The table below presents a reconciliation for all Level 3 fair values of qualified pension plan assets at December 31, 2019 , 2018 and 2017 , respectively: Level 3 Instruments Fair Value Measurements Fixed Maturities — Commercial Mortgage-Backed (in millions) Balance, January 1, 2019 $ 2 Actual return on plan assets — Sales/Settlements (1 ) Balance, December 31, 2019 $ 1 Balance, January 1, 2018 $ 3 Actual return on plan assets — Sales/Settlements (1 ) Balance, December 31, 2018 $ 2 Balance, January 1, 2017 $ 5 Actual return on plan assets — Sales/Settlements (2 ) Balance, December 31, 2017 $ 3 |
Schedule of Assumptions Used | The following table discloses assumptions used to measure the Company’s pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2019 and 2018 . As of December 31, 2019 2018 Discount rates: AXA Equitable Life QP 2.98% 4.07% AXA Equitable Excess Retirement Plan 2.9% 4.01% MONY Life Retirement Income Security Plan for Employees 3.19% 4.2% AB Qualified Retirement Plan 4.4% 3.9% Other defined benefit plans 2.58% — 3.07% 3.75% — 4.10% Periodic cost 3.75% — 4.20% 3.00% — 3.50% Cash balance interest crediting rate for pre-April 1, 2012 accruals 4.00% 4.00% Cash balance interest crediting rate for post-April 1, 2012 accruals 2.50% 2.50% Rates of compensation increase: Benefit obligation 5.98% 5.99% Periodic cost 6.38% 6.34% Expected long-term rates of return on pension plan assets (periodic cost) 6.75% 6.75% The assumed discount rates for measuring the post-retirement benefit obligations at December 31, 2019 and 2018 were determined in substantially the same manner as described above for measuring the pension benefit obligations. The following table discloses the range of discrete single equivalent discount rates and related net periodic cost at and for the years ended December 31, 2019 and 2018 . December 31, 2019 2018 Discount rates: Benefit obligation 2.29% — 3.16% 3.52% — 3.89% Periodic cost 3.53% — 4.17% 3.00% — 3.50% |
Schedule of Health Care Cost Trend Rates | Assumed Healthcare Cost Trend Rates used to Measure the Expected Cost of Benefits December 31, 2019 2018 Following year 6.1% 10.2% Ultimate rate to which cost increase is assumed to decline 4.0% 4.3% Year in which the ultimate trend rate is reached 2092 2099 |
Schedule of Expected Benefit Payments | The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2020 , and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations at December 31, 2019 and include benefits attributable to estimated future employee service. Postretirement Benefits Health Calendar Year Pension Benefits Life Insurance Gross Estimate Payment Estimated Medicare Part D Subsidy Net Estimate Payment (in millions) 2020 $ 223 $ 25 $ 15 $ 2 $ 13 2021 $ 271 $ 24 $ 14 $ 2 $ 12 2022 $ 222 $ 24 $ 13 $ 2 $ 11 2023 $ 214 $ 24 $ 12 $ 2 $ 10 2024 $ 208 $ 24 $ 11 $ 2 $ 9 Years 2025 — 2030 $ 2,853 $ 523 $ 92 $ 4 $ 88 |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION PROGRAMS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of compensation costs | Compensation costs for 2019 , 2018 and 2017 for share-based payment arrangements as further described herein are as follows: Years Ended December 31, 2019 2018 2017 (in millions) Performance Shares $ 29 $ 11 $ 45 Stock Options 4 2 1 AXA Shareplan — — 13 Restricted Stock Units 243 215 185 Other Compensation Plans (1) — — 3 Total Compensation Expenses $ 276 $ 228 $ 247 _______________ (1) Includes stock appreciation rights and employee stock purchase plans . |
Summary of stock option activity | A summary of activity in the AXA and the Company option plans during 2019 follows: Options Outstanding EQH Shares AB Holding Units AXA Ordinary Shares AXA ADRs (2) Number Outstanding (in 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Number Weighted Number Weighted Options Outstanding at January 1, 2019 994 $ 21.34 671 $ 22.83 3,613 € 18.20 25 $ 15.37 Options granted 1,510 $ 18.74 — $ — 186 € 21.46 — $ — Options exercised (27 ) $ 21.34 (512 ) $ 22.49 (1,322 ) € 16.10 (25 ) $ 15.37 Options forfeited, net (159 ) $ 20.28 — $ — (243 ) € 18.99 — $ — Options expired — $ — — $ — — € — — $ — Options Outstanding at December 31, 2019 2,318 $ 19.72 159 $ 23.93 2,233 € 19.63 — $ — Aggregate Intrinsic $ 11,731 $ 1,009 € 12,239 $ — Weighted Average Remaining Contractual Term (in years) 8.86 2.14 4.88 — Options Exercisable at December 31, 2019 298 $ 21.34 141 $ 24.09 1,995 € 19.24 — $ — Aggregate Intrinsic $ 1,023 $ 870 € 11,702 $ — Weighted Average Remaining Contractual Term (in years) 8.43 2.11 4.52 — _______________ (1)Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2019 of the respective underlying shares over the strike prices of the option awards. For awards with strike prices higher than market prices, intrinsic value is shown as zero. (2)AXA ordinary shares will be delivered to participants in lieu of AXA ADRs at exercise or maturity. For the purpose of estimating the fair value of Holdings and AXA stock option awards, the Black-Scholes model is used. A Monte-Carlo simulation approach was used to model the fair value of the conditional vesting feature of the awards of options to purchase Holdings and AXA ordinary shares. Shown below are the relevant input assumptions used to derive the fair values of options awarded in 2019 , 2018 and 2017 , respectively. EQH Shares (1) AXA Ordinary Shares (2) 2019 2018 2019 2018 2017 Dividend yield 2.77 % 2.44 % N.A. N.A. 6.53 % Expected volatility 25.70 % 25.40 % N.A. N.A. 25.05 % Risk-free interest rates 2.49 % 2.83 % N.A. N.A. 0.59 % Expected life in years 5.8 9.7 N.A. N.A. 8.8 Weighted average fair value per option at grant date $ 3.82 $ 4.61 N.A. N.A. $ 2.01 _______________ (1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term. (2)The expected AXA dividend yield is based on market consensus. AXA share price volatility is estimated on the basis of implied volatility, which is checked against an analysis of historical volatility to ensure consistency. The risk-free interest rate is based on the Euro Swap Rate curve for the appropriate term. The effect of expected early exercise is taken into account through the use of an expected life assumption based on historical data. |
Schedule of share-based payment award, valuation assumptions | For the purpose of estimating the fair value of Holdings and AXA stock option awards, the Black-Scholes model is used. A Monte-Carlo simulation approach was used to model the fair value of the conditional vesting feature of the awards of options to purchase Holdings and AXA ordinary shares. Shown below are the relevant input assumptions used to derive the fair values of options awarded in 2019 , 2018 and 2017 , respectively. EQH Shares (1) AXA Ordinary Shares (2) 2019 2018 2019 2018 2017 Dividend yield 2.77 % 2.44 % N.A. N.A. 6.53 % Expected volatility 25.70 % 25.40 % N.A. N.A. 25.05 % Risk-free interest rates 2.49 % 2.83 % N.A. N.A. 0.59 % Expected life in years 5.8 9.7 N.A. N.A. 8.8 Weighted average fair value per option at grant date $ 3.82 $ 4.61 N.A. N.A. $ 2.01 _______________ (1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term. (2)The expected AXA dividend yield is based on market consensus. AXA share price volatility is estimated on the basis of implied volatility, which is checked against an analysis of historical volatility to ensure consistency. The risk-free interest rate is based on the Euro Swap Rate curve for the appropriate term. The effect of expected early exercise is taken into account through the use of an expected life assumption based on historical data. |
Schedule of share-based compensation, restricted stock units award activity | The following table summarizes Holdings restricted share units and AXA ordinary share unit activity for 2019 . Shares of Holdings Restricted Stock Units Weighted-Average Grant Date Fair Value Shares of AXA Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested as of January 1, 2019 2,272,910 $ 21.00 53,984 $ 20.38 Granted 1,982,820 $ 18.43 — $ — Forfeited 184,958 $ 19.84 — $ — Vested 660,591 $ 21.01 31,879 $ 21.17 Unvested as of December 31, 2019 3,410,181 $ 19.57 22,105 $ 19.23 |
Schedule of share-based compensation, performance stock units award activity | The following table summarizes Holdings and AXA performance awards activity for 2019 . Shares of Holdings Performance Awards Weighted-Average Grant Date Shares of AXA Performance Awards Weighted-Average Grant Date Unvested as of January 1, 2019 197,763 $ 23.17 6,738,653 $ 21.10 Granted 293,237 $ 19.67 207,136 $ 20.62 Forfeited 31,014 $ 21.76 345,735 $ 20.45 Vested — $ — 2,066,118 $ 21.85 Unvested as of December 31, 2019 459,986 $ 21.03 4,533,936 $ 20.79 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of income tax expense (benefit) | A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows: Years Ended December 31, 2019 2018 2017 (in millions) Income tax (expense) benefit: Current (expense) benefit $ (71 ) $ 508 $ 119 Deferred (expense) benefit 670 (815 ) (168 ) Total $ 599 $ (307 ) $ (49 ) |
Schedule of effective income tax rate reconciliation | The sources of the difference and their tax effects are as follows: Years Ended December 31, 2019 2018 2017 (in millions) Expected income tax (expense) benefit $ 427 $ (516 ) $ (457 ) Noncontrolling interest 51 54 138 Non-taxable investment income 74 105 255 Tax audit interest (24 ) (22 ) (14 ) State income taxes (21 ) (18 ) (16 ) Tax settlements/uncertain tax position release 75 — 228 Change in tax law — 104 (32 ) Intangibles (3 ) (3 ) (138 ) Other 20 (11 ) (13 ) Income tax (expense) benefit $ 599 $ (307 ) $ (49 ) |
Schedule of net deferred income taxes | The components of the net deferred income taxes are as follows: As of December 31, 2019 2018 Assets Liabilities Assets Liabilities (in millions) Compensation and related benefits $ 283 $ — $ 312 $ — Net operating loss 56 — 90 — Reserves and reinsurance 1,228 — 366 — DAC — 984 — 1,175 Unrealized investment gains/losses — 717 108 — Investments 46 — — 21 Tax credits — — 149 — Other — 111 — 108 Total $ 1,613 $ 1,812 $ 1,025 $ 1,304 |
Unrecognized tax benefits reconciliation | A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: 2019 2018 2017 (in millions) Balance at January 1, $ 539 $ 477 $ 729 Additions for tax positions of prior years 25 91 28 Reductions for tax positions of prior years (63 ) (29 ) (247 ) Additions for tax positions of current year — — — Settlements with tax authorities — — (33 ) Balance at December 31, $ 501 $ 539 $ 477 Unrecognized tax benefits that, if recognized, would impact the effective rate $ 369 $ 407 $ 317 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The following table presents the contractual maturities of the Company’s long-term debt as of December 31, 2019 Calendar Year 2020 2021 2022 2023 2024 and thereafter (in millions) Long-term debt $ — $ — $ — $ 800 $ 3,350 |
Activity of Funding Agreements with FHLBNY | Outstanding Balance at December 31, 2018 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Outstanding Balance at December 31, 2019 (in millions) Short-term funding agreements: Due in one year or less $ 1,640 $ 29,330 $ 26,420 $ 58 $ 4,608 Long-term funding agreements: Due in years two through five 1,569 — — 77 1,646 Due in more than five years 781 — — (135 ) 646 Total long-term funding agreements 2,350 — — (58 ) 2,292 Total funding agreements (1) $ 3,990 $ 29,330 $ 26,420 $ — $ 6,900 Outstanding Balance at December 31, 2017 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Outstanding Balance at December 31, 2018 (in millions) Short-term funding agreements: Due in one year or less $ 500 $ 7,980 $ (6,990 ) $ 150 $ 1,640 Long-term funding agreements: Due in years two through five 1,621 — — (52 ) 1,569 Due in more than five years 879 — — (98 ) 781 Total long-term funding agreements 2,500 — — (150 ) 2,350 Total funding agreements (1) $ 3,000 $ 7,980 $ (6,990 ) $ — $ 3,990 _____________ (1) The $9 million , $11 million and $14 million difference between the funding agreements carrying value shown in fair value table for 2019 , 2018 and 2017 , 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) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 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 years ended December 31, 2019 , 2018 and 2017 , respectively: Years Ended December 31, 2019 2018 2017 (in millions) Net income (loss) attributable to Holdings $ (1,733 ) $ 1,820 $ 834 Adjustments related to: Variable annuity product features (1) 4,878 (70 ) 1,107 Investment (gains) losses (73 ) 86 191 Goodwill impairment — — 369 Net actuarial (gains) losses related to pension and other postretirement benefit obligations 99 215 135 Other adjustments (2) 406 299 119 Income tax expense (benefit) related to above adjustments (3) (1,114 ) (111 ) (644 ) Non-recurring tax items (66 ) (73 ) (76 ) Non-GAAP Operating Earnings (4) $ 2,397 $ 2,166 $ 2,035 Operating earnings (loss) by segment: Individual Retirement (5) $ 1,577 $ 1,555 $ 1,252 Group Retirement $ 390 $ 389 $ 283 Investment Management and Research $ 381 $ 381 $ 211 Protection Solutions $ 396 $ 197 $ 502 Corporate and Other (6) $ (347 ) $ (356 ) $ (213 ) ______________ (1) Had we modified the treatment of the amortization of DAC for SCS starting in 2017, the adjustment related to Variable annuity product features for the years ended 2018 and 2017 would have been ($126) million and $1.1 billion. (2) Other adjustments include separation costs of $222 million , $213 million and $93 million in 2019 , 2018 and 2017 , respectively. (3) Had we modified the treatment of the amortization of DAC for SCS starting in 2017, the adjustment related to Income tax expense (benefit) related to above adjustments for the years ended 2018 and 2017 would have been ($99) million and ($634) million. (4) Had we modified the treatment of the amortization of DAC for SCS starting in 2017, Operating earnings for the years ended 2018 and 2017 would have been $2.1 billion and $2.0 billion. (5) Had we modified the treatment of the amortization of DAC for SCS starting in 2017, Operating earnings for the years ended 2018 and 2017 for the Individual Retirement segment would have been $1.5 billion and $1.2 billion. (6) Includes interest expense and financing fees of $228 million , $223 million and $138 million , in 2019 , 2018 and 2017 , 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 years ended December 31, 2019 , 2018 and 2017 . Years Ended December 31, 2019 2018 2017 (in millions) Segment revenues: Individual Retirement (1) $ 4,340 $ 4,054 $ 4,374 Group Retirement (1) 1,077 1,019 942 Investment Management and Research (2) 3,479 3,411 3,216 Protection Solutions (1) 3,325 3,232 3,057 Corporate and Other (1) 1,229 1,148 1,212 Adjustments related to: Variable annuity product features (3,939 ) (643 ) (214 ) Investment gains (losses), net 73 (86 ) (191 ) Other adjustments to segment revenues 7 (57 ) 64 Total revenues $ 9,591 $ 12,078 $ 12,460 ______________ (1) Includes investment expenses charged by AB of $76 million , $67 million and $68 million for 2019 , 2018 and 2017 , respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $104 million , $94 million and $96 million for 2019 , 2018 and 2017 , respectively, are included in segment revenues of the Investment Management and Research segment. The table below presents Total assets by segment as of December 31, 2019 and 2018 : December 31, 2019 2018 (in millions) Total assets by segment: Individual Retirement $ 123,626 $ 105,532 Group Retirement 43,588 38,874 Investment Management and Research 10,170 10,294 Protection Solutions 46,886 44,633 Corporate and Other 25,600 21,464 Total assets $ 249,870 $ 220,797 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends Declared | Dividends declared per share of common stock were as follows for the periods indicated: Years Ended December 31, 2019 2018 2017 Dividends declared per share of common stock $ 0.58 $ 0.26 $ — |
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 December 31, 2019 , 2018 , and 2017 follow: December 31, 2019 2018 2017 (in millions) Unrealized gains (losses) on investments (1) (2) (4) $ 1,838 $ (404 ) $ 825 Defined benefit pension plans (3) (983 ) (968 ) (955 ) Foreign currency translation adjustments (1) (57 ) (62 ) (30 ) Total accumulated other comprehensive income (loss) 798 (1,434 ) (160 ) Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (42 ) (38 ) (52 ) Accumulated other comprehensive income (loss) attributable to Holdings $ 840 $ (1,396 ) $ (108 ) ______________ (1) A reclassification of $10 million and $5 million , respectively has been made to the December 31, 2018 and 2017 previously reported balances to conform to the current period’s presentation. (2) 2018 includes a $113 million decrease to Accumulated other comprehensive loss from the impact of adoption of ASU 2018-02. (3) 2018 includes a $202 million increase to Accumulated other comprehensive loss from the impact of adoption of ASU 2018-02. (4) 2018 includes a $7 million decrease to Accumulated other comprehensive loss from the impact of adoption of ASU 2016-01. |
Comprehensive Income (Loss) | The components of OCI, net of taxes for the years ended December 31, 2019 , 2018 , and 2017 follow: Years Ended December 31, 2019 2018 2017 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ 3,301 $ (1,952 ) $ 910 (Gains) losses reclassified to Net income (loss) during the period (1) (161 ) 60 10 Net unrealized gains (losses) on investments 3,140 (1,892 ) 920 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (2) (898 ) 558 (227 ) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $590, $(356) and $262) 2,242 (1,334 ) 693 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) (15 ) 189 100 Change in defined benefit plans (net of deferred income tax expense (benefit) of $10, $50 and $51) (15 ) 189 100 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (2) 5 (32 ) 39 (Gains) losses reclassified into net income (loss) during the period — — — Foreign currency translation adjustment 5 (32 ) 39 Years Ended December 31, 2019 2018 2017 (in millions) Total other comprehensive income (loss), net of income taxes 2,232 (1,177 ) 832 Less: Other comprehensive income (loss) attributable to noncontrolling interest (4 ) 15 19 Other comprehensive income (loss) attributable to Holdings $ 2,236 $ (1,192 ) $ 813 ______________ (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts presented net of income tax expense (benefit) of $(43) million , $13 million and $5 million for the years December 31, 2019, 2018 and 2017, respectively. (2) A reclassification of $5 million and $3 million has been made to the previously reported amounts for the years ended December 31, 2018 and 2017, respectively to conform to the current period’s presentation. (3) These AOCI components are included in the computation of net periodic costs (see “Employee Benefit Plans” in Note 14 ). |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the weighted-average shares outstanding, Earnings per common share — basic and diluted: Years Ended December 31, 2019 2018 2017 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 493.6 556.4 561.0 Effect of dilutive securities: Employee share awards (1) — 0.1 — Weighted-average common shares outstanding — diluted (2) 493.6 556.5 561.0 Net income (loss): Net income (loss) $ (1,436 ) $ 2,154 $ 1,257 Less: Net income (loss) attributable to the noncontrolling interest 297 334 423 Net income (loss) attributable to Holdings common shareholders (1,733 ) 1,820 834 Less: Incremental dilution from AB (3) — — 1 Net income (loss) attributable to Holdings common shareholders (diluted) $ (1,733 ) $ 1,820 $ 833 Earnings per common share: Basic $ (3.51 ) $ 3.27 $ 1.49 Diluted $ (3.51 ) $ 3.27 $ 1.49 _____________ (1) Calculated using the treasury stock method. (2) Shares in the diluted EPS calculation represent basic shares for the year ended 2019 due to the net loss in this period. The shares excluded from the calculation were 1.1 million . (3) The incremental dilution from AB represents the impact of AB’s dilutive units on the Company’s diluted earnings per share and is calculated based on the Company’s proportionate ownership interest in AB. |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The unaudited quarterly financial information for the years ended December 31, 2019 and 2018 is summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 (in millions) 2019 Total revenues $ 1,714 $ 3,160 $ 3,028 $ 1,689 Total benefits and other deductions 2,638 2,719 3,468 2,801 Income (loss) from continuing operations, before income taxes (924 ) 441 (440 ) (1,112 ) Income tax (expense) benefit 215 (11 ) 124 271 Net income (loss) (709 ) 430 (316 ) (841 ) Less: Net income (loss) attributable to the noncontrolling interest 66 67 68 96 Net income (loss) attributable to Holdings $ (775 ) $ 363 $ (384 ) $ (937 ) Earnings per share - Common stock: Basic $ (1.50 ) $ 0.74 $ (0.78 ) $ (1.97 ) Diluted $ (1.50 ) $ 0.74 $ (0.78 ) $ (1.97 ) Three Months Ended March 31 June 30 September 30 December 31 (in millions) 2018 Total revenues $ 2,874 $ 2,966 $ 1,083 $ 5,155 Total benefits and other deductions 2,446 2,644 1,701 2,826 Income (loss) from continuing operations, before income taxes 428 322 (618 ) 2,329 Income tax (expense) benefit (91 ) (61 ) 175 (330 ) Net income (loss) 337 261 (443 ) 1,999 Less: Net income (loss) attributable to the noncontrolling interest 123 97 53 61 Net income (loss) attributable to Holdings $ 214 $ 164 $ (496 ) $ 1,938 Earnings per share - Common stock: Basic $ 0.38 $ 0.29 $ (0.89 ) $ 3.57 Diluted $ 0.38 $ 0.29 $ (0.89 ) $ 3.57 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The changes in the components of redeemable noncontrolling interests were: Years Ended December 31, 2019 2018 2017 (in millions) Balance, beginning of year $ 187 $ 626 $ 403 Net earnings (loss) attributable to redeemable noncontrolling interests 34 18 53 Purchase/change of redeemable noncontrolling interests 144 (457 ) 170 Balance, end of year $ 365 $ 187 $ 626 |
HELD-FOR-SALE (Tables)
HELD-FOR-SALE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets And Liabilities Held-for-sale | The following table summarizes the components of assets and liabilities held-for-sale on the Consolidated Balance Sheets at December 31, 2019: December 31, 2019 (in millions) Assets: Fixed maturity securities $ 896 Trading securities, at fair value 17 Policy loans 19 Cash and cash equivalents 65 Amounts due from reinsurers 43 Deferred policy acquisition costs 31 Other assets 24 Assets held-for-sale 1,095 Less: Loss accrual (133 ) Total assets held-for-sale $ 962 Liabilities: Policyholders’ account balances $ 286 Future policy benefits and other policyholders’ liabilities 421 Amounts due to reinsurers 6 Other liabilities 11 Total liabilities held-for-sale $ 724 |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) | Dec. 10, 2019shares | Nov. 13, 2019shares | Jun. 07, 2019shares | Mar. 25, 2019shares | Nov. 20, 2018shares | May 14, 2018shares | Apr. 23, 2018 | Dec. 31, 2019segmentshares | Dec. 31, 2018shares |
Organization Basis Of Presentation [Line Items] | |||||||||
Number of reportable segments | segment | 4 | ||||||||
Units purchased during the period (in shares) | 65,600,000 | 32,500,000 | |||||||
Alliance Bernstein | |||||||||
Organization Basis Of Presentation [Line Items] | |||||||||
Units purchased during the period (in shares) | 6,000,000 | 9,300,000 | |||||||
Economic interest | 65.00% | 65.00% | 65.00% | ||||||
AXA | |||||||||
Organization Basis Of Presentation [Line Items] | |||||||||
Units purchased during the period (in shares) | 30,000,000 | ||||||||
Secondary Offering | AXA | |||||||||
Organization Basis Of Presentation [Line Items] | |||||||||
Shares issued (in shares) | 46,000,000 | ||||||||
Common Stock | AXA | |||||||||
Organization Basis Of Presentation [Line Items] | |||||||||
Units purchased during the period (in shares) | 24,000,000 | 30,000,000 | |||||||
Ownership percentage after transaction | 10.00% | ||||||||
Common Stock | Public Offering | Parent | |||||||||
Organization Basis Of Presentation [Line Items] | |||||||||
Shares issued (in shares) | 158,000,000 | ||||||||
Common Stock | Secondary Offering | Parent | |||||||||
Organization Basis Of Presentation [Line Items] | |||||||||
Shares issued (in shares) | 144,000,000 | 40,000,000 | 60,000,000 | ||||||
Common Stock | Secondary Offering | AXA | |||||||||
Organization Basis Of Presentation [Line Items] | |||||||||
Shares issued (in shares) | 3,000,000 | 40,000,000 | |||||||
Units purchased during the period (in shares) | 30,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | $ 62,937 | $ 46,801 | |
Gross Unrealized Gains | 3,789 | 793 | |
Gross Unrealized Losses | 383 | 1,315 | |
Fixed maturities available for sale, at fair value | 66,343 | 46,279 | |
OTTI in AOCI | 0 | 2 | |
Amortized Cost | |||
Due in one year or less, Amortized Cost | 3,921 | ||
Due in years two through five, Amortized Cost | 14,288 | ||
Due in years six through ten, Amortized Cost | 18,391 | ||
Due after ten years, Amortized Cost | 24,810 | ||
Subtotal | 61,410 | ||
Amortized cost | 62,937 | 46,801 | |
Fair Value | |||
Due in one year or less, Fair Value | 3,938 | ||
Due in years two through five, Fair Value | 14,721 | ||
Due in years six through ten, Fair Value | 19,585 | ||
Due after ten years, Fair Value | 26,546 | ||
Subtotal | 64,790 | ||
Fair Value | 66,343 | ||
Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Abstract] | |||
Proceeds from sales | 8,972 | 8,523 | $ 8,213 |
Gross gains on sales | 234 | 180 | 107 |
Gross losses on sales | (32) | (215) | (259) |
Total OTTI | 0 | (42) | (15) |
Non-credit losses recognized in OCI | 0 | 0 | 0 |
Non-credit losses recognized in OCI | 0 | (42) | (15) |
Fixed Maturities - Credit Loss Impairments | |||
Balance beginning of period | (58) | (18) | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 37 | 2 | |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | |
Impairments recognized this period on securities not previously impaired | 0 | (42) | |
