Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38469 | |
Entity Registrant Name | Equitable Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0226248 | |
Entity Address, Address Line One | 1290 Avenue of the Americas | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10104 | |
City Area Code | 212 | |
Local Phone Number | 554-1234 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 338,487,108 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Entity Central Index Key | 0001333986 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | EQH | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | EQH PR A | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | |
Trading Symbol | EQH PR C | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $74,340 and $72,991) (allowance for credit losses of $2 and $24) | $ 63,470 | $ 63,361 | |
Fixed maturities, at fair value using the fair value option | [1] | 1,634 | 1,508 |
Mortgage loans on real estate (net of allowance for credit losses of $139 and $129) | [1] | 17,655 | 16,481 |
Policy loans | 4,089 | 4,033 | |
Other equity investments | [1] | 3,272 | 3,152 |
Trading securities, at fair value | 1,009 | 677 | |
Other invested assets | [1] | 6,080 | 3,885 |
Total investments | 97,209 | 93,097 | |
Cash and cash equivalents | [1] | 6,096 | 4,281 |
Cash and securities segregated, at fair value | 928 | 1,522 | |
Broker-dealer related receivables | 2,017 | 2,338 | |
Deferred policy acquisition costs | 6,599 | 6,369 | |
Goodwill and other intangible assets, net | 5,448 | 5,482 | |
Amounts due from reinsurers (allowance for credit losses of $7 and $10) | 8,271 | 8,471 | |
Current and deferred income taxes | 2,035 | 781 | |
Purchased market risk benefits | 8,745 | 10,423 | |
Other assets | [1] | 3,945 | 4,033 |
Assets held-for-sale | 681 | 562 | |
Assets for market risk benefits | 701 | 490 | |
Separate Accounts assets | 117,577 | 114,853 | |
Total Assets | 260,252 | 252,702 | |
LIABILITIES | |||
Policyholders’ account balances | 91,912 | 83,866 | |
Liability for market risk benefits | 13,011 | 15,766 | |
Future policy benefits and other policyholders' liabilities | 16,647 | 16,603 | |
Broker-dealer related payables | 454 | 715 | |
Customer related payables | 2,321 | 3,323 | |
Amounts due to reinsurers | 1,424 | 1,533 | |
Short-term debt | 0 | 759 | |
Long-term debt | 3,820 | 3,322 | |
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 1,541 | 1,150 |
Other liabilities | [1] | 7,412 | 7,108 |
Liabilities held-for-sale | 216 | 108 | |
Separate Accounts liabilities | 117,577 | 114,853 | |
Total Liabilities | 256,335 | 249,106 | |
Redeemable noncontrolling interest | [1],[2] | 636 | 455 |
Commitments and contingent liabilities | [3] | ||
Equity attributable to Holdings: | |||
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference | 1,562 | 1,562 | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 495,418,509 and 508,418,442 shares issued, respectively; 342,074,647 and 365,081,940 shares outstanding, respectively | 3 | 4 | |
Additional paid-in capital | 2,308 | 2,299 | |
Treasury stock, at cost, 153,448,479 and 143,336,502 shares, respectively | (3,592) | (3,297) | |
Retained earnings | 11,163 | 9,825 | |
Accumulated other comprehensive income (loss) | (9,802) | (8,992) | |
Total equity attributable to Holdings | 1,642 | 1,401 | |
Noncontrolling interest | 1,639 | 1,740 | |
Total Equity | 3,281 | 3,141 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 260,252 | $ 252,702 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.[2]See Note 15 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.[3]See Note 16 of the Notes to these Consolidated Financial Statements for details of commitments and contingent liabilities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Amortized cost of fixed maturities available-for-sale | $ 74,340,000,000 | $ 72,991,000,000 |
Allowance for credit losses of fixed maturities available-for-sale | 2,000,000 | 24,000,000 |
Allowance for credit losses of mortgage loans on real estate | 209,000,000 | 129,000,000 |
Allowance for credit losses of amounts due from reinsurers | $ 7,000,000 | $ 10,000,000 |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference | $ 25,000 | $ 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) | 495,418,509 | 508,418,442 |
Common stock outstanding (in shares) | 342,074,647 | 365,081,940 |
Treasury stock (in shares) | 153,448,479 | 143,336,502 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
REVENUES | |||||
Policy charges and fee income | $ 599 | $ 603 | $ 1,781 | $ 1,873 | |
Premiums | 267 | 259 | 823 | 744 | |
Net derivative gains (losses) | 615 | 199 | (1,143) | 2,216 | |
Net investment income (loss) | 1,071 | 842 | 3,097 | 2,357 | |
Investment gains (losses), net: | |||||
Credit and intent to sell losses on available for sale debt securities and loans | (65) | (267) | (145) | (266) | |
Other investment gains (losses), net | (346) | (65) | (409) | (624) | |
Total investment gains (losses), net | (411) | (332) | (554) | (890) | |
Investment management and service fees | 1,217 | 1,179 | 3,579 | 3,731 | |
Other income | 266 | 242 | 775 | 797 | |
Total revenues | 3,624 | 2,992 | 8,358 | 10,828 | |
BENEFITS AND OTHER DEDUCTIONS | |||||
Policyholders’ benefits | 693 | 629 | 2,107 | 2,020 | |
Remeasurement of liability for future policy benefits | 49 | 20 | 46 | 54 | |
Change in market risk benefits and purchased market risk benefits | (817) | (491) | (1,772) | (144) | |
Interest credited to policyholders’ account balances | 556 | 378 | 1,520 | 1,001 | |
Compensation and benefits | 593 | 568 | 1,742 | 1,682 | |
Commissions and distribution-related payments | 405 | 368 | 1,178 | 1,184 | |
Interest expense | 55 | 51 | 171 | 148 | |
Amortization of deferred policy acquisition costs | 165 | 148 | 472 | 436 | |
Other operating costs and expenses | 450 | 496 | 1,339 | 1,613 | |
Total benefits and other deductions | 2,149 | 2,167 | 6,803 | 7,994 | |
Income (loss) from continuing operations, before income taxes | 1,475 | 825 | 1,555 | 2,834 | |
Income tax (expense) benefit | (340) | (177) | 677 | (578) | |
Net income (loss) | 1,135 | 648 | 2,232 | 2,256 | |
Less: Net income (loss) attributable to the noncontrolling interest | [1] | 71 | 54 | 232 | 165 |
Net income (loss) attributable to Holdings | 1,064 | 594 | 2,000 | 2,091 | |
Less: Preferred stock dividends | 14 | 14 | 54 | 54 | |
Net income (loss) available to Holdings’ common shareholders, basic | 1,050 | 580 | 1,946 | 2,037 | |
Net income (loss) available to Holdings’ common shareholders, diluted | $ 1,050 | $ 580 | $ 1,946 | $ 2,037 | |
Net income (loss) applicable to Holdings’ common shareholders per common share: | |||||
Basic (in dollars per share) | $ 3.03 | $ 1.55 | $ 5.49 | $ 5.35 | |
Diluted (in dollars per share) | $ 3.02 | $ 1.54 | $ 5.47 | $ 5.32 | |
Weighted average common shares outstanding (in millions): | |||||
Basic (in shares) | 346.4 | 374.5 | 354.4 | 380.6 | |
Diluted (in shares) | 348 | 376.8 | 355.9 | 382.9 | |
[1]Includes redeemable noncontrolling interest. See Note 15 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,135 | $ 648 | $ 2,232 | $ 2,256 |
Other comprehensive income (loss) net of income taxes: | ||||
Change in unrealized gains (losses), net of reclassification adjustment | (1,766) | (2,784) | (764) | (11,814) |
Change in market risk benefits - instrument-specific credit risk | (1,086) | (198) | (235) | 2,501 |
Change in liability for future policy benefits - current discount rate | 195 | 279 | 157 | 1,126 |
Change in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 6 | 16 | 35 | 61 |
Foreign currency translation adjustment | (16) | (30) | (5) | (75) |
Total other comprehensive income (loss), net of income taxes | (2,667) | (2,717) | (812) | (8,201) |
Comprehensive income (loss) | (1,532) | (2,069) | 1,420 | (5,945) |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 64 | 42 | 230 | 137 |
Comprehensive income (loss) attributable to Holdings | $ (1,596) | $ (2,111) | $ 1,190 | $ (6,082) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Total Holdings Equity | Preferred Stock and Additional Paid-In Capital | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning of year at Dec. 31, 2021 | $ 11,927 | $ 10,351 | $ 1,562 | $ 4 | $ 1,919 | $ (2,850) | $ 8,413 | $ 1,303 | $ 1,576 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 143 | 107 | 68 | 39 | 36 | ||||
Purchase of treasury stock | (699) | (699) | (6) | (693) | |||||
Reissuance of treasury stock | (39) | (39) | (39) | ||||||
Retirement of common stock | 0 | 0 | 302 | (302) | |||||
Repurchase of AB Holding units | (108) | (108) | |||||||
Dividends paid to noncontrolling interest | (318) | (318) | |||||||
Issuance of AB Units for CarVal acquisition | 133 | 55 | 55 | 78 | |||||
Dividends on common stock | (220) | (220) | (220) | ||||||
Dividends on preferred stock | (54) | (54) | (54) | ||||||
Net income (loss) | 2,320 | 2,091 | 2,091 | 229 | |||||
Other comprehensive income (loss) | (8,201) | (8,173) | (8,173) | (28) | |||||
Other | 5 | (9) | (9) | 14 | |||||
End of year at Sep. 30, 2022 | 4,889 | 3,410 | 1,562 | 4 | 2,027 | (3,202) | 9,889 | (6,870) | 1,479 |
Beginning of year at Jun. 30, 2022 | 7,111 | 5,701 | 1,562 | 4 | 1,918 | (3,065) | 9,447 | (4,165) | 1,410 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 45 | 36 | 33 | 3 | 9 | ||||
Purchase of treasury stock | (201) | (201) | (1) | (200) | |||||
Reissuance of treasury stock | (3) | (3) | (3) | ||||||
Retirement of common stock | 0 | 0 | 60 | (60) | |||||
Repurchase of AB Holding units | (1) | (1) | |||||||
Dividends paid to noncontrolling interest | (79) | (79) | |||||||
Issuance of AB Units for CarVal acquisition | 133 | 55 | 55 | 78 | |||||
Dividends on common stock | (75) | (75) | (75) | ||||||
Dividends on preferred stock | (14) | (14) | (14) | ||||||
Net income (loss) | 656 | 594 | 594 | 62 | |||||
Other comprehensive income (loss) | (2,717) | (2,705) | (2,705) | (12) | |||||
Other | 34 | 22 | 22 | 12 | |||||
End of year at Sep. 30, 2022 | 4,889 | 3,410 | 1,562 | 4 | 2,027 | (3,202) | 9,889 | (6,870) | 1,479 |
Beginning of year at Dec. 31, 2022 | 3,141 | 1,401 | 1,562 | 4 | 2,299 | (3,297) | 9,825 | (8,992) | 1,740 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 79 | 60 | 40 | 20 | 19 | ||||
Purchase of treasury stock | (678) | (678) | 1 | (7) | (670) | ||||
Reissuance of treasury stock | (26) | (26) | (26) | ||||||
Retirement of common stock | 0 | 0 | 355 | (355) | |||||
Repurchase of AB Holding units | (71) | (71) | |||||||
Dividends paid to noncontrolling interest | (252) | (252) | |||||||
Dividends on common stock | (227) | (227) | (227) | ||||||
Dividends on preferred stock | (54) | (54) | (54) | ||||||
Net income (loss) | 2,208 | 2,000 | 2,000 | 208 | |||||
Other comprehensive income (loss) | (812) | (810) | (810) | (2) | |||||
Other | (27) | (24) | (24) | (3) | |||||
End of year at Sep. 30, 2023 | 3,281 | 1,642 | 1,562 | 3 | 2,308 | (3,592) | 11,163 | (9,802) | 1,639 |
Beginning of year at Jun. 30, 2023 | 5,260 | 3,553 | 1,562 | 4 | 2,297 | (3,493) | 10,325 | (7,142) | 1,707 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 16 | 12 | 14 | (2) | 4 | ||||
Purchase of treasury stock | (238) | (238) | (1) | (4) | (233) | ||||
Reissuance of treasury stock | 1 | 1 | 1 | ||||||
Retirement of common stock | 0 | 0 | 136 | (136) | |||||
Repurchase of AB Holding units | (52) | (52) | |||||||
Dividends paid to noncontrolling interest | (78) | (78) | |||||||
Dividends on common stock | (77) | (77) | (77) | ||||||
Dividends on preferred stock | (14) | (14) | (14) | ||||||
Net income (loss) | 1,129 | 1,064 | 1,064 | 65 | |||||
Other comprehensive income (loss) | (2,667) | (2,660) | (2,660) | (7) | |||||
Other | 1 | 1 | 1 | ||||||
End of year at Sep. 30, 2023 | $ 3,281 | $ 1,642 | $ 1,562 | $ 3 | $ 2,308 | $ (3,592) | $ 11,163 | $ (9,802) | $ 1,639 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.22 | $ 0.20 | $ 0.64 | $ 0.58 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,232 | $ 2,256 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Interest credited to policyholders’ account balances | 1,520 | 1,001 |
Policy charges and fee income | (1,781) | (1,873) |
Net derivative (gains) losses | 1,143 | (2,216) |
Credit and intent to sell losses on available for sale debt securities and loans | 145 | 266 |
Investment (gains) losses, net | 409 | 624 |
(Gains) losses on businesses held-for-sale | 3 | 0 |
Realized and unrealized (gains) losses on trading securities | (17) | 239 |
Non-cash long-term incentive compensation expense | 59 | 104 |
Amortization and depreciation | 576 | 391 |
Remeasurement of liability for future policy benefits | 46 | 54 |
Change in market risk benefits | (1,772) | (144) |
Equity (income) loss from limited partnerships | (81) | (128) |
Changes in: | ||
Net broker-dealer and customer related receivables/payables | (996) | (195) |
Reinsurance recoverable | (1,106) | (393) |
Segregated cash and securities, net | 595 | 169 |
Capitalization of deferred policy acquisition costs | (702) | (644) |
Future policy benefits | 196 | (477) |
Current and deferred income taxes | (868) | 460 |
Other, net | 584 | 195 |
Net cash provided by (used in) operating activities | 184 | (311) |
Proceeds from the sale/maturity/pre-payment of: | ||
Fixed maturities, available-for-sale | 7,978 | 14,413 |
Fixed maturities, at fair value using the fair value option | 323 | 433 |
Mortgage loans on real estate | 353 | 901 |
Trading account securities | 665 | 205 |
Short term investments | 2,704 | 313 |
Other | 631 | 454 |
Payment for the purchase/origination of: | ||
Fixed maturities, available-for-sale | (9,753) | (17,022) |
Fixed maturities, at fair value using the fair value option | (417) | (416) |
Mortgage loans on real estate | (1,567) | (2,604) |
Trading account securities | (994) | (185) |
Short term investments | (2,410) | (676) |
Other | (816) | (992) |
Purchase of business, net of cash acquired | 0 | 40 |
Cash settlements related to derivative instruments, net | (1,702) | 799 |
Investment in capitalized software, leasehold improvements and EDP equipment | (82) | (102) |
Other, net | 121 | 167 |
Net cash provided by (used in) investing activities | (4,966) | (4,272) |
Policyholders’ account balances: | ||
Deposits | 12,690 | 11,680 |
Withdrawals | (6,729) | (5,011) |
Transfers (to) from Separate Accounts | 974 | 1,148 |
Payments of market risk benefits | (559) | (434) |
Change in short-term financings | (759) | 155 |
Change in collateralized pledged assets | (127) | 37 |
Change in collateralized pledged liabilities | 1,232 | (2,472) |
(Decrease) increase in overdrafts payable | 3 | (20) |
Issuance of long-term debt | 497 | 0 |
Repayment of acquisition-related debt obligation | 0 | (43) |
Proceeds from collateralized loan obligations | 40 | 0 |
Proceeds from notes issued by consolidated VIEs | 362 | (34) |
Dividends paid on common stock | (227) | (220) |
Dividends paid on preferred stock | (54) | (54) |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards | (71) | (108) |
Purchase of treasury shares | (678) | (699) |
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds | 161 | (49) |
Distribution to noncontrolling interest of consolidated subsidiaries | (252) | (318) |
Changes in securities lending payable | 113 | 0 |
Other, net | (3) | 65 |
Net cash provided by (used in) financing activities | 6,613 | 3,624 |
Effect of exchange rate changes on cash and cash equivalents | (2) | (90) |
Change in cash and cash equivalents | 1,829 | (1,049) |
Cash and cash equivalents, beginning of period | 4,281 | 5,188 |
Change in cash of businesses held-for-sale | (14) | 0 |
Cash and cash equivalents, end of period | 6,096 | 4,139 |
Non-cash transactions from investing and financing activities: | ||