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 at December 31, | (21) | (58) | $ (18) |
Public corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 45,900 | 30,572 | |
Gross Unrealized Gains | 2,361 | 406 | |
Gross Unrealized Losses | 62 | 800 | |
Fixed maturities available for sale, at fair value | 48,199 | 30,178 | |
OTTI in AOCI | 0 | 0 | |
Amortized Cost | |||
Amortized cost | 45,900 | 30,572 | |
U.S. Treasury, government and agency | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 14,410 | 14,004 | |
Gross Unrealized Gains | 1,289 | 295 | |
Gross Unrealized Losses | 305 | 470 | |
Fixed maturities available for sale, at fair value | 15,394 | 13,829 | |
OTTI in AOCI | 0 | 0 | |
Amortized Cost | |||
Amortized cost | 14,410 | 14,004 | |
States and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 638 | 415 | |
Gross Unrealized Gains | 70 | 47 | |
Gross Unrealized Losses | 3 | 1 | |
Fixed maturities available for sale, at fair value | 705 | 461 | |
OTTI in AOCI | 0 | 0 | |
Amortized Cost | |||
Amortized cost | 638 | 415 | |
Foreign governments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 462 | 524 | |
Gross Unrealized Gains | 35 | 19 | |
Gross Unrealized Losses | 5 | 13 | |
Fixed maturities available for sale, at fair value | 492 | 530 | |
OTTI in AOCI | 0 | 0 | |
Amortized Cost | |||
Amortized cost | 462 | 524 | |
Residential mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 178 | 225 | |
Gross Unrealized Gains | 13 | 10 | |
Gross Unrealized Losses | 0 | 1 | |
Fixed maturities available for sale, at fair value | 191 | 234 | |
OTTI in AOCI | 0 | 0 | |
Amortized Cost | |||
Amortized Cost, without single maturity date | 178 | ||
Amortized cost | 178 | 225 | |
Fair Value | |||
Fair value, without single maturity date | 191 | ||
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 848 | 612 | |
Gross Unrealized Gains | 4 | 1 | |
Gross Unrealized Losses | 3 | 12 | |
Fixed maturities available for sale, at fair value | 849 | 601 | |
OTTI in AOCI | 0 | 2 | |
Amortized Cost | |||
Amortized Cost, without single maturity date | 848 | ||
Amortized cost | 848 | 612 | |
Fair Value | |||
Fair value, without single maturity date | 849 | ||
Redeemable preferred stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 501 | 449 | |
Gross Unrealized Gains | 17 | 15 | |
Gross Unrealized Losses | 5 | 18 | |
Fixed maturities available for sale, at fair value | 513 | 446 | |
OTTI in AOCI | 0 | 0 | |
Amortized Cost | |||
Amortized Cost, without single maturity date | 501 | ||
Amortized cost | 501 | $ 449 | |
Fair Value | |||
Fair value, without single maturity date | $ 513 |
INVESTMENTS - Net Unrealized In
INVESTMENTS - Net Unrealized Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | $ 15,432 | $ 16,518 | $ 14,549 |
DAC | 999 | (458) | 314 |
Deferred income taxes | (590) | 356 | (262) |
End of year | 15,126 | 15,432 | 16,518 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Net Unrealized Gains (Losses) on Investments | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (522) | 1,871 | |
Net investment gains (losses) arising during the period | 4,188 | (2,470) | |
Included in Net income (loss) | (213) | 77 | |
Excluded from Net earnings (loss) | 0 | 0 | |
Net unrealized investment gains (losses) excluding OTTI losses | 3,453 | (522) | |
Net unrealized investment gains (losses) with OTTI losses | 0 | 0 | |
End of year | 3,453 | (522) | 1,871 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | 100 | (358) | |
DAC | (999) | 458 | |
Net unrealized investment gains (losses) excluding OTTI losses | (899) | 100 | |
End of year | (899) | 100 | (358) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (73) | (238) | |
Policyholders liabilities | (116) | 165 | |
Net unrealized investment gains (losses) excluding OTTI losses | (189) | (73) | |
End of year | (189) | (73) | (238) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | 104 | (397) | |
Deferred income taxes | (601) | 501 | |
Net unrealized investment gains (losses) excluding OTTI losses | (497) | 104 | |
End of year | (497) | 104 | (397) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (391) | 878 | |
Net investment gains (losses) arising during the period | 4,188 | (2,470) | |
Included in Net income (loss) | (213) | 77 | |
Excluded from Net earnings (loss) | 0 | 0 | |
DAC | (999) | 458 | |
Deferred income taxes | (601) | 501 | |
Policyholders liabilities | (116) | 165 | |
Net unrealized investment gains (losses) excluding OTTI losses | 1,868 | (391) | |
Net unrealized investment gains (losses) with OTTI losses | 0 | 0 | |
End of year | $ 1,868 | $ (391) | $ 878 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Investment [Line Items] | |||
Number of positions in unrealized loss position | security | 413 | 1,700 | |
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.60% | ||
Amortized cost | $ 62,937 | $ 46,801 | |
Unrealized loss on available for sale securities | 21 | ||
Gross unrealized losses | 32 | 922 | |
Trading securities, at fair value | 73 | (86) | $ (191) |
Separate account equity investment carrying value | 58 | 49 | |
Individually Evaluated for Impairment | 0 | 7 | |
Interest credited to policyholders account balances participating group annuity contracts | 2 | 3 | $ 3 |
Corporate | |||
Investment [Line Items] | |||
Exposure in single issuer of total investments | $ 309 | $ 226 | |
Debt securities exposure in single issuer of total investments, percentage | 2.00% | 1.50% | |
Amortized cost | $ 45,900 | $ 30,572 | |
Gross unrealized losses | 20 | 487 | |
Fixed maturities | |||
Investment [Line Items] | |||
Amortized cost | 62,937 | 46,801 | |
Other Than Investment Grade | External Credit Rating, Non Investment Grade | Fixed maturities | |||
Investment [Line Items] | |||
Available-for-sale securities, amortized cost basis other than investment grade | $ 1,400 | $ 1,300 | |
Percentage of available for sale securities | 2.30% | 2.70% | |
Unrealized loss on available for sale securities | $ 31 | ||
Commercial Real Estate Portfolio Segment | |||
Investment [Line Items] | |||
Recorded investment, nonaccrual status | $ 0 | 19 | |
Individually Evaluated for Impairment | 0 | 7 | |
Fair Value, Measurements, Recurring | |||
Investment [Line Items] | |||
Trading securities, at fair value | $ 7,031 | $ 16,017 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - New ASU Adjustments (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 687 | |
Operating lease liabilities | $ 883 | |
Accounting Standards Update 2018-01 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 799 | |
Operating lease liabilities | 1,000 | |
Deferred rent | 105 | |
Operating lease, impairment loss | $ 120 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | $ 7,553 | $ 10,878 |
Less than 12 Months, Gross unrealized Losses | 351 | 393 |
12 Months or Longer, Fair Value | 672 | 12,720 |
12 Months or Longer, Gross unrealized Losses | 32 | 922 |
Total Fair Value | 8,225 | 23,598 |
Total Gross unrealized losses | 383 | 1,315 |
Public corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 2,773 | 8,964 |
Less than 12 Months, Gross unrealized Losses | 42 | 313 |
12 Months or Longer, Fair Value | 373 | 8,244 |
12 Months or Longer, Gross unrealized Losses | 20 | 487 |
Total Fair Value | 3,146 | 17,208 |
Total Gross unrealized losses | 62 | 800 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 4,309 | 1,077 |
Less than 12 Months, Gross unrealized Losses | 305 | 53 |
12 Months or Longer, Fair Value | 2 | 4,306 |
12 Months or Longer, Gross unrealized Losses | 0 | 417 |
Total Fair Value | 4,311 | 5,383 |
Total Gross unrealized losses | 305 | 470 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 112 | 0 |
Less than 12 Months, Gross unrealized Losses | 3 | 0 |
12 Months or Longer, Fair Value | 0 | 19 |
12 Months or Longer, Gross unrealized Losses | 0 | 1 |
Total Fair Value | 112 | 19 |
Total Gross unrealized losses | 3 | 1 |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 11 | 109 |
Less than 12 Months, Gross unrealized Losses | 0 | 3 |
12 Months or Longer, Fair Value | 47 | 76 |
12 Months or Longer, Gross unrealized Losses | 5 | 10 |
Total Fair Value | 58 | 185 |
Total Gross unrealized losses | 5 | 13 |
Residential mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | |
Less than 12 Months, Gross unrealized Losses | 0 | |
12 Months or Longer, Fair Value | 29 | |
12 Months or Longer, Gross unrealized Losses | 1 | |
Total Fair Value | 29 | |
Total Gross unrealized losses | 1 | |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 319 | 563 |
Less than 12 Months, Gross unrealized Losses | 1 | 11 |
12 Months or Longer, Fair Value | 201 | 13 |
12 Months or Longer, Gross unrealized Losses | 2 | 1 |
Total Fair Value | 520 | 576 |
Total Gross unrealized losses | 3 | 12 |
Redeemable preferred stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 29 | 165 |
Less than 12 Months, Gross unrealized Losses | 0 | 13 |
12 Months or Longer, Fair Value | 49 | 33 |
12 Months or Longer, Gross unrealized Losses | 5 | 5 |
Total Fair Value | 78 | 198 |
Total Gross unrealized losses | $ 5 | $ 18 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Life insurance, corporate or bank owned, amount | $ 944 | $ 872 | $ 918 |
Equity real estate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Equity real estate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 50 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Deferred Policy Acquisition Costs (DAC) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Average annual rate of return, gross | 7.00% |
Average annual rate of return, net | 4.70% |
Future annual rate of return, gross, maximum | 15.00% |
Future annual rate of return, net, maximum | 12.70% |
Future annual rate of return, gross, minimum | 0.00% |
Future annual rate of return, net, minimum | 2.30% |
Future annual rate of return assumption duration maximum | 5 years |
Assumed average investment yield excluding policy loans, high end | 4.60% |
Assumed average investment yield excluding policy loans, low end | 4.30% |
Period used In assumed average investment yield excluding policy loans | 6 years |
INVESTMENTS - Loans (Details)
INVESTMENTS - Loans (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Commercial Real Estate Portfolio Segment | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | $ 9,390 | $ 9,147 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 27 |
Current | 9,390 | 9,120 |
Total financing receivables | 9,390 | 9,147 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Commercial Real Estate Portfolio Segment | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate Portfolio Segment | 60-89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate Portfolio Segment | 90 Days Or Greater | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 27 |
Commercial Real Estate Portfolio Segment | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 5,251 | 5,965 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 5,251 | 5,965 |
Commercial Real Estate Portfolio Segment | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,331 | 677 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,331 | 677 |
Commercial Real Estate Portfolio Segment | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,546 | 1,510 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,546 | 1,510 |
Commercial Real Estate Portfolio Segment | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 974 | 746 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 974 | 746 |
Commercial Real Estate Portfolio Segment | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 288 | 249 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 288 | 249 |
Commercial Real Estate Portfolio Segment | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,180 | 1,089 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,180 | 1,089 |
Commercial Real Estate Portfolio Segment | 0% - 50% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 903 | 797 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 903 | 797 |
Commercial Real Estate Portfolio Segment | 0% - 50% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 38 | 21 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 38 | 21 |
Commercial Real Estate Portfolio Segment | 0% - 50% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 214 | 247 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 214 | 247 |
Commercial Real Estate Portfolio Segment | 0% - 50% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 25 | 24 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 25 | 24 |
Commercial Real Estate Portfolio Segment | 0% - 50% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 0% - 50% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 7,447 | 7,186 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 7,447 | 7,186 |
Commercial Real Estate Portfolio Segment | 50% - 70% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 4,097 | 4,908 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 4,097 | 4,908 |
Commercial Real Estate Portfolio Segment | 50% - 70% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,195 | 656 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,195 | 656 |
Commercial Real Estate Portfolio Segment | 50% - 70% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,118 | 1,146 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,118 | 1,146 |
Commercial Real Estate Portfolio Segment | 50% - 70% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 795 | 325 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 795 | 325 |
Commercial Real Estate Portfolio Segment | 50% - 70% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 242 | 151 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 242 | 151 |
Commercial Real Estate Portfolio Segment | 50% - 70% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 763 | 845 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 763 | 845 |
Commercial Real Estate Portfolio Segment | 70% - 90% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 251 | 260 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 251 | 260 |
Commercial Real Estate Portfolio Segment | 70% - 90% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 98 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 98 | 0 |
Commercial Real Estate Portfolio Segment | 70% - 90% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 214 | 117 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 214 | 117 |
Commercial Real Estate Portfolio Segment | 70% - 90% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 154 | 370 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 154 | 370 |
Commercial Real Estate Portfolio Segment | 70% - 90% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 46 | 98 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 46 | 98 |
Commercial Real Estate Portfolio Segment | 70% - 90% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 90% plus | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 27 |
Commercial Real Estate Portfolio Segment | 90% plus | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 90% plus | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 90% plus | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 90% plus | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 27 |
Commercial Real Estate Portfolio Segment | 90% plus | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Real Estate Portfolio Segment | 90% plus | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 2,717 | 2,695 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 124 | 68 |
Current | 2,593 | 2,627 |
Total financing receivables | 2,717 | 2,695 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 66 | 40 |
Agricultural Real Estate Portfolio Segment | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 57 | 18 |
Agricultural Real Estate Portfolio Segment | 60-89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1 | 8 |
Agricultural Real Estate Portfolio Segment | 90 Days Or Greater | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 66 | 42 |
Agricultural Real Estate Portfolio Segment | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 404 | 394 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 404 | 394 |
Agricultural Real Estate Portfolio Segment | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 191 | 193 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 191 | 193 |
Agricultural Real Estate Portfolio Segment | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 477 | 513 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 477 | 513 |
Agricultural Real Estate Portfolio Segment | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 990 | 941 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 990 | 941 |
Agricultural Real Estate Portfolio Segment | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 572 | 572 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 572 | 572 |
Agricultural Real Estate Portfolio Segment | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 83 | 82 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 83 | 82 |
Agricultural Real Estate Portfolio Segment | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,583 | 1,611 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,583 | 1,611 |
Agricultural Real Estate Portfolio Segment | 0% - 50% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 322 | 282 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 322 | 282 |
Agricultural Real Estate Portfolio Segment | 0% - 50% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 104 | 147 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 104 | 147 |
Agricultural Real Estate Portfolio Segment | 0% - 50% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 241 | 267 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 241 | 267 |
Agricultural Real Estate Portfolio Segment | 0% - 50% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 545 | 543 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 545 | 543 |
Agricultural Real Estate Portfolio Segment | 0% - 50% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 321 | 321 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 321 | 321 |
Agricultural Real Estate Portfolio Segment | 0% - 50% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 50 | 51 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 50 | 51 |
Agricultural Real Estate Portfolio Segment | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,115 | 1,038 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,115 | 1,038 |
Agricultural Real Estate Portfolio Segment | 50% - 70% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 82 | 112 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 82 | 112 |
Agricultural Real Estate Portfolio Segment | 50% - 70% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 87 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 87 | 46 |
Agricultural Real Estate Portfolio Segment | 50% - 70% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 236 | 246 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 236 | 246 |
Agricultural Real Estate Portfolio Segment | 50% - 70% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 426 | 379 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 426 | 379 |
Agricultural Real Estate Portfolio Segment | 50% - 70% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 251 | 224 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 251 | 224 |
Agricultural Real Estate Portfolio Segment | 50% - 70% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 33 | 31 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 33 | 31 |
Agricultural Real Estate Portfolio Segment | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 19 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 19 | 46 |
Agricultural Real Estate Portfolio Segment | 70% - 90% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 70% - 90% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 70% - 90% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 70% - 90% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 19 | 19 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 19 | 19 |
Agricultural Real Estate Portfolio Segment | 70% - 90% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 27 |
Agricultural Real Estate Portfolio Segment | 70% - 90% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 90% plus | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 90% plus | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 90% plus | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 90% plus | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 90% plus | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 90% plus | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Real Estate Portfolio Segment | 90% plus | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 12,107 | 11,842 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 124 | 95 |
Current | 11,983 | 11,747 |
Total financing receivables | 12,107 | 11,842 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 66 | 40 |
Total Mortgages Loan | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 57 | 18 |
Total Mortgages Loan | 60-89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1 | 8 |
Total Mortgages Loan | 90 Days Or Greater | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 66 | 69 |
Total Mortgages Loan | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 5,655 | 6,359 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 5,655 | 6,359 |
Total Mortgages Loan | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,522 | 870 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,522 | 870 |
Total Mortgages Loan | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 2,023 | 2,023 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 2,023 | 2,023 |
Total Mortgages Loan | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,964 | 1,687 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,964 | 1,687 |
Total Mortgages Loan | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 860 | 821 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 860 | 821 |
Total Mortgages Loan | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 83 | 82 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 83 | 82 |
Total Mortgages Loan | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 2,763 | 2,700 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 2,763 | 2,700 |
Total Mortgages Loan | 0% - 50% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,225 | 1,079 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,225 | 1,079 |
Total Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 142 | 168 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 142 | 168 |
Total Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 455 | 514 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 455 | 514 |
Total Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 570 | 567 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 570 | 567 |
Total Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 321 | 321 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 321 | 321 |
Total Mortgages Loan | 0% - 50% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 50 | 51 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 50 | 51 |
Total Mortgages Loan | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 8,562 | 8,224 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 8,562 | 8,224 |
Total Mortgages Loan | 50% - 70% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 4,179 | 5,020 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 4,179 | 5,020 |
Total Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,282 | 702 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,282 | 702 |
Total Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,354 | 1,392 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,354 | 1,392 |
Total Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 1,221 | 704 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,221 | 704 |
Total Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 493 | 375 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 493 | 375 |
Total Mortgages Loan | 50% - 70% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 33 | 31 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 33 | 31 |
Total Mortgages Loan | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 782 | 891 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 782 | 891 |
Total Mortgages Loan | 70% - 90% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 251 | 260 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 251 | 260 |
Total Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 98 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 98 | 0 |
Total Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 214 | 117 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 214 | 117 |
Total Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 173 | 389 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 173 | 389 |
Total Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 46 | 125 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 46 | 125 |
Total Mortgages Loan | 70% - 90% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 27 |
Total Mortgages Loan | 90% plus | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 27 |
Total Mortgages Loan | 90% plus | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Face amount of mortgage loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Policyholders' Account Balances (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Liability For Future Policy Benefits Assumptions [Line Items] | |
Percentage of life insurance liabilities calculate within traditional life interest rate range | 99.30% |
Minimum | Life Insurance Liabilities | |
Liability For Future Policy Benefits Assumptions [Line Items] | |
Liability for future policy benefits, interest rate | 4.00% |
Minimum | Annuity Liabilities | |