Right-of-use assets obtained in exchange for lease obligations | $ 48 | $ 54 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Equitable Holdings, Inc. is the holding company for a diversified financial services organization. The Company conducts operations in six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management and Legacy. The Company’s management evaluates the performance of each of these segments independently. See Note 17 of the Notes to these Consolidated Financial Statements for further information on the change to the reportable segments in the first quarter of 2023, which was retrospectively applied. • 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 - and distributes its institutional research products and solutions through Bernstein Research Services. The Investment Management and Research segment reflects the business of AB Holding and 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 VUL, IUL 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 Wealth Management segment is an emerging leader in the wealth management space with a differentiated advice value proposition that offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. In 2023, we began reporting this business separately from our Individual Retirement, Group Retirement and Protection Solutions segments as well as Corporate and Other. • The Legacy segment consists of our capital intensive fixed-rate GMxB business written prior to 2011. In 2023, we began reporting this business separately from our Individual Retirement business. 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 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. As of September 30, 2023 and December 31, 2022, the Company’s economic interest in AB was approximately 62% and 61%, respectively. The General Partner of AB 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 presented. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The unaudited interim consolidated financial statements (the “consolidated financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s consolidated financial statements included in the Recast 2022 Annual Report. Certain prior period amounts were adjusted to reflect the adoption of ASU 2018-12: Financial Services - Insurance (Topic 944). The accompanying unaudited 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. All significant intercompany transactions and balances have been eliminated in consolidation. The terms “third quarter 2023” and “third quarter 2022” refer to the three months ended September 30, 2023 and 2022, respectively. The terms “first nine months of 2023” and “first nine months of 2022” refer to the nine months ended September 30, 2023 and 2022, respectively. Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944) This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. 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. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. 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. 3. 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. On January 1, 2023, the Company adopted the new accounting standard ASU 2018-12 using the modified retrospective approach, except for MRBs which will use the full retrospective approach. Refer to “Transition impact of ASU 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” section within this note for further details. Transition impact of ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts The Company has not retrospectively adjusted its consolidated financial statements for the year ended December 31, 2020 to reflect the adoption of ASU 2018-12, consistent with the Division of Corporation Finance’s Financial Reporting Manual Section 11410.1. The Company adopted ASU 2018-12 for liability for future policy benefits (“LFPB”), additional insurance liabilities, DAC and balances amortized on a basis consistent with DAC on a modified retrospective basis. ASU 2018-12 was adopted for MRBs on a full retrospective basis. For the LFPB, the net transition adjustment has a favorable retained earnings impact due to the exclusion of DAC in loss recognition and Profits-followed-by-loss (“PFBL”) testing, resulting in a lower VISL PFBL liability. The unfavorable impact was offset by the removal of balances related to unrealized gains and losses on investments, any premium deficiency recorded in AOCI, formerly included in loss recognition testing as well as PFBL testing. For market risk benefits, the transition adjustment to AOCI related to the effect of the changes in the instrument-specific credit risk of market risk benefits between the contract issue and transition date. The remaining transition difference was related to recording market risk benefits at fair value. This change was recorded as an adjustment to retained earnings as of the transition date. For DAC, and balances amortized on a basis consistent with DAC including sales inducement assets and unearned revenue liabilities, there is no retained earnings impact due to application of the modified transition approach. There is a favorable AOCI impact due to the removal of DAC balances recorded in AOCI, offsetting the unfavorable AOCI impact resulting from LFPB. The following table presents the effect of transition adjustment to total equity resulting from the adoption of ASU 2018-12 as of January 1, 2021: Retained Earnings Accumulated Other Comprehensive Income Total (in millions) Liability for future policy benefits $ 30 $ (1,343) $ (1,313) Market risk benefits (3,398) (902) (4,300) DAC — 1,548 1,548 Unearned revenue liability and sales inducement assets (1) — (166) (166) Total transition adjustment before taxes (3,368) (863) (4,231) Income taxes 707 181 888 Total transition adjustment (net of taxes) $ (2,661) $ (682) $ (3,343) _______________ (1) Unearned revenue liability included within liability for future policy benefits financial statement line item in the consolidated balance sheets. Sales inducement assets are included in other assets in the consolidated balance sheets. The following table summarizes the balance of and changes in liability for future policy benefits on January 1, 2021 resulting from the adoption of ASU 2018-12: Protection Solutions Individual Corporate & Other Total Term Payout Group Health (in millions) Balance, December 31, 2020 $ 1,423 $ 3,047 $ 771 $ 2,100 $ 7,341 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income — (171) (85) (100) (356) Effect of remeasurement of liability at current single A rate (1) 560 531 94 300 1,485 Balance, January 1, 2021 (1) 1,983 3,407 780 2,300 8,470 Less: Reinsurance recoverable (59) — — (1,837) (1,896) Balance, January 1, 2021, net of reinsurance $ 1,924 $ 3,407 $ 780 $ 463 $ 6,574 ________________ (1) LFPB transition table not inclusive of the following transition adjustments to AOCI including Protection Solutions PFBL of $550 million, PDR of $(230) million, Rider Reserves and Term Reinsurance of $(24) million and Corporate and Other of $(111) million. The following table summarizes the balance of and changes in the net liability position of market risk benefits on January 1, 2021 resulting from the adoption of ASU 2018-12: Individual Retirement Legacy Total GMxB Core GMxB Legacy Purchased MRB (in millions) Balance, December 31, 2020 $ 2,206 $ 19,891 $ (2,572) $ 19,525 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income (4) (70) — (74) Adjustments for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (1) 505 461 2 968 Adjustments for the remaining difference (exclusive of the instrument specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurement for the MRB (1) (563) 4,122 (194) 3,365 Balance, January 1, 2021 $ 2,144 $ 24,404 $ (2,764) $ 23,784 _____________ (1) MRB transition table not inclusive of the following transition adjustments to retained earnings and AOCI including Individual Retirement EQUI-VEST of $43 million, SCS of $21 million, Protection Solutions of $(2) million and Group Retirement EQUI-VEST of $(20) million. The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12: Protection Solutions Legacy Individual Retirement Group Retirement Total Term UL (1) VUL (2) IUL (3) GMxB Legacy GMxB Core EI (4) IE (5) SCS EG (6) Momentum (in millions) Balance, December 31, 2020 $ 403 $ — $ — $ — $ 654 $ 1,635 $ 134 $ 95 $ 645 $ 553 $ 79 $ 4,198 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income — 177 714 162 13 11 20 (1) 210 81 22 1,409 Balance, January 1, 2021 (7) $ 403 $ 177 $ 714 $ 162 $ 667 $ 1,646 $ 154 $ 94 $ 855 $ 634 $ 101 $ 5,607 ______________ (1) “UL” defined as Universal Life (2) “VUL” defined as Variable Universal Life (3) “IUL” defined as Indexed Universal Life (4) “EI” defined as EQUI-VEST Individual (5) “IE” defined as Investment Edge (6) “EG” defined as EQUI-VEST Group (7) DAC transition table not inclusive of Closed Block of $136 million and Protection Solutions of $3 million transition adjustment. The following tables summarizes the balance of and changes in sales inducement assets and unearned revenue liability on January 1, 2021 resulting from the adoption of ASU 2018-12: Sales Inducement Assets Legacy Individual Retirement Total GMxB Legacy GMxB Core (in millions) Balance, December 31, 2020 $ 246 $ 158 $ 404 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income — — — Balance, January 1, 2021 $ 246 $ 158 $ 404 Protection Solutions Total Unearned Revenue Liability UL VUL IUL (in millions) Balance, December 31, 2020 $ 31 $ 438 $ 14 $ 483 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income 29 127 9 165 Balance, January 1, 2021 $ 60 $ 565 $ 23 $ 648 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 employee 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. Contracts are measured on a grouped basis utilizing cohorts consistent with those used in the calculation of future policy benefit reserves. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the contract. For life insurance products, DAC is amortized in proportion to the face amount in force. For annuity products, DAC is amortized in proportion to policy counts. The constant level basis used for amortization determines the current period amortization considering both the current period’s actual experience and future projections. The amortization pattern is revised quarterly on a prospective basis. Amortization of DAC is included in amortization of DAC, part of total benefits and other deductions. 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 acquisition costs associated with the replacement contract are deferred. Amount due to and from Reinsurers 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. 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 consolidated balance sheets 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. For reinsurance contracts, reinsurance recoverable balances are generally calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. Ceded reinsurance transactions are recognized and measured in a manner consistent with underlying reinsured contracts, including using consistent assumptions. Assumed and ceded reinsurance contract rights and obligations are accounted for on a basis consistent with our direct contract. The reinsurance cost or benefit for traditional life non-participating and limited-payment contracts is recognized in proportion to the gross premiums of the underlying direct cohorts. The locked-in single A discount rate used to calculate the reinsurance cost or benefit is established at inception of the reinsurance contract. Changes to the single A discount rate are reflected in comprehensive income at each reporting date. 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 other assets. 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 income or other operating costs and expenses, as appropriate. Sales Inducement Assets Sales inducement assets 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 sales inducement assets 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). Policyholders’ Account Balances 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. Obligations arising from funding agreements are also reported in policyholders’ account balances in the consolidated balance sheets. As a member of the FHLB, the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral. Future Policy Benefits and Other Policyholders’ Liabilities The liability for future policy benefits is estimated based upon the present value of future policy benefits and related claim expenses less the present value of estimated future net premiums where net premium equals gross premium under the contract multiplied by the net premium ratio. Related claim expenses include termination and settlement costs and exclude acquisition costs and non-claim related costs. The liability is estimated using current assumptions that include discount rate, mortality, lapses, and expenses. Assumptions are based on judgments that consider the Company’s historical experience, industry data, and other factors. For participating traditional life insurance policies, future policy benefit liabilities are calculated using a net level premium method based on 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 face amount over the life of the contract. For non-participating traditional life insurance policies (Term) and limited pay contracts (Payout, Pension), contracts are grouped into cohorts by contract type and issue year. Quarterly, the Company updates its estimate of cash flows using actual experience and current future cash flow assumptions, which is reflected in an updated net premium ratio used to calculate the liability. The ratio of actual and future expected claims to actual and future expected premiums determines the net premium ratio. The policy administration expense assumption is not updated after policy issuance. If actual expenses differ from the original expense assumptions, the differences are recognized in the period identified. The revised net premium ratio is used to determine the updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original contract issuance rate. Changes in the liability due to current discount rates differing from original rates are included in other comprehensive income within the consolidated statement of comprehensive income. For non-participating traditional life insurance policies and limited pay contracts, the discount rate assumption used is corporate A rated forward curve. We use a forward curve based upon a Bloomberg index. The liability is remeasured each quarter with the remeasurement change reported in other comprehensive income. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., single A) at contract inception for contracts issued after January 1, 2021. The Company developed an LDTI discount rate methodology used to calculate the LFPB for its traditional insurance liabilities and constructed a discount rate curve that references upper-medium grade (low credit risk) fixed-income instrument yields (i.e. single A rated Corporate bond yields) which are meant to reflect the duration characteristics of the corresponding insurance liabilities. The methodology uses observable market data, where available, and uses various estimation techniques in line with fair value guidance (such as interpolation and extrapolation) where data is limited. Discount rates are updated quarterly. For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). DPL will be amortized in relation to the expected future benefit payments. As the calculation of the DPL is based on discounted cash flows, interest accrues on the unamortized DPL balance using the discount rate determined at contract issuance. The DPL is updated at the same time as the estimates for cash flows for the liability for future policy benefits. Any difference between the recalculated and beginning of period DPL is recognized in remeasurement gain or loss in the consolidated statements of income (loss), remeasurement of liability for future policy benefits, part of total benefits and other deductions. On the consolidated balance sheets, the DPL is recorded in the liability for future policy benefits. Additional liabilities for contract or contract features that provide for additional benefits in addition to the account balance but are not market risk benefits or embedded derivatives (“additional insurance liabilities”) are established by estimating the expected value of death or other insurance 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). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. 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, and mortality experience. There can be no assurance that actual experience will be consistent with management’s estimates. Assumptions are reviewed annually and updated with the remeasurement gain or loss reflected in total benefit expense. The Company recognizes an adjustment in other comprehensive income for the additional insurance liabilities for unrealized gains and losses not included when calculating the present value of expected assessments for the benefit ratios. The Company conducts annual premium deficiency testing except for liability for future policy benefits for non- participating traditional and limited payment contracts. The Company reviews assumptions and determines whether the sum of existing liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid and settlement costs. Anticipated investment income is considered when performing premium deficiency for long duration contracts. The anticipated investment income is projected based on current investment portfolio returns grading to long term reinvestment rates over the projection periods, based on anticipated gross reinvestment spreads, defaults and investment expenses. Premium deficiency reserves are recorded in certain instances where 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 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 PFBL using a dynamic approach that changes over time as the projection of future losses change. Market Risk Benefits Market risk benefits (“MRBs”) are contracts or contract features that provide protection to the contract holder from other than nominal capital market risk and expose the Company to other than nominal capital market risk. Market risk benefits include contract features that provide minimum guarantees to policyholders and include GMIB, GMDB, GMWB, GMAB, and ROP DB benefits. MRBs are measured at fair value on a seriatim basis using an ascribed fee approach based upon policyholder behavior projections and risk neutral economic scenarios adjusted based on the facts and circumstances of the Company’s product features. The MRB asset and MRB liability will be equal to the average present value of benefits and risk margins less the average present value of ascribed fees. Ascribed fees will consist of the fee needed, under a stochastically generated set of risk-neutral scenarios, so that the mean present value of claims, including any risk charge, is equal to the mean present value of the projected attributed fees which will be capped at average present value of total policyholder contractual fees. The attributed fee percentage is considered a fixed term of the MRB feature and is held static over the life of the contract. Changes in fair value are recognized as a remeasurement gain/loss in the change in market risk benefits and purchased market risk benefits, part of total benefits and other deductions except for the portion of the change in the fair value due to a change in the Company’s own credit risk, which is recognized in other than comprehensive income. Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits) the balance related to the MRB will be derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) shall be used in the calculation of the liability for future policy benefits for the payout annuity. Upon derecognition, any related balance will be removed from AOCI. The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMLB (collectively, 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 GMIB base. The Company previously issued certain variable annuity products with GMIB, GWBL, GMWB, and GMAB features. The Company has also assumed reinsurance for products with GMxB features. Features in ceded reinsurance contracts that meet the definition of MRBs are accounted for at fair value as a purchased MRB. The fees used to determine the fair value of the reinsured market risk benefit are those defined in the reinsurance contract. The expected periodic future premiums would represent cash outflows and the expected future benefits would represent cash inflows in the fair value calculation. On the ceded side, the purchased MRB is measured considering the counterparty credit risk of the reinsurer, while the direct contract liabilities is measured considering the instrument-specific credit risk of the insurer. As a result of the difference in the treatment of the counterparty credit risk, the fair value of the direct and ceded contracts may be different even if the contractual fees and benefits are the same. Changes in instrument-specific credit risk of the Company is included in the fair value of its market risk benefit, whether in an asset or liability position, and whether related to an issued or purchased MRB, is recognized in OCI. The counterparty credit risk of the reinsurer is recorded in the consolidated statements of income (loss). Troubled Debt Restructuring The Company invests in commercial, agricultural and residential mortgage loans included in the consolidated balance sheets as mortgage loans on real estate. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty. The types of modifications made may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The credit allowance is an estimate of lifetime expected losses reflecting historical loss information which included losses from modification to a borrower experiencing financial difficulty. As the effect of the modification made to a borrower experiencing financial difficulty is already included in the credit allowance, the carrying value (net of the allowance) before and after modification through a TDR may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. For information pertaining to our TDRs see Note 3 of the Notes to these Consolidated Financial Statements. Securities Lending Program The Company enters into securities lending transactions whereby securities are loaned to third parties, primarily major brokerage firms. Securities lending transactions are treated as financing arrangements and the associated liability is recorded as the amount of cash received. Income and expenses associated with securities lending transactions are reported within net investment income in the consolidated statements of income (loss). Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, 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 is determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, the Company consolidates the entity. Quarterly, management of the Company reviews its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities 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. Consolidated VIEs Consolidated CLOs The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity as part of its investment management businesses. Additionally, the Company may invest in securities issued by these vehicles which are eliminated in consolidation of the CLOs. As of September 30, 2023 and December 31, 2022, respectively, Equitable Financial holds $113 million and $85 million of equity interests in the CLOs. The Company consolidated the CLOs as of September 30, 2023 and December 31, 2022 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority o |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturities AFS The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of September 30, 2023 and December 31, 2022 was $654 million and $591 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three and nine months ended September 30, 2023 and 2022. The following tables provide information relating to the Company’s fixed maturities classified as AFS: AFS Fixed Maturities by Classification Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) September 30, 2023 Fixed Maturities: Corporate (1) $ 50,800 $ 2 $ 58 $ 8,082 $ 42,774 U.S. Treasury, government and agency 5,744 — — 1,573 4,171 States and political subdivisions 615 — 2 102 515 Foreign governments 821 — 1 161 661 Residential mortgage-backed (2) 1,791 — — 136 1,655 Asset-backed (3) 10,477 — 15 212 10,280 Commercial mortgage-backed 4,051 — — 680 3,371 Redeemable preferred stock 41 — 2 — 43 Total at September 30, 2023 $ 74,340 $ 2 $ 78 $ 10,946 $ 63,470 December 31, 2022: Fixed Maturities: Corporate (1) $ 50,712 $ 24 $ 89 $ 7,206 $ 43,571 U.S. Treasury, government and agency 7,054 — 1 1,218 5,837 States and political subdivisions 609 — 7 89 527 Foreign governments 985 — 2 151 836 Residential mortgage-backed (2) 908 — 1 87 822 Asset-backed (3) 8,859 — 4 373 8,490 Commercial mortgage-backed 3,823 — — 588 3,235 Redeemable preferred stock 41 — 2 — 43 Total at December 31, 2022 $ 72,991 $ 24 $ 106 $ 9,712 $ 63,361 ______________ (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, credit risk transfer securities and other asset types. The contractual maturities of AFS fixed maturities as of September 30, 2023 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 pre-payment penalties. Contractual Maturities of AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) September 30, 2023 Contractual maturities: Due in one year or less $ 1,677 $ 1,658 Due in years two through five 14,540 13,675 Due in years six through ten 17,460 15,411 Due after ten years 24,301 17,377 Subtotal 57,978 48,121 Residential mortgage-backed 1,791 1,655 Asset-backed 10,477 10,280 Commercial mortgage-backed 4,051 3,371 Redeemable preferred stock 41 43 Total at September 30, 2023 $ 74,338 $ 63,470 The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Proceeds from sales $ 2,524 $ 905 $ 5,579 $ 11,640 Gross gains on sales $ 1 $ — $ 8 $ 44 Gross losses on sales $ (348) $ (62) $ (417) $ (653) Net (increase) decrease in Allowance for Credit and Intent to Sell losses $ (1) $ (243) $ (64) $ (246) 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: AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Balance, beginning of period $ 44 $ 32 $ 36 $ 44 Previously recognized impairments on securities that matured, paid, prepaid or sold (1) (2) (58) (17) Recognized impairments on securities impaired to fair value this period (1) (2) — 246 52 246 Credit losses recognized this period on securities for which credit losses were not previously recognized 1 (1) 10 — Additional credit losses this period on securities previously impaired — 5 4 7 Balance, end of period $ 44 $ 280 $ 44 $ 280 ______________ (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. (2) Amounts reflected for the nine months ended September 30, 2023 represent AFS fixed maturities in an unrealized loss position, which the Company sold in anticipation of Equitable Financial’s ordinary dividend to Holdings. The tables below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI: Net Unrealized Gains (Losses) on AFS Fixed Maturities Three Months Ended September 30, 2023 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, beginning of period $ (8,641) $ 36 $ 238 $ (8,367) Net investment gains (losses) arising during the period (2,575) — — (2,575) Reclassification adjustment: Included in net income (loss) 348 — — 348 Excluded from net income (loss) — — — — Other — — — — Impact of net unrealized investment gains (losses) — 38 460 498 Net unrealized investment gains (losses) excluding credit losses (10,868) 74 698 (10,096) Net unrealized investment gains (losses) with credit losses 1 — — 1 Balance, end of period $ (10,867) $ 74 $ 698 $ (10,095) Three Months Ended September 30, 2022 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, beginning of period $ (6,965) $ 25 $ 1,457 $ (5,483) Net investment gains (losses) arising during the period (4,045) — — (4,045) Reclassification adjustment: Included in net income (loss) 311 — — 311 Excluded from net income (loss) — — — — Other — — — — Impact of net unrealized investment gains (losses) — 16 781 797 Net unrealized investment gains (losses) excluding credit losses (10,699) 41 2,238 (8,420) Net unrealized investment gains (losses) with credit losses 1 — — 1 Balance, end of period $ (10,698) $ 41 $ 2,238 $ (8,419) Nine Months Ended September 30, 2023 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, beginning of period $ (9,606) $ 41 $ 440 $ (9,125) Net investment gains (losses) arising during the period (1,730) — — (1,730) Reclassification adjustment: Included in net income (loss) 474 — — 474 Other — — — — Impact of net unrealized investment gains (losses) — 33 257 290 Net unrealized investment gains (losses) excluding credit losses (10,862) 74 697 (10,091) Net unrealized investment gains (losses) with credit losses (5) — 1 (4) Balance, end of period $ (10,867) $ 74 $ 698 $ (10,095) Nine Months Ended September 30, 2022 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, beginning of period $ 4,809 $ (169) $ (974) $ 3,666 Net investment gains (losses) arising during the period (16,359) — — (16,359) Reclassification adjustment: Included in net income (loss) 859 — — 859 Other — — — — Impact of net unrealized investment gains (losses) — 210 3,210 3,420 Net unrealized investment gains (losses) excluding credit losses (10,691) 41 2,236 (8,414) Net unrealized investment gains (losses) with credit losses (7) — 2 (5) Balance, end of period $ (10,698) $ 41 $ 2,238 $ (8,419) The following tables disclose the fair values and gross unrealized losses of the 5,517 issues as of September 30, 2023 and the 5,209 issues as of December 31, 2022 that are not deemed to have credit losses, 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: AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded 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) September 30, 2023 Fixed Maturities: Corporate $ 7,091 $ 349 $ 32,564 $ 7,733 $ 39,655 $ 8,082 U.S. Treasury, government and agency 175 7 3,994 1,566 4,169 1,573 States and political subdivisions 137 2 270 100 407 102 Foreign governments 46 2 556 159 602 161 Residential mortgage-backed 967 22 675 114 1,642 136 Asset-backed 2,067 18 6,244 194 8,311 212 Commercial mortgage-backed 300 8 2,956 672 3,256 680 Total at September 30, 2023 $ 10,783 $ 408 $ 47,259 $ 10,538 $ 58,042 $ 10,946 December 31, 2022: Fixed Maturities: Corporate $ 24,580 $ 2,668 $ 16,534 $ 4,536 $ 41,114 $ 7,204 U.S. Treasury, government and agency 5,564 1,200 204 18 5,768 1,218 States and political subdivisions 130 25 173 64 303 89 Foreign governments 349 42 417 109 766 151 Residential mortgage-backed 671 49 83 38 754 87 Asset-backed 6,298 230 1,765 143 8,063 373 Commercial mortgage-backed 1,577 201 1,640 387 3,217 588 Total at December 31, 2022 $ 39,169 $ 4,415 $ 20,816 $ 5,295 $ 59,985 $ 9,710 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 0.9% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of September 30, 2023 and December 31, 2022 were $400 million and $327 million, respectively, representing 12.2% and 10.4% 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 NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of September 30, 2023 and December 31, 2022, respectively, approximately $2.7 billion and $2.9 billion, or 3.7% and 4.0%, of the $74.3 billion and $73.0 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 $153 million and $208 million as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, respectively, the $10.5 billion and $5.3 billion of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to the allowance for credit losses for these securities was not warranted at either September 30, 2023 or December 31, 2022. As of September 30, 2023 and December 31, 2022, 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. Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of September 30, 2023, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads. Securities Lending The Company has entered into securities lending agreements with an agent bank whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of September 30, 2023, the estimated fair value of loaned securities was $111 million. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as cash collateral, calculated daily. To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis. As of September 30, 2023, cash collateral received in the amount of $113 million, was invested by the agent bank. A securities lending payable for the overnight and continuous loans is included in other liabilities in the amount of cash collateral received. Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as net investment income and were not material for the three and nine months ended September 30, 2023. Mortgage Loans on Real Estate In September 2023, the Company began investing in residential mortgage loans. Accrued interest receivable on commercial, agricultural and residential mortgage loans as of September 30, 2023 and December 31, 2022 was $78 million and $71 million, respectively. There was no accrued interest written off for commercial, agricultural and residential mortgage loans for the nine months ended September 30, 2023 and 2022. As of September 30, 2023, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses. Allowance for Credit Losses on Mortgage Loans The change in the allowance for credit losses for commercial, agricultural and residential mortgage loans were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 140 $ 58 $ 123 $ 57 Current-period provision for expected credit losses 63 19 80 20 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance 63 19 80 20 Balance, end of period $ 203 $ 77 $ 203 $ 77 Agricultural mortgages: Balance, beginning of period $ 5 $ 6 $ 6 $ 5 Current-period provision for expected credit losses 1 — — 1 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance 1 — — 1 Balance, end of period $ 6 $ 6 $ 6 $ 6 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Residential mortgages: Balance, beginning of period $ — $ — $ — $ — Current-period provision for expected credit losses — — — — Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance — — — — Balance, end of period $ — $ — $ — $ — Total allowance for credit losses $ 209 $ 83 $ 209 $ 83 The change in the allowance for credit losses is attributable to: • increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization; and • changes in credit quality and economic assumptions. Credit Quality Information The Company’s commercial and agricultural mortgage loans segregated by risk rating exposure were as follows: Loan to Value (“LTV”) Ratios (1) (3) September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial and agricultural mortgage loans: Commercial: 0% - 50% $ 250 $ 484 $ 130 $ 35 $ — $ 1,620 $ — $ — $ 2,519 50% - 70% 688 2,313 815 869 257 2,618 419 96 8,075 70% - 90% 247 488 1,139 463 289 1,198 6 36 3,866 90% plus — — 34 — 92 696 — — 822 Total commercial $ 1,185 $ 3,285 $ 2,118 $ 1,367 $ 638 $ 6,132 $ 425 $ 132 $ 15,282 Agricultural: 0% - 50% $ 86 $ 163 $ 186 $ 235 $ 134 $ 811 $ — $ — $ 1,615 50% - 70% 46 146 162 204 58 303 — — 919 70% - 90% — — — — — 16 — — 16 90% plus — — — — — — — — — Total agricultural $ 132 $ 309 $ 348 $ 439 $ 192 $ 1,130 $ — $ — $ 2,550 September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total commercial and agricultural mortgage loans: 0% - 50% $ 336 $ 647 $ 316 $ 270 $ 134 $ 2,431 $ — $ — $ 4,134 50% - 70% 734 2,459 977 1,073 315 2,921 419 96 8,994 70% - 90% 247 488 1,139 463 289 1,214 6 36 3,882 90% plus — — 34 — 92 696 — — 822 Total commercial and agricultural mortgage loans $ 1,317 $ 3,594 $ 2,466 $ 1,806 $ 830 $ 7,262 $ 425 $ 132 $ 17,832 Debt Service Coverage (“DSC”) Ratios (2 ) (3) September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial and agricultural mortgage loans: Commercial: Greater than 2.0x $ 175 $ 695 $ 1,126 $ 1,140 $ 157 $ 3,127 $ — $ — $ 6,420 1.8x to 2.0x — — 181 167 172 737 256 96 1,609 1.5x to 1.8x 81 799 234 — 236 984 92 — 2,426 1.2x to 1.5x 522 762 455 — 30 761 6 — 2,536 1.0x to 1.2x 400 674 43 — 43 416 71 36 1,683 Less than 1.0x 7 355 79 60 — 107 — — 608 Total commercial $ 1,185 $ 3,285 $ 2,118 $ 1,367 $ 638 $ 6,132 $ 425 $ 132 $ 15,282 Agricultural: Greater than 2.0x $ 7 $ 51 $ 39 $ 60 $ 20 $ 184 $ — $ — $ 361 1.8x to 2.0x 16 16 56 32 23 62 — — 205 1.5x to 1.8x 9 50 31 109 18 199 — — 416 1.2x to 1.5x 38 111 155 173 99 374 — — 950 1.0x to 1.2x 33 57 63 57 26 287 — — 523 Less than 1.0x 29 24 4 8 6 24 — — 95 Total agricultural $ 132 $ 309 $ 348 $ 439 $ 192 $ 1,130 $ — $ — $ 2,550 September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total commercial and agricultural mortgage loans: Greater than 2.0x $ 182 $ 746 $ 1,165 $ 1,200 $ 177 $ 3,311 $ — $ — $ 6,781 1.8x to 2.0x 16 16 237 199 195 799 256 96 1,814 1.5x to 1.8x 90 849 265 109 254 1,183 92 — 2,842 1.2x to 1.5x 560 873 610 173 129 1,135 6 — 3,486 1.0x to 1.2x 433 731 106 57 69 703 71 36 2,206 Less than 1.0x 36 379 83 68 6 131 — — 703 Total commercial and agricultural mortgage loans $ 1,317 $ 3,594 $ 2,466 $ 1,806 $ 830 $ 7,262 $ 425 $ 132 $ 17,832 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Residential mortgage loans are excluded from the above tables. LTV Ratios (1) (3) December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial and agricultural mortgage loans: Commercial: 0% - 50% $ 624 $ 130 $ — $ — $ 119 $ 1,259 $ — $ — $ 2,132 50% - 70% 2,285 1,569 906 313 623 2,254 328 — 8,278 70% - 90% 363 415 463 329 424 1,314 — 34 3,342 90% plus — — — — 35 233 — — 268 Total commercial $ 3,272 $ 2,114 $ 1,369 $ 642 $ 1,201 $ 5,060 $ 328 $ 34 $ 14,020 Agricultural: 0% - 50% $ 163 $ 182 $ 228 $ 129 $ 132 $ 725 $ — $ — $ 1,559 50% - 70% 190 185 222 68 83 267 — — 1,015 70% - 90% — — — — — 16 — — 16 90% plus — — — — — — — — — Total agricultural $ 353 $ 367 $ 450 $ 197 $ 215 $ 1,008 $ — $ — $ 2,590 December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total commercial and agricultural mortgage loans: 0% - 50% $ 787 $ 312 $ 228 $ 129 $ 251 $ 1,984 $ — $ — $ 3,691 50% - 70% 2,475 1,754 1,128 381 706 2,521 328 — 9,293 70% - 90% 363 415 463 329 424 1,330 — 34 3,358 90% plus — — — — 35 233 — — 268 Total commercial and agricultural mortgage loans $ 3,625 $ 2,481 $ 1,819 $ 839 $ 1,416 $ 6,068 $ 328 $ 34 $ 16,610 DSC Ratios (2) (3) December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial and agricultural mortgage loans: Commercial: Greater than 2.0x $ 771 $ 1,159 $ 1,113 $ 102 $ 571 $ 1,923 $ — $ — $ 5,639 1.8x to 2.0x 158 215 164 197 186 482 279 — 1,681 1.5x to 1.8x 337 390 32 153 176 1,175 4 — 2,267 1.2x to 