Liability For Future Policy Benefits Assumptions [Line Items] | |
Liability for policyholder contract deposits, interest rate | 1.50% |
Maximum | Life Insurance Liabilities | |
Liability For Future Policy Benefits Assumptions [Line Items] | |
Liability for future policy benefits, interest rate | 7.30% |
Maximum | Annuity Liabilities | |
Liability For Future Policy Benefits Assumptions [Line Items] | |
Liability for policyholder contract deposits, interest rate | 5.50% |
Weighted Average | Life Insurance Liabilities | |
Liability For Future Policy Benefits Assumptions [Line Items] | |
Liability for future policy benefits, interest rate | 5.00% |
Weighted Average | Annuity Liabilities | |
Liability For Future Policy Benefits Assumptions [Line Items] | |
Liability for policyholder contract deposits, interest rate | 4.10% |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Separate Accounts (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Gain (loss) recognized on assets transferred to separate account | $ 23.4 | $ (7.3) | $ 17 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets, Deferred Sales Commisions and Internal-use Software (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Capitalized computer software, net | $ 189 | $ 181 | |
Capitalized computer software, amortization | $ 52 | 49 | $ 51 |
Computer Software, Intangible Asset | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Computer Software, Intangible Asset | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 5 years | ||
Alliance Bernstein | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 6 years | ||
Alliance Bernstein | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 20 years | ||
Alliance Bernstein | Deferred Sales Commissions | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of AllianceBernstein related intangible assets | $ 36 | $ 17 | |
Amortization expense, next twelve months | 17 | ||
Amortization expense, year two | 12 | ||
Amortization expense, year three | 7 | ||
Amortization expense, year four | $ 0 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |
Unincorporated business tax (UBT) rate, percent | 4.00% |
AB Holding | |
Income Tax Contingency [Line Items] | |
Tax rate | 3.50% |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Accounting and Consolidation of VIEs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)joint_venture | Dec. 31, 2018USD ($)joint_venture | ||
Variable Interest Entity [Line Items] | |||
Redeemable noncontrolling interest | [1],[2] | $ 365 | $ 187 |
AB-Sponsored Investment Funds | |||
Variable Interest Entity [Line Items] | |||
Nonconsolidated VIE, carrying amount, assets | 79,300 | ||
Maximum loss exposure, amount | 8 | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Consolidated VIE, carrying amount, assets | 1,200 | 1,200 | |
Nonconsolidated VIE, carrying amount, assets | 160,200 | 166,100 | |
Maximum loss exposure, amount | 1,200 | 1,200 | |
Unfunded commitments | 1,100 | 940 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Consolidated VIE, carrying amount, assets | $ 32 | $ 36 | |
Number of consolidated real estate joint ventures | joint_venture | 1 | 1 | |
Real estate held for production income | $ (5) | $ 16 | |
Number of nonconsolidated real estate joint ventures | joint_venture | 1 | 2 | |
Variable Interest Entity, Primary Beneficiary | AB-Sponsored Investment Funds | |||
Variable Interest Entity [Line Items] | |||
Consolidated VIE, carrying amount, assets | $ 424 | $ 236 | |
Consolidated VIE, carrying amount, liabilities | 12 | 5 | |
Redeemable noncontrolling interest | 273 | 118 | |
VOE Consolidation Model | AB-Sponsored Investment Funds | |||
Variable Interest Entity [Line Items] | |||
Consolidated VIE, carrying amount, assets | 188 | 152 | |
Consolidated VIE, carrying amount, liabilities | 19 | 17 | |
Redeemable noncontrolling interest | $ 52 | $ 28 | |
[1] | See Note 2 for details of balances with variable interest entities. | ||
[2] | See Note 23 for details of Redeemable noncontrolling interest. |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates and Model Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Accounting Estimate [Line Items] | |||||||||||
Policy charges and fee income | $ 3,738 | $ 3,824 | $ 3,693 | ||||||||
Policyholders’ benefits | (4,370) | (2,915) | (4,366) | ||||||||
Net derivative gains (losses) | (4,000) | (231) | 214 | ||||||||
Interest credited to policyholders’ account balances | 1,241 | 1,090 | 995 | ||||||||
Amortization of deferred policy acquisition costs, net | 579 | 333 | 503 | ||||||||
Earnings (loss) from operations, before income taxes | $ (1,112) | $ (440) | $ 441 | $ (924) | $ 2,329 | $ (618) | $ 322 | $ 428 | (2,035) | 2,461 | 1,306 |
Net income (loss) | $ (841) | (316) | $ 430 | $ (709) | $ 1,999 | (443) | $ 261 | $ 337 | (1,436) | 2,154 | 1,257 |
Increase (decrease) in the fair value of the reinsurance contract asset | $ 407 | $ (162) | 159 | ||||||||
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates | |||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||
Policy charges and fee income | 3 | 24 | 85 | ||||||||
Policyholders’ benefits | (875) | 673 | (277) | ||||||||
Net derivative gains (losses) | (578) | (1,095) | |||||||||
Interest credited to policyholders’ account balances | (13) | ||||||||||
Amortization of deferred policy acquisition costs, net | (46) | (286) | (112) | ||||||||
Earnings (loss) from operations, before income taxes | (1,400) | (160) | 711 | ||||||||
Net income (loss) | $ (1,100) | $ (131) | 462 | ||||||||
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates | GMIB | |||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||
Increase (decrease) in the fair value of the reinsurance contract asset | 504 | ||||||||||
Increase (decrease) in fair value of policy liability | $ (457) |
INVESTMENTS - Net Investment In
INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Line Items] | |||
Investment income | $ 3,772 | $ 2,765 | $ 3,154 |
Investment expenses | (73) | (72) | (72) |
Total net investment income (loss) | 3,699 | 2,693 | 3,082 |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Investment income | 2,060 | 1,725 | 1,629 |
Mortgage loans on real estate | |||
Net Investment Income [Line Items] | |||
Investment income | 541 | 494 | 454 |
Real estate held for the production of income | |||
Net Investment Income [Line Items] | |||
Investment income | (2) | (6) | 2 |
Other equity investments | |||
Net Investment Income [Line Items] | |||
Investment income | 142 | 147 | 186 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Investment income | 211 | 215 | 221 |
Trading securities | |||
Net Investment Income [Line Items] | |||
Investment income | 796 | 105 | 553 |
Other Investments | |||
Net Investment Income [Line Items] | |||
Investment income | $ 24 | $ 85 | $ 109 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 487 | $ (223) | $ 247 |
Net investment gains (losses) recognized on securities sold during the period | 15 | (14) | 19 |
Unrealized and realized gains (losses) on trading securities | 502 | (237) | 266 |
Interest and dividend income from trading securities | 294 | 342 | 287 |
Net investment income (loss) from trading securities | $ 796 | $ 105 | $ 553 |
INVESTMENTS - Investment Gains
INVESTMENTS - Investment Gains (Losses), Net (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investment [Line Items] | |||
Trading securities, at fair value | $ 73 | $ (86) | $ (191) |
Fixed maturities | |||
Investment [Line Items] | |||
Trading securities, at fair value | 205 | (75) | (194) |
Mortgage loans on real estate | |||
Investment [Line Items] | |||
Trading securities, at fair value | (1) | 0 | 2 |
Real estate held for the production of income | |||
Investment [Line Items] | |||
Trading securities, at fair value | 2 | 0 | 0 |
Other equity investments | |||
Investment [Line Items] | |||
Trading securities, at fair value | 0 | 0 | 2 |
Other Investments | |||
Investment [Line Items] | |||
Trading securities, at fair value | $ (133) | $ (11) | $ (1) |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||
Notional Amount | $ 119,128 | $ 83,228 | ||
Net derivative gains (losses) | (4,000) | (231) | $ 214 | |
Cash and securities collateral for derivative contract | 3,000 | 1,600 | ||
Cash and securities collateral | 74 | 8 | ||
Securities sold under agreements to repurchase | 0 | $ 573 | ||
Total Return Swap | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 3,900 | |||
Net derivative gains (losses) | $ 121 | |||
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||||
Derivative [Line Items] | ||||
Initial margin requirement | 252 | |||
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||||
Derivative [Line Items] | ||||
Initial margin requirement | 166 | |||
Euro Stoxx, FTSE100, EAFE And Topix Indices | ||||
Derivative [Line Items] | ||||
Initial margin requirement | $ 60 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 119,128 | $ 83,228 |
Asset Derivatives | 7,993 | 4,725 |
Liability Derivatives | 17,291 | 9,471 |
Gains (Losses) Reported In Earnings (Loss) | (4,000) | (222) |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,257 | 11,143 |
Asset Derivatives | 1 | 2 |
Liability Derivatives | 1 | 3 |
Gains (Losses) Reported In Earnings (Loss) | (1,311) | 541 |
Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 17,156 | 7,796 |
Asset Derivatives | 9 | 143 |
Liability Derivatives | 281 | 168 |
Gains (Losses) Reported In Earnings (Loss) | (2,426) | 715 |
Options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 47,861 | 21,821 |
Asset Derivatives | 5,098 | 2,133 |
Liability Derivatives | 1,752 | 1,164 |
Gains (Losses) Reported In Earnings (Loss) | 2,229 | (899) |
Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 23,793 | 27,116 |
Asset Derivatives | 468 | 634 |
Liability Derivatives | 526 | 196 |
Gains (Losses) Reported In Earnings (Loss) | 2,037 | (656) |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 20,901 | 11,792 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 0 | 0 |
Gains (Losses) Reported In Earnings (Loss) | 145 | 112 |
Interest Rate Swaption | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,201 | |
Asset Derivatives | 16 | |
Liability Derivatives | 0 | |
Gains (Losses) Reported In Earnings (Loss) | (35) | |
Credit default swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,400 | 1,376 |
Asset Derivatives | 21 | 20 |
Liability Derivatives | 6 | 3 |
Gains (Losses) Reported In Earnings (Loss) | 9 | (2) |
Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 559 | 2,184 |
Asset Derivatives | 12 | 35 |
Liability Derivatives | 9 | 22 |
Gains (Losses) Reported In Earnings (Loss) | (9) | 6 |
Margin | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Asset Derivatives | 155 | 18 |
Liability Derivatives | 0 | 5 |
Gains (Losses) Reported In Earnings (Loss) | 0 | 0 |
Collateral | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Asset Derivatives | 74 | 8 |
Liability Derivatives | 3,016 | 1,581 |
Gains (Losses) Reported In Earnings (Loss) | 0 | 0 |
GMIB Reinsurance Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | |
Asset Derivatives | 2,139 | 1,732 |
Liability Derivatives | 0 | 0 |
Gains (Losses) Reported In Earnings (Loss) | 435 | (162) |
GMxB Derivative Features’ Liability | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 8,432 | 5,614 |
Gains (Losses) Reported In Earnings (Loss) | (2,432) | (775) |
SCS, SIO, MSO and IUL Indexed Features | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 3,268 | 715 |
Gains (Losses) Reported In Earnings (Loss) | $ (2,642) | 889 |
Embedded Derivative Financial Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gains (Losses) Reported In Earnings (Loss) | (231) | |
Cross currency swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | |
Asset Derivatives | 0 | |
Liability Derivatives | 0 | |
Gains (Losses) Reported In Earnings (Loss) | $ 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 | Dec. 31, 2019 | |
Securities Sold under Agreements to Repurchase | ||
Net Amount Presented in the Balance Sheets | $ 573 | $ 0 |
Securities sold under agreements to repurchase | 2 | |
Total derivatives | ||
Assets | ||
Gross Amount Recognized | 2,993 | 5,852 |
Gross Amount Recognized | 2,945 | 5,466 |
Net Amount Presented in the Balance Sheets | 48 | 386 |
Gross Amount not Offset in the Balance Sheets | 0 | (77) |
Net Amount | 48 | 309 |
Liabilities | ||
Gross Amount Recognized | 3,142 | 5,512 |
Gross Amount Offset in the Balance Sheets | 2,945 | 5,466 |
Net Amount Presented in the Balance Sheets | 197 | 46 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 197 | 46 |
Other financial instruments | ||
Assets | ||
Gross Amount Recognized | 1,989 | 2,367 |
Gross Amount Recognized | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,989 | 2,367 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 1,989 | 2,367 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 4,982 | 8,219 |
Gross Amount Recognized | 2,945 | 5,466 |
Net Amount Presented in the Balance Sheets | 2,037 | 2,753 |
Gross Amount not Offset in the Balance Sheets | 0 | (77) |
Net Amount | 2,037 | 2,676 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 3,163 | 3,924 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 3,163 | 3,924 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 3,163 | 3,924 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 6,305 | 9,436 |
Gross Amount Offset in the Balance Sheets | 2,945 | 5,466 |
Net Amount Presented in the Balance Sheets | 3,360 | 3,970 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 3,360 | $ 3,970 |
Securities sold under agreements to repurchase | ||
Securities Sold under Agreements to Repurchase | ||
Gross Amount Recognized | 571 | |
Gross Amount Offset in the Balance Sheets | 0 | |
Net Amount Presented in the Balance Sheets | 571 | |
Gross Amount not Offset in the Balance Sheets | (588) | |
Net Amount | $ (17) |
DERIVATIVES - Repurchase Agreem
DERIVATIVES - Repurchase Agreements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | $ 571 |
Securities sold under agreements to repurchase | 2 |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | 0 |
Up to 30 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | 571 |
30–90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | 0 |
Greater Than 90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | 0 |
U.S. Treasury, government and agency | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | 571 |
U.S. Treasury, government and agency | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | 0 |
U.S. Treasury, government and agency | Up to 30 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | 571 |
U.S. Treasury, government and agency | 30–90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | 0 |
U.S. Treasury, government and agency | Greater Than 90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreement to repurchase | $ 0 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 20, 2014 | |
Goodwill [Line Items] | |||||
Goodwill impairment loss | $ 369 | $ 0 | $ 0 | $ 369 | |
Alliance Bernstein | |||||
Goodwill [Line Items] | |||||
Amortization of intangible assets | 44 | 43 | $ 44 | ||
Gross carrying amount of AllianceBernstein related intangible assets | 917 | 909 | |||
Accumulated amortization of these intangible assets | 746 | 702 | |||
Amortization expense, next twelve months | 37 | ||||
Amortization expense, year two | 21 | ||||
Amortization expense, year three | 19 | ||||
Amortization expense, year four | 17 | ||||
Amortization expense, year five | 17 | ||||
Alliance Bernstein | Investment Management | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 4,600 | ||||
Amortization of intangible assets | $ 4,600 | ||||
CPH Capital | Alliance Bernstein | |||||
Goodwill [Line Items] | |||||
Ownership percentage acquired | 100.00% | 81.70% |
CLOSED BLOCK - Closed Block Sum
CLOSED BLOCK - Closed Block Summarized Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Closed Block Liabilities: | ||||
Future policy benefits, policyholders’ account balances and other | $ 6,478 | $ 6,709 | ||
Policyholder dividend obligation | 2 | 0 | $ 19 | $ 52 |
Other liabilities | 38 | 47 | ||
Total Closed Block liabilities | 6,518 | 6,756 | ||
Assets Designated to the Closed Block: | ||||
Fixed maturities available-for-sale, at fair value (amortized cost of $3,558 and $3,680) | 3,754 | 3,672 | ||
Mortgage loans on real estate, net of valuation allowance of $- and $- | 1,759 | 1,824 | ||
Policy loans | 706 | 736 | ||
Cash and other invested assets | 82 | 76 | ||
Other assets | 145 | 179 | ||
Total assets designated to the Closed Block | 6,446 | 6,487 | ||
Excess of Closed Block liabilities over assets designated to the Closed Block | 72 | 269 | ||
Amounts included in Accumulated other comprehensive income (loss): | ||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $(2) and $0; and net of income tax: $41 and $0 | 164 | 8 | ||
Maximum future earnings to be recognized from closed block assets and liabilities | 236 | 277 | ||
Closed block investments fixed maturity available for sale amortized cost | 3,558 | 3,680 | ||
Mortgage loans, valuation allowance | 0 | 0 | ||
Policyholder dividend obligation | (2) | 0 | $ (19) | $ (52) |
Closed block operations, income taxes | $ 41 | $ 0 |
CLOSED BLOCK - Closed Block Rev
CLOSED BLOCK - Closed Block Revenues and Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Premiums and other income | $ 182 | $ 194 | $ 224 |
Net investment income (loss) | 278 | 291 | 314 |
Investment gains (losses), net | (1) | (3) | (20) |
Total revenues | 459 | 482 | 518 |
Benefits and Other Deductions: | |||
Policyholders’ benefits and dividends | 439 | 471 | 537 |
Other operating costs and expenses | 2 | 3 | 2 |
Total benefits and other deductions | 441 | 474 | 539 |
Net income (loss), before income taxes | 18 | 8 | (21) |
Income tax (expense) benefit | (2) | (3) | (36) |
Net income (loss) | $ 16 | $ 5 | $ (57) |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | |||
Balances, beginning of year | $ 0 | $ 19 | $ 52 |
Unrealized investment gains (losses) | 2 | (19) | (33) |
Balances, End of year | $ 2 | $ 0 | $ 19 |
DAC AND POLICYHOLDER BONUS IN_3
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - Changes in Deferred Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 6,745 | $ 5,919 | $ 6,049 |
Capitalization of commissions, sales and issue expenses | 754 | 701 | 687 |
Amortization: | |||
Impact of assumptions updates and model changes | 46 | 286 | 112 |
All other | (625) | (619) | (615) |
Total amortization | (579) | (333) | (503) |
Change in unrealized investment gains and losses | (999) | 458 | (314) |
Reclassified to Assets held-for-sale | (31) | 0 | 0 |
Balance, end of year | $ 5,890 | $ 6,745 | $ 5,919 |
DAC AND POLICYHOLDER BONUS IN_4
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - Changes in Deferred Asset for Policyholder Bonus Interest Credits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in the deferred asset for contractholder bonus interest credits | |||
Balance, beginning of year | $ 426 | $ 473 | $ 504 |
Contractholder bonus interest credits deferred | 0 | 4 | 7 |
Amortization charged to income | 4 | (51) | (38) |
Balance, End of Year | $ 430 | $ 426 | $ 473 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | $ 66,343 | $ 46,279 | |
Trading securities, at fair value | 73 | (86) | $ (191) |
U.S. Treasury, government and agency | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 15,394 | 13,829 | |
States and political subdivisions | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 705 | 461 | |
Foreign governments | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 492 | 530 | |
Residential mortgage-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 191 | 234 | |
Asset-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 849 | 601 | |
Redeemable preferred stock | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 513 | 446 | |
Fair Value, Measurements, Recurring | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 66,343 | 46,279 | |
Other equity investments | 110 | 85 | |
Trading securities, at fair value | 7,031 | 16,017 | |
Other invested assets | 4,146 | 2,303 | |
Cash equivalents | 3,497 | 3,482 | |
Segregated securities | 1,095 | 1,170 | |
GMIB reinsurance contracts asset | 2,139 | 1,732 | |
Separate Accounts assets | 126,324 | 109,762 | |
Total Assets | 210,685 | 180,830 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent payment arrangements | 23 | 7 | |
Total Liabilities | 11,733 | 6,343 | |
Fair Value, Measurements, Recurring | Corporate | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 48,199 | 30,178 | |
Fair Value, Measurements, Recurring | U.S. Treasury, government and agency | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 15,394 | 13,829 | |
Fair Value, Measurements, Recurring | States and political subdivisions | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 705 | 461 | |
Fair Value, Measurements, Recurring | Foreign governments | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 492 | 530 | |
Fair Value, Measurements, Recurring | Residential mortgage-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 191 | 234 | |
Fair Value, Measurements, Recurring | Asset-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 849 | 601 | |
Fair Value, Measurements, Recurring | Redeemable preferred stock | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 513 | 446 | |
Fair Value, Measurements, Recurring | Short-term investments | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 490 | 515 | |
Fair Value, Measurements, Recurring | Assets of Consolidated VIEs/VOEs | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 606 | 378 | |
Fair Value, Measurements, Recurring | Swap | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | (327) | 426 | |
Fair Value, Measurements, Recurring | Credit default swaps | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 15 | 17 | |
Fair Value, Measurements, Recurring | Future | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | (1) | ||
Fair Value, Measurements, Recurring | Options Held | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 3,346 | 968 | |
Fair Value, Measurements, Recurring | Swaption | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 16 | ||
Fair Value, Measurements, Recurring | Guaranteed Minimum Withdrawal Benefit | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 8,432 | 5,614 | |
Fair Value, Measurements, Recurring | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 3,268 | 715 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 239 | 167 | |
Other equity investments | 13 | 11 | |
Trading securities, at fair value | 500 | 446 | |
Other invested assets | 132 | 91 | |
Cash equivalents | 3,497 | 3,482 | |
Segregated securities | 0 | 0 | |
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 123,432 | 106,994 | |
Total Assets | 127,813 | 111,191 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 1 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury, government and agency | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign governments | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Redeemable preferred stock | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 239 | 167 | |
Fair Value, Measurements, Recurring | Level 1 | Short-term investments | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Assets of Consolidated VIEs/VOEs | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 132 | 92 | |
Fair Value, Measurements, Recurring | Level 1 | Swap | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Credit default swaps | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Future | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | (1) | ||
Fair Value, Measurements, Recurring | Level 1 | Options Held | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Swaption | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Guaranteed Minimum Withdrawal Benefit | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 64,708 | 44,368 | |
Other equity investments | 0 | 0 | |
Trading securities, at fair value | 6,495 | 15,507 | |
Other invested assets | 3,997 | 2,185 | |
Cash equivalents | 0 | 0 | |
Segregated securities | 1,095 | 1,170 | |
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 2,892 | 2,747 | |
Total Assets | 79,187 | 65,977 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 3,277 | 722 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 46,942 | 28,992 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury, government and agency | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 15,394 | 13,829 | |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 666 | 422 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign governments | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 492 | 530 | |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 191 | 234 | |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 749 | 82 | |
Fair Value, Measurements, Recurring | Level 2 | Redeemable preferred stock | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 274 | 279 | |
Fair Value, Measurements, Recurring | Level 2 | Short-term investments | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 490 | 515 | |
Fair Value, Measurements, Recurring | Level 2 | Assets of Consolidated VIEs/VOEs | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 457 | 259 | |
Fair Value, Measurements, Recurring | Level 2 | Swap | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | (327) | 426 | |
Fair Value, Measurements, Recurring | Level 2 | Credit default swaps | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 15 | 17 | |
Fair Value, Measurements, Recurring | Level 2 | Future | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | Options Held | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 3,346 | 968 | |
Fair Value, Measurements, Recurring | Level 2 | Swaption | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 16 | ||