1.5x 1,041 259 — 92 73 917 — — 2,382 1.0x to 1.2x 507 43 60 98 160 492 45 34 1,439 Less than 1.0x 458 48 — — 35 71 — — 612 Total commercial $ 3,272 $ 2,114 $ 1,369 $ 642 $ 1,201 $ 5,060 $ 328 $ 34 $ 14,020 December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Agricultural: Greater than 2.0x $ 51 $ 40 $ 62 $ 21 $ 12 $ 193 $ — $ — $ 379 1.8x to 2.0x 16 58 35 24 14 51 — — 198 1.5x to 1.8x 69 42 111 18 19 196 — — 455 1.2x to 1.5x 107 147 177 98 99 298 — — 926 1.0x to 1.2x 91 80 61 30 60 257 — — 579 Less than 1.0x 19 — 4 6 11 13 — — 53 Total agricultural $ 353 $ 367 $ 450 $ 197 $ 215 $ 1,008 $ — $ — $ 2,590 Total commercial and agricultural mortgage loans: Greater than 2.0x $ 822 $ 1,199 $ 1,175 $ 123 $ 583 $ 2,116 $ — $ — $ 6,018 1.8x to 2.0x 174 273 199 221 200 533 279 — 1,879 1.5x to 1.8x 406 432 143 171 195 1,371 4 — 2,722 1.2x to 1.5x 1,148 406 177 190 172 1,215 — — 3,308 1.0x to 1.2x 598 123 121 128 220 749 45 34 2,018 Less than 1.0x 477 48 4 6 46 84 — — 665 Total commercial and agricultural mortgage loans $ 3,625 $ 2,481 $ 1,819 $ 839 $ 1,416 $ 6,068 $ 328 $ 34 $ 16,610 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Residential mortgage loans are excluded from the above tables. The amortized cost of residential mortgage loans by credit quality indicator and origination year was as follows: September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total (in millions) Performance indicators: Performing $ 21 $ 11 $ — $ — $ — $ — $ 32 Nonperforming — — — — — — — Total $ 21 $ 11 $ — $ — $ — $ — $ 32 Past-Due and Nonaccrual Mortgage Loan Status The aging analysis of past-due mortgage loans were as follows: Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) September 30, 2023: Mortgage loans: Commercial $ — $ — $ — $ — $ 15,248 $ 15,248 $ 34 $ 15,282 $ — $ 1 Agricultural 18 4 42 64 2,467 2,531 19 2,550 3 — Residential — — — — 32 32 — 32 — — Total $ 18 $ 4 $ 42 $ 64 $ 17,747 $ 17,811 $ 53 $ 17,864 $ 3 $ 1 December 31, 2022: Mortgage loans: Commercial $ 56 $ — $ — $ 56 $ 13,964 $ 14,020 $ — $ 14,020 $ — $ — Agricultural 3 5 13 21 2,553 2,574 16 2,590 — — Residential — — — — — — — — — — Total $ 59 $ 5 $ 13 $ 77 $ 16,517 $ 16,594 $ 16 $ 16,610 $ — $ — _______________ (1) Amounts presented at amortized cost basis. As of September 30, 2023 and December 31, 2022, the amortized cost of problem mortgage loans that had been classified as non-accrual loans were $19 million and $16 million, respectively. During the first quarter of 2023, the Company granted a modification to a $56 million commercial real estate loan. The modification reflects a pay and accrue structure where the loan was converted to interest only, and the pay rate is lower than the current rate beginning in 2023; 0.35% in 2023 and stepping up annually until it reaches the existing coupon of 5.0% in 2027. Interest between the pay rate and the coupon rate will be accrued and added to the loan monthly. Additionally, any excess cash flow above the pay rate will be applied to the loan. For the accounting policy pertaining to our TDRs see Note 2 of the Notes to these Consolidated Financial Statements. During the three and nine months ended September 30, 2023 and 2022 the Company identified an immaterial amount of TDRs. Equity Securities The breakdown of unrealized and realized gains and (losses) on equity securities was as follows: Unrealized and Realized Gains (Losses) from Equity Securities Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (5) $ (33) $ (3) $ (143) Net investment gains (losses) recognized on securities sold during the period (6) — (9) (11) Unrealized and realized gains (losses) on equity securities $ (11) $ (33) $ (12) $ (154) Trading Securities As of September 30, 2023 and December 31, 2022, respectively, the fair value of the Company’s trading securities was $1.0 billion and $677 million. As of September 30, 2023 and December 31, 2022, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $45 million and $39 million. The breakdown of net investment income (loss) from trading securities was as follows: Net Investment Income (Loss) from Trading Securities Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (26) $ (44) $ 20 $ (246) Net investment gains (losses) recognized on securities sold during the period (1) — (3) 6 Unrealized and realized gains (losses) on trading securities (27) (44) 17 (240) Interest and dividend income from trading securities 8 2 20 20 Net investment income (loss) from trading securities $ (19) $ (42) $ 37 $ (220) Fixed maturities, at fair value using the fair value option The breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option were as follows: Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 4 $ (7) $ 23 $ (20) Net investment gains (losses) recognized on securities sold during the period (5) (1) (19) 5 Unrealized and realized gains (losses) from fixed maturities (1) (8) 4 (15) Interest and dividend income from fixed maturities 3 1 7 — Net investment income (loss) from fixed maturities $ 2 $ (7) $ 11 $ (15) Net Investment Income The following tables provides the components of net investment income by investment type: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Fixed maturities $ 788 $ 700 $ 2,254 $ 1,939 Mortgage loans on real estate 224 148 599 424 Other equity investments 33 13 63 129 Policy loans 55 49 158 160 Trading securities (19) (42) 37 (220) Other investment income 18 14 59 17 Fixed maturities, at fair value using the fair value option 2 (7) 11 (15) Gross investment income (loss) 1,101 875 3,181 2,434 Investment expenses (30) (33) (84) (77) Net investment income (loss) $ 1,071 $ 842 $ 3,097 $ 2,357 Investment Gains (Losses), Net Investment gains (losses), net, including changes in the valuation allowances and credit losses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Fixed maturities $ (348) $ (311) $ (475) $ (859) Mortgage loans on real estate (63) (19) (80) (21) Other equity investments (1) — — — — Other — (2) 1 (10) Investment gains (losses), net $ (411) $ (332) $ (554) $ (890) _____________ (1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production. Investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $0 million and $1 million for the three and nine months ended September 30, 2023, respectively, and $0 million and $1 million for the three and nine months ended September 30, 2022, respectively. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2023 | |
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 TIPS and cash flow hedges, which are discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options, credit and foreign exchange derivatives, as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of its hedging strategy, the Company targets an asset level for all variable annuity products at or above a CTE98 level under most economic scenarios (CTE is a statistical measure of tail risk which quantifies the total asset requirement to sustain a loss if an event outside a given probability level has occurred. CTE98 denotes the financial resources a company would need to cover the average of the worst 2% of scenarios.) Derivatives Utilized to Hedge Exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer variable annuity products with GMxB features which are accounted for as market risk benefits. 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 feature and are accounted for as market risk benefits is that under-performance of the financial markets could result in the GMxB 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 experience 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. The reinsurance of the GMIB features is accounted for as purchased market risk benefits. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees to CS Life. As this contract provides full risk transfer and thus has the same risk attributes as the underlying direct contracts, the benefits of this treaty are accounted for in the same manner as the underlying gross reserves and therefore the amounts due from reinsurers related to the GMIB with NLG are accounted for as purchased market risk benefits. The Company has in place an economic hedge program using U.S. 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 SCS variable annuity, SIO in the EQUI-VEST variable annuity series, MSO in the variable life insurance products and 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 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 CDS. 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 CDS 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 its 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. The Company purchased CDS to mitigate its exposure to a reference entity through cash positions. These positions do not replicate credit spreads. 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 the CDS that it sold. The maximum potential amount of future payments the Company could be required to make under the credit derivatives sold 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 or Standard European Corporate Contract 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. Derivatives Utilized to Hedge Exposure to Foreign Currency Denominated Cash Flows The Company purchases private placement debt securities and issues funding agreements in the FABN program in currencies other than its functional U.S. dollar currency. The Company enters into cross currency swaps with external counterparties to hedge the exposure of the foreign currency denominated cash flows of these instruments. The foreign currency received from or paid to the cross currency swap counterparty is exchanged for fixed U.S. dollar amounts with improved net investment yields or net product costs over equivalent U.S. dollar denominated instruments issued at that time. The transactions are accounted for as cash flow hedges when they are designated in hedging relationships and qualify for hedge accounting. These cross currency swaps are for the period the foreign currency denominated private placement debt securities and funding agreement are outstanding, with the longest cross currency swap expiring in 2033. Since these cross currency swaps are designated and qualify as cash flow hedges, the corresponding interest accruals are recognized in net investment income and in interest credited to policyholders’ account balances. The tables below present quantitative disclosures about the Company’s derivative instruments designated in hedging relationships and derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments. The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category September 30, 2023 December 31, 2022 Fair Value Fair Value Notional Amount Derivative Assets Derivative Liabilities Net Derivatives Notional Amount Derivative Assets Derivative Liabilities Net Derivatives (in millions) Derivatives: designated for hedge accounting (1) Cash flow hedges: Currency swaps $ 2,140 $ 86 $ 87 $ (1) $ 1,431 $ 99 $ 85 $ 14 Interest swaps 952 — 294 (294) 955 — 294 (294) Total: designated for hedge accounting 3,092 86 381 (295) 2,386 99 379 (280) Derivatives: not designated for hedge accounting (1) Equity contracts: Futures 8,481 3 — 3 5,151 2 — 2 Swaps 12,556 51 14 37 11,188 39 9 30 Options 47,628 10,336 2,718 7,618 40,122 7,583 3,412 4,171 Interest rate contracts: Futures 6,449 — — — 12,693 — — — Swaps 3,073 1 157 (156) 1,515 — 166 (166) Credit contracts: Credit default swaps 272 13 7 6 327 18 9 9 Currency contracts: Currency swaps 721 38 — 38 397 4 13 (9) Currency forwards 29 19 18 1 62 31 32 (1) Other freestanding contracts: Margin — 470 — 470 — 226 — 226 Collateral — 156 7,994 (7,838) — 142 4,472 (4,330) Total: not designated for hedge accounting 79,209 11,087 10,908 179 71,455 8,045 8,113 (68) Embedded derivatives: SCS, SIO, MSO and IUL indexed features (2) — — 7,905 (7,905) — — 4,164 (4,164) Total embedded derivatives — — 7,905 (7,905) — — 4,164 (4,164) Total derivative instruments $ 82,301 $ 11,173 $ 19,194 $ (8,021) $ 73,841 $ 8,144 $ 12,656 $ (4,512) ___________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in policyholders’ account balances in the consolidated balance sheets. The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss): Derivative Instruments by Category Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Net Derivatives Gain (Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Net Derivatives Gain (Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI (in millions) Derivatives: designated for hedge accounting Cash flow hedges: Currency swaps $ (12) $ 2 $ 8 $ 14 $ (2) $ 8 $ (59) $ 41 Interest swaps 8 — — 27 (13) — — 30 Total: designated for hedge accounting (4) 2 8 41 (15) 8 (59) 71 Derivatives: not Designated for hedge accounting Equity contracts: Futures (28) — — — (187) — — — Swaps 666 — — — (645) — — — Options (868) — — — 3,133 — — — Interest rate contracts: Futures 26 — — — 36 — — — Swaps (288) — — — (297) — — — Credit contracts: Credit default swaps — — — — (5) — — — Currency contracts: Currency swaps 28 — — — 9 — — — Currency forwards 1 — — — 1 — — — Other freestanding contracts: Margin — — — — — — — — Collateral — — — — — — — — Total: not designated for hedge accounting (463) — — — 2,045 — — — Embedded derivatives: SCS, SIO,MSO and IUL indexed features 1,082 — — — (3,173) — — — Total embedded derivatives 1,082 — — — (3,173) — — — Total derivative instruments $ 615 $ 2 $ 8 $ 41 $ (1,143) $ 8 $ (59) $ 71 ______________ (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Net Derivatives Gain (Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Net Derivatives Gain (Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI (in millions) Derivatives: designated for hedge accounting Cash flow hedges: Currency swaps $ 7 $ 5 $ (36) $ 111 $ 21 $ 7 $ (46) $ 116 Interest swaps (38) — — 94 (79) — — 242 Total: designated for hedge accounting (31) 5 (36) 205 (58) 7 (46) 358 Derivatives: not Designated for hedge accounting Equity contracts: Futures 31 — — — 486 — — — Swaps 596 — — — 3,374 — — — Options (649) — — — (4,379) — — — Interest rate contracts: Futures (428) — — — (1,486) — — — Swaps (125) — — — (428) — — — Credit contracts: Credit default swaps (1) — — — 13 — — — Currency contracts: Currency swaps 23 — — — 41 — — — Currency forwards 2 — — — 5 — — — Other freestanding contracts: Margin — — — — — — — — Collateral — — — — — — — — Total: not designated for hedge accounting (551) — — — (2,374) — — — Embedded derivatives: SCS, SIO,MSO and IUL indexed features 781 — — — 4,648 — — — Total embedded derivatives 781 — — — 4,648 — — — Total derivative instruments $ 199 $ 5 $ (36) $ 205 $ 2,216 $ 7 $ (46) $ 358 . The following table presents a roll-forward of cash flow hedges recognized in AOCI: Roll-forward of Cash flow hedges in AOCI Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Balance, beginning of period $ 52 $ (55) $ 22 $ (208) Amount recorded in AOCI Currency swaps (17) 77 (12) 77 Interest swaps 31 51 4 149 Total amount recorded in AOCI 14 128 (8) 226 Amount reclassified from income to AOCI Currency swaps (1) 31 34 53 39 Interest swaps (1) (4) 43 26 93 Total amount reclassified from income to AOCI 27 77 79 132 Balance, end of period (2) $ 93 $ 150 $ 93 $ 150 _______________ (1) Currency swaps income is reported in net investment income in the consolidated statements of income (loss). Interest swaps income is reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) The Company does not estimate the amount of the deferred losses in AOCI at September 30, 2023 and 2022 which will be released and reclassified into net income (loss) over the next 12 months as the amounts cannot be reasonably estimated. Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts as of September 30, 2023 and December 31, 2022 are exchange-traded and net settled daily in cash. As of September 30, 2023 and December 31, 2022, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $391 million and $247 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 $96 million and $113 million, and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200 and 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 $14 million and $16 million. Collateral Arrangements The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its 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. As of September 30, 2023 and December 31, 2022, respectively, the Company held $8.0 billion and $4.5 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 $156 million and $142 million as of September 30, 2023 and December 31, 2022, respectively, in the normal operation of its collateral arrangements. The Company is exposed to losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreements, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position. As of September 30, 2023 and December 31, 2022, there were no net liability derivative positions with counterparties with credit risk-related contingent features whose credit rating has fallen. All derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements. The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of September 30, 2023 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: Derivative assets (1) $ 11,173 $ 7,532 $ 3,641 $ (3,137) $ 504 Secured lending 113 — 113 — 113 Other financial assets 2,326 — 2,326 — 2,326 Other invested assets $ 13,612 $ 7,532 $ 6,080 $ (3,137) $ 2,943 Liabilities: Derivative liabilities (2) $ 8,151 $ 7,532 $ 619 $ — $ 619 Secured lending 113 — $ 113 — 113 Other financial liabilities 6,680 — 6,680 — 6,680 Other liabilities $ 14,944 $ 7,532 $ 7,412 $ — $ 7,412 ______________ (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) Financial instruments/collateral sent (held). As of December 31, 2022 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: Derivative assets (1) $ 8,143 $ 7,047 $ 1,096 $ (848) $ 248 Other financial assets 2,789 — 2,789 — 2,789 Other invested assets $ 10,932 $ 7,047 $ 3,885 $ (848) $ 3,037 Liabilities: Derivative liabilities (2) $ 7,645 $ 7,047 $ 598 $ — $ 598 Other financial liabilities 6,510 — 6,510 — 6,510 Other liabilities $ 14,155 $ 7,047 $ 7,108 $ — $ 7,108 ______________ (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) Financial instruments sent (held). |
CLOSED BLOCK
CLOSED BLOCK | 9 Months Ended |
Sep. 30, 2023 | |
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 insure 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. For more information on the Closed Block, see Note 6 to the Company's consolidated financial statements included in the Recast 2022 Annual Report. Summarized financial information for the Company’s Closed Block is as follows: September 30, 2023 December 31, 2022 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 5,508 $ 5,692 Policyholder dividend obligation — — Other liabilities 110 68 Total Closed Block liabilities 5,618 5,760 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,062 and $3,171) (allowance for credit losses of $0 and $0) 2,804 2,948 Mortgage loans on real estate (net of allowance for credit losses of $11 and $4) 1,622 1,645 Policy loans 555 569 Cash and other invested assets 6 — Other assets 193 187 Total assets designated to the Closed Block 5,180 5,349 Excess of Closed Block liabilities over assets designated to the Closed Block 438 411 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $54 and $47 (203) (177) Maximum future earnings to be recognized from Closed Block assets and liabilities $ 235 $ 234 The Company’s Closed Block revenues and expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Revenues: Premiums and other income $ 27 $ 29 $ 86 $ 93 Net investment income (loss) 53 52 156 164 Investment gains (losses), net (6) (2) (6) (2) Total revenues 74 79 236 255 Benefits and Other Deductions: Policyholders’ benefits and dividends 79 93 237 249 Other operating costs and expenses — — — — Total benefits and other deductions 79 93 237 249 Net income (loss), before income taxes (5) (14) (1) 6 Income tax (expense) benefit 2 1 — (1) Net income (loss) $ (3) $ (13) $ (1) $ 5 |
DAC AND OTHER DEFERRED ASSETS_L
DAC AND OTHER DEFERRED ASSETS/LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Contract Holder Bonus Interest Credits [Abstract] | |
DAC AND OTHER DEFERRED ASSETS/LIABILITIES | DAC AND OTHER DEFERRED ASSETS/LIABILITIES Changes in the DAC asset were as follows: Nine Months Ended September 30, 2023 Protection Solutions Individual Retirement Legacy Group Retirement Corporate and Other Total Term UL VUL IUL GMxB Core EI IE SCS GMxB Legacy EG Momentum CB (1) (in millions) Balance, beginning of period $ 362 $ 179 $ 889 $ 185 $ 1,625 $ 156 $ 148 $ 1,279 $ 593 $ 710 $ 89 $ 127 $ 6,342 Capitalization 11 5 109 10 87 8 30 364 19 51 7 — 701 Amortization (2) (29) (9) (42) (8) (107) (9) (11) (154) (48) (31) (13) (8) (469) Balance, end of period $ 344 $ 175 $ 956 $ 187 $ 1,605 $ 155 $ 167 $ 1,489 $ 564 $ 730 $ 83 $ 119 $ 6,574 ______________ (1) “CB” defined as Closed Block. (2) DAC amortization of $3 million related to Other not reflected in table above. Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Group Retirement Corporate and Other Total Term UL VUL IUL GMxB Core EI IE SCS GMxB Legacy EG Momentum CB (1) (in millions) Balance, beginning of period $ 385 $ 180 $ 799 $ 180 $ 1,653 $ 156 $ 121 $ 1,070 $ 631 $ 677 $ 94 $ 138 $ 6,084 Capitalization 14 9 106 12 85 10 31 287 25 55 11 — 645 Amortization (2) (31) (9) (38) (8) (102) (10) (10) (124) (49) (31) (14) (8) (434) Balance, end of period $ 368 $ 180 $ 867 $ 184 $ 1,636 $ 156 $ 142 $ 1,233 $ 607 $ 701 $ 91 $ 130 $ 6,295 ______________ (1) “CB” defined as Closed Block. (2) DAC amortization of $2 million related to Other not reflected in table above. Changes in the Individual Retirement sales inducement assets were as follows: Nine Months Ended September 30, 2023 2022 GMxB Core GMxB Legacy GMxB Core GMxB Legacy (in millions) Balance, beginning of period $ 137 $ 200 $ 147 $ 222 Capitalization 2 — 2 — Amortization (9) (16) (9) (17) Balance, end of period $ 130 $ 184 $ 140 $ 205 Changes in the Protection Solutions unearned revenue liability were as follows: Nine Months Ended September 30, 2023 2022 UL VUL IUL UL VUL IUL (in millions) Balance, beginning of period $ 95 $ 684 $ 157 $ 80 $ 619 $ 94 Capitalization 14 86 49 16 77 54 Amortization (5) (34) (8) (4) (30) (5) Balance, end of period $ 104 $ 736 $ 198 $ 92 $ 666 $ 143 The following table presents a reconciliation of DAC to the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Protection Solutions Term $ 344 $ 362 Universal Life 175 179 Variable Universal Life 956 889 Indexed Universal Life 187 185 Individual Retirement GMxB Core 1,605 1,625 EQUI-VEST Individual 155 156 Investment Edge 167 148 SCS 1,489 1,279 Legacy Segment GMxB Legacy 564 593 Group Retirement EQUI-VEST Group 730 710 Momentum 83 89 Corporate and Other 119 127 Other 25 27 Total $ 6,599 $ 6,369 Annually, or as circumstances warrant, we review the associated decrements assumptions (i.e., mortality and lapse) based on our multi-year average of companies experience with actuarial judgements to reflect other observable industry trends. In addition to DAC, the unearned revenue liability and sales inducement asset (“SIA”) use similar techniques and quarterly update processes for balance amortization. The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Reconciliation Term $ 1,265 $ 1,365 Individual Retirement - Payout 789 828 Legacy - Payout 3,192 2,689 Group Pension - Benefit Reserve & DPL 475 523 Health 1,437 1,558 UL 1,131 1,109 Subtotal 8,289 8,072 Whole Life Closed Block and Open Block products 5,502 5,664 Other (1) 922 908 Future policyholder benefits total 14,713 14,644 Other policyholder funds and dividends payable 1,934 1,959 Total $ 16,647 $ 16,603 _____________ (1) Primarily consists of future policy benefits related to Protective Life and Annuity, Assumed Life and Disability, Group Life Run off, Variable Interest Sensitive Life rider and Employee Benefits. The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts: Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Corporate & Other Protection Solutions Individual Retirement Legacy Corporate & Other Term Payout Payout Group Pension Health Term Payout Payout Group Pension Health (in millions) Present Value of Expected Net Premiums Balance, beginning of period $ 2,100 $ — $ — $ — $ (5) $ 2,485 $ — $ — $ — $ 22 Beginning balance at original discount rate 2,078 — — — (5) 1,864 — — — 19 Effect of changes in cash flow assumptions 32 — — — (8) 204 — — — (10) Effect of actual variances from expected experience (14) — — — (6) 38 — — — (12) Adjusted beginning of period balance 2,096 — — — (19) 2,106 — — — (3) Issuances 49 — — — — 62 — — — — Interest accrual 76 — — — (1) 73 — — — — Net premiums collected (147) — — — 2 (144) — — — 1 Ending Balance at original discount rate 2,074 — — — (18) 2,097 — — — (2) Effect of changes in discount rate assumptions (82) — — — 1 (5) — — — — Balance, end of period $ 1,992 $ — $ — $ — $ (17) $ 2,092 $ — $ — $ — $ (2) Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Corporate & Other Protection Solutions Individual Retirement Legacy Corporate & Other Term Payout Payout Group Pension Health Term Payout Payout Group Pension Health (in millions) Present Value of Expected Future Policy Benefits Balance, beginning of period $ 3,465 $ 828 $ 2,689 $ 523 $ 1,553 $ 4,294 $ 1,114 $ 2,547 $ 683 $ 2,092 Beginning balance of original discount rate 3,391 845 3,024 583 1,795 3,241 883 2,400 632 1,915 Effect of changes in cash flow assumptions 40 — — — (12) 222 (1) (1) — (5) Effect of actual variances from expected experience (16) — 1 — (5) 41 (1) (2) — (10) Adjusted beginning of period balance 3,415 845 3,025 583 1,778 3,504 881 2,397 632 1,900 Issuances 53 38 733 — — 67 19 556 — — Interest accrual 126 29 65 15 43 125 30 47 16 46 Benefits payments (254) (69) (199) (50) (111) (283) (74) (143) (53) (124) Ending Balance at original discount rate 3,340 843 3,624 548 1,710 3,413 856 2,857 595 1,822 Effect of changes in discount rate assumptions (84) (54) (432) (73) (290) 37 (26) (373) (65) (264) Balance, end of period $ 3,256 $ 789 $ 3,192 $ 475 $ 1,420 $ 3,450 $ 830 $ 2,484 $ 530 $ 1,558 Impact of flooring LFPB at zero 1 — — — — 1 — — — — Net liability for future policy benefits $ 1,265 789 3,192 475 1,437 1,359 830 2,484 530 1,560 Less: Reinsurance recoverable 25 — (777) — (1,145) 22 — (365) — (1,248) Net liability for future policy benefits, after reinsurance recoverable $ 1,290 $ 789 $ 2,415 $ 475 $ 292 $ 1,381 $ 830 $ 2,119 $ 530 $ 312 Weighted-average duration of liability for future policyholder benefits (years) 7.1 9.3 7.7 7.1 8.7 7.1 9.5 8.2 7.2 8.8 The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts: September 30, 2023 December 31, 2022 (in millions) Term Expected future benefit payments and expenses (undiscounted) $ 5,918 $ 6,022 Expected future gross premiums (undiscounted) 7,039 7,273 Expected future benefit payments and expenses (discounted; AOCI basis) 3,255 3,465 Expected future gross premiums (discounted; AOCI basis) 3,610 3,904 September 30, 2023 December 31, 2022 (in millions) Payout - Legacy Expected future benefit payments and expenses (undiscounted) 4,872 3,947 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 3,105 2,607 Expected future gross premiums (discounted; AOCI basis) — — Payout Expected future benefit payments and expenses (undiscounted) 1,437 1,460 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 759 801 Expected future gross premiums (discounted; AOCI basis) — — Group Pension Expected future benefit payments and expenses (undiscounted) 683 730 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 456 563 Expected future gross premiums (discounted; AOCI basis) — — Health Expected future benefit payments and expenses (undiscounted) 2,375 2,510 Expected future gross premiums (undiscounted) 90 99 Expected future benefit payments and expenses (discounted; AOCI basis) 1,403 1,533 Expected future gross premiums (discounted; AOCI basis) $ 69 $ 78 The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts: Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Gross Premium Interest Accretion (in millions) Revenue and Interest Accretion Term $ 206 $ 206 $ 50 $ 53 Payout - Legacy 99 76 74 47 Payout 36 17 29 30 Group Pension — — 15 16 Health 6 7 44 46 Total $ 347 $ 306 $ 212 $ 192 The following table provides the weighted average interest rates for the liability for future policy benefits: September 30, 2023 December 31, 2022 Weighted Average Interest Rate Term Interest accretion rate 5.6 % 5.7 % Current discount rate 5.6 % 5.1 % Payout - Legacy Interest accretion rate 3.9 % 3.4 % Current discount rate 5.7 % 5.0 % Payout Interest accretion rate 5.0 % 4.9 % Current discount rate 5.8 % 5.2 % Group Pension Interest accretion rate 3.3 % 3.4 % Current discount rate 5.7 % 5.1 % Health Interest accretion rate 3.4 % 3.3 % Current discount rate 5.8 % 5.2 % The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities: Nine months ended September 30, 2023 2022 Protection Solutions UL (Dollars in millions) Balance, beginning of period $ 1,109 $ 1,087 Beginning balance before AOCI adjustments 1,135 1,076 Effect of changes in interest rate & cash flow assumptions and model changes (12) 8 Effect of actual variances from expected experience 14 11 Adjusted beginning of period balance 1,137 1,095 Interest accrual 38 36 Net assessments collected 50 49 Benefit payments (39) (45) Ending balance before shadow reserve adjustments 1,186 1,135 Effect of reserve adjustment recorded in AOCI (55) (27) Balance, end of period $ 1,131 $ 1,108 Net liability for additional liability $ 1,131 $ 1,108 Less: Reinsurance recoverable — — Net liability for additional liability, after reinsurance recoverable $ 1,131 $ 1,108 Weighted-average duration of additional liability - death benefit (years) 19.2 22.0 The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities: Nine Months Ended September 30, 2023 2022 2023 2022 Assessments Interest Accretion (in millions) Revenue and Interest Accretion UL $ 487 $ 473 $ 38 $ 36 Total $ 487 $ 473 $ 38 $ 36 Nine Months Ended September 30, 2023 2022 Weighted Average Interest Rate UL 4.5 % 4.5 % Interest accretion rate 4.5 % 4.5 % |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES U.S. GAAP 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 are also 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 Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended September 30, 2023 and December 31, 2022, the Company recognized impairment adjustments and impairment losses, respectively, to adjust the carrying value of held-for-sale asset and liabilities to their fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. The fair value was determined using a market approach, estimated based on the negotiated value of the asset and liabilities. See Note 20 of the Notes to these Consolidated Financial Statements for additional details of the Held-for-Sale assets and liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements as of September 30, 2023 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments Fixed maturities, AFS: Corporate (1) $ — $ 40,671 $ 2,103 $ 42,774 U.S. Treasury, government and agency — 4,171 — 4,171 States and political subdivisions — 489 26 515 Foreign governments — 661 — 661 Residential mortgage-backed (2) — 1,616 39 1,655 Asset-backed (3) — 10,270 10 10,280 Commercial mortgage-backed — 3,321 50 3,371 Redeemable preferred stock — 43 — 43 Total fixed maturities, AFS — 61,242 2,228 63,470 Fixed maturities, at fair value using the fair value option — 1,454 180 1,634 Other equity investments (4) 217 445 53 715 Trading securities 329 610 70 1,009 Other invested assets: Short-term investments — 677 — 677 Assets of consolidated VIEs/VOEs 73 248 53 374 Swaps — (376) — (376) Credit default swaps — 6 — 6 Futures 3 — — 3 Options — 7,618 — 7,618 Total other invested assets 76 8,173 53 8,302 Cash equivalents 3,889 721 — 4,610 Segregated securities — 928 — 928 Purchased market risk benefits — — 8,745 8,745 Assets for market risk benefits — — 701 701 Separate Accounts assets (5) 114,566 2,454 1 117,021 Total Assets $ 119,077 $ 76,027 $ 12,031 $ 207,135 Liabilities: Notes issued by consolidated VIE’s, at fair value using the fair value option (6) $ — $ 1,510 $ — $ 1,510 SCS, SIO, MSO and IUL indexed features’ liability — 7,905 — 7,905 Liabilities of consolidated VIEs and VOEs 1 3 — 4 Liabilities for market risk benefits — — 13,011 13,011 Contingent payment arrangements — — 252 252 Total Liabilities $ 1 $ 9,418 $ 13,263 $ 22,682 ______________ (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, credit risk transfer securities and other asset types. (4) Includes short position equity securities of $13 million that are reported in other liabilities. (5) Separate Accounts 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. As of September 30, 2023, the fair value of such investments was $382 million. (6) Accrued interest payable of $31 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments Fixed maturities, AFS: Corporate (1) $ — $ 41,450 $ 2,121 $ 43,571 U.S. Treasury, government and agency — 5,837 — 5,837 States and political subdivisions — 499 28 527 Foreign governments — 836 — 836 Residential mortgage-backed (2) — 788 34 822 Asset-backed (3) — 8,490 — 8,490 Commercial mortgage-backed (2) — 3,203 32 3,235 Redeemable preferred stock — 43 — 43 Total fixed maturities, AFS — 61,146 2,215 63,361 Fixed maturities, at fair value using the fair value option — 1,284 224 1,508 Other equity investments (4) 214 497 12 723 Trading securities 290 332 55 677 Other invested assets: Short-term investments — 943 — 943 Assets of consolidated VIEs/VOEs 131 393 5 529 Swaps — (425) — (425) Credit default swaps — 9 — 9 Futures 2 — — 2 Options — 4,171 — 4,171 Total other invested assets 133 5,091 5 5,229 Cash equivalents 2,386 501 — 2,887 Segregated securities — 1,522 — 1,522 Purchased market risk benefits — — 10,423 10,423 Assets for market risk benefits — — 490 490 Separate Accounts assets (5) 111,744 2,436 1 114,181 Total Assets $ 114,767 $ 72,809 $ 13,425 $ 201,001 Liabilities: Notes issued by consolidated VIE’s, at fair value using the fair value option (6) $ — $ 1,374 $ — $ 1,374 SCS, SIO, MSO and IUL indexed features’ liability — 4,164 — 4,164 Liabilities of consolidated VIEs and VOEs 15 7 — 22 Liabilities for market risk benefits — — 15,766 15,766 Contingent payment arrangements — — 247 247 Total Liabilities $ 15 $ 5,545 $ 16,013 $ 21,573 ______________ (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) Includes short position equity securities of $12 million that are reported in other liabilities. (5) Separate Accounts 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. As of December 31, 2022, the fair value of such investments was $456 million. (6) Includes CLO short-term debt of $239 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option accrued interest payable of $15 million is reported in notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. Public Fixed Maturities The fair values of the Company’s public fixed maturities, including those accounted for using the fair value option 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. Private Fixed Maturities The fair values of the Company’s private fixed maturities, including those accounted for using the fair value option 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. Notes issued by consolidated VIE’s, at fair value using the fair value option These notes are based on the fair values of corresponding fixed maturity collateral. The CLO liabilities are also reduced by the fair value of the beneficial interests the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services. As the notes are valued based on the reference collateral, they are classified as Level 2 or 3. Freestanding Derivative Positions The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 of the Notes to these Consolidated Financial Statements 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 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. Level Classifications of the Company’s Financial Instruments Financial Instruments Classified as Level 1 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. Financial Instruments Classified as Level 2 Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities, certain corporate debt securities and financial assets and liabilities accounted for using the fair value option, 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 may be appropriate, for certain security types, such as pre-payment, 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, 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 classified as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers. Financial Instruments Classified as Level 3 The Company’s investments classified as Level 3 primarily include corporate debt securities and financial assets and liabilities accounted for using the fair value option, 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 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. 