Fair Value, Measurements, Recurring | Level 2 | Guaranteed Minimum Withdrawal Benefit | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 3,268 | 715 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 1,396 | 1,744 | |
Other equity investments | 97 | 74 | |
Trading securities, at fair value | 36 | 64 | |
Other invested assets | 17 | 27 | |
Cash equivalents | 0 | 0 | |
Segregated securities | 0 | 0 | |
GMIB reinsurance contracts asset | 2,139 | 1,732 | |
Separate Accounts assets | 0 | 21 | |
Total Assets | 3,685 | 3,662 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent payment arrangements | 23 | 7 | |
Total Liabilities | 8,455 | 5,621 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 1,257 | 1,186 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury, government and agency | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 39 | 39 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign governments | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 100 | 519 | |
Fair Value, Measurements, Recurring | Level 3 | Redeemable preferred stock | |||
Investment Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Short-term investments | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Assets of Consolidated VIEs/VOEs | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 17 | 27 | |
Fair Value, Measurements, Recurring | Level 3 | Swap | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Credit default swaps | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Future | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Options Held | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Swaption | |||
Investment Fair Value Disclosure [Abstract] | |||
Other invested assets | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Guaranteed Minimum Withdrawal Benefit | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 8,432 | 5,614 | |
Fair Value, Measurements, Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | |||
Investment Fair Value Disclosure [Abstract] | |||
Separate Accounts assets | 356 | 353 | |
Variable Interest Entity, Primary Beneficiary | Fair Value, Measurements, Recurring | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 10 | 7 | |
Variable Interest Entity, Primary Beneficiary | Fair Value, Measurements, Recurring | Level 1 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 1 | 0 | |
Variable Interest Entity, Primary Beneficiary | Fair Value, Measurements, Recurring | Level 2 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | 9 | 7 | |
Variable Interest Entity, Primary Beneficiary | Fair Value, Measurements, Recurring | Level 3 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Guarantees | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Fair value adjustments on GMIB asset | $ 110 | $ 112 | |
Fair value adjustments on GMIB liability | 25 | 41 | |
AFS fixed maturities transferred from Level 3 to Level 2 | 540 | 28 | |
AFS fixed maturities transferred from Level 3 to Level 2 | $ 14 | $ 89 | |
Fair value measurement with unobservable inputs reconciliation recurring basis asset transfers percentage | 3.70% | 0.80% | |
Nonrecurring | Level 3 | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Investments, fair value disclosure | $ 428 | $ 915 | |
Fair Value, Measurements, Recurring | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Separate Accounts assets | 126,324 | 109,762 | |
Business combination, contingent consideration, liability | 23 | 7 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Separate Accounts assets | 0 | 21 | |
Business combination, contingent consideration, liability | $ 23 | 7 | |
AB 2019 Acquisition | Level 3 | Alliance Bernstein | Long-term Revenue Growth Rate | Minimum | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Contingent payment arrangement, measurement input | 0.70% | ||
AB 2019 Acquisition | Level 3 | Alliance Bernstein | Long-term Revenue Growth Rate | Maximum | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Contingent payment arrangement, measurement input | 2.50% | ||
AB 2019 Acquisition | Level 3 | Alliance Bernstein | Discount Rate | Minimum | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Contingent payment arrangement, measurement input | 10.40% | ||
AB 2019 Acquisition | Level 3 | Alliance Bernstein | Risk Free Interest Rate | Minimum | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Contingent payment arrangement, measurement input | 3.50% | ||
AB 2019 Acquisition | Level 3 | Alliance Bernstein | Commodity Market Price | Minimum | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Contingent payment arrangement, measurement input | 6.90% | ||
AB 2016 Acquisition | Level 3 | Alliance Bernstein | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Business combination, contingent consideration, liability | $ 23 | 7 | |
AB 2016 Acquisition | Level 3 | Alliance Bernstein | Long-term Revenue Growth Rate | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Contingent payment arrangement, measurement input | 50.00% | ||
AB 2016 Acquisition | Level 3 | Alliance Bernstein | Discount Rate | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Contingent payment arrangement, measurement input | 3.00% | ||
Contingent Payment Arrangement | Level 3 | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
AFS fixed maturities transferred from Level 3 to Level 2 | $ 0 | 0 | $ 0 |
AFS fixed maturities transferred from Level 3 to Level 2 | 0 | 0 | 0 |
Purchases | (17) | 0 | $ 0 |
Change in estimate | $ 3 | $ 2 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation for All Levels (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | $ 206 | $ (86) | $ (191) |
Transfers into level 3 | 14 | 89 | |
Transfers into level 3 | (540) | (28) | |
Public corporate | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
OCI | 4 | (19) | 5 |
Public corporate | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 1,186 | 1,150 | 857 |
Net investment income (loss) | 4 | 8 | 4 |
Investment gains (losses), net | 0 | (9) | 1 |
Subtotal | 4 | (1) | 5 |
OCI | 5 | (21) | 4 |
Purchases | 274 | 334 | 615 |
Actual return on plan assets — Sales/Settlements | (122) | (337) | 333 |
Transfers into level 3 | 14 | 89 | 7 |
Transfers into level 3 | (104) | (28) | 5 |
Ending Balance | 1,257 | 1,186 | 1,150 |
States and political subdivisions | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
OCI | 3 | (1) | (1) |
States and political subdivisions | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 39 | 40 | 42 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 1 | 0 | 0 |
Subtotal | 1 | 0 | 0 |
OCI | 2 | (1) | (1) |
Purchases | 0 | 0 | 0 |
Actual return on plan assets — Sales/Settlements | (3) | (1) | 1 |
Transfers into level 3 | 0 | 1 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Ending Balance | 39 | 39 | 40 |
Commercial mortgage-backed | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 0 | 0 | 373 |
Net investment income (loss) | 0 | 0 | (2) |
Investment gains (losses), net | 0 | 0 | (95) |
Subtotal | 0 | 0 | (97) |
OCI | 0 | 0 | 78 |
Purchases | 0 | 0 | 0 |
Actual return on plan assets — Sales/Settlements | 0 | 0 | 354 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Asset-backed | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
OCI | (6) | 1 | |
Asset-backed | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 519 | 541 | 120 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 15 |
Subtotal | 0 | 0 | 15 |
OCI | 1 | (9) | (7) |
Purchases | 100 | 17 | 434 |
Actual return on plan assets — Sales/Settlements | (84) | (30) | 21 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers into level 3 | (436) | 0 | 0 |
Ending Balance | 100 | 519 | 541 |
Redeemable preferred stock | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 0 | 1 | 1 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
OCI | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Actual return on plan assets — Sales/Settlements | 0 | (1) | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 1 |
Other equity investments | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 165 | 99 | 88 |
Net investment income (loss) | 0 | ||
Investment gains (losses), net | 4 | (3) | 0 |
Increase (decrease) in the fair value of the reinsurance contracts | 0 | 0 | 0 |
Nonperformance risk | 0 | 0 | 0 |
Subtotal | 4 | (3) | 0 |
OCI | 24 | 15 | 14 |
Purchases | 14 | 62 | 22 |
Actual return on plan assets — Sales/Settlements | (16) | (3) | (3) |
Settlements | 0 | 0 | 0 |
Change in estimate | 0 | 0 | |
Activity related to consolidated VIEs/VOEs | (3) | (6) | (22) |
Transfers into level 3 | 0 | 6 | 0 |
Transfers into level 3 | (38) | (5) | 0 |
Ending Balance | 150 | 165 | 99 |
GMIB Reinsurance Contract Asset | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
OCI | 0 | 0 | 0 |
GMIB Reinsurance Contract Asset | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 1,732 | 1,894 | 1,735 |
Net investment income (loss) | 0 | ||
Investment gains (losses), net | 0 | 0 | 0 |
Increase (decrease) in the fair value of the reinsurance contracts | 412 | (131) | 171 |
Nonperformance risk | 23 | (33) | 3 |
Subtotal | 435 | (164) | 174 |
OCI | 0 | 0 | 0 |
Purchases | 44 | 46 | 48 |
Actual return on plan assets — Sales/Settlements | (72) | (44) | (63) |
Settlements | 0 | 0 | 0 |
Change in estimate | 0 | 0 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Ending Balance | 2,139 | 1,732 | 1,894 |
Separate Accounts Assets | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 21 | 22 | 17 |
Net investment income (loss) | 0 | ||
Investment gains (losses), net | 0 | 0 | (1) |
Increase (decrease) in the fair value of the reinsurance contracts | 0 | 0 | 0 |
Nonperformance risk | 0 | 0 | 0 |
Subtotal | 0 | 0 | (1) |
OCI | 0 | 0 | 0 |
Purchases | 0 | 5 | 12 |
Actual return on plan assets — Sales/Settlements | (1) | (1) | (2) |
Settlements | (2) | (5) | (4) |
Change in estimate | 0 | 0 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers into level 3 | (18) | 0 | 0 |
Ending Balance | 0 | 21 | 22 |
GMxB Derivative Features Liability | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | (5,614) | (4,451) | (5,731) |
Net investment income (loss) | 0 | ||
Investment gains (losses), net | 0 | 0 | 0 |
Increase (decrease) in the fair value of the reinsurance contracts | (3,240) | (1,272) | 1,809 |
Nonperformance risk | 808 | 497 | (157) |
Subtotal | (2,432) | (775) | 1,652 |
OCI | 0 | 0 | 0 |
Purchases | (427) | (412) | (393) |
Actual return on plan assets — Sales/Settlements | 41 | 24 | 21 |
Settlements | 0 | 0 | 0 |
Change in estimate | 0 | 0 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Ending Balance | (8,432) | (5,614) | (4,451) |
Contingent Payment Arrangement | Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | (7) | (15) | (25) |
Net investment income (loss) | 0 | ||
Investment gains (losses), net | 0 | 0 | 0 |
Increase (decrease) in the fair value of the reinsurance contracts | 0 | 0 | 0 |
Nonperformance risk | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 |
OCI | 0 | 0 | 0 |
Purchases | (17) | 0 | 0 |
Actual return on plan assets — Sales/Settlements | 0 | 0 | 0 |
Settlements | 1 | 6 | 10 |
Change in estimate | 3 | 2 | |
Activity related to consolidated VIEs/VOEs | (3) | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Ending Balance | $ (23) | $ (7) | $ (15) |
FAIR VALUE DISCLOSURES - Unreal
FAIR VALUE DISCLOSURES - Unrealized Gains (Losses) for Level 3 Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment gains (losses), net | $ 206 | $ (86) | $ (191) |
Level 3 Assets And Liabilities Held | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Derivative Gains (Losses) | (1,997) | (939) | 1,826 |
OCI | 7 | (26) | 5 |
Corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Derivative Gains (Losses) | 0 | 0 | 0 |
OCI | 4 | (19) | 5 |
States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Derivative Gains (Losses) | 0 | 0 | 0 |
OCI | 3 | (1) | (1) |
Asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Derivative Gains (Losses) | 0 | 0 | |
OCI | (6) | 1 | |
Fixed maturities, available-for-sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Derivative Gains (Losses) | 0 | 0 | 0 |
OCI | 7 | (26) | 5 |
GMIB Reinsurance Contract Asset | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Derivative Gains (Losses) | 435 | (164) | 174 |
OCI | 0 | 0 | 0 |
GMxB derivative features' liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Derivative Gains (Losses) | (2,432) | (775) | 1,652 |
OCI | $ 0 | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information about Level 3 (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset, fair value | $ 7,993 | $ 4,725 |
Corporate | Level 3 | Matrix Pricing Model Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Unabsorvable Inputs | $ 57 | $ 99 |
Corporate | Level 3 | Matrix Pricing Model Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread over Benchmark | 0.007 | 0 |
Corporate | Level 3 | Matrix Pricing Model Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread over Benchmark | 0.0580 | 0.0580 |
Corporate | Level 3 | Matrix Pricing Model Valuation Technique | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread over Benchmark | 0.0184 | 0.0109 |
Corporate | Level 3 | Market Comparable Companies Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Unabsorvable Inputs | $ 1,025 | $ 881 |
Corporate | EBITDA Multiple | Level 3 | Market Comparable Companies Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 3.3 | 4.1 |
Corporate | EBITDA Multiple | Level 3 | Market Comparable Companies Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 56.7 | 37.8 |
Corporate | EBITDA Multiple | Level 3 | Market Comparable Companies Valuation Technique | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 12.1 | 12.1 |
Corporate | Discount Rate | Level 3 | Market Comparable Companies Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.039 | 0.064 |
Corporate | Discount Rate | Level 3 | Market Comparable Companies Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.165 | 0.165 |
Corporate | Discount Rate | Level 3 | Market Comparable Companies Valuation Technique | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.110 | 0.107 |
Corporate | Cash Flow Multiples | Level 3 | Market Comparable Companies Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.8 | 1.8 |
Corporate | Cash Flow Multiples | Level 3 | Market Comparable Companies Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 48.1 | 18 |
Corporate | Cash Flow Multiples | Level 3 | Market Comparable Companies Valuation Technique | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 11.4 | 11.4 |
Other equity investments | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Unabsorvable Inputs | $ 36 | $ 35 |
Fair value inputs, discount period | 11 years | 12 years |
Other equity investments | Discount Rate | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.100 | |
Other equity investments | Earnings Multiple | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 8 | 9.4 |
Other equity investments | Discount factor | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.100 | |
GMIB reinsurance contracts | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset, fair value | $ 2,139 | $ 1,732 |
GMIB reinsurance contracts | Non-performance risk | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.01 | 0.007 |
GMIB reinsurance contracts | Non-performance risk | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0109 | 0.016 |
GMIB reinsurance contracts | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0 | 0.010 |
GMIB reinsurance contracts | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.10 | 0.063 |
GMIB reinsurance contracts | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
GMIB reinsurance contracts | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.08 | 0.080 |
GMIB reinsurance contracts | Utilization Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
GMIB reinsurance contracts | Utilization Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.4900 | 0.1600 |
GMIB reinsurance contracts | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.09 | 0.100 |
GMIB reinsurance contracts | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.30 | 0.340 |
GMIBNLG | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ 8,128 | $ 5,341 |
GMIBNLG | Non-performance risk | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0124 | 0.019 |
GMIBNLG | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.008 | 0.008 |
GMIBNLG | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.262 | 0.262 |
GMIBNLG | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GMIBNLG | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.121 | 0.121 |
GMIBNLG | Annuitization | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GMIBNLG | Annuitization | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
Assumed GMIB Reinsurance Contracts | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ 186 | $ 183 |
Assumed GMIB Reinsurance Contracts | Non-performance risk | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.006 | 0.011 |
Assumed GMIB Reinsurance Contracts | Non-performance risk | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.014 | 0.024 |
Assumed GMIB Reinsurance Contracts | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.011 | 0.011 |
Assumed GMIB Reinsurance Contracts | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.111 | 0.133 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.006 | 0.007 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.222 | 0.222 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.01 | 0.013 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
Assumed GMIB Reinsurance Contracts | Utilization Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
Assumed GMIB Reinsurance Contracts | Utilization Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.300 | 0.300 |
Assumed GMIB Reinsurance Contracts | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.090 | 0.100 |
Assumed GMIB Reinsurance Contracts | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.300 | 0.340 |
GWBL/GMWB | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ 109 | $ 130 |
GWBL/GMWB | Non-performance risk | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.012 | 0.019 |
GWBL/GMWB | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.008 | 0.005 |
GWBL/GMWB | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.100 | 0.057 |
GWBL/GMWB | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GWBL/GMWB | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.070 | 0.070 |
GWBL/GMWB | Utilization Rate | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
GWBL/GMWB | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.090 | 0.100 |
GWBL/GMWB | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.300 | 0.340 |
GIB | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ 5 | $ (48) |
GIB | Non-performance risk | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0.019 |
GIB | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.012 | 0.005 |
GIB | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.199 | 0.057 |
GIB | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GIB | Withdrawal rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.080 | 0.080 |
GIB | Utilization Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GIB | Utilization Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 1 | 0.160 |
GIB | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.090 | 0.100 |
GIB | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.300 | 0.340 |
Guaranteed Minimum Annuity Benefits | Level 3 | Discounted Cash Flow Valuation Technique | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ 4 | $ 7 |
Guaranteed Minimum Annuity Benefits | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.010 | 0.005 |
Guaranteed Minimum Annuity Benefits | Lapse rates | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.100 | 0.110 |
Guaranteed Minimum Annuity Benefits | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.090 | 0.100 |
Guaranteed Minimum Annuity Benefits | Volatility rates - Equity | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.300 | 0.340 |
Ages 0 - 40 | GMIB reinsurance contracts | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0001 | 0.0001 |
Ages 0 - 40 | GMIB reinsurance contracts | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0018 | 0.0018 |
Ages 0 - 40 | GMIBNLG | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0001 | 0.0001 |
Ages 0 - 40 | GMIBNLG | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0019 | 0.0019 |
Ages 41 - 60 | GMIB reinsurance contracts | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0007 | 0.0007 |
Ages 41 - 60 | GMIB reinsurance contracts | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0054 | 0.0054 |
Ages 41 - 60 | GMIBNLG | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0006 | 0.0006 |
Ages 41 - 60 | GMIBNLG | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0053 | 0.0053 |
Ages 61 - 115 | GMIB reinsurance contracts | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0042 | 0.0042 |
Ages 61 - 115 | GMIB reinsurance contracts | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.422 | 0.4200 |
Ages 61 - 115 | GMIBNLG | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0041 | 0.0041 |
Ages 61 - 115 | GMIBNLG | Mortality Rate | Level 3 | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.414 | 0.412 |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | $ 12,107 | $ 11,835 |
Policy loans | 3,735 | 3,779 |
Policyholders liabilities: Investment contracts | 58,879 | 49,923 |
Short-term debt | 0 | 546 |
Separate Accounts liabilities | 126,910 | 110,337 |
Carrying Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 12,107 | 11,835 |
Policy loans | 3,735 | 3,779 |
Policyholders liabilities: Investment contracts | 2,056 | 2,127 |
Funding Agreements | 6,909 | 4,002 |
Short-term debt | 4,111 | 4,955 |
Separate Accounts liabilities | 9,041 | 7,406 |
Measured at Fair Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 12,334 | 11,494 |
Policy loans | 4,707 | 4,183 |
Policyholders liabilities: Investment contracts | 2,167 | 2,174 |
Funding Agreements | 6,957 | 3,956 |
Short-term debt | 4,476 | 4,749 |
Separate Accounts liabilities | 9,041 | 7,406 |
Measured at Fair Value | Level 1 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 0 | 0 |
Policy loans | 0 | 0 |
Policyholders liabilities: Investment contracts | 0 | 0 |
Funding Agreements | 0 | 0 |
Short-term debt | 0 | 0 |
Separate Accounts liabilities | 0 | 0 |
Measured at Fair Value | Level 2 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 0 | 0 |
Policy loans | 0 | 0 |
Policyholders liabilities: Investment contracts | 0 | 0 |
Funding Agreements | 6,957 | 3,956 |
Short-term debt | 4,476 | 4,749 |
Separate Accounts liabilities | 0 | 0 |
Measured at Fair Value | Level 3 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 12,334 | 11,494 |
Policy loans | 4,707 | 4,183 |
Policyholders liabilities: Investment contracts | 2,167 | 2,174 |
Funding Agreements | 0 | 0 |
Short-term debt | 0 | 0 |
Separate Accounts liabilities | $ 9,041 | $ 7,406 |
INSURANCE LIABILITIES - Rollfor
INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
GMDB Direct | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Opening Balance | $ (4,659) | $ (4,059) | $ 3,164 |
Paid guarantee benefits | (438) | (393) | (354) |
Other changes in reserves | (563) | (993) | 1,249 |
Closing Balance | (4,784) | (4,659) | (4,059) |
GMDB Assumed | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Opening Balance | (82) | (95) | 121 |
Paid guarantee benefits | (21) | (24) | (21) |
Other changes in reserves | (15) | (11) | (5) |
Closing Balance | (76) | (82) | (95) |
GMDB | |||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | |||
Opening Balance | (113) | (108) | (90) |
Paid guarantee benefits | 14 | 16 | 14 |
Other changes in reserve | (6) | (21) | (32) |
Ending Balance | (105) | (113) | (108) |
GMIB Direct | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Opening Balance | (3,743) | (4,752) | 3,802 |
Paid guarantee benefits | (256) | (153) | (151) |
Other changes in reserves | (1,204) | 856 | 1,101 |
Closing Balance | (4,691) | (3,743) | (4,752) |
GMIB Assumed | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Opening Balance | (184) | (195) | 258 |
Paid guarantee benefits | 7 | (12) | (59) |
Other changes in reserves | 4 | (1) | (4) |
Closing Balance | (187) | (184) | (195) |
GMIB Ceded | |||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | |||
Opening Balance | (1,732) | (1,894) | (1,737) |
Paid guarantee benefits | 72 | 44 | 63 |
Other changes in reserve | (479) | 118 | (220) |
Ending Balance | $ (2,139) | $ (1,732) | $ (1,894) |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features and Buybacks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 14,896 | |
Separate Accounts | 94,488 | $ 83,154 |
Net Amount At Risk By Product And Guarantee, Account Value | 109,384 | |
Net Amount at Risk, gross | 19,706 | |
Net Amount at Risk, net of amounts reinsured | $ 19,151 | |
Average attained age of contractholders (in years) | 55 years | |
GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 245 | |
Separate Accounts | 59,348 | $ 52,835 |
Net Amount At Risk By Product And Guarantee, Account Value | 59,593 | |
Net Amount at Risk, gross | 10,201 | |
Net Amount at Risk, net of amounts reinsured | $ 8,752 | |
Average attained age of contractholders (in years) | 69 years 4 months 24 days | |
Weighted average years remaining until annuitization (in years) | 4 months 24 days | |
GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Return of Premium | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount At Risk By Product And Guarantee, Account Value | $ 63,491 | |
Average attained age of contractholders (in years) | 51 years 1 month 6 days | |
Return of Premium | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
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 | |
Ratchet | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount At Risk By Product And Guarantee, Account Value | $ 9,350 | |
Average attained age of contractholders (in years) | 67 years 7 months 6 days | |
Ratchet | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
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 | |
Roll-Up | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount At Risk By Product And Guarantee, Account Value | $ 3,248 | |
Average attained age of contractholders (in years) | 74 years 3 months 19 days | |
Roll-Up | GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Roll-Up | GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Roll-Up | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 19 | |
Separate Accounts | 23,572 | |
Net Amount At Risk By Product And Guarantee, Account Value | $ 23,591 | |
Average attained age of contractholders (in years) | 68 years 9 months 18 days | |
Weighted average years remaining until annuitization (in years) | 1 year 7 months 6 days | |
Roll-Up | GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Roll-Up | GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Combo | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount At Risk By Product And Guarantee, Account Value | $ 33,295 | |
Average attained age of contractholders (in years) | 69 years 4 months 24 days | |
Combo | GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Combo | GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Combo | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 226 | |
Separate Accounts | 35,776 | |
Net Amount At Risk By Product And Guarantee, Account Value | $ 36,002 | |
Average attained age of contractholders (in years) | 69 years 6 months | |
Weighted average years remaining until annuitization (in years) | 3 months 19 days | |
Combo | GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Combo | GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Immediate Variable Annuity [Member] | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Percentage of policyholders over age 70 | 19.30% | |
Immediate Variable Annuity [Member] | Return of Premium | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 14,571 | |
Separate Accounts | 48,920 | |
Net Amount at Risk, gross | 108 | |
Net Amount at Risk, net of amounts reinsured | $ 108 | |
Percentage of policyholders over age 70 | 10.50% | |
Immediate Variable Annuity [Member] | Ratchet | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 92 | |
Separate Accounts | 9,258 | |
Net Amount at Risk, gross | 36 | |
Net Amount at Risk, net of amounts reinsured | $ 34 | |
Percentage of policyholders over age 70 | 45.60% | |
Immediate Variable Annuity [Member] | Roll-Up | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 58 | |
Separate Accounts | 3,190 | |
Net Amount at Risk, gross | 1,833 | |
Net Amount at Risk, net of amounts reinsured | $ 1,280 | |
Percentage of policyholders over age 70 | 68.10% | |
Immediate Variable Annuity [Member] | Roll-Up | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk, gross | $ 857 | |
Net Amount at Risk, net of amounts reinsured | 270 | |
Immediate Variable Annuity [Member] | Combo | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 175 | |
Separate Accounts | 33,120 | |
Net Amount at Risk, gross | 17,729 | |
Net Amount at Risk, net of amounts reinsured | $ 17,729 | |
Percentage of policyholders over age 70 | 50.70% | |
Immediate Variable Annuity [Member] | Combo | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk, gross | $ 9,344 | |
Net Amount at Risk, net of amounts reinsured | 8,482 | |
Deferred Variable Annuity | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 7,630 | |
Net Amount at Risk, gross | $ 410 | |
Average attained age of contractholders (in years) | 73 years | |
Percentage of policyholders over age 70 | 64.10% | |
Deferred Variable Annuity | GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Deferred Variable Annuity | GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 10.00% | |
Deferred Variable Annuity | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 2,368 | |
Net Amount at Risk, gross | $ 312 | |
Average attained age of contractholders (in years) | 71 years | |
Percentage of policyholders over age 70 | 58.10% | |
Deferred Variable Annuity | GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.30% | |
Deferred Variable Annuity | GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Deferred Variable Annuity | Return of Premium | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 931 | |
Net Amount at Risk, gross | $ 5 | |
Average attained age of contractholders (in years) | 68 years | |
Percentage of policyholders over age 70 | 44.80% | |
Deferred Variable Annuity | Return of Premium | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 900 | |
Net Amount at Risk, gross | $ 1 | |
Average attained age of contractholders (in years) | 72 years | |
Percentage of policyholders over age 70 | 64.10% | |
Deferred Variable Annuity | Ratchet | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 5,278 | |
Net Amount at Risk, gross | $ 237 | |
Average attained age of contractholders (in years) | 73 years | |
Percentage of policyholders over age 70 | 64.30% | |
Deferred Variable Annuity | Ratchet | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 44 | |
Net Amount at Risk, gross | $ 0 | |
Average attained age of contractholders (in years) | 74 years | |
Percentage of policyholders over age 70 | 62.10% | |
Deferred Variable Annuity | Roll-Up | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 266 | |
Net Amount at Risk, gross | $ 16 | |
Average attained age of contractholders (in years) | 77 years | |
Percentage of policyholders over age 70 | 79.80% | |
Deferred Variable Annuity | Roll-Up | GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Deferred Variable Annuity | Roll-Up | GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 10.00% | |
Deferred Variable Annuity | Roll-Up | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 239 | |
Net Amount at Risk, gross | $ 30 | |
Average attained age of contractholders (in years) | 72 years | |
Percentage of policyholders over age 70 | 60.90% | |
Deferred Variable Annuity | Roll-Up | GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.30% | |
Deferred Variable Annuity | Roll-Up | GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Deferred Variable Annuity | Combo | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 1,155 | |
Net Amount at Risk, gross | $ 152 | |
Average attained age of contractholders (in years) | 75 years | |
Percentage of policyholders over age 70 | 75.20% | |
Deferred Variable Annuity | Combo | GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 5.00% | |
Deferred Variable Annuity | Combo | GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 10.00% | |
Deferred Variable Annuity | Combo | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 1,185 | |
Net Amount at Risk, gross | $ 281 | |
Average attained age of contractholders (in years) | 69 years | |
Percentage of policyholders over age 70 | 52.80% | |
Deferred Variable Annuity | Combo | GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Deferred Variable Annuity | Combo | GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% |
INSURANCE LIABILITIES - Separat
INSURANCE LIABILITIES - Separate Account Investments, Hedging Programs and Variable and Interest-Sensitive Live Insurance Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | $ 94,488 | $ 83,154 | |
GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 59,348 | 52,835 | |
Direct Liabilities For Guarantees | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Opening Balance | 812 | 709 | $ 1,311 |
Paid guarantee benefits | (20) | (23) | (24) |
Other changes in reserves | 128 | 126 | (578) |
Closing Balance | 920 | 812 | $ 709 |
Equity | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 42,489 | 35,541 | |
Equity | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 17,941 | 15,759 | |
Fixed income | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 5,263 | 5,173 | |
Fixed income | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 2,699 | 2,812 | |
Balanced | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 45,871 | 41,588 | |
Balanced | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 38,445 | 33,974 | |
Other | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 865 | 852 | |
Other | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | $ 263 | $ 290 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) ft² in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease liabilities | $ 883 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 12 years | |
AXA Equitable Life | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 10 years | |
Operating lease liabilities | $ 11 | |
New York City | Alliance Bernstein | ||
Lessee, Lease, Description [Line Items] | ||
Area of property (in sq. ft.) | ft² | 190 | |
Lease term | 20 years | |
Operating lease liabilities | $ 448 | |
Nashville | Alliance Bernstein | ||
Lessee, Lease, Description [Line Items] | ||
Area of property (in sq. ft.) | ft² | 219 | |
Lease term | 15 years | |
Operating lease liabilities | $ 134 |
LEASES - Balance Sheet Classifi
LEASES - Balance Sheet Classification (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 687 |
Operating lease liabilities | $ 883 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 186 |
Variable operating lease cost | 50 |
Sublease income | (72) |
Short-term lease expense | 2 |
Net lease cost | $ 166 |
LEASES - Lease Maturities (Deta
LEASES - Lease Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases: | ||
2020 | $ 207 | |
2021 | 198 | |
2022 | 181 | |
2023 | 164 | |
2024 | 102 | |
Thereafter | 114 | |
Total lease payments | 966 | |
Less: Interest | (83) | |
Present value of lease liabilities | $ 883 | |
2019 | ||
2019 | $ 212 | |
2020 | 186 | |
2021 | 181 | |
2022 | 166 | |
2023 | 155 | |
Thereafter | $ 293 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Weighted-average remaining operating lease term | 6 years |
Weighted-average discount rate for operating leases | 3.32% |
Operating cash flows from operating leases | $ 222 |
Leased assets obtained in exchange for new operating lease liabilities | $ 50 |
REINSURANCE - Effects of Reinsu
REINSURANCE - Effects of Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums | |||
Direct premiums | $ 1,068 | $ 1,012 | $ 1,038 |
Reinsurance assumed | 220 | 214 | 225 |
Reinsurance ceded | (141) | (132) | (139) |
Premiums | 1,147 | 1,094 | 1,124 |
Direct charges and fee income | 4,157 | 4,242 | 4,074 |
Universal Life and Investment-type Product Policy Fee Income Ceded | (419) | (418) | (381) |
Policy charges and fee income | 3,738 | 3,824 | 3,693 |
Direct policyholders’ benefits | 4,696 | 3,269 | 4,562 |
Reinsurance assumed | 240 | 226 | 461 |
Policyholders’ Benefits Ceded | (566) | (580) | (657) |
Policyholders’ benefits | 4,370 | 2,915 | 4,366 |
Direct Interest credited to policyholders’ account balances | 1,300 | 1,140 | 1,041 |
Reinsurance ceded | (59) | (50) | (46) |
Interest credited to policyholders’ account balances | $ 1,241 | $ 1,090 | $ 995 |
REINSURANCE - Narrative (Detail
REINSURANCE - Narrative (Details) - USD ($) $ in Millions | Feb. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance retention policy, percentage of excess reinsured | 100.00% | |||
GMIB reinsurance contract asset, at fair value | $ 2,139 | $ 1,732 | ||
Increase (decrease) in the fair value of the reinsurance contract asset | 407 | (162) | $ 159 | |
Amounts due to reinsurers | 1,404 | 1,438 | ||
AXA Equitable Life | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance retention policy, amount retained | $ 635 | |||
Reinsurance retention policy, reinsured risk, percentage | 90.00% | |||
Reinsurance retention policy, amount retained, excluding cash | $ 604 | |||
Reinsurance retention policy, amount retained, cash | 31 | |||
Deposit contracts, assets | $ 635 | |||
Non Affiliated Entity | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance recoverables related to insurance contracts | 4,600 | 4,600 | ||
Amounts due to reinsurers | 1,400 | 1,400 | ||
Non Affiliated Entity | Credit Concentration Risk | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance recoverables related to insurance contracts | 2,600 | 2,800 | ||
Variable Universal Term Life Insurance Single Life | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance retention policy, amount retained | 25 | |||
Variable Universal Term Life Insurance Second To Die Life | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance retention policy, amount retained | 30 | |||
Group Life And Health Insurance | Non Affiliated Entity | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Insurance liabilities ceded | 57 | 62 | ||
Reinsurance assumed reserves | $ 1,100 | $ 1,100 | ||
GMDB | Non Affiliated Entity | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Exposure reinsured percentage | 2.80% | 2.90% | ||
GMIB | Non Affiliated Entity | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Exposure reinsured percentage | 14.20% | 15.50% | ||
GMIB | Group Life And Health Insurance | Non Affiliated Entity | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance assumed reserves | $ 186 | $ 183 | ||
RGA Reinsurance Company | Non Affiliated Entity | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Amounts due to reinsurers | 1,200 | 1,200 | ||
Protective Life | Non Affiliated Entity | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Amounts due to reinsurers | $ 119 | $ 125 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Summary of Short and Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 20, 2018 |
Short-term Debt [Line Items] | |||
Total short-term debt | $ 0 | $ 546 | |
Debt Instrument [Line Items] | |||
Total long-term debt | 4,111 | 4,409 | |
Total short-term and long-term debt | 4,111 | 4,955 | |
Term loan | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | $ 300 | |
Senior Debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated percentage | 7.00% | 7.00% | |
Total long-term debt | $ 349 | $ 349 | |
Senior Notes (4.35%, due 2028) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated percentage | 5.00% | 5.00% | |
Total long-term debt | $ 1,480 | 1,480 | |
Senior Notes (4.35%, due 2028) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated percentage | 4.35% | 4.35% | |
Total long-term debt | $ 1,487 | 1,486 | |
Senior Notes (3.9%, due 2023) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated percentage | 3.90% | 3.90% | |
Total long-term debt | $ 795 | 794 | |
LIBOR | Term loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated percentage | 1.125% | ||
Revolving credit facility | |||
Short-term Debt [Line Items] | |||
Total short-term debt | $ 0 | 25 | |
Commercial paper | AB commercial paper | |||
Short-term Debt [Line Items] | |||
Total short-term debt | $ 0 | $ 521 |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Short-term Debt Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 01, 2016 | |
Commercial paper | AB commercial paper | ||||
Short-term Debt [Line Items] | ||||
Short-term debt including accrued interest | $ 523 | |||
Commercial paper, interest rate | 2.70% | |||
Average outstanding balance | $ 439 | $ 350 | ||
Weighted average interest rate over period | 2.60% | 2.00% | ||
Credit facility | AB Committed Unsecured Senior Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 800 | $ 200 | ||
Credit facility | AB Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Borrowing | $ 25 | |||
Interest rate at period end | 3.40% | |||
Average outstanding amount | $ 24 | $ 19 | ||
Interest rate | 3.20% | 2.80% | ||
Pre-Capitalized Trust Securities, Redeemable February 15, 2049 | ||||
Short-term Debt [Line Items] | ||||
Shares issued (in shares) | 600,000 | |||
Proceeds from offering | $ 600 | |||
Sale of stock, semi-annual facility fee, rate | 2.125% | |||
Pre-Capitalized Trust Securities, Redeemable February 15, 2029 | ||||
Short-term Debt [Line Items] | ||||
Shares issued (in shares) | 400,000 | |||
Proceeds from offering | $ 400 | |||
Sale of stock, semi-annual facility fee, rate | 2.715% |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT - Long-term Debt Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | May 04, 2018 | Apr. 20, 2018 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 4,111 | $ 4,409 | ||
Senior Notes | Senior Notes (3.9%, due 2023) | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 800 | |||
Debt instrument, stated percentage | 3.90% | 3.90% | ||
Long-term debt | $ 795 | 794 | ||
Senior Notes | Senior Notes (4.35%, due 2028) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 4.35% | 4.35% | ||
Debt instrument, face amount | $ 1,500 | |||
Long-term debt | $ 1,487 | 1,486 | ||
Senior Notes | Senior Notes (4.35%, due 2028) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 5.00% | 5.00% | ||
Debt instrument, face amount | $ 1,500 | |||
Long-term debt | $ 1,480 | $ 1,480 | ||
Senior Debentures | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 7.00% | 7.00% | ||
Long-term debt | $ 349 | $ 349 | ||
Senior Debentures | Holdings Three-Year Delayed Draw Term Loan | ||||
Debt Instrument [Line Items] | ||||
Borrowing | $ 300 | $ 300 |
SHORT-TERM AND LONG-TERM DEBT_4
SHORT-TERM AND LONG-TERM DEBT - Credit Facility Narrative (Details) $ in Millions, € in Billions | May 04, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2019USD ($)financial_institutionuncommitted_line_of_credit | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | May 14, 2018USD ($) | May 14, 2018EUR (€) | Apr. 25, 2018USD ($) | Dec. 01, 2016USD ($) |
Line of Credit Facility [Line Items] | |||||||||
Long-term debt | $ 4,111 | $ 4,409 | |||||||
Revolving credit facility | JP Morgan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 250 | ||||||||
Revolving credit facility | Major European Lending Institutions | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | € 1.6 | $ 1,500 | |||||||
Credit Facility | Citi | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 300 | ||||||||
Credit Facility | Bank of America Merrill Lynch | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 300 | ||||||||
Credit Facility | Various Lending Institutions | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 1,300 | ||||||||
Holdings Three-Year Delayed Draw Term Loan | Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 500 | ||||||||
Holdings Revolving Credit Facility | Letter of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 1,500 | ||||||||
Holdings Revolving Credit Facility | Revolving credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 2,500 | ||||||||
Debt instrument, term | 5 years | ||||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 1,900 | 1,900 | 1,900 | ||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | JP Morgan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 150 | ||||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | Citi | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 175 | ||||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | Barclays | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 150 | ||||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | HSBC | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 150 | ||||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | CACIB | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 400 | ||||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | Helaba | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 300 | ||||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | Commerzbank | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 325 | ||||||||
Bilateral Letter Of Credit Facilities | Letter of Credit | Natixis | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 250 | ||||||||
AB Committed Unsecured Senior Revolving Credit Facility | Revolving credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 800 | $ 200 | |||||||
Incremental borrowing base | $ 200 | ||||||||
SCB Line of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Number of uncommitted line of credit | uncommitted_line_of_credit | 3 | ||||||||
Number of financial institutions | financial_institution | 3 | ||||||||
SCB Line of Credit | Revolving credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 175 | ||||||||
Number of uncommitted line of credit | uncommitted_line_of_credit | 2 | ||||||||
Average outstanding amount | $ 1.9 | $ 2.7 | |||||||
Interest rate | 1.90% | 1.60% | |||||||
ACS Life | Holdings Revolving Credit Facility | Letter of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Remaining capacity at termination | $ 125 | ||||||||
AXA Equitable Life | Holdings Revolving Credit Facility | Letter of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Remaining capacity at termination | 475 | ||||||||
AXA Arizona | Letter of Credit | Helaba | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Remaining capacity at termination | $ 250 | ||||||||
AXA Arizona | Letter of Credit | Commerzbank | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 700 | ||||||||
AXA Arizona | Letter of Credit | Citibank Europe Plc | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 2,500 | ||||||||
AXA Arizona | Letter of Credit | JP Morgan Europe Limits | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 200 | ||||||||
Senior Debentures | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long-term debt | $ 349 | $ 349 | |||||||
Debt instrument, stated percentage | 7.00% | 7.00% | |||||||
Senior Debentures | Holdings Three-Year Delayed Draw Term Loan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, term | 3 years | ||||||||
Borrowing | $ 300 | $ 300 | |||||||
Remaining capacity at termination | $ 200 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | Nov. 13, 2019 | Mar. 25, 2019 | Dec. 20, 2018 | Nov. 20, 2018 | May 07, 2018 | Apr. 23, 2018 | Nov. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 12, 2019 | Nov. 06, 2019 | Feb. 27, 2019 |
Related Party Transaction [Line Items] | ||||||||||||||||
Assumed premiums earned affiliated | $ 6 | $ 8 | $ 8 | |||||||||||||
Reinsurance effect on claims and benefits incurred amount assumed affiliates | 1 | 3 | 2 | |||||||||||||
Ceded premiums | 3 | 4 | 4 | |||||||||||||
Capital contribution from parent company | $ 8 | 0 | 8 | 318 | ||||||||||||
Adjustments to APIC, other | $ 17 | |||||||||||||||
Proceeds from sales of business, affiliate and productive assets | $ 143 | |||||||||||||||
Decrease in noncontrolling interest | $ 173 | $ 95 | 121 | |||||||||||||
Increase (decrease) in accrued taxes payable | $ 174 | |||||||||||||||
Tax sharing agreement, percent of seller's responsibility | 90.00% | |||||||||||||||
Tax sharing agreement, percent of buyer's responsibility | 10.00% | |||||||||||||||
Tax sharing agreement, percent of responsible party | 100.00% | |||||||||||||||
Share repurchase plan, authorized amount | $ 800 | $ 400 | $ 800 | |||||||||||||
Shares repurchased (in shares) | 65,600,000 | 32,500,000 | ||||||||||||||
Capital contribution from parent company | $ 25 | $ 0 | $ 622 | 0 | ||||||||||||
AXA-IM Holding U.S., Inc. | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Ownership percentage after transaction | 100.00% | |||||||||||||||
Purchase of interest by Parent (in shares) | 41,934,582 | |||||||||||||||
Changes in ownership interest | $ 1,100 | |||||||||||||||
AXA XL Catlin | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Ceded Loss Reserves | $ 104 | $ 93 | ||||||||||||||
AXA | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Shares repurchased (in shares) | 30,000,000 | |||||||||||||||
Shares repurchased | $ 592 | |||||||||||||||
AXA Financial | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Ownership percentage by noncontrolling interest | 0.50% | |||||||||||||||
Payments of capital distribution | $ 66 | |||||||||||||||
AXA Holdings | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Purchase of interest by Parent (in shares) | 255,000 | |||||||||||||||
AXA Holdings | Note Maturity June 2018 | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Note issued | $ 630 | $ 622 | $ 622 | 622 | ||||||||||||
Alliance Bernstein | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Purchase of interest by Parent (in shares) | 8,160,000 | |||||||||||||||
Changes in ownership interest | $ 217 | |||||||||||||||
Economic interest | 65.00% | 65.00% | 65.00% | |||||||||||||
Shares repurchased (in shares) | 6,000,000 | 9,300,000 | ||||||||||||||
AXA Affiliates | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Equity method investments | $ 265 | $ 296 | ||||||||||||||
Variable interest entity, nonconsolidated, carrying amount, assets and liabilities, net | 10,000 | 10,000 | ||||||||||||||
Fair value, investments, entities that calculate net asset value per share, unfunded commitments | 275 | 304 | ||||||||||||||
AXA Venture Partners SAS | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Economic interest | 30.30% | |||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 3 | |||||||||||||||
LIBOR | AXA Holdings | Note Maturity June 2018 | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Related party transaction, rate (as a percent) | 0.439% | |||||||||||||||
Corporate Segment | AXA | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Expenses paid or accrued for: | 34 | 35 | ||||||||||||||
AXA CS | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Economic interest | 78.99% | |||||||||||||||
Increase (decrease) in loans from affiliates | $ (622) | |||||||||||||||
Change in cash and cash equivalents | 8 | |||||||||||||||
Adjustments to APIC, other | $ 630 | |||||||||||||||
Noncontrolling Interest | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Decrease in noncontrolling interest | $ 29 | $ 61 | 95 | $ 121 | ||||||||||||
Secondary Offering | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Shares repurchased | $ 523 | $ 600 | ||||||||||||||
Secondary Offering | EQH | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Shares issued (in shares) | 30,000,000 | |||||||||||||||