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 optional GMIB feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates. The GMWB feature allows the policyholder to withdraw at a 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. The GMDB feature guarantees that the benefit paid upon death will not be less than a guaranteed benefit base. If the contract’s account value is less than the benefit base at the time a death claim is paid, the amount payable will be equal to the benefit base. These are accounted for as market risk benefits carried at fair value and are also considered Level 3 for fair value leveling. Purchased MRB assets, which are accounted for as market risk benefits carried at fair value are also considered Level 3 for fair value leveling. The purchased MRB asset fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios while the MRB asset and liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to the MRB asset and liability over a range of market-consistent economic scenarios. The valuations of the MRBs and purchased MRB assets 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 MRBs and purchased MRB assets after taking into account the effects of collateral arrangements. Incremental adjustment to the risk-free curve for counterparty non-performance risk is made to the fair values of the purchased MRB assets. Risk margins were applied to the non-capital markets inputs to the MRBs and purchased MRB valuations. After giving consideration to collateral arrangements, the Company reduced the fair value of its purchased MRB asset by $730 million and $1.1 billion as of September 30, 2023 and December 31, 2022, respectively, to recognize incremental counterparty non-performance risk. The Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2020 and 2022 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. Transfers of Financial Instruments Between Levels 2 and 3 During the nine months ended September 30, 2023, fixed maturities with fair values of $489 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, fixed maturities with fair value of $29 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 15.8% of total equity as of September 30, 2023. During the nine months ended September 30, 2022, fixed maturities with fair values of $150 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, fixed maturities with fair value of $191 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 7.0% of total equity as of September 30, 2022. The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses). Not included below are the changes in balances related to market risk benefits and purchased market risk benefits level 3 assets and liabilities, which are included in Note 9 of the Notes to these Consolidated Financial Statements. Three Months Ended September 30, 2023 Corporate State and Political Subdivisions CMBS Asset-backed RMBS (in millions) Balance, beginning of period $ 2,037 $ 27 $ 34 $ — $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — Investment gains (losses), net (5) — — — — Subtotal (4) — — — — Other comprehensive income (loss) 5 — (1) — (1) Purchases 163 — 17 10 40 Sales (53) (1) — — — Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) (11) — — — — Transfers out of Level 3 (1) (34) — — — — Balance, end of period $ 2,103 $ 26 $ 50 $ 10 $ 39 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 5 $ — $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2023, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Three Months Ended September 30, 2023 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, beginning of period $ 105 $ 1 $ (250) $ 56 $ 217 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — — 7 Investment gains (losses), net — — — — 1 Subtotal — — — — 8 Other comprehensive income (loss) — — — — — Purchases — — — 14 1 Sales — — — — (8) Settlements — — — — — Other — — (2) — — Activity related to consolidated VIEs/VOEs 1 — — — — Transfers into Level 3 (1) — — — — (78) Transfers out of Level 3 (1) — — — — 40 Balance, end of period $ 106 $ 1 $ (252) $ 70 $ 180 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ 7 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2023, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. (3) Other Equity Investments include other invested assets. Three Months Ended September 30, 2022 Corporate State and Political Subdivisions CMBS Asset-backed RMBS (in millions) Balance, beginning of period $ 1,767 $ 30 $ 25 $ 18 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — Investment gains (losses), net (3) — — — — Subtotal (2) — — — — Other comprehensive income (loss) (71) (1) — 1 — Purchases 218 — 7 (3) — Sales (34) — — — — Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) 25 — — — — Transfers out of Level 3 (1) 8 — — (6) — Balance, end of period $ 1,911 $ 29 $ 32 $ 10 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (70) $ (1) $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2022, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Three Months Ended September 30, 2022 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, beginning of period $ 67 $ 1 $ (42) $ 52 $ 423 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) (1) — — — (20) Investment gains (losses), net — — — — — Subtotal (1) — — — (20) Other comprehensive income (loss) — — — — — Purchases (49) — (228) — 6 Sales — — — — 17 Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — (3) — — Transfers into Level 3 (1) — — — — (84) Transfers out of Level 3 (1) — — — — 32 Balance, end of period $ 17 $ 1 $ (273) $ 52 $ 374 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ (1) $ — $ — $ — $ (20) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2022, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. (3) Other Equity Investments include other invested assets. Nine Months Ended September 30, 2023 Corporate State and Political Subdivisions CMBS Asset-backed RMBS (in millions) Balance, beginning of period $ 2,121 $ 28 $ 32 $ — $ 34 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 4 — — — — Investment gains (losses), net (16) — — — — Subtotal (12) — — — — Other comprehensive income (loss) 15 — (1) — (1) Purchases 539 — 19 10 40 Sales (215) (2) — — — Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) — — — — — Transfers out of Level 3 (1) (345) — — — (34) Balance, end of period $ 2,103 $ 26 $ 50 $ 10 $ 39 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 9 $ — $ (1) $ — $ (1) ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2023, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Nine Months Ended September 30, 2023 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, beginning of period $ 17 $ 1 $ (247) $ 55 $ 224 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) (3) — — — 6 Investment gains (losses), net — — — — (1) Subtotal (3) — — — 5 Other comprehensive income (loss) — — — — — Purchases 44 — 15 75 Sales — — — — (43) Settlements — — 1 — — Other — — (6) — — Activity related to consolidated VIEs/VOEs 48 — — — — Transfers into Level 3 (1) — — — — 29 Transfers out of Level 3 (1) — — — — (110) Nine Months Ended September 30, 2023 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO Balance, end of period $ 106 $ 1 $ (252) $ 70 $ 180 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ (3) $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensi |
LIABILITIES FOR FUTURE POLICYHO
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS | DAC AND OTHER DEFERRED ASSETS/LIABILITIES Changes in the DAC asset were as follows: Nine Months Ended September 30, 2023 Protection Solutions Individual Retirement Legacy Group Retirement Corporate and Other Total Term UL VUL IUL GMxB Core EI IE SCS GMxB Legacy EG Momentum CB (1) (in millions) Balance, beginning of period $ 362 $ 179 $ 889 $ 185 $ 1,625 $ 156 $ 148 $ 1,279 $ 593 $ 710 $ 89 $ 127 $ 6,342 Capitalization 11 5 109 10 87 8 30 364 19 51 7 — 701 Amortization (2) (29) (9) (42) (8) (107) (9) (11) (154) (48) (31) (13) (8) (469) Balance, end of period $ 344 $ 175 $ 956 $ 187 $ 1,605 $ 155 $ 167 $ 1,489 $ 564 $ 730 $ 83 $ 119 $ 6,574 ______________ (1) “CB” defined as Closed Block. (2) DAC amortization of $3 million related to Other not reflected in table above. Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Group Retirement Corporate and Other Total Term UL VUL IUL GMxB Core EI IE SCS GMxB Legacy EG Momentum CB (1) (in millions) Balance, beginning of period $ 385 $ 180 $ 799 $ 180 $ 1,653 $ 156 $ 121 $ 1,070 $ 631 $ 677 $ 94 $ 138 $ 6,084 Capitalization 14 9 106 12 85 10 31 287 25 55 11 — 645 Amortization (2) (31) (9) (38) (8) (102) (10) (10) (124) (49) (31) (14) (8) (434) Balance, end of period $ 368 $ 180 $ 867 $ 184 $ 1,636 $ 156 $ 142 $ 1,233 $ 607 $ 701 $ 91 $ 130 $ 6,295 ______________ (1) “CB” defined as Closed Block. (2) DAC amortization of $2 million related to Other not reflected in table above. Changes in the Individual Retirement sales inducement assets were as follows: Nine Months Ended September 30, 2023 2022 GMxB Core GMxB Legacy GMxB Core GMxB Legacy (in millions) Balance, beginning of period $ 137 $ 200 $ 147 $ 222 Capitalization 2 — 2 — Amortization (9) (16) (9) (17) Balance, end of period $ 130 $ 184 $ 140 $ 205 Changes in the Protection Solutions unearned revenue liability were as follows: Nine Months Ended September 30, 2023 2022 UL VUL IUL UL VUL IUL (in millions) Balance, beginning of period $ 95 $ 684 $ 157 $ 80 $ 619 $ 94 Capitalization 14 86 49 16 77 54 Amortization (5) (34) (8) (4) (30) (5) Balance, end of period $ 104 $ 736 $ 198 $ 92 $ 666 $ 143 The following table presents a reconciliation of DAC to the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Protection Solutions Term $ 344 $ 362 Universal Life 175 179 Variable Universal Life 956 889 Indexed Universal Life 187 185 Individual Retirement GMxB Core 1,605 1,625 EQUI-VEST Individual 155 156 Investment Edge 167 148 SCS 1,489 1,279 Legacy Segment GMxB Legacy 564 593 Group Retirement EQUI-VEST Group 730 710 Momentum 83 89 Corporate and Other 119 127 Other 25 27 Total $ 6,599 $ 6,369 Annually, or as circumstances warrant, we review the associated decrements assumptions (i.e., mortality and lapse) based on our multi-year average of companies experience with actuarial judgements to reflect other observable industry trends. In addition to DAC, the unearned revenue liability and sales inducement asset (“SIA”) use similar techniques and quarterly update processes for balance amortization. The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Reconciliation Term $ 1,265 $ 1,365 Individual Retirement - Payout 789 828 Legacy - Payout 3,192 2,689 Group Pension - Benefit Reserve & DPL 475 523 Health 1,437 1,558 UL 1,131 1,109 Subtotal 8,289 8,072 Whole Life Closed Block and Open Block products 5,502 5,664 Other (1) 922 908 Future policyholder benefits total 14,713 14,644 Other policyholder funds and dividends payable 1,934 1,959 Total $ 16,647 $ 16,603 _____________ (1) Primarily consists of future policy benefits related to Protective Life and Annuity, Assumed Life and Disability, Group Life Run off, Variable Interest Sensitive Life rider and Employee Benefits. The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts: Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Corporate & Other Protection Solutions Individual Retirement Legacy Corporate & Other Term Payout Payout Group Pension Health Term Payout Payout Group Pension Health (in millions) Present Value of Expected Net Premiums Balance, beginning of period $ 2,100 $ — $ — $ — $ (5) $ 2,485 $ — $ — $ — $ 22 Beginning balance at original discount rate 2,078 — — — (5) 1,864 — — — 19 Effect of changes in cash flow assumptions 32 — — — (8) 204 — — — (10) Effect of actual variances from expected experience (14) — — — (6) 38 — — — (12) Adjusted beginning of period balance 2,096 — — — (19) 2,106 — — — (3) Issuances 49 — — — — 62 — — — — Interest accrual 76 — — — (1) 73 — — — — Net premiums collected (147) — — — 2 (144) — — — 1 Ending Balance at original discount rate 2,074 — — — (18) 2,097 — — — (2) Effect of changes in discount rate assumptions (82) — — — 1 (5) — — — — Balance, end of period $ 1,992 $ — $ — $ — $ (17) $ 2,092 $ — $ — $ — $ (2) Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Corporate & Other Protection Solutions Individual Retirement Legacy Corporate & Other Term Payout Payout Group Pension Health Term Payout Payout Group Pension Health (in millions) Present Value of Expected Future Policy Benefits Balance, beginning of period $ 3,465 $ 828 $ 2,689 $ 523 $ 1,553 $ 4,294 $ 1,114 $ 2,547 $ 683 $ 2,092 Beginning balance of original discount rate 3,391 845 3,024 583 1,795 3,241 883 2,400 632 1,915 Effect of changes in cash flow assumptions 40 — — — (12) 222 (1) (1) — (5) Effect of actual variances from expected experience (16) — 1 — (5) 41 (1) (2) — (10) Adjusted beginning of period balance 3,415 845 3,025 583 1,778 3,504 881 2,397 632 1,900 Issuances 53 38 733 — — 67 19 556 — — Interest accrual 126 29 65 15 43 125 30 47 16 46 Benefits payments (254) (69) (199) (50) (111) (283) (74) (143) (53) (124) Ending Balance at original discount rate 3,340 843 3,624 548 1,710 3,413 856 2,857 595 1,822 Effect of changes in discount rate assumptions (84) (54) (432) (73) (290) 37 (26) (373) (65) (264) Balance, end of period $ 3,256 $ 789 $ 3,192 $ 475 $ 1,420 $ 3,450 $ 830 $ 2,484 $ 530 $ 1,558 Impact of flooring LFPB at zero 1 — — — — 1 — — — — Net liability for future policy benefits $ 1,265 789 3,192 475 1,437 1,359 830 2,484 530 1,560 Less: Reinsurance recoverable 25 — (777) — (1,145) 22 — (365) — (1,248) Net liability for future policy benefits, after reinsurance recoverable $ 1,290 $ 789 $ 2,415 $ 475 $ 292 $ 1,381 $ 830 $ 2,119 $ 530 $ 312 Weighted-average duration of liability for future policyholder benefits (years) 7.1 9.3 7.7 7.1 8.7 7.1 9.5 8.2 7.2 8.8 The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts: September 30, 2023 December 31, 2022 (in millions) Term Expected future benefit payments and expenses (undiscounted) $ 5,918 $ 6,022 Expected future gross premiums (undiscounted) 7,039 7,273 Expected future benefit payments and expenses (discounted; AOCI basis) 3,255 3,465 Expected future gross premiums (discounted; AOCI basis) 3,610 3,904 September 30, 2023 December 31, 2022 (in millions) Payout - Legacy Expected future benefit payments and expenses (undiscounted) 4,872 3,947 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 3,105 2,607 Expected future gross premiums (discounted; AOCI basis) — — Payout Expected future benefit payments and expenses (undiscounted) 1,437 1,460 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 759 801 Expected future gross premiums (discounted; AOCI basis) — — Group Pension Expected future benefit payments and expenses (undiscounted) 683 730 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 456 563 Expected future gross premiums (discounted; AOCI basis) — — Health Expected future benefit payments and expenses (undiscounted) 2,375 2,510 Expected future gross premiums (undiscounted) 90 99 Expected future benefit payments and expenses (discounted; AOCI basis) 1,403 1,533 Expected future gross premiums (discounted; AOCI basis) $ 69 $ 78 The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts: Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Gross Premium Interest Accretion (in millions) Revenue and Interest Accretion Term $ 206 $ 206 $ 50 $ 53 Payout - Legacy 99 76 74 47 Payout 36 17 29 30 Group Pension — — 15 16 Health 6 7 44 46 Total $ 347 $ 306 $ 212 $ 192 The following table provides the weighted average interest rates for the liability for future policy benefits: September 30, 2023 December 31, 2022 Weighted Average Interest Rate Term Interest accretion rate 5.6 % 5.7 % Current discount rate 5.6 % 5.1 % Payout - Legacy Interest accretion rate 3.9 % 3.4 % Current discount rate 5.7 % 5.0 % Payout Interest accretion rate 5.0 % 4.9 % Current discount rate 5.8 % 5.2 % Group Pension Interest accretion rate 3.3 % 3.4 % Current discount rate 5.7 % 5.1 % Health Interest accretion rate 3.4 % 3.3 % Current discount rate 5.8 % 5.2 % The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities: Nine months ended September 30, 2023 2022 Protection Solutions UL (Dollars in millions) Balance, beginning of period $ 1,109 $ 1,087 Beginning balance before AOCI adjustments 1,135 1,076 Effect of changes in interest rate & cash flow assumptions and model changes (12) 8 Effect of actual variances from expected experience 14 11 Adjusted beginning of period balance 1,137 1,095 Interest accrual 38 36 Net assessments collected 50 49 Benefit payments (39) (45) Ending balance before shadow reserve adjustments 1,186 1,135 Effect of reserve adjustment recorded in AOCI (55) (27) Balance, end of period $ 1,131 $ 1,108 Net liability for additional liability $ 1,131 $ 1,108 Less: Reinsurance recoverable — — Net liability for additional liability, after reinsurance recoverable $ 1,131 $ 1,108 Weighted-average duration of additional liability - death benefit (years) 19.2 22.0 The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities: Nine Months Ended September 30, 2023 2022 2023 2022 Assessments Interest Accretion (in millions) Revenue and Interest Accretion UL $ 487 $ 473 $ 38 $ 36 Total $ 487 $ 473 $ 38 $ 36 Nine Months Ended September 30, 2023 2022 Weighted Average Interest Rate UL 4.5 % 4.5 % Interest accretion rate 4.5 % 4.5 % |
MARKET RISK BENEFITS
MARKET RISK BENEFITS | 9 Months Ended |
Sep. 30, 2023 | |