Secondary Offering | AXA | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Shares issued (in shares) | 46,000,000 | |||||||||||||||
AXA US Holdings Inc | AXA Tech | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Business combination, consideration transferred | $ 18 | |||||||||||||||
Business combination, recognized identifiable assets acquired, goodwill, and liabilities assumed, net | $ 18 | |||||||||||||||
AXA Affiliates | AXA | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Economic interest | 39.00% | |||||||||||||||
Ownership percentage after transaction | 10.00% |
RELATED PARTY TRANSACTIONS - In
RELATED PARTY TRANSACTIONS - Investment Management and Service Fees Related to AB (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Investment management and service fees | $ 4,380 | $ 4,268 | $ 4,093 |
Alliance Bernstein | |||
Related Party Transaction [Line Items] | |||
Investment management and service fees | 1,276 | 1,207 | 1,148 |
Distribution revenues | 441 | 404 | 398 |
Other revenues - shareholder servicing fees | 75 | 74 | 73 |
Other revenues - other | 7 | 7 | 7 |
Total | $ 1,799 | $ 1,692 | $ 1,626 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Revenue received or accrued for: | $ 732 | $ 733 | $ 747 |
Expenses paid or accrued for: | 72 | 151 | 157 |
Investment management and administrative services provided to EQAT, VIP Trust, 1290 Funds and Other AXA Trusts | |||
Related Party Transaction [Line Items] | |||
Revenue received or accrued for: | 732 | 727 | 720 |
General services provided to AXA Affiliates | |||
Related Party Transaction [Line Items] | |||
Revenue received or accrued for: | 0 | 6 | 27 |
General services provided by AXA Affiliates | |||
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for: | 65 | 146 | 141 |
Investment management services provided by AXA IM, AXA REIM, and AXA Rosenberg | |||
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for: | 5 | 2 | 5 |
Investment management services provided by AXA Strategic Ventures Corporation (“ASV Corp”) | |||
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for: | 2 | 2 | 2 |
AXA Guarantees and AXA Credit Facility | |||
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for: | $ 0 | $ 1 | $ 9 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | Mar. 13, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Remeasurement gain (loss) on plan assets | $ (109) | |||
Benefits paid | 36 | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions | $ 4 | $ 5 | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 100.00% | 100.00% | ||
Pension Benefits | Alliance Bernstein | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions | $ 4 | |||
Post-retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | $ 33 | 46 | ||
Post-employment Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, liability | 8 | 10 | ||
AXA Equitable 401(k) Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cost recognized | 55 | 36 | $ 28 | |
Qualified Plan | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments and curtailments | 0 | 0 | ||
Benefits paid | $ 225 | $ 190 | ||
Qualified Plan | Pension Benefits | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, actual plan asset allocations (as a percent) | 22.10% | 29.70% | ||
Qualified Plan | Pension Benefits | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, actual plan asset allocations (as a percent) | 56.70% | 51.50% | ||
Qualified Plan | Pension Benefits | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, actual plan asset allocations (as a percent) | 0.00% | 0.10% | ||
Qualified Plan | AXA Equitable Life QP - Pre-1987 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | $ 5 | $ 6 | ||
Qualified Plan | MONY Life Retirement Income Security Plan And The AXA Equitable QP | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments and curtailments | $ (254) | |||
Benefit obligation transferred out, percent | 10.00% | |||
Executive Survivor Benefits Plan | Post-retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit cap | 25 | |||
Unfunded Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
PBO in excess of plan assets | $ 504 | $ 533 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8 | $ 8 | $ 10 |
Interest cost | 104 | 103 | 105 |
Expected return on assets | (152) | (163) | (173) |
Actuarial (gain) loss | 1 | 1 | 1 |
Net amortization | 94 | 98 | 126 |
Impact of settlement | 0 | 109 | 0 |
Net periodic pension expense | 55 | 156 | 69 |
Post-retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 2 | 2 |
Interest cost | 18 | 16 | 16 |
Net amortization | 6 | 9 | 6 |
Net periodic pension expense | 25 | 27 | 24 |
Post-employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 2 | 2 |
Interest cost | 0 | 0 | 0 |
Net amortization | 0 | (1) | (2) |
Net (gain) loss | (1) | 0 | 0 |
Net periodic pension expense | $ 0 | $ 1 | $ 0 |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | $ 2,874 | ||
Projected benefit obligation, end of year | 3,056 | $ 2,874 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Pension plan assets at fair value, beginning of year | 2,341 | ||
Pension plan assets at fair value, end of year | 2,552 | 2,341 | |
Post-retirement Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | 483 | 529 | |
Service cost | 1 | 2 | $ 2 |
Interest cost | 18 | 16 | 16 |
Actuarial (gains)/losses | 49 | (18) | |
Benefits paid | (33) | (46) | |
Contributions and benefits paid | (34) | (46) | |
Projected benefit obligation, end of year | 517 | 483 | 529 |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | 8 | 8 | 10 |
Interest cost | 104 | 103 | 105 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Pension plan assets at fair value, beginning of year | 2,341 | 2,839 | |
Actual return on plan assets | 389 | (53) | |
Contributions | 4 | 5 | |
Benefits paid | 183 | (184) | |
Annuity purchases | 0 | (266) | |
Pension plan assets at fair value, end of year | 2,552 | 2,341 | 2,839 |
PBO | 3,056 | 2,874 | |
Excess of PBO over pension plan assets, end of year | 504 | (533) | |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | 2,874 | 3,455 | |
Service cost | 0 | 0 | |
Interest cost | 104 | 103 | |
Actuarial (gains)/losses | 303 | (204) | |
Benefits paid | (225) | (190) | |
Plan amendments and curtailments | 0 | 0 | |
Settlements | 0 | (290) | |
Projected benefit obligation, end of year | 3,056 | 2,874 | 3,455 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Pension plan assets at fair value, beginning of year | 2,341 | ||
Pension plan assets at fair value, end of year | $ 2,560 | 2,341 | |
As Previously Reported | Post-retirement Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | $ 537 | ||
Projected benefit obligation, end of year | $ 537 |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Postemployment Benefits [Abstract] | ||
Projected benefit obligation | $ 3,056 | $ 2,874 |
Accumulated benefit obligation | 3,056 | 2,874 |
Fair value of plan assets | $ 2,552 | $ 2,341 |
EMPLOYEE BENEFIT PLANS - Unreco
EMPLOYEE BENEFIT PLANS - Unrecognized Net Actuarial (Gain) Loss (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial (gain) loss | $ 976 | $ 1,123 |
Unrecognized prior service cost (credit) | (1) | 1 |
Unrecognized net transition obligation (asset) | 1 | 0 |
Total | 976 | 1,124 |
Post-retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial (gain) loss | 158 | 116 |
Unrecognized prior service cost (credit) | 0 | 0 |
Total | $ 158 | $ 116 |
EMPLOYEE BENEFIT PLANS - Asset
EMPLOYEE BENEFIT PLANS - Asset Allocations (Details) - Pension Benefits | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 100.00% | 100.00% |
Fixed maturities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 48.90% | 50.30% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 27.60% | 22.90% |
Equity real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 15.90% | 17.70% |
Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 2.80% | 3.40% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 4.80% | 5.70% |
EMPLOYEE BENEFIT PLANS - Fair_2
EMPLOYEE BENEFIT PLANS - Fair Value and Level 3 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 2,552 | $ 2,341 | |
NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 540 | 559 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 2,552 | $ 2,341 | $ 2,839 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, actual plan asset allocations (as a percent) | 100.00% | 100.00% | |
Pension Benefits | Common and preferred equity | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, actual plan asset allocations (as a percent) | 27.60% | 22.90% | |
Qualified Plan | Public corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 708 | $ 677 | |
Qualified Plan | Public corporate | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 708 | 677 | |
Qualified Plan | Public corporate | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | ||
Qualified Plan | U.S. Treasury, government and agency | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 508 | 467 | |
Qualified Plan | U.S. Treasury, government and agency | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 508 | 467 | |
Qualified Plan | States and political subdivisions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 24 | 23 | |
Qualified Plan | States and political subdivisions | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 24 | 23 | |
Qualified Plan | Foreign governments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Qualified Plan | Foreign governments | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Qualified Plan | Asset-backed | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | ||
Qualified Plan | Asset-backed | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | ||
Qualified Plan | Commercial mortgage-backed | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | ||
Qualified Plan | Commercial mortgage-backed | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | ||
Qualified Plan | Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 23 | 34 | |
Qualified Plan | Short-term investments | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 21 | 22 | |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2,560 | 2,341 | |
Qualified Plan | Pension Benefits | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 567 | $ 512 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, actual plan asset allocations (as a percent) | 22.10% | 29.70% | |
Qualified Plan | Pension Benefits | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 1,453 | $ 1,269 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, actual plan asset allocations (as a percent) | 56.70% | 51.50% | |
Qualified Plan | Pension Benefits | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 1 | $ 1 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 2 | 3 | 5 |
Actual return on plan assets — Sales/Settlements | (1) | (1) | (2) |
Ending Balance | $ 1 | $ 2 | $ 3 |
Defined benefit plan, actual plan asset allocations (as a percent) | 0.00% | 0.10% | |
Qualified Plan | Pension Benefits | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 2,020 | $ 1,782 | |
Qualified Plan | Pension Benefits | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 540 | 559 | |
Qualified Plan | Pension Benefits | Common and preferred equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 582 | 502 | |
Qualified Plan | Pension Benefits | Common and preferred equity | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 489 | 424 | |
Qualified Plan | Pension Benefits | Common and preferred equity | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 92 | 78 | |
Qualified Plan | Pension Benefits | Mutual funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 54 | 53 | |
Qualified Plan | Pension Benefits | Mutual funds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 54 | 53 | |
Qualified Plan | Pension Benefits | Collective Trust | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 97 | ||
Qualified Plan | Pension Benefits | Collective Trust | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 97 | ||
Qualified Plan | Pension Benefits | Private real estate investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | ||
Qualified Plan | Pension Benefits | Private real estate investment funds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | ||
Qualified Plan | Pension Benefits | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 23 | 34 | |
Qualified Plan | Pension Benefits | Short-term investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 21 | $ 22 |
EMPLOYEE BENEFIT PLANS - Practi
EMPLOYEE BENEFIT PLANS - Practical Expedient Disclosures (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2,552 | $ 2,341 |
NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 540 | 559 |
Equity method investments | 115 | 128 |
Private Equity Funds | NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 64 | 64 |
Unfunded Commitments | 28 | 33 |
Private Real Estate Fund | NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 396 | 402 |
Unfunded Commitments | 0 | 0 |
Hedge Funds | NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 80 | 93 |
Unfunded Commitments | $ 3 | $ 12 |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Rates of compensation increase: Benefit obligation (as a percent) | 5.98% | 5.99% |
Rates of compensation increase: Periodic cost (as a percent) | 6.38% | 6.34% |
Expected long-term rates of return on pension plan assets (periodic cost) (as a percent) | 6.75% | 6.75% |
Following year | 6.10% | 10.20% |
Ultimate rate to which cost increase is assumed to decline | 4.00% | 4.30% |
AXA Equitable Life QP | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology for 2014) (as a percent) | 2.98% | 4.07% |
AXA Equitable Excess Retirement Plan | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology for 2014) (as a percent) | 2.90% | 4.01% |
MONY Life Retirement Income Security Plan for Employees | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology for 2014) (as a percent) | 3.19% | 4.20% |
AB Qualified Retirement Plan | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 4.40% | 3.90% |
Cash balance interest crediting rate for pre-April 1, 2012 accruals | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 4.00% | 4.00% |
Cash balance interest crediting rate for post-April 1, 2012 accruals | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 2.50% | 2.50% |
Minimum | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 3.75% | 3.00% |
Minimum | Other defined benefit plans | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 2.58% | 3.75% |
Maximum | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 4.20% | 3.50% |
Maximum | Other defined benefit plans | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 3.07% | 4.10% |
Post-retirement Plans | Minimum | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology for 2014) (as a percent) | 2.29% | 3.52% |
Periodic cost (as a percent) | 3.53% | 3.00% |
Post-retirement Plans | Maximum | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology for 2014) (as a percent) | 3.16% | 3.89% |
Periodic cost (as a percent) | 4.17% | 3.50% |
EMPLOYEE BENEFIT PLANS - Future
EMPLOYEE BENEFIT PLANS - Future Obligations (Details) $ in Millions | Dec. 31, 2019USD ($) |
Net Estimate Payment | |
2020 | $ 13 |
2021 | 12 |
2022 | 11 |
2023 | 10 |
2024 | 9 |
Years 2025 — 2030 | 88 |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 223 |
2021 | 271 |
2022 | 222 |
2023 | 214 |
2024 | 208 |
Years 2025 — 2030 | 2,853 |
Life Insurance | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 25 |
2021 | 24 |
2022 | 24 |
2023 | 24 |
2024 | 24 |
Years 2025 — 2030 | 523 |
Health | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 15 |
2021 | 14 |
2022 | 13 |
2023 | 12 |
2024 | 11 |
Years 2025 — 2030 | 92 |
Estimated Medicare Part D Subsidy | |
2020 | 2 |
2021 | 2 |
2022 | 2 |
2023 | 2 |
2024 | 2 |
Years 2025 — 2030 | $ 4 |
SHARE-BASED COMPENSATION PROG_2
SHARE-BASED COMPENSATION PROGRAMS - Compensation Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | $ 276 | $ 228 | $ 247 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 29 | 11 | 45 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 4 | 2 | 1 |
AXA Shareplan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 0 | 0 | 13 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 243 | 215 | 185 |
Other Compensation plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | $ 0 | $ 0 | $ 3 |
SHARE-BASED COMPENSATION PROG_3
SHARE-BASED COMPENSATION PROGRAMS - Narrative (Details) $ / shares in Units, $ in Millions | May 09, 2019 | May 09, 2018$ / sharesshares | Jun. 21, 2017shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017€ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares repurchased (in shares) | 65,600,000 | 32,500,000 | ||||
EQH Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
EQH Shares | Vesting trach one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
EQH Shares | Vesting tranche two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
EQH Shares | Vesting tranche three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 293,237 | |||||
Granted (in usd per share) | $ / shares | $ 19.67 | |||||
Performance Shares | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Potential shares earned (in shares) | 0.00% | |||||
Performance Shares | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Potential shares earned (in shares) | 200.00% | |||||
ROE Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation By Share-based Payment Award, Percent of Award Type | 50.00% | |||||
TSR Performance Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation By Share-based Payment Award, Percent of Award Type | 50.00% | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 1,982,820 | |||||
Granted (in usd per share) | $ / shares | $ 18.43 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Deferred compensation liability | $ | $ 43 | $ 32 | ||||
Performance Unit Plan 2017 | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 0.00% | |||||
Performance Unit Plan 2017 | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 130.00% | |||||
Stock Option Plan 2017 | Vesting trach one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Stock Option Plan 2017 | Vesting tranche two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Stock Option Plan 2017 | Vesting tranche three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation cost not yet recognized | $ | $ 0.5 | |||||
Compensation cost, recognition period | 8 months 12 days | |||||
2019 and 2018 Equity Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Holding unit-based awards authorized for grant (in shares) | 12,500,000 | |||||
2019 and 2018 Equity Program | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Transaction Incentive Grant Awards | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 722,000 | |||||
Vesting percentage | 50.00% | |||||
Award requisite service period | 5 years | |||||
Transaction Incentive Grant Awards | Restricted Stock Units (RSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Growth rate | 130.00% | |||||
Transaction Incentive Grant Awards | Restricted Stock Units (RSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Growth rate | 150.00% | |||||
Transaction Incentive Grant Awards | RSU Service Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Vesting percentage | 50.00% | |||||
Transaction Incentive Grant Awards | RSU Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
Transaction Incentive Grant Awards | RSU Performance Units | Vesting tranche three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in usd per share) | $ / shares | $ 16.47 | |||||
Transaction Incentive Grant Awards | RSU Performance Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Transaction Incentive Grant Awards | RSU Performance Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
All-Employee Award | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 357,000 | |||||
Grants on an individual basis (in shares) | 50 | |||||
2017 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Holding unit-based awards authorized for grant (in shares) | 60,000,000 | |||||
2017 Plan | Newly Issued AB Holding Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Holding unit-based awards authorized for grant (in shares) | 30,000,000 | |||||
Shares available for grant (in shares) | 39,400,000 | |||||
Plan 2017 Subject to Other Holding Unit Awards | Newly Issued AB Holding Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant (in shares) | 20,600,000 | |||||
Public Offering | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share Price | $ / shares | $ 20 | |||||
Parent | EQH Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted (in shares) | 1,510,000 | |||||
Parent | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 207,136 | |||||
Granted (in usd per share) | $ / shares | $ 20.62 | |||||
Unvested restricted shares and holding units | 5,000,000 | |||||
Compensation cost, recognition period | 7 months 21 days | |||||
Compensation cost not yet recognized | $ | $ 17 | |||||
Parent | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 0 | |||||
Granted (in usd per share) | $ / shares | $ 0 | |||||
Unvested restricted shares and holding units | 3,400,000 | |||||
Compensation cost, recognition period | 1 year 29 days | |||||
Compensation cost not yet recognized | $ | $ 36 | |||||
Parent | Stock Option Plan 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 10 years | |||||
Stock options granted (in shares) | 500,000 | |||||
Grading schedule | 5 years | |||||
Parent | Stock Option Plan 2017 | Conditional Vesting Term | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted (in shares) | 300,000 | |||||
Parent | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation cost not yet recognized | $ | $ 4 | |||||
Compensation cost, recognition period | 9 months 18 days | |||||
Parent | AB Holding | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unvested restricted shares and holding units | 19,300,000 | |||||
Compensation cost, recognition period | 3 years 7 months 6 days | |||||
Compensation cost not yet recognized | $ | $ 102 | |||||
Equitable Holdings, Inc. Stock Purchase Program (“SPP”) | Parent | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum annual contributions per employee, percent | 100.00% | |||||
Employer matching contribution, percent of match | 15.00% | |||||
AXA Shareplan Option Current Year | Parent | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Discount from market price, purchase date | 20.00% | |||||
Weighted average purchase price of shares purchased | € / shares | € 20.19 | |||||
AXA Shareplan Option B 2015 | Parent | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Discount from market price, purchase date | 8.98% | |||||
Weighted average purchase price of shares purchased | € / shares | € 22.96 | |||||
Alliance Bernstein | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares repurchased (in shares) | 6,000,000 | 9,300,000 | ||||
Payments for repurchase of other equity | $ | $ 173 | $ 268 | ||||
Open market purchases (in shares) | 2,900,000 | 6,500,000 | ||||
Open-market purchases, value | $ | $ 83 | $ 183 | ||||
Shares issued in period (in shares) | 500,000 | 900,000 | ||||
Proceeds from options exercised | $ | $ 12 | $ 17 | ||||
Alliance Bernstein | Employees and Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued in period (in shares) | 7,700,000 | 8,700,000 |
SHARE-BASED COMPENSATION PROG_4
SHARE-BASED COMPENSATION PROGRAMS - Stock Option Activity (Details) - 12 months ended Dec. 31, 2019 - Parent $ / shares in Units, shares in Thousands, $ in Thousands | USD ($)$ / sharesshares | USD ($)$ / shares€ / sharesshares | € / shares |
EQH Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, number outstanding, beginning balance (in shares) | 994 | 994 | |
Options granted (in shares) | 1,510 | 1,510 | |
Options exercised (in shares) | (27) | (27) | |
Options forfeited, net (in shares) | (159) | (159) | |
Options expired/reinstated (in shares) | 0 | 0 | |
Options, number outstanding, ending balance (in shares) | 2,318 | 2,318 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options, weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 21.34 | ||
Options granted, weighted average exercise price (in dollars per share) | $ / shares | 18.74 | ||
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 21.34 | ||
Options forfeited, net, weighted average exercise price (in dollars per share) | $ / shares | 20.28 | ||
Options expired, weighted average exercise price (in dollars per share) | $ / shares | 0 | ||
Options, weighted average exercise price, ending balance (in dollars per share) | $ / shares | $ 19.72 | ||
Options outstanding, aggregate intrinsic value | $ | $ 11,731 | $ 11,731 | |
Weighted Average Remaining Contractual Term (in years) | 8 years 10 months 10 days | 8 years 10 months 10 days | |
Options excercisable (in shares) | 298 | 298 | |
Options excercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 21.34 | $ 21.34 | |
Options excercisable, aggregate intrinsic value | $ | $ 1,023 | $ 1,023 | |
Weighted Average Remaining Contractual Term (in years) | 8 years 5 months 5 days | 8 years 5 months 5 days | |
AB Holding Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, number outstanding, beginning balance (in shares) | 671 | 671 | |
Options granted (in shares) | 0 | 0 | |
Options exercised (in shares) | (512) | (512) | |
Options forfeited, net (in shares) | 0 | 0 | |
Options expired/reinstated (in shares) | 0 | 0 | |
Options, number outstanding, ending balance (in shares) | 159 | 159 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options, weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 22.83 | ||
Options granted, weighted average exercise price (in dollars per share) | $ / shares | 0 | ||
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 22.49 | ||
Options forfeited, net, weighted average exercise price (in dollars per share) | $ / shares | 0 | ||
Options expired, weighted average exercise price (in dollars per share) | $ / shares | 0 | ||
Options, weighted average exercise price, ending balance (in dollars per share) | $ / shares | $ 23.93 | ||
Options outstanding, aggregate intrinsic value | $ | $ 1,009 | $ 1,009 | |
Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 20 days | 2 years 1 month 20 days | |
Options excercisable (in shares) | 141 | 141 | |
Options excercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 24.09 | $ 24.09 | |
Options excercisable, aggregate intrinsic value | $ | $ 870 | $ 870 | |
Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 9 days | 2 years 1 month 9 days | |
AXA Ordinary Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, number outstanding, beginning balance (in shares) | 3,613 | 3,613 | |
Options granted (in shares) | 186 | 186 | |
Options exercised (in shares) | (1,322) | (1,322) | |
Options forfeited, net (in shares) | (243) | (243) | |
Options expired/reinstated (in shares) | 0 | 0 | |
Options, number outstanding, ending balance (in shares) | 2,233 | 2,233 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options, weighted average exercise price, beginning balance (in dollars per share) | € / shares | $ 18.20 | ||
Options granted, weighted average exercise price (in dollars per share) | € / shares | 21.46 | ||
Options exercised, weighted average exercise price (in dollars per share) | € / shares | 16.10 | ||
Options forfeited, net, weighted average exercise price (in dollars per share) | € / shares | 18.99 | ||
Options expired, weighted average exercise price (in dollars per share) | € / shares | 0 | ||
Options, weighted average exercise price, ending balance (in dollars per share) | € / shares | $ 19.63 | ||
Options outstanding, aggregate intrinsic value | $ | $ 12,239 | $ 12,239 | |
Weighted Average Remaining Contractual Term (in years) | 4 years 10 months 17 days | 4 years 10 months 17 days | |
Options excercisable (in shares) | 1,995 | 1,995 | |
Options excercisable, weighted average exercise price (in dollars per share) | € / shares | € 19.24 | ||
Options excercisable, aggregate intrinsic value | $ | $ 11,702 | $ 11,702 | |
Weighted Average Remaining Contractual Term (in years) | 4 years 6 months 7 days | 4 years 6 months 7 days | |
AXA ADRs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, number outstanding, beginning balance (in shares) | 25 | 25 | |
Options granted (in shares) | 0 | 0 | |
Options exercised (in shares) | (25) | (25) | |
Options forfeited, net (in shares) | 0 | 0 | |
Options expired/reinstated (in shares) | 0 | 0 | |
Options, number outstanding, ending balance (in shares) | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options, weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 15.37 | ||
Options granted, weighted average exercise price (in dollars per share) | $ / shares | 0 | ||
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 15.37 | ||
Options forfeited, net, weighted average exercise price (in dollars per share) | $ / shares | 0 | ||
Options expired, weighted average exercise price (in dollars per share) | $ / shares | 0 | ||
Options, weighted average exercise price, ending balance (in dollars per share) | $ / shares | $ 0 | ||
Options outstanding, aggregate intrinsic value | $ | $ 0 | $ 0 | |
Options excercisable (in shares) | 0 | 0 | |
Options excercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 0 | $ 0 | |
Options excercisable, aggregate intrinsic value | $ | $ 0 | $ 0 |
SHARE-BASED COMPENSATION PROG_5
SHARE-BASED COMPENSATION PROGRAMS - Fair Value Stock Option Assumptions (Details) - Parent - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EQH Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 2.77% | 2.44% | |
Expected volatility | 25.70% | 25.40% | |
Risk-free interest rates | 2.49% | 2.83% | |
Expected life in years | 5 years 10 months 6 days | 9 years 8 months 12 days | |
Weighted average fair value per option at grant date (in dollars per share) | $ 3.82 | $ 4.61 | |
AXA Ordinary Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 6.53% | ||
Expected volatility | 25.05% | ||
Risk-free interest rates | 0.59% | ||
Expected life in years | 8 years 9 months 18 days | ||
Weighted average fair value per option at grant date (in dollars per share) | $ 2.01 |
SHARE-BASED COMPENSATION PROG_6
SHARE-BASED COMPENSATION PROGRAMS - Restricted and Performace Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, Beginning Balance (in shares) | shares | 2,272,910 |
Granted (in shares) | shares | 1,982,820 |
Canceled (in shares) | shares | 184,958 |
Vested (in shares) | shares | 660,591 |
Unvested, Ending Balance (in shares) | shares | 3,410,181 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 21 |
Granted (in usd per share) | $ / shares | 18.43 |
Canceled (in usd per share) | $ / shares | 19.84 |
Vested (in usd per share) | $ / shares | 21.01 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 19.57 |
Restricted Stock Units (RSUs) | Parent | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, Beginning Balance (in shares) | shares | 53,984 |
Granted (in shares) | shares | 0 |
Canceled (in shares) | shares | 0 |
Vested (in shares) | shares | 31,879 |
Unvested, Ending Balance (in shares) | shares | 22,105 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 20.38 |
Granted (in usd per share) | $ / shares | 0 |
Canceled (in usd per share) | $ / shares | 0 |
Vested (in usd per share) | $ / shares | 21.17 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 19.23 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, Beginning Balance (in shares) | shares | 197,763 |
Granted (in shares) | shares | 293,237 |
Canceled (in shares) | shares | 31,014 |
Vested (in shares) | shares | 0 |
Unvested, Ending Balance (in shares) | shares | 459,986 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 23.17 |
Granted (in usd per share) | $ / shares | 19.67 |
Canceled (in usd per share) | $ / shares | 21.76 |
Vested (in usd per share) | $ / shares | 0 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 21.03 |
Performance Shares | Parent | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, Beginning Balance (in shares) | shares | 6,738,653 |
Granted (in shares) | shares | 207,136 |
Canceled (in shares) | shares | 345,735 |
Vested (in shares) | shares | 2,066,118 |
Unvested, Ending Balance (in shares) | shares | 4,533,936 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 21.10 |
Granted (in usd per share) | $ / shares | 20.62 |
Canceled (in usd per share) | $ / shares | 20.45 |
Vested (in usd per share) | $ / shares | 21.85 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 20.79 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||||||||||||
Domestic operating income (loss) | $ (2,200) | $ 2,300 | $ 1,200 | ||||||||||
Foreign operating income (loss) | 131 | 156 | 143 | ||||||||||
Income tax expense (benefit) | $ (271) | $ (124) | $ 11 | $ (215) | $ 330 | $ (175) | $ 61 | $ 91 | (599) | 307 | 49 | ||
Sale of business benefit | $ 63 | ||||||||||||
Tax settlement benefit | $ 228 | ||||||||||||
Nondeductible goodwill | $ 129 | ||||||||||||
Federal operating loss credit carryforward | 266 | 429 | 266 | 429 | |||||||||
AMT tax credits | 140 | 140 | |||||||||||
Undistributed earnings of foreign subsidiaries | 30 | 30 | |||||||||||
Additional taxes if undistributed earnings were remitted | 8 | 8 | |||||||||||
Income tax penalties and interest accrued | $ 96 | $ 75 | 96 | 75 | |||||||||
Unrecognized tax benefits, tax penalties and interest expense | 21 | (8) | (43) | ||||||||||
Foreign Tax Authority | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Income tax expense (benefit) | $ 34 | $ 37 | $ 30 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current (expense) benefit | $ (71) | $ 508 | $ 119 | ||||||||
Deferred (expense) benefit | 670 | (815) | (168) | ||||||||
Income tax (expense) benefit | $ 271 | $ 124 | $ (11) | $ 215 | $ (330) | $ 175 | $ (61) | $ (91) | $ 599 | $ (307) | $ (49) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Tax Rate Amounts (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Expected income tax (expense) benefit | $ 427 | $ (516) | $ (457) | ||||||||
Noncontrolling interest | 51 | 54 | 138 | ||||||||
Non-taxable investment income | 74 | 105 | 255 | ||||||||
Tax audit interest | (24) | (22) | (14) | ||||||||
State income taxes | (21) | (18) | (16) | ||||||||
Tax settlements/uncertain tax position release | 75 | 0 | 228 | ||||||||
Change in tax law | 0 | 104 | (32) | ||||||||
Intangibles | (3) | (3) | (138) | ||||||||
Other | 20 | (11) | (13) | ||||||||
Income tax (expense) benefit | $ 271 | $ 124 | $ (11) | $ 215 | $ (330) | $ 175 | $ (61) | $ (91) | $ 599 | $ (307) | $ (49) |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Compensation and related benefits | $ 283 | $ 312 |
Net operating loss | 56 | 90 |
Reserves and reinsurance | 1,228 | 366 |
Unrealized investment gains/losses | 0 | 108 |
Investments | 46 | 0 |
Tax credits | 0 | 149 |
Other | 0 | 0 |
Total | 1,613 | 1,025 |
Liabilities | ||
DAC | 984 | 1,175 |
Unrealized investment gains/losses | 717 | 0 |
Investments | 0 | 21 |
Other | 111 | 108 |
Total | $ 1,812 | $ 1,304 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 539 | $ 477 | $ 729 |
Additions for tax positions of prior years | 25 | 91 | 28 |
Reductions for tax positions of prior years | (63) | (29) | (247) |
Additions for tax positions of current year | 0 | 0 | 0 |
Settlements with tax authorities | 0 | 0 | (33) |
Ending balance | 501 | 539 | 477 |
Unrecognized tax benefits that, if recognized, would impact the effective rate | $ 369 | $ 407 | $ 317 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) $ in Millions | Jan. 14, 2020job | Apr. 30, 2019USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Feb. 29, 2016USD ($) |
Loss Contingencies [Line Items] | ||||||
Unaccrued amounts of reasonably possible range of losses | $ 100 | |||||
Federal home loan bank stock | 322 | |||||
Carrying value of collateral pledged for federal home loan bank | 9,800 | |||||
AXA | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments by the Company to provide equity financing | 1,000 | |||||
Face amount of mortgage loans | 260 | |||||
Alliance Bernstein | ||||||
Loss Contingencies [Line Items] | ||||||
New real estate charges | 33 | $ 10 | ||||
EQ AZ Life Re | ||||||
Loss Contingencies [Line Items] | ||||||
Other restricted assets | 1,700 | |||||
CS Life RE | ||||||
Loss Contingencies [Line Items] | ||||||
Other restricted assets | 300 | |||||
Affiliated Entity | AXA | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments by the Company to provide equity financing | $ 275 | |||||
Brach Family Foundation Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Liability for future policy benefits, face value of policy | $ 1 | |||||
Holdings Revolving Credit Facility | Letter of Credit | ||||||
Loss Contingencies [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,500 | |||||
Subsequent Event | Alliance Bernstein | ||||||
Loss Contingencies [Line Items] | ||||||
Number of positions relocated, additional | job | 1,250 | |||||
Pre-Capitalized Trust Securities, Redeemable February 15, 2049 | ||||||
Loss Contingencies [Line Items] | ||||||
Shares issued (in shares) | shares | 600,000 | |||||
Proceeds from offering | $ 600 | |||||
Sale of stock, semi-annual facility fee, rate | 2.125% | |||||
Pre-Capitalized Trust Securities, Redeemable February 15, 2029 | ||||||
Loss Contingencies [Line Items] | ||||||
Shares issued (in shares) | shares | 400,000 | |||||
Proceeds from offering | $ 400 | |||||
Sale of stock, semi-annual facility fee, rate | 2.715% |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Debt Maturities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 800 |
2024 and thereafter | $ 3,350 |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES - Funding Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Outstanding balance at end of period | $ 6,900 | $ 3,990 | $ 3,000 |
Issued during the period | 29,330 | 7,980 | |
Repaid during the period | 26,420 | (6,990) | |
Advances From Federal Home Loan Banks, Current | 0 | 0 | |
Difference related to remaining amortization | 9 | 11 | 14 |
Federal Home Loan Bank of New York Short-Term Funding Agreements Maturing in Less than One Year | |||
Debt Instrument [Line Items] | |||
Outstanding balance at end of period | 4,608 | 1,640 | 500 |
Issued during the period | 29,330 | 7,980 | |
Repaid during the period | 26,420 | (6,990) | |
Advances From Federal Home Loan Banks, Current | 58 | 150 | |
Federal Home Loan Bank of New York Long-Term Funding Agreements Maturing Between Two and Five Years | |||
Debt Instrument [Line Items] | |||
Outstanding balance at end of period | 1,646 | 1,569 | 1,621 |
Issued during the period | 0 | ||
Repaid during the period | 0 | ||
Advances From Federal Home Loan Banks, Current | 77 | (52) | |
Federal Home Loan Bank of New York Long-Term Funding Agreements Maturing in Greater than Five Years | |||
Debt Instrument [Line Items] | |||
Outstanding balance at end of period | 646 | 781 | 879 |
Issued during the period | 0 | ||
Repaid during the period | 0 | ||
Advances From Federal Home Loan Banks, Current | (135) | (98) | |
Federal Home Loan Bank of New York Long-Term Funding Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding balance at end of period | 2,292 | 2,350 | $ 2,500 |
Issued during the period | 0 | 0 | |
Repaid during the period | 0 | 0 | |
Advances From Federal Home Loan Banks, Current | $ (58) | $ (150) |
INSURANCE GROUP STATUTORY FIN_2
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2018 | |
Statutory Accounting Practices [Abstract] | ||||
Insurance groups statutory net income (loss) | $ 3,800 | $ 3,000 | $ 942 | |
Statutory surplus, capital stock and asset valuation reserve | 9,300 | 8,400 | ||
Securities on deposit with such government or state agencies | 82 | |||
Shareholder dividends | 1,000 | 1,100 | ||
AB Ownership transfer | 1,700 | |||
Extraordinary dividends | 572 | |||
Statutory amount available for dividend payments without regulatory approval | 2,400 | |||
Subsidiary | ||||
Statutory Accounting Practices [Abstract] | ||||
Repayments of surplus notes | 106 | $ 86 | ||
EQ AZ Life Re | ||||
Statutory Accounting Practices [Abstract] | ||||
Other restricted assets | 1,700 | |||
CS Life RE | ||||
Statutory Accounting Practices [Abstract] | ||||
Other restricted assets | 300 | |||
Holdings Revolving Credit Facility | Revolving credit facility | ||||
Statutory Accounting Practices [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | $ 2,500 | |||
Holdings Revolving Credit Facility | Revolving credit facility | EQ AZ Life Re | ||||
Statutory Accounting Practices [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | 2,400 | |||
Holdings Revolving Credit Facility | Revolving credit facility | CS Life RE | ||||
Statutory Accounting Practices [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | $ 100 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Summary of Segment Operations and Assets (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Number of reportable segments | segment | 4 | |||||||||||
Net income (loss) | $ (841) | $ (316) | $ 430 | $ (709) | $ 1,999 | $ (443) | $ 261 | $ 337 | $ (1,436) | $ 2,154 | $ 1,257 | |
Net earnings (loss) | (937) | (384) | 363 | (775) | 1,938 | (496) | 164 | 214 | (1,733) | 1,820 | 834 | |
Adjustments related to: | ||||||||||||
Goodwill impairment loss | $ 369 | 0 | 0 | 369 | ||||||||
Non-GAAP Operating Earnings | 2,397 | 2,166 | 2,035 | |||||||||
Interest expense | 221 | 231 | 160 | |||||||||
Segment revenues | 1,689 | $ 3,028 | $ 3,160 | $ 1,714 | 5,155 | $ 1,083 | $ 2,966 | $ 2,874 | 9,591 | 12,078 | 12,460 | |
Investment expenses | 73 | 72 | 72 | |||||||||
Long-lived assets | 249,870 | 220,797 | 249,870 | 220,797 | ||||||||
Segment Reconciling Items | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net earnings (loss) | (1,733) | 1,820 | 834 | |||||||||
Adjustments related to: | ||||||||||||
Variable annuity product features | 4,878 | (70) | 1,107 | |||||||||
Investment (gains) losses | (73) | 86 | 191 | |||||||||
Goodwill impairment loss | 0 | 0 | 369 | |||||||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 99 | 215 | 135 | |||||||||
Other adjustments | 406 | 299 | 119 | |||||||||
Income tax expense (benefit) related to above adjustments | (1,114) | (111) | (644) | |||||||||
Non-recurring tax items | (66) | (73) | (76) | |||||||||
Separation costs | 222 | 213 | 93 | |||||||||
Variable annuity product features | (3,939) | (643) | (214) | |||||||||
Investment gains (losses), net | 73 | (86) | (191) | |||||||||
Other adjustments to revenue | 7 | (57) | 64 | |||||||||
Corporate and Other | ||||||||||||
Adjustments related to: | ||||||||||||
Non-GAAP Operating Earnings | (347) | (356) | (213) | |||||||||
Interest expense | 228 | 223 | 138 | |||||||||
Segment revenues | 1,229 | 1,148 | 1,212 | |||||||||
Long-lived assets | 25,600 | 21,464 | 25,600 | 21,464 | ||||||||
Intersegment Eliminations | ||||||||||||
Adjustments related to: | ||||||||||||
Investment expenses | 76 | 67 | 68 | |||||||||
Revenues | 96 | |||||||||||
Individual Retirement | Operating Segments | ||||||||||||
Adjustments related to: | ||||||||||||
Non-GAAP Operating Earnings | 1,577 | 1,555 | 1,252 | |||||||||
Segment revenues | 4,340 | 4,054 | 4,374 | |||||||||
Long-lived assets | 123,626 | 105,532 | 123,626 | 105,532 | ||||||||
Group Retirement | Operating Segments | ||||||||||||
Adjustments related to: | ||||||||||||
Non-GAAP Operating Earnings | 390 | 389 | 283 | |||||||||
Segment revenues | 1,077 | 1,019 | 942 | |||||||||
Long-lived assets | 43,588 | 38,874 | 43,588 | 38,874 | ||||||||
Investment Management And Research | Operating Segments | ||||||||||||
Adjustments related to: | ||||||||||||
Non-GAAP Operating Earnings | 381 | 381 | 211 | |||||||||
Segment revenues | 3,479 | 3,411 | 3,216 | |||||||||
Long-lived assets | 10,170 | 10,294 | 10,170 | 10,294 | ||||||||
Protection Solutions | Operating Segments | ||||||||||||
Adjustments related to: | ||||||||||||
Non-GAAP Operating Earnings | 396 | 197 | 502 | |||||||||
Segment revenues | 3,325 | 3,232 | 3,057 | |||||||||
Long-lived assets | $ 46,886 | $ 44,633 | 46,886 | 44,633 | ||||||||
Research services | Intersegment Eliminations | ||||||||||||
Adjustments related to: | ||||||||||||
Revenues | $ 104 | 94 | ||||||||||
As Previously Reported | ||||||||||||
Adjustments related to: | ||||||||||||
Non-GAAP Operating Earnings | 2,100 | 2,000 | ||||||||||
As Previously Reported | Segment Reconciling Items | ||||||||||||
Adjustments related to: | ||||||||||||
Variable annuity product features | (126) | 1,100 | ||||||||||
Income tax expense (benefit) related to above adjustments | (99) | (634) | ||||||||||
As Previously Reported | Individual Retirement | Operating Segments | ||||||||||||
Adjustments related to: | ||||||||||||
Non-GAAP Operating Earnings | 1,500 | 1,200 | ||||||||||
Deferred Policy Acquisition Cost, Amortization Expense | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net income (loss) | $ (56) | $ (46) |
EQUITY - Dividends Declared (De
EQUITY - Dividends Declared (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Dividends declared (in usd per share) | $ 0.58 | $ 0.26 | $ 0 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2019 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 15, 2024 | Nov. 06, 2019 | Feb. 27, 2019 | Nov. 20, 2018 | |
Class of Stock [Line Items] | ||||||||||
Share repurchase plan, authorized amount | $ 400,000,000 | $ 800,000,000 | $ 800,000,000 | |||||||
Purchase of treasury shares | $ 1,350,000,000 | $ 648,000,000 | $ 0 | |||||||
Shares repurchased (in shares) | 65,600 | 32,500 | ||||||||
Treasury stock reissued (in shares) | 394 | 400 | ||||||||
Treasury stock, shares, retired (in shares) | 8,100 | |||||||||
Preferred stock, shares issued (in shares) | 32,000 | 32,000 | ||||||||
Preferred stock par value (in dollars per share) | $ 1 | $ 1 | ||||||||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | ||||||||
Issuance of preferred stock | $ 775,000,000 | $ 775,000,000 | $ 0 | $ 0 | ||||||
Preferred stock, dividend rate, percentage | 5.25% | |||||||||
Preferred stock, redemption price per share (dollar per share) | $ 25,500 | $ 25,500 | ||||||||
Forecast | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, redemption price per share (dollar per share) | $ 25,000 | |||||||||
Series A Fixed Rate Noncumulative Perpetual Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Payment of stock issuance costs | $ 25,000,000 | |||||||||
ASR | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share repurchase plan, authorized amount | $ 150,000,000 | |||||||||
Purchase of treasury shares | $ 150,000,000 | |||||||||
Shares repurchased (in shares) | 7,000 | 1,000 | ||||||||
Treasury stock acquired, average cost per share | $ 18.51 |
EQUITY - Components of AOCI (De
EQUITY - Components of AOCI (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains (losses) on investments | $ 1,838 | $ (404) | $ 825 | |
Defined benefit pension plans | (983) | (968) | (955) | |
Foreign currency translation adjustments | (57) | (62) | (30) | |
Total accumulated other comprehensive income (loss) | 798 | (1,434) | (160) | |
Less: Accumulated other comprehensive (income) loss attributable to the noncontrolling interest | (42) | (38) | (52) | |
Accumulated other comprehensive income (loss) attributable to Holdings | $ 840 | (1,396) | (108) | |
ASU 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains (losses) on investments | $ (113) | |||
Defined benefit pension plans | (202) | |||
ASU 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains (losses) on investments | $ (7) | |||
Impact of Revisions | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains (losses) on investments | $ 10 | $ 5 |
EQUITY - Components of OCI (Det
EQUITY - Components of OCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax [Abstract] | ||||
Net unrealized gains (losses) arising during the year | $ 3,301 | $ (1,952) | $ 910 | |
(Gains) losses reclassified into net income (loss) during the year | (161) | 60 | 10 | |
Net unrealized gains (losses) on investments | 3,140 | (1,892) | 920 | |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | (898) | 558 | (227) | |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of [$661], $(356) and $262) | [1] | 2,242 | (1,334) | 693 |
Change in defined benefit plans: | ||||
Less: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | (15) | 189 | 100 | |
Change in defined benefit plans (net of deferred income tax expense (benefit) of [$25], $50 and $51) | (15) | 189 | 100 | |
Foreign currency translation adjustments: | ||||
Foreign currency translation gains (losses) arising during the year | 5 | (32) | 39 | |
(Gains) losses reclassified into net income (loss) during the period | 0 | 0 | ||
Foreign currency translation adjustment | [1] | 5 | (32) | 39 |
Total other comprehensive income (loss), net of income taxes | 2,232 | (1,177) | 832 | |
Less: Other comprehensive (income) loss attributable to noncontrolling interest | (4) | 15 | 19 | |
Other comprehensive income (loss) attributable to Holdings | 2,236 | (1,192) | 813 | |
Income tax expense (benefit) | (43) | 13 | 5 | |
Reclassification adjustment, amount | 5 | 3 | ||
AFS Securities, OCI, tax | 590 | (356) | 262 | |
Defined benefit plan, OCI, tax | $ 10 | $ 50 | $ 51 | |
[1] | A reclassification of $5 million and $3 million has been made to the previously reported amounts for the years ended December 31, 2018 and 2017, respectively to conform to the current period’s presentation. |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Weighted average number of shares outstanding - basic (in shares) | 493.6 | 556.4 | 561 | ||||||||
Effect of dilutive securities, employee stock awards (in shares) | 0 | 0.1 | 0 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 493.6 | 556.5 | 561 | ||||||||
Net income (loss) | $ (841) | $ (316) | $ 430 | $ (709) | $ 1,999 | $ (443) | $ 261 | $ 337 | $ (1,436) | $ 2,154 | $ 1,257 |
Less: Net income (loss) attributable to the noncontrolling interest | 96 | 68 | 67 | 66 | 61 | 53 | 97 | 123 | 297 | 334 | 423 |
Net earnings (loss) | $ (937) | $ (384) | $ 363 | $ (775) | $ 1,938 | $ (496) | $ 164 | $ 214 | (1,733) | 1,820 | 834 |
Less: Incremental dilution from AB | 0 | 0 | 1 | ||||||||
Net income (loss) attributable to Holdings common shareholders (diluted) | $ (1,733) | $ 1,820 | $ 833 | ||||||||
Net income (loss) attributable to Holdings per common share: | |||||||||||
Basic (in usd per share) | $ (1.97) | $ (0.78) | $ 0.74 | $ (1.50) | $ 3.57 | $ (0.89) | $ 0.29 | $ 0.38 | $ (3.51) | $ 3.27 | $ 1.49 |
Diluted (in usd per share) | $ (1.97) | $ (0.78) | $ 0.74 | $ (1.50) | $ 3.57 | $ (0.89) | $ 0.29 | $ 0.38 | $ (3.51) | $ 3.27 | $ 1.49 |
Effect of dilutive securities (in shares) | 1.1 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) shares in Millions | Apr. 24, 2018 | Dec. 31, 2019shares | Dec. 31, 2018shares |
Earnings Per Share [Abstract] | |||
Stock split ratio | 459.4752645 | ||
Antidilutive securities (in shares) | 5.3 | 2.7 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) - Summary of Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total Revenues | $ 1,689 | $ 3,028 | $ 3,160 | $ 1,714 | $ 5,155 | $ 1,083 | $ 2,966 | $ 2,874 | $ 9,591 | $ 12,078 | $ 12,460 |
Total benefits and other deductions | 2,801 | 3,468 | 2,719 | 2,638 | 2,826 | 1,701 | 2,644 | 2,446 | 11,626 | 9,617 | 11,154 |
Income (loss) from continuing operations, before income taxes | (1,112) | (440) | 441 | (924) | 2,329 | (618) | 322 | 428 | (2,035) | 2,461 | 1,306 |
Income tax (expense) benefit | 271 | 124 | (11) | 215 | (330) | 175 | (61) | (91) | 599 | (307) | (49) |
Net income (loss) | (841) | (316) | 430 | (709) | 1,999 | (443) | 261 | 337 | (1,436) | 2,154 | 1,257 |
Less: Net income (loss) attributable to the noncontrolling interest | (96) | (68) | (67) | (66) | (61) | (53) | (97) | (123) | (297) | (334) | (423) |