Market Risk Benefit [Abstract] | |
MARKET RISK BENEFITS | MARKET RISK BENEFITSThe following table presents the balances and changes to the balances for market risk benefits for the GMxB benefits on deferred variable annuities: Three Months Ended September 30, 2023 2022 Individual Retirement Legacy Individual Retirement Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy (in millions) Balance, beginning of period $ 131 $ 12,720 $ (9,923) $ 2,797 $ 414 $ 15,708 $ (11,725) $ 3,983 Balance BOP before changes in the instrument specific credit risk 351 14,142 (9,827) 4,315 779 17,735 (11,623) 6,112 Model changes and effect of changes in cash flow assumptions 20 (11) (33) (44) (8) 404 (174) 230 Actual market movement effect 202 718 (300) 418 281 754 (259) 495 Interest accrual 22 213 (150) 63 13 224 (170) 54 Attributed fees accrued (1) 100 212 (66) 146 98 221 (69) 152 Benefit payments (11) (322) 190 (132) (11) (316) 184 (132) Actual policyholder behavior different from expected behavior 7 (13) (2) (15) 11 42 (32) 10 Changes in future economic assumptions (411) (2,609) 1,511 (1,098) (450) (2,627) 1,513 (1,115) Issuances — — — — — — — — Balance EOP before changes in the instrument-specific credit risk 280 12,330 (8,677) 3,653 713 16,437 (10,630) 5,807 Changes in the instrument-specific credit risk (2) 38 (349) (61) (410) (313) (1,838) (96) (1,934) Balance, end of period $ 318 $ 11,981 $ (8,738) $ 3,243 $ 400 $ 14,599 $ (10,726) $ 3,873 Weighted-average age of policyholders (years) 64.2 72.9 72.5 N/A 63.3 72.4 71.9 N/A Net amount at risk $ 3,598 $ 23,123 $ 12,188 N/A $ 3,788 $ 23,933 $ 12,364 N/A Nine Months Ended September 30, 2023 2022 Individual Retirement Legacy Individual Retirement Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy (in millions) Balance, beginning of period $ 530 $ 14,699 $ (10,415) $ 4,284 $ 1,061 $ 20,236 $ (14,059) $ 6,177 Balance BOP before changes in the instrument specific credit risk 529 15,314 (10,358) 4,956 666 19,719 (14,051) 5,668 Model changes and effect of changes in cash flow assumptions 20 (11) (33) (44) (8) 317 (145) 172 Actual market movement effect (128) (662) 402 (260) 1,284 4,414 (1,672) 2,742 Interest accrual 60 604 (437) 167 30 507 (334) 173 Attributed fees accrued (1) 306 630 (207) 423 299 659 (216) 443 Benefit payments (35) (1,008) 560 (448) (24) (849) 472 (377) Actual policyholder behavior different from expected behavior 19 1 (28) (27) 16 101 (72) 29 Changes in future economic assumptions (488) (2,538) 1,424 (1,114) (1,546) (8,431) 5,388 (3,043) Issuances (3) — — — (4) — — — Balance EOP before changes in the instrument-specific credit risk 280 12,330 (8,677) 3,653 713 16,437 (10,630) 5,807 Changes in the instrument-specific credit risk (2) 38 (349) (61) (410) (313) (1,838) (96) (1,934) Balance, end of period $ 318 $ 11,981 $ (8,738) $ 3,243 $ 400 $ 14,599 $ (10,726) $ 3,873 Weighted-average age of policyholders (years) 64.2 72.9 72.5 N/A 63.3 72.4 71.9 N/A Net amount at risk $ 3,598 $ 23,123 $ 12,188 N/A $ 3,788 $ 23,933 $ 12,364 N/A _____________ (1) Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims. (2) Changes are recorded in OCI except for reinsurer credit which is reflected in the consolidated income statement. (3) Purchased MRB is the impact of non-affiliated reinsurance. September 30, 2023 December 31, 2022 Direct Asset Direct Liability Net Direct MRB Purchased MRB Total Direct Asset Direct Liability Net Direct MRB Purchased MRB Total (in millions) Individual Retirement GMxB Core $ (515) $ 833 $ 318 $ — $ 318 $ (387) $ 917 $ 530 $ — $ 530 Legacy Segment GMxB Legacy (129) 12,110 11,981 (8,738) 3,243 (51) 14,749 14,699 (10,412) 4,287 Other (1) (57) 68 11 (7) 4 (52) 100 47 (11) 36 Total $ (701) $ 13,011 $ 12,310 $ (8,745) $ 3,565 $ (490) $ 15,766 $ 15,276 $ (10,423) $ 4,853 ______________ (1) Other primarily includes Individual EQUI-VEST MRB. |
POLICYHOLDER ACCOUNT BALANCES
POLICYHOLDER ACCOUNT BALANCES | 9 Months Ended |
Sep. 30, 2023 | |
Policyholder Account Balance [Abstract] | |
POLICYHOLDER ACCOUNT BALANCES | POLICYHOLDER ACCOUNT BALANCES The following table reconciles the policyholders account balances to the policyholders’ account balance liability in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Policyholders’ account balance reconciliation Protection Solutions Universal Life $ 5,236 $ 5,340 Variable Universal Life 4,807 4,909 Legacy Segment GMxB Legacy 644 688 Individual Retirement GMxB Core 51 69 SCS 44,221 35,702 EQUI-VEST Individual 2,434 2,652 Group Retirement EQUI-VEST Group 11,729 12,045 Momentum 628 702 Other (1) 6,409 6,118 Balance (exclusive of Funding Agreements) 76,159 68,225 Funding Agreements 15,753 15,641 Balance, end of period $ 91,912 $ 83,866 _____________ (1) Primarily reflects products IR Payout, IR Other, Indexed Universal Life, Investment Edge, Group Pension, Closed Block and Corporate and Other. The following table summarizes the balances and changes in policyholder’s account balances: Nine Months Ended September 30, 2023 Protection Solutions Legacy Individual Retirement Group Retirement Universal Life Variable Universal Life GMxB Legacy GMxB Core SCS (1) EQUI-VEST Individual EQUI-VEST Group Momentum (Dollars in millions) Balance, beginning of period $ 5,340 $ 4,909 $ 688 $ 69 $ 35,702 $ 2,652 $ 12,045 $ 702 Issuances — — — — — — — — Premiums received 528 107 70 163 5 27 460 49 Policy charges (572) (190) 9 2 (6) — (4) — Surrenders and withdrawals (57) (33) (68) (24) (2,046) (256) (1,207) (105) Benefit payments (169) (84) (75) (1) (194) (56) (54) (4) Net transfers from (to) separate account — (53) — (162) 7,366 7 210 (24) Interest credited (2) 166 151 20 4 3,394 56 268 10 Other — — — — — 4 11 — Balance, end of period $ 5,236 $ 4,807 $ 644 $ 51 $ 44,221 $ 2,434 $ 11,729 $ 628 Weighted-average crediting rate 3.75% 3.70% 2.71% 1.57% N/A 2.90% 2.56% 2.33% Net amount at risk (3) $ 36,003 $ 115,752 $ 23,123 $ 3,598 $ 31 $ 126 $ 51 $ — Cash surrender value $ 3,450 $ 3,201 $ 607 $ 273 $ 40,156 $ 2,427 $ 11,672 $ 630 ______________ (1) SCS sales are recorded as a Separate Account liability until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) SCS and EQUI-VEST Group includes amounts related to the change in embedded derivative. (3) For life insurance products the net amount at risk is death benefit less account value for the policyholder. For variable annuity products the net amount at risk is the maximum GMxB NAR for the policyholder. Nine Months Ended September 30, 2022 Protection Solutions Legacy Individual Retirement Group Retirement Universal Life Variable Universal Life GMxB Legacy GMxB Core SCS (1) EQUI-VEST Individual EQUI-VEST Group Momentum (Dollars in millions) Balance, beginning of period $ 5,462 $ 4,807 $ 745 $ 112 $ 33,443 $ 2,784 $ 11,951 $ 704 Issuances — — — — — — — — Premiums received 557 122 49 133 1 37 450 61 Policy charges (595) (181) 6 (17) — (1) (5) — Surrenders and withdrawals (68) (12) (43) (23) (1,931) (131) (611) (100) Benefit payments (156) (73) (75) (2) (157) (43) (55) (2) Net transfers from (to) separate account — 131 6 (115) 5,684 25 242 47 Interest credited (2) 168 117 22 5 (4,250) 60 142 11 Other — — — — — — — — Balance, end of period $ 5,368 $ 4,911 $ 710 $ 93 $ 32,790 $ 2,731 $ 12,114 $ 721 Weighted-average crediting rate 3.66% 3.69% 2.71% 1.05% N/A 2.94% 2.55% 2.03% Net amount at risk (3) $ 38,282 $ 115,357 $ 23,933 $ 3,788 $ 163 $ 160 $ 274 $ — Cash surrender value $ 3,518 $ 3,413 $ 697 $ 310 $ 28,910 $ 2,723 $ 12,029 $ 721 ______________ (1) SCS sales are recorded as a Separate Account liability until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) SCS and EQUI-VEST includes amounts related to the change in embedded derivative. The following table presents the account values by range of guaranteed minimum crediting rates and the related range of the difference in basis points, between rates being credited policyholders and the respective guaranteed minimums: September 30, 2023 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total ( in millions) Protection Solutions Universal Life 0.00% - 1.50% $ — $ — $ 1 $ 5 $ 6 1.51% - 2.50% 89 66 553 326 1,034 Greater than2.50% 3,529 635 — — 4,164 Total $ 3,618 $ 701 $ 554 $ 331 $ 5,204 Variable Universal Life 0.00% - 1.50% $ 20 $ 39 $ 36 $ 6 $ 101 1.51% - 2.50% 139 415 6 — 560 Greater than 2.50% 3,701 — 12 5 3,718 Total $ 3,860 $ 454 $ 54 $ 11 $ 4,379 Legacy Segment GMxB Legacy 0.00% - 1.50% $ 81 $ 16 $ — $ — $ 97 1.51% - 2.50% 23 — — — 23 Greater than 2.50% 489 — — — 489 Total $ 593 $ 16 $ — $ — $ 609 September 30, 2023 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total ( in millions) Individual Retirement GMxB Core 0.00% - 1.50% $ 13 $ 202 $ — $ — $ 215 1.51% - 2.50% 13 — — — 13 Greater than 2.50% 54 — — — 54 Total $ 80 $ 202 $ — $ — $ 282 EQUI-VEST Individual 0.00% - 1.50% $ 52 $ 225 $ — $ — $ 277 1.51% - 2.50% 44 — — — 44 Greater than 2.50% 2,112 — — — 2,112 Total $ 2,208 $ 225 $ — $ — $ 2,433 Group Retirement EQUI-VEST 0.00% - 1.50% $ 791 $ 2,310 $ 35 $ 341 $ 3,477 1.51% - 2.50% 336 — — — 336 Greater than 2.50% 6,845 — — — 6,845 Total $ 7,972 $ 2,310 $ 35 $ 341 $ 10,658 Momentum 0.00% - 1.50% $ — $ 12 $ 337 $ 55 $ 404 1.51% - 2.50% 148 1 — — 149 Greater than 2.50% 70 — 5 — 75 Total $ 218 $ 13 $ 342 $ 55 $ 628 December 31, 2022 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total ( in millions) Protection Solutions Universal Life 0.00% - 1.50% $ — $ — $ 5 $ 1 $ 6 1.51% - 2.50% 181 197 605 47 1,030 Greater than 2.50% 3,615 657 — — 4,272 Total $ 3,796 $ 854 $ 610 $ 48 $ 5,308 Variable Universal Life 0.00% - 1.50% $ 30 $ 40 $ 7 $ 1 $ 78 1.51% - 2.50% 485 53 — — 538 Greater than 2.50% 3,900 — 2 — 3,902 Total $ 4,415 $ 93 $ 9 $ 1 $ 4,518 Legacy Segment GMxB Legacy 0.00% - 1.50% $ 386 $ — $ — $ — $ 386 1.51% - 2.50% 560 — — — 560 Greater than 2.50% 35 — — — 35 Total $ 981 $ — $ — $ — $ 981 Individual Retirement GMxB Core 0.00% - 1.50% $ 289 $ — $ — $ — $ 289 1.51% - 2.50% 14 — — — 14 Greater than 2.50% — — — — — Total $ 303 $ — $ — $ — $ 303 EQUI-VEST Individual 0.00% - 1.50% $ 345 $ — $ — $ — $ 345 1.51% - 2.50% 46 — — — 46 Greater than 2.50% 2,199 — 62 — 2,261 Total $ 2,590 $ — $ 62 $ — $ 2,652 SCS Products with either a fixed rate or no guaranteed minimum N/A N/A N/A N/A N/A Group Retirement EQUI-VEST Group 0.00% - 1.50% $ 109 $ 5 $ 366 $ 3,112 $ 3,592 1.51% - 2.50% 11 2 889 — 902 Greater than 2.50% 6,949 21 330 — 7,300 Total $ 7,069 $ 28 $ 1,585 $ 3,112 $ 11,794 Momentum 0.00% - 1.50% $ 15 $ 301 $ 122 $ 7 $ 445 1.51% - 2.50% 178 1 — — 179 Greater than 2.50% 73 — 5 — 78 Total $ 266 $ 302 $ 127 $ 7 $ 702 Separate Account - Summary The following table presents the balances of and changes in Separate Account liabilities: Nine Months Ended September 30, 2023 Protection Solutions Legacy Individual Retirement Group Retirement VUL GMxB Legacy GMxB Core EQUI-VEST Individual Investment Edge EQUI-VEST Group Momentum (in millions) Balance, beginning of period $ 13,187 $ 32,616 $ 27,772 $ 4,161 $ 3,798 $ 22,393 $ 3,885 Premiums and deposits 845 166 1,170 70 659 1,574 478 Policy charges (419) (495) (365) (2) — (13) (15) Surrenders and withdrawals (415) (2,001) (1,898) (293) (291) (1,218) (529) Benefit payments (68) (562) (176) (43) (33) (43) (8) Investment performance (1) 1,127 2,045 1,120 360 191 1,790 305 Net transfers from (to) general account 53 — 161 (7) (363) (210) 24 Other charges (2) — — — 4 — 25 — Balance, end of period $ 14,310 $ 31,769 $ 27,784 $ 4,250 $ 3,961 $ 24,298 $ 4,140 Cash surrender value $ 13,988 $ 31,481 $ 26,939 $ 4,218 $ 3,872 $ 24,031 $ 4,132 _____________ (1) Investment performance is reflected net of M&E fees. (2) EQUI-VEST Individual and EQUI-VEST Group for the nine months ended September 30, 2023, amounts reflect a total special payment applied to the accounts of active clients as part of a previously disclosed settlement agreement between Equitable Financial Life Insurance Company and the Securities & Exchange Commission. Nine Months Ended September 30, 2022 Protection Solutions Legacy Individual Retirement Group Retirement VUL GMxB Legacy GMxB Core EQUI-VEST Individual Investment Edge EQUI-VEST Group Momentum (in millions) Balance, beginning of period $ 16,405 $ 44,912 $ 35,288 $ 5,583 $ 4,287 $ 27,509 $ 4,975 Premiums and deposits 827 183 1,162 102 663 1,545 480 Policy charges (402) (516) (367) (2) 1 (12) (16) Surrenders and withdrawals (307) (2,056) (1,778) (225) (248) (1,018) (510) Benefit payments (85) (537) (172) (41) (26) (47) (9) Investment performance (1) (3,998) (9) 115 (25) (158) (242) (47) Net transfers from (to) general account (131) (10,375) (7,445) (1,396) (954) (7,033) (1,176) Balance, end of period $ 12,309 $ 31,602 $ 26,803 $ 3,996 $ 3,565 $ 20,702 $ 3,697 Cash surrender value $ 12,039 $ 31,301 $ 25,903 $ 3,965 $ 3,470 $ 20,482 $ 3,692 ______________ (1) Investment performance is reflected net of M&E fees. The following table reconciles the Separate Account liabilities to the Separate Account liability balance in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Separate Account Reconciliation Protection Solutions Variable Universal Life $ 14,310 $ 13,187 Legacy Segment GMxB Legacy 31,769 32,616 Individual Retirement GMxB Core 27,784 27,772 EQUI-VEST Individual 4,250 4,161 Investment Edge 3,961 3,798 Group Retirement EQUI-VEST Group 24,298 22,393 Momentum 4,140 3,885 Other (1) 7,065 7,041 Total $ 117,577 $ 114,853 ______________ (1) Primarily reflects Corporate and Other products and Group Retirement products including Association and Group Retirement Other. The following table presents the aggregate fair value of Separate Account assets by major asset category: September 30, 2023 Protection Solutions Individual Retirement Group Retirement Corp & Other Legacy Segment Total (in millions) Asset Type Debt securities $ 53 $ 1 $ 19 $ 7 $ — $ 80 Common Stock 59 33 457 1,558 — 2,107 Mutual Funds 14,650 37,285 29,733 695 31,784 114,147 Bonds and Notes 95 3 1 1,144 — 1,243 Total $ 14,857 $ 37,322 $ 30,210 $ 3,404 $ 31,784 $ 117,577 December 31, 2022 Protection Solutions Individual Retirement Group Retirement Corp & Other Legacy Segment Total (in millions) Asset Type Debt securities $ 58 $ 1 $ 17 $ 8 $ — $ 84 Common Stock 41 32 430 1,686 — 2,189 Mutual Funds 13,498 36,860 27,639 773 32,625 111,395 Bonds and Notes 119 3 1 1,062 — 1,185 Total $ 13,716 $ 36,896 $ 28,087 $ 3,529 $ 32,625 $ 114,853 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension Plans Holdings and Equitable Financial Retirement Plans Holdings sponsors the MONY Life Retirement Income Security Plan for Employees and Equitable Financial sponsors the Equitable Retirement Plan (the “Equitable Financial 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 Financial also sponsor certain nonqualified defined benefit plans, including the 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 Financial remains secondarily liable for its obligations under the Equitable Financial QP and would recognize such liability in the event Holdings does not perform. AB Retirement Plans AB 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. Service and compensation after December 31, 2008 are not taken into account in determining participants’ retirement benefits. Net Periodic Pension Expense Components of net periodic pension expense for the Company’s plans were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Service cost $ 2 $ 2 $ 6 $ 6 Interest cost 31 21 93 49 Expected return on assets (38) (40) (116) (119) Prior period service cost amortization 1 (1) — (2) Actuarial (gain) loss — — 1 1 Net amortization 11 15 28 55 Net Periodic Pension Expense $ 7 $ (3) $ 12 $ (10) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three and nine months ended September 30, 2023 and 2022 was computed using an estimated annual effective tax rate (“ETR”), with discrete items recognized in the period in which they occur. The estimated ETR is revised, as necessary, at the end of successive interim reporting periods. During the fourth quarter of 2022, the Company established a valuation allowance of $1.6 billion against its deferred tax asset related to unrealized capital losses in the available for sale securities portfolio. Adjustments to the valuation allowance due to changes in the portfolio’s unrealized capital loss are recorded in other comprehensive income. For the nine months ended September 30, 2023, the Company recorded a decrease to the valuation allowance of $136 million in other comprehensive income. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. Adjustments to the valuation allowance due to new facts or evidence are recorded in net income. During the nine months ended September 30, 2023, the Company increased its borrowing capacity and available liquidity so that the Company now has the ability and intent to hold the underlying securities in its available for sale portfolio to recovery to the extent that additional deferred tax asset would be realized. Based on all available evidence, as of September 30, 2023, the Company concluded that approximately three quarters of the deferred tax asset related to unrealized tax capital losses is more-likely-than-not to be realized and a full valuation allowance is not necessary. For the three and nine months ended September 30, 2023, the Company recorded an increase to the valuation allowance of $20 million and a decrease of $970 million, respectively, in net income. A valuation allowance of $464 million remains against the portion of the deferred tax asset that is still not more-likely-than-not to be realized. The Company uses the aggregate portfolio approach related to the stranded or disproportionate income tax effects in accumulated other comprehensive income related to available for sale securities. Under this approach, the disproportionate tax effect remains intact as long as the investment portfolio remains. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