Net income (loss) attributable to Holdings | $ (937) | $ (384) | $ 363 | $ (775) | $ 1,938 | $ (496) | $ 164 | $ 214 | $ (1,733) | $ 1,820 | $ 834 |
Earnings per share - common stock: | |||||||||||
Basic (in usd per share) | $ (1.97) | $ (0.78) | $ 0.74 | $ (1.50) | $ 3.57 | $ (0.89) | $ 0.29 | $ 0.38 | $ (3.51) | $ 3.27 | $ 1.49 |
Diluted (in usd per share) | $ (1.97) | $ (0.78) | $ 0.74 | $ (1.50) | $ 3.57 | $ (0.89) | $ 0.29 | $ 0.38 | $ (3.51) | $ 3.27 | $ 1.49 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||
Balance, beginning of year | [1],[2] | $ 187 | $ 187 | |||||||||
Net earnings (loss) attributable to redeemable noncontrolling interests | $ 96 | $ 68 | $ 67 | 66 | $ 61 | $ 53 | $ 97 | $ 123 | 297 | $ 334 | $ 423 | |
Balance, end of year | [1],[2] | 365 | 187 | 365 | 187 | |||||||
Redeemable Noncontrolling Interest | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||
Balance, beginning of year | $ 187 | $ 626 | 187 | 626 | 403 | |||||||
Net earnings (loss) attributable to redeemable noncontrolling interests | 34 | 18 | 53 | |||||||||
Purchase/change of redeemable noncontrolling interests | 144 | (457) | 170 | |||||||||
Balance, end of year | $ 365 | $ 187 | $ 365 | $ 187 | $ 626 | |||||||
[1] | See Note 2 for details of balances with variable interest entities. | |||||||||||
[2] | See Note 23 for details of Redeemable noncontrolling interest. |
HELD-FOR-SALE (Details)
HELD-FOR-SALE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | ||
Assets held-for-sale | $ 962 | $ 0 |
Liabilities: | ||
Total liabilities held-for-sale | 724 | $ 0 |
U.S. Financial Life Insurance Company and MONY Life Insurance Company of the Americas, Ltd | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Investment impairment | (105) | |
Assets: | ||
Fixed maturity securities | 896 | |
Trading securities, at fair value | 17 | |
Policy loans | 19 | |
Cash and cash equivalents | 65 | |
Amounts due from reinsurers | 43 | |
Deferred policy acquisition costs | 31 | |
Other assets | 24 | |
Assets held-for-sale | 1,095 | |
Less: Loss accrual | (133) | |
Total assets held-for-sale | 962 | |
Liabilities: | ||
Policyholders’ account balances | 286 | |
Future policy benefits and other policyholders’ liabilities | 421 | |
Amounts due to reinsurers | 6 | |
Other liabilities | 11 | |
Total liabilities held-for-sale | $ 724 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions, shares in Billions | Feb. 26, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 21, 2021 | Nov. 06, 2019 | Feb. 27, 2019 | Nov. 20, 2018 |
Subsequent Event [Line Items] | ||||||||
Dividends declared (in usd per share) | $ 0.58 | $ 0.26 | $ 0 | |||||
Share repurchase plan, authorized amount | $ 400 | $ 800 | $ 800 | |||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared (in usd per share) | $ 0.15 | |||||||
Share repurchase plan, authorized amount | $ 600 | |||||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 1 |
SCHEDULE I - SUMMARY OF INVES_2
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2019USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 89,679 |
Fair Value | 94,539 |
Carrying Value | 89,934 |
U.S. Treasury, government and agency | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 14,410 |
Fair Value | 15,394 |
Carrying Value | 14,410 |
States and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 638 |
Fair Value | 705 |
Carrying Value | 638 |
Foreign Government Debt | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 462 |
Fair Value | 492 |
Carrying Value | 462 |
Public Utility, Bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 5,010 |
Fair Value | 5,305 |
Carrying Value | 5,010 |
All Other Corporate Bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 40,890 |
Fair Value | 42,894 |
Carrying Value | 40,890 |
Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 178 |
Fair Value | 191 |
Carrying Value | 178 |
Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 848 |
Fair Value | 849 |
Carrying Value | 848 |
Redeemable preferred stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 501 |
Fair Value | 513 |
Carrying Value | 501 |
Fixed maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 62,937 |
Fair Value | 66,343 |
Carrying Value | 62,937 |
Mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 12,107 |
Fair Value | 12,334 |
Carrying Value | 12,107 |
Real estate held for the production of income | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 27 |
Fair Value | 27 |
Carrying Value | 27 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,735 |
Fair Value | 4,707 |
Carrying Value | 3,735 |
Other Limited Partnership Interests And Equity Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,350 |
Fair Value | 1,344 |
Carrying Value | 1,344 |
Trading Securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 6,770 |
Fair Value | 7,031 |
Carrying Value | 7,031 |
Other invested assets | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,753 |
Fair Value | 2,753 |
Carrying Value | $ 2,753 |
SCHEDULE II - PARENT COMPANY -
SCHEDULE II - PARENT COMPANY - Balance Sheet (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||||
Fixed maturities available for sale, at fair value | $ 66,343,000,000 | $ 46,279,000,000 | |||
Other equity investments | [1] | 1,344,000,000 | 1,334,000,000 | ||
Other invested assets | [1] | 2,753,000,000 | 2,037,000,000 | ||
Total investments | 93,340,000,000 | 81,333,000,000 | |||
Cash and cash equivalents | [1] | 4,405,000,000 | 4,469,000,000 | ||
Goodwill and other intangible assets, net | 4,751,000,000 | 4,780,000,000 | |||
Other assets | [1] | 3,799,000,000 | 3,127,000,000 | ||
Total Assets | 249,870,000,000 | 220,797,000,000 | |||
LIABILITIES | |||||
Short-term and long-term debt | 4,111,000,000 | 4,955,000,000 | |||
Income taxes payable | 549,000,000 | 68,000,000 | |||
Total Liabilities | 234,379,000,000 | 205,178,000,000 | |||
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, respectively; 463,711,392 and 528,861,758 shares outstanding, respectively | 5,000,000 | 5,000,000 | |||
Additional paid-in capital | 1,920,000,000 | 1,908,000,000 | |||
Treasury stock, at cost, 89,184,936 and 32,138,242 shares, respectively | (1,832,000,000) | (640,000,000) | |||
Retained earnings | 11,827,000,000 | 13,989,000,000 | |||
Accumulated other comprehensive income (loss) | 840,000,000 | (1,396,000,000) | $ (108,000,000) | ||
Total equity attributable to Holdings | 13,535,000,000 | 13,866,000,000 | |||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 249,870,000,000 | $ 220,797,000,000 | |||
Preferred stock par value (in dollars per share) | $ 1 | ||||
Preferred stock, liquidation preference | $ 25,000 | ||||
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) | 463,711,392 | 528,861,758 | |||
Treasury stock (in shares) | 89,184,936 | 32,138,242 | |||
Parent | |||||
ASSETS | |||||
Other invested assets | $ 15,966,000,000 | $ 16,743,000,000 | |||
Fixed maturities available for sale, at fair value | 236,000,000 | 336,000,000 | |||
Other equity investments | 37,000,000 | 23,000,000 | |||
Other invested assets | 0 | 80,000,000 | |||
Total investments | 16,239,000,000 | 17,182,000,000 | |||
Cash and cash equivalents | 1,353,000,000 | 407,000,000 | $ 44,000,000 | $ 5,000,000 | |
Goodwill and other intangible assets, net | 1,258,000,000 | 1,265,000,000 | |||
Loans to affiliates | 560,000,000 | 572,000,000 | |||
Other assets | 829,000,000 | 766,000,000 | |||
Total Assets | 20,239,000,000 | 20,192,000,000 | |||
LIABILITIES | |||||
Short-term and long-term debt | 4,111,000,000 | 4,408,000,000 | |||
Employee benefits liabilities | 1,226,000,000 | 1,184,000,000 | |||
Loans from affiliates | 1,200,000,000 | 600,000,000 | |||
Income taxes payable | 68,000,000 | 16,000,000 | |||
Accrued liabilities | 99,000,000 | 118,000,000 | |||
Total Liabilities | 6,704,000,000 | 6,326,000,000 | |||
Equity attributable to Holdings: | |||||
Preferred stock and additional paid-in capital, par value $1.00 per share; $25,000 liquidation preference at December 31, 2019 | 775,000,000 | 0 | |||
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 552,896,328 and 561,000,000 shares issued, respectively; 463,711,392 and 528,861,758 shares outstanding, respectively | 5,000,000 | 5,000,000 | |||
Additional paid-in capital | 1,920,000,000 | 1,908,000,000 | |||
Treasury stock, at cost, 89,184,936 and 32,138,242 shares, respectively | (1,832,000,000) | (640,000,000) | |||
Retained earnings | 11,827,000,000 | 13,989,000,000 | |||
Accumulated other comprehensive income (loss) | 840,000,000 | (1,396,000,000) | |||
Total equity attributable to Holdings | 13,535,000,000 | 13,866,000,000 | |||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 20,239,000,000 | 20,192,000,000 | |||
Amortized cost | $ 223,000,000 | $ 337,000,000 | |||
Preferred stock par value (in dollars per share) | $ 1,000,000 | ||||
Preferred stock, liquidation preference | $ 25,000,000,000 | ||||
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) | 463,711,392 | 528,861,758 | |||
Treasury stock (in shares) | 89,184,936 | 32,138,242 | |||
[1] | See Note 2 for details of balances with variable interest entities. |
SCHEDULE II - PARENT COMPANY _2
SCHEDULE II - PARENT COMPANY - Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||||||||||
Investment gains (losses), net | $ 206 | $ (86) | $ (191) | ||||||||
Other income | 554 | 516 | 445 | ||||||||
Total revenues | $ 1,689 | $ 3,028 | $ 3,160 | $ 1,714 | $ 5,155 | $ 1,083 | $ 2,966 | $ 2,874 | 9,591 | 12,078 | 12,460 |
Costs and Expenses [Abstract] | |||||||||||
Interest expense | 221 | 231 | 160 | ||||||||
Other operating costs and expenses | 1,892 | 1,809 | 2,069 | ||||||||
Income tax (expense) benefit | 271 | 124 | (11) | 215 | (330) | 175 | (61) | (91) | 599 | (307) | (49) |
Net income (loss) | $ (841) | $ (316) | $ 430 | $ (709) | $ 1,999 | $ (443) | $ 261 | $ 337 | (1,436) | 2,154 | 1,257 |
Total other comprehensive income (loss), net of income taxes | 2,232 | (1,177) | 832 | ||||||||
Comprehensive income (loss) attributable to Holdings | 503 | 628 | 1,647 | ||||||||
Parent | |||||||||||
REVENUES | |||||||||||
Equity in income (losses) from continuing operations of consolidated subsidiaries | (1,569) | 2,404 | 863 | ||||||||
Net investment income (loss) | 29 | 30 | 8 | ||||||||
Investment gains (losses), net | (1) | (8) | 0 | ||||||||
Other income | 12 | (1) | 0 | ||||||||
Total revenues | (1,529) | 2,425 | 871 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Interest expense | 237 | 214 | 31 | ||||||||
Other operating costs and expenses | 83 | 123 | 22 | ||||||||
Total expenses | 320 | 337 | 53 | ||||||||
Income (loss) from continuing operations, before income taxes | (1,849) | 2,088 | 818 | ||||||||
Income tax (expense) benefit | 116 | (268) | 16 | ||||||||
Net income (loss) | (1,733) | 1,820 | 834 | ||||||||
Total other comprehensive income (loss), net of income taxes | 2,236 | (1,192) | 816 | ||||||||
Comprehensive income (loss) attributable to Holdings | $ 503 | $ 628 | $ 1,647 |
SCHEDULE II - PARENT COMPANY _3
SCHEDULE II - PARENT COMPANY - Statement of Cash Flows (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net income (loss) | $ (841) | $ (316) | $ 430 | $ (709) | $ 1,999 | $ (443) | $ 261 | $ 337 | $ (1,436) | $ 2,154 | $ 1,257 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||
Non-cash long term incentive compensation expense | 278 | 228 | 247 | |||||||||||
Equity (income) loss limited partnerships | 92 | 119 | 155 | |||||||||||
Other, net | (162) | (222) | 251 | |||||||||||
Net cash provided by (used in) operating activities | (216) | 61 | (243) | |||||||||||
Proceeds from the sale/maturity/prepayment of: | ||||||||||||||
Fixed maturities, available for sale | 13,327 | 10,631 | 11,339 | |||||||||||
Short term investments | 2,643 | 6,267 | 4,556 | |||||||||||
Payment for the purchase/origination of: | ||||||||||||||
Fixed maturities, available for sale | (29,610) | (12,794) | (15,166) | |||||||||||
Short term investments | (2,776) | (5,058) | (4,897) | |||||||||||
Other | (430) | (233) | (296) | |||||||||||
Other, net | (220) | (86) | 201 | |||||||||||
Net cash provided by (used in) investing activities | (8,496) | (2,049) | (9,689) | |||||||||||
Cash flows from financing activities: | ||||||||||||||
Issuance of preferred stock | $ 775 | 775 | 0 | 0 | ||||||||||
Issuance of long-term debt | 0 | 4,057 | 0 | |||||||||||
Repayment of long-term debt | (300) | 0 | 0 | |||||||||||
Proceeds from loans from affiliates | 0 | 0 | 731 | |||||||||||
Repayment of loans from affiliates | 0 | (3,000) | (56) | |||||||||||
Shareholder dividends paid | (285) | (157) | 0 | |||||||||||
Purchase of AllianceBernstein Units | 0 | (1,340) | 0 | |||||||||||
Purchase of treasury shares | (1,350) | (648) | 0 | |||||||||||
Capital contribution from parent company | $ 8 | 0 | 8 | 318 | ||||||||||
Net cash provided by (used in) financing activities | 8,705 | 1,655 | 9,070 | |||||||||||
Cash and cash equivalents, beginning of year | [1] | 4,469 | 4,469 | |||||||||||
Cash and cash equivalents, end of year | [1] | 4,405 | 4,405 | 4,469 | 4,405 | 4,469 | ||||||||
Parent | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net income (loss) | (1,733) | 1,820 | 834 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||
Equity in net (earnings) loss of subsidiaries | 1,569 | (2,404) | (863) | |||||||||||
Non-cash long term incentive compensation expense | 69 | 0 | 0 | |||||||||||
Amortization and depreciation | 33 | 0 | 0 | |||||||||||
Equity (income) loss limited partnerships | 1 | 0 | 0 | |||||||||||
Current and deferred taxes | 194 | 111 | (14) | |||||||||||
Dividends from subsidiaries | 1,341 | 1,838 | 20 | |||||||||||
Other, net | (76) | (264) | 24 | |||||||||||
Net cash provided by (used in) operating activities | 1,398 | 1,101 | 1 | |||||||||||
Proceeds from the sale/maturity/prepayment of: | ||||||||||||||
Fixed maturities, available for sale | 105 | 18 | 0 | |||||||||||
Short term investments | 80 | 1,038 | 0 | |||||||||||
Payment for the purchase/origination of: | ||||||||||||||
Fixed maturities, available for sale | 0 | (355) | 0 | |||||||||||
Short term investments | 0 | (1,113) | 0 | |||||||||||
Other | (14) | (16) | 0 | |||||||||||
Repayments of loans to affiliates | 572 | 1,045 | 0 | |||||||||||
Issuance of loans to affiliates | (560) | (572) | (900) | |||||||||||
Purchase of shares of consolidated subsidiaries | 0 | 0 | (55) | |||||||||||
Other, net | 0 | (5) | 0 | |||||||||||
Net cash provided by (used in) investing activities | 194 | 421 | (955) | |||||||||||
Cash flows from financing activities: | ||||||||||||||
Issuance of preferred stock | 775 | 0 | 0 | |||||||||||
Issuance of long-term debt | 0 | 4,057 | 0 | |||||||||||
Repayment of long-term debt | (300) | 0 | 0 | |||||||||||
Proceeds from loans from affiliates | 900 | 800 | 731 | |||||||||||
Repayment of loans from affiliates | (300) | (200) | (56) | |||||||||||
Shareholder dividends paid | (285) | (157) | 0 | |||||||||||
Purchase of AllianceBernstein Units | 0 | (1,340) | 0 | |||||||||||
Purchase of treasury shares | (1,350) | (648) | 0 | |||||||||||
Capital contribution from parent company | 0 | 8 | 318 | |||||||||||
Capital contribution to subsidiaries | (86) | (3,679) | 0 | |||||||||||
Net cash provided by (used in) financing activities | (646) | (1,159) | 993 | |||||||||||
Change in cash and cash equivalents | 946 | 363 | 39 | |||||||||||
Cash and cash equivalents, beginning of year | $ 407 | $ 44 | 407 | 44 | 5 | |||||||||
Cash and cash equivalents, end of year | $ 1,353 | $ 1,353 | $ 407 | $ 44 | 1,353 | 407 | 44 | |||||||
Non-cash transactions: | ||||||||||||||
Goodwill and intangible assets | 0 | 1,079 | 0 | |||||||||||
Equity Investments | 0 | 8 | 0 | |||||||||||
Other assets | 4 | 774 | 0 | |||||||||||
Settlement of long-term debt | 0 | (349) | 0 | |||||||||||
Employee benefit plans | 0 | (1,168) | 0 | |||||||||||
Other liabilities | (16) | (20) | 0 | |||||||||||
Parent | AXA Financial | ||||||||||||||
Payment for the purchase/origination of: | ||||||||||||||
Increase in cash and cash equivalents from merger | 0 | 381 | 0 | |||||||||||
Parent | AXA Tech | ||||||||||||||
Payment for the purchase/origination of: | ||||||||||||||
Increase in cash and cash equivalents from merger | $ 11 | $ 0 | $ 0 | |||||||||||
[1] | See Note 2 for details of balances with variable interest entities. |
SCHEDULE II - PARENT COMPANY _4
SCHEDULE II - PARENT COMPANY - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019 | Nov. 30, 2019 | Dec. 31, 2018 | Apr. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2015 | Mar. 31, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 04, 2019 | Oct. 01, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Repayment of loans from affiliates | $ 0 | $ 3,000,000,000 | $ 56,000,000 | |||||||||||||
Proceeds from loans from affiliates | 0 | 0 | 731,000,000 | |||||||||||||
Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Loans from affiliates | $ 1,200,000,000 | $ 600,000,000 | 1,200,000,000 | 600,000,000 | ||||||||||||
Repayment of notes payable | $ 770,000,000 | |||||||||||||||
Repayment of loans from affiliates | 300,000,000 | 200,000,000 | 56,000,000 | |||||||||||||
Proceeds from loans from affiliates | 900,000,000 | 800,000,000 | 731,000,000 | |||||||||||||
Interest expense, related party | 26,000,000 | 48,000,000 | 77,000,000 | |||||||||||||
EQH Facility | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 900,000,000 | |||||||||||||||
Letters of credit | 560,000,000 | 560,000,000 | ||||||||||||||
AXA S.A. term loan, three- month LIBOR 1.06%, due 2024 | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Loans from affiliates | $ 2,727,000,000 | |||||||||||||||
Related party transaction, rate (as a percent) | 1.06% | |||||||||||||||
Repayment of loans from affiliates | $ 520,000,000 | $ 1,200,000,000 | ||||||||||||||
AXA S.A. loan, LIBOR 1.44%, due 2022 | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Loans from affiliates | $ 366,000,000 | |||||||||||||||
Related party transaction, rate (as a percent) | 1.44% | |||||||||||||||
Coliseum Re loan 4.75% tranche one | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Proceeds from loans from affiliates | $ 242,000,000 | |||||||||||||||
Coliseum Re loan 4.75% tranche two | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Proceeds from loans from affiliates | $ 145,000,000 | |||||||||||||||
Coliseum Reinsurance Company, 4.75%, due 2028 | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Related party transaction, rate (as a percent) | 4.75% | |||||||||||||||
AXA CS loan, tranche one | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Loans from affiliates | $ 100,000,000 | $ 100,000,000 | ||||||||||||||
Related party transaction, rate (as a percent) | 1.86% | |||||||||||||||
AXA CS loan, tranche two | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Loans from affiliates | 10,000,000 | $ 10,000,000 | ||||||||||||||
Related party transaction, rate (as a percent) | 1.76% | |||||||||||||||
AXA S.A. loan, LIBOR 0.439%, due 2018 | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Loans from affiliates | $ 622,000,000 | $ 622,000,000 | ||||||||||||||
Related party transaction, rate (as a percent) | 0.439% | |||||||||||||||
AXA Equitable loan 3.69% | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Letters of credit | 300,000,000 | 300,000,000 | ||||||||||||||
Related party transaction, rate (as a percent) | 3.69% | |||||||||||||||
Repayment of loans from affiliates | $ 300,000,000 | 200,000,000 | ||||||||||||||
Proceeds from loans from affiliates | $ 800,000,000 | |||||||||||||||
AXA Equitable loan, one-month LIBOR 1.33%, due 2024 | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Related party transaction, rate (as a percent) | 1.33% | |||||||||||||||
Proceeds from loans from affiliates | $ 900,000,000 | |||||||||||||||
AXA Equity Holdings | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Loans from affiliates | $ 572,000,000 | $ 572,000,000 | ||||||||||||||
Related party transaction, rate (as a percent) | 3.75% | |||||||||||||||
Interest income, related party | $ 4,000,000 | |||||||||||||||
Colisee | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Loans from affiliates | $ 145,000,000 | |||||||||||||||
Commercial paper | Parent | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 2,000,000,000 |
SCHEDULE II - PARENT COMPANY _5
SCHEDULE II - PARENT COMPANY - Assets Acquired and Liabilities Assumed (Details) - AXA Financial - Parent $ in Millions | Oct. 01, 2018USD ($) |
Condensed Financial Statements, Captions [Line Items] | |
Cash and cash equivalents | $ 381 |
Goodwill and other intangibles assets, net | 1,079 |
Other equity investments | 13 |
Other assets | 777 |
Total Assets | 2,250 |
Employee benefit liabilities | 1,168 |
Long-term debt | 349 |
Income taxes payable | 2,106 |
Other liabilities | 20 |
Total Liabilities | $ 3,643 |
SCHEDULE III - SUPPLEMENTARY _2
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs (3) | $ 5,890 | $ 6,745 | |
Policyholders’ account balances (3) | 58,879 | 49,923 | |
Future policy benefits and other policyholders' liabilities (3) | 34,587 | 30,998 | |
Policy charges and premium revenue | 4,885 | 4,918 | $ 4,817 |
Net investment income (loss) | (301) | 2,462 | 3,296 |
Policyholders’ benefits and interest credited | 5,611 | 4,005 | 5,361 |
Amortization of deferred policy acquisition costs | 579 | 333 | 503 |
All other operating expense | 5,436 | 5,279 | 5,290 |
Corporate and Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs (3) | 13 | 153 | |
Policyholders’ account balances (3) | 6,575 | 3,519 | |
Future policy benefits and other policyholders' liabilities (3) | 10,071 | 10,360 | |
Policy charges and premium revenue | 414 | 420 | 458 |
Net investment income (loss) | 460 | 474 | 513 |
Policyholders’ benefits and interest credited | 850 | 813 | 919 |
Amortization of deferred policy acquisition costs | 5 | (3) | (10) |
All other operating expense | 1,047 | 1,091 | 695 |
Insurance | Operating Segments | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs (3) | 3,285 | 3,229 | |
Policyholders’ account balances (3) | 26,146 | 20,798 | |
Future policy benefits and other policyholders' liabilities (3) | 20,352 | 16,076 | |
Policy charges and premium revenue | 2,085 | 2,124 | 2,116 |
Net investment income (loss) | (2,360) | 497 | 1,292 |
Policyholders’ benefits and interest credited | 2,334 | 590 | 2,728 |
Amortization of deferred policy acquisition costs | 327 | 183 | 114 |
All other operating expense | 785 | 764 | 881 |
Group Retirement | Operating Segments | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs (3) | 657 | 657 | |
Policyholders’ account balances (3) | 12,068 | 11,617 | |
Future policy benefits and other policyholders' liabilities (3) | 7 | 6 | |
Policy charges and premium revenue | 279 | 271 | 248 |
Net investment income (loss) | 599 | 552 | 523 |
Policyholders’ benefits and interest credited | 304 | 294 | 282 |
Amortization of deferred policy acquisition costs | 37 | (8) | 25 |
All other operating expense | 319 | 325 | 463 |
Investment Management And Research | Operating Segments | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs (3) | 0 | 0 | |
Policyholders’ account balances (3) | 0 | 0 | |
Future policy benefits and other policyholders' liabilities (3) | 0 | 0 | |
Policy charges and premium revenue | 0 | 0 | 0 |
Net investment income (loss) | 61 | 36 | 118 |
Policyholders’ benefits and interest credited | 0 | 0 | 0 |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 |
All other operating expense | 2,710 | 2,538 | 2,517 |
Protection Solutions | Operating Segments | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs (3) | 1,935 | 2,706 | |
Policyholders’ account balances (3) | 14,090 | 13,989 | |
Future policy benefits and other policyholders' liabilities (3) | 4,157 | 4,556 | |
Policy charges and premium revenue | 2,107 | 2,103 | 1,995 |
Net investment income (loss) | 939 | 903 | 850 |
Policyholders’ benefits and interest credited | 2,123 | 2,308 | 1,432 |
Amortization of deferred policy acquisition costs | 210 | 161 | 374 |
All other operating expense | $ 575 | $ 561 | $ 734 |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Life insurance in-force | |||
Gross Amount | $ 492,780 | $ 488,431 | $ 483,010 |
Ceded to Other Companies | 65,427 | 69,255 | 73,049 |
Assumed from Other Companies | 32,365 | 31,249 | 31,886 |
Net Amount | 459,718 | 450,425 | 441,847 |
Premiums | |||
Gross Amount | 1,068 | 1,012 | 1,038 |
Ceded to Other Companies | 141 | 132 | 139 |
Assumed from Other Companies | 220 | 214 | 225 |
Premiums | $ 1,147 | $ 1,094 | $ 1,124 |
Percentage of Amount Assumed to Net | 7.00% | 6.90% | 7.20% |
Percentage of Amount Assumed to Net | 19.20% | 19.60% | 20.00% |
Life insurance and annuities | |||
Premiums | |||
Gross Amount | $ 971 | $ 963 | $ 984 |
Ceded to Other Companies | 101 | 100 | 103 |
Assumed from Other Companies | 211 | 204 | 216 |
Premiums | $ 1,081 | $ 1,067 | $ 1,097 |
Percentage of Amount Assumed to Net | 19.50% | 19.10% | 19.70% |
Accident and health | |||
Premiums | |||
Gross Amount | $ 97 | $ 49 | $ 54 |
Ceded to Other Companies | 40 | 32 | 36 |
Assumed from Other Companies | 9 | 10 | 9 |
Premiums | $ 66 | $ 27 | $ 27 |
Percentage of Amount Assumed to Net | 13.60% | 37.00% | 33.30% |
Uncategorized Items - axaeq-201
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 32,000,000 |
Accounting Standards Update 2014-09 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 13,000,000 |
Accounting Standards Update 2014-09 [Member] | Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 19,000,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 13,000,000 |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 7,000,000 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (7,000,000) |
Accounting Standards Update 2018-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 89,000,000 |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (89,000,000) |