EQUITY | EQUITY Preferred Stock Preferred stock authorized, issued and outstanding was as follows: September 30, 2023 December 31, 2022 Series Shares Authorized Shares Shares Outstanding Shares Authorized Shares Shares Outstanding Series A 32,000 32,000 32,000 32,000 32,000 32,000 Series B 20,000 20,000 20,000 20,000 20,000 20,000 Series C 12,000 12,000 12,000 12,000 12,000 12,000 Total 64,000 64,000 64,000 64,000 64,000 64,000 Dividends declared per share were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Series A dividends declared $ 328 $ 328 $ 984 $ 984 Series B dividends declared $ — $ — $ 619 $ 619 Series C dividends declared $ 269 $ 269 $ 806 $ 806 Common Stock Dividends declared per share of common stock were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Dividends declared $ 0.22 $ 0.20 $ 0.64 $ 0.58 Share Repurchase On February 9, 2022, the Company’s Board of Directors authorized a new $1.2 billion share repurchase program. Under this program, the Company may, from time to time purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares. On February 9, 2023, the Company’s Board of Directors authorized a new $700 million share repurchase program. Under this program, the Company may, from time to time, purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares. As of September 30, 2023, Holdings had authorized capacity of approximately $392 million remaining in its share repurchase program. Holdings repurchased a total of 8.3 million and 24.5 million shares of its common stock at an average price of $28.69 and $27.70 through open market repurchases, ASRs and privately negotiated transactions for the three and nine months ended September 30, 2023, respectively and repurchased a total of 7.0 million and 23.2 million shares of its common stock at an average price of $28.67 and $30.17 through open market repurchases, ASRs and privately negotiated transactions for the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2023, Holdings repurchased 3.4 million and 11.5 million shares, respectively, of its common stock through open market repurchases. During the three and nine months ended September 30, 2022, Holdings repurchased 4.7 million and 12.6 million shares, respectively, of its common stock through open market repurchases. Accelerated Share Repurchase Agreement In September 2023, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $70 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a pre-payment of $70 million and received initial delivery of 2.0 million Holdings’ shares. The ASR terminated in October 2023, at which time an additional 555,000 shares of common stock were received. In June 2023, Holdings established an obligation to enter into an ASR with a third-party financial institution to repurchase an aggregate of $70 million of Holdings’ common stock. Pursuant to the ASR, on July 6, 2023, Holdings made a pre-payment of $70 million and received initial delivery of 2.0 million shares. The ASR terminated in August 2023, at which time an additional 464,000 shares of common stock were received. In June 2023, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $75 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a pre-payment of $75 million and received initial delivery of 2.4 million Holdings’ shares. The ASR terminated in July 2023, at which time an additional 369,000 shares of common stock were received. In April 2023, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $75 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a pre-payment of $75 million and received initial delivery of 2.4 million Holdings’ shares. The ASR terminated in May 2023, at which time an additional 598,000 shares of common stock were received. In January 2023, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $75 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a pre-payment of $75 million and received initial delivery of 2 million Holdings’ shares. The ASR terminated in March 2023, at which time an additional 424,000 shares of common stock were received. Accumulated Other Comprehensive Income (Loss) AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances were as follows: September 30 December 31, 2023 2022 (in millions) Unrealized gains (losses) on investments $ (10,067) $ (9,324) Market risk benefits - instrument-specific credit risk component 370 668 Liability for future policy benefits - current discount rate component 554 355 Defined benefit pension plans (615) (650) Foreign currency translation adjustments (96) (91) Total accumulated other comprehensive income (loss) (9,854) (9,042) Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (52) (50) Accumulated other comprehensive income (loss) attributable to Holdings $ (9,802) $ (8,992) The components of OCI, net of taxes were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (2,102) $ (3,195) $ (1,231) $ (12,929) (Gains) losses reclassified into net income (loss) during the period (1) 274 246 374 679 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net unrealized gains (losses) on investments (1,828) (2,949) (857) (12,250) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 62 165 93 436 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(384), $(740), $(375) and $(3,141)) (1,766) (2,784) (764) (11,814) Change in LFPB discount rate and MRB credit risk, net of tax Market risk benefits - change in instrument-specific credit risk (net of deferred income tax expense (benefit) of $(289), $(53), $(63) and $665) (1,086) (198) (235) 2,501 Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $52, $74, $42 and $299) 195 279 157 1,126 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) 6 16 35 61 Change in defined benefit plans (net of deferred income tax expense (benefit) of $(2), $(4), $(9), and $(13)) 6 16 35 61 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (16) (30) (5) (75) Foreign currency translation adjustment (16) (30) (5) (75) Total other comprehensive income (loss), net of income taxes (2,667) (2,717) (812) (8,201) Less: Other comprehensive income (loss) attributable to noncontrolling interest (7) (12) (2) (28) Other comprehensive income (loss) attributable to Holdings $ (2,660) $ (2,705) $ (810) $ (8,173) ______________ (1) See “Reclassification adjustment” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $(73) million and $(99) million for the three and nine months ended September 30, 2023, respectively, and $(65) million and $(180) million for the three and nine months ended September 30, 2022, respectively. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT On January 11, 2023, the Company issued $500 million aggregate principal amount of senior notes (the “Senior Notes”). These amounts were recorded net of the underwriting discount and issuance costs of $5 million. The Company will pay semiannual interest on the Senior Notes on January 11 and July 11 of each year, commencing on July 11, 2023, and the Senior Notes will mature on January 11, 2033. The Senior Notes bear interest at 5.594% per annum. On any date prior to October 11, 2032, the Company may redeem some or all of the Senior Notes, subject to a make-whole provision. At any time on or after October 11, 2032, the Company may, at its option, redeem the Notes in whole or in part, at a price equal to 100% of the principal amount of the Senior Notes being redeemed plus accrued and unpaid interest thereon to the redemption date. The Senior Notes contain customary affirmative and negative covenants, including a limitation on certain liens and a limit on the Company’s ability to consolidate, merge, sell or otherwise dispose of all or substantially all of its assets. The Senior Notes 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 Senior Notes may be accelerated. Holdings Senior Notes Repayment On April 20, 2018, Holdings issued $800 million aggregate principal amount of 3.9% Senior Notes due 2023. During 2021 Holdings made a principal pre-payment of $280 million on the 3.9% Senior Notes. The remaining balance was paid in full on the due date of April 20, 2023. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 9 Months Ended |
Sep. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST The changes in the components of redeemable noncontrolling interests were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Balance, beginning of period $ 531 $ 348 $ 455 $ 468 Net earnings (loss) attributable to redeemable noncontrolling interests 6 (9) 24 (65) Purchase/change of redeemable noncontrolling interests 99 15 157 (49) Balance, end of period $ 636 $ 354 $ 636 $ 354 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Litigation and Regulatory Matters 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. 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 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 September 30, 2023, 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 $250 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 February 2016, a lawsuit was filed in 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 UL policies subject to Equitable Financial’s COI rate increase. In early 2016, Equitable Financial raised COI rates for certain UL policies issued between 2004 and 2008, 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 the District of Arizona in 2017 and consolidated with the Brach matter in federal court in New York. The consolidated amended class action complaint alleged the following claims: breach of contract; misrepresentations 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 sought: (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. In August 2020, the federal district court issued a decision certifying nationwide breach of contract and Section 4226 classes, and a New York State Section 349 class. Owners of a substantial number of policies opted out of the Brach class action. Most opt-out policies are not yet the subject of litigation. Others filed suit previously, including three pending individual federal actions that were coordinated with the Brach action and contained similar allegations. In May 2023, the Brach class action and Equitable Financial informed the federal district court that they had mutually agreed to settle the class action, and in October 2023, the federal district court entered an order of final approval of the settlement agreement. Equitable Financial is fully accrued for the class settlement, which will have no impact on earnings or distributable cash projections. In October 2023, Equitable Financial and the three plaintiffs with individual federal actions coordinated with the Brach action informed the court that they had reached a settlement, and those actions were dismissed. Equitable Financial is likewise fully accrued for those individual settlements, which will have no impact on earnings or distributable cash projections. Equitable Financial has settled other actual and threatened litigations challenging the COI increase by individual policy owners and entities. Finally, two actions are also pending against Equitable Financial in New York state court. In July 2022, the trial court in one of the New York state court actions, Hobish v. AXA Equitable Life Insurance Company, granted in significant part Equitable Financial’s motion for summary judgment and denied plaintiff’s cross motion. That plaintiff appealed but its appeal was denied by the state appellate court. Equitable Financial is vigorously defending each of these matters. As with other financial services companies, Equitable Financial 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. 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 these 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 (“FHLB”) As a member of the FHLB, Equitable Financial has access to collateralized borrowings. It also may issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require Equitable Financial to pledge qualified mortgage-backed assets and/or government securities as collateral. Equitable Financial issues short-term funding agreements to the FHLB and uses the funds for asset, liability, and cash management purposes. Equitable Financial issues long-term funding agreements to the FHLB and uses the funds for spread lending purposes. Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. Equitable Financial has purchased FHLB stock of $382 million and pledged collateral with a carrying value of $10.3 billion as of September 30, 2023. 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 “Offsetting of Financial Assets and Liabilities and Derivative Instruments” included in Note 4 of the Notes to these Consolidated Financial Statements. The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Nine Months Ended September 30, 2023 Outstanding Balance at December 31, 2022 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at September 30, 2023 (in millions) Short-term funding agreements: Due in one year or less $ 6,130 $ 46,499 $ (46,825) $ 656 $ — $ 6,460 Long-term funding agreements: Due in years two through five 1,679 — — (645) — 1,034 Due in more than five years 692 — — — (11) 681 Total long-term funding agreements 2,371 — — (645) (11) 1,715 Total funding agreements (1) $ 8,501 $ 46,499 $ (46,825) $ 11 $ (11) $ 8,175 _____________ (1) The $3 million and $4 million difference between the funding agreements carrying value shown in fair value table for September 30, 2023 and December 31, 2022, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Funding Agreement-Backed Notes Program (“FABN”) Under the FABN program, Equitable Financial may issue funding agreements in U.S. dollar or other foreign currencies to a Delaware special purpose statutory trust (the “Trust”) in exchange for the proceeds from issuances of fixed and floating rate medium-term marketable notes issued by the Trust from time to time (the “Trust Notes”). The funding agreements have matching interest, maturity and currency payment terms to the applicable Trust Notes. The Company hedges the foreign currency exposure of foreign currency denominated funding agreements using cross currency swaps as discussed in Note 4 of the Notes to these Consolidated Financial Statements. As of September 30, 2023, the maximum aggregate principal amount of Trust Notes permitted to be outstanding at any one time is $10.0 billion. Funding agreements issued to the Trust, including any foreign currency transaction adjustments, are reported in policyholders’ account balances in the consolidated balance sheets. Foreign currency transaction adjustments to policyholder’s account balances are recognized in net income (loss) as an adjustment to interest credited to policyholders’ account balances and are offset in interest credited to policyholders’ account balances by a release of AOCI from deferred changes in fair value of designated and qualifying cross currency swap cash flow hedges. The table below summarizes Equitable Financial’s activity of funding agreements under the FABN program. Change in FABN Funding Agreements during the Nine Months Ended September 30, 2023 Outstanding Balance at December 31, 2022 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Foreign Currency Transaction Adjustment Outstanding Balance at September 30, (in millions) Short-term funding agreements: Due in one year or less $ 1,500 $ — $ (1,000) $ 500 $ — $ — $ 1,000 Long-term funding agreements: Due in years two through five 4,000 671 — (500) 1,285 (11) 5,445 Due in more than five years 1,585 — — — (1,285) — 300 Total long-term funding agreements 5,585 671 — (500) — (11) 5,745 Total funding agreements (1) $ 7,085 $ 671 $ (1,000) $ — $ — $ (11) $ 6,745 _____________ (1) The $28 million and $66 million difference between the funding agreements notional value shown and carrying value table as of September 30, 2023 and December 31, 2022, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment. Funding Agreement-Backed Commercial Paper Program In May 2023, Equitable Financial and Equitable America established a funding agreement-backed commercial paper program (the “FABCP Program”), pursuant to which a special purpose limited liability company (the “SPLLC”) may issue commercial paper and deposit the proceeds with Equitable Financial or Equitable America pursuant to a funding agreement issued by Equitable Financial or Equitable America to the SPLLC. The current maximum aggregate principal amount permitted to be outstanding at any one time under the FABCP Program is $3.0 billion for Equitable Financial and $1.0 billion for Equitable America. As of September 30, 2023, Equitable Financial and Equitable America had $788 million and $0 million outstanding under the program, respectively. Credit Facilities For information regarding activity pertaining to our credit facilities arrangements, see Note 14 of the Notes to these Consolidated Financial Statements. Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. As of September 30, 2023, these arrangements include commitments by the Company to provide equity financing of $1.4 billion 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 had $17 million of undrawn letters of credit related to reinsurance as of September 30, 2023. The Company had $726 million of commitments under existing mortgage loan agreements as of September 30, 2023. 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. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION As previously announced, effective January 1, 2023, our financial reporting presentation was revised to reflect the reorganization of the Company’s reportable segments to reflect how the Company’s chief operating decision maker now makes operating decisions and assesses performance. We now have six reportable segments. Prior period results have been revised in connection with updates to our reportable segments. The six reportable segments are: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management and Legacy. 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 - 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 VUL, UL 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. • The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products through Equitable Advisors. • The Legacy segment primarily consists of the capital intensive fixed-rate GMxB business written in the Individual Retirement market prior to 2011. This business offered GMDB features in isolation or together with GMLB features. This business also historically offered variable annuities with four types of guaranteed living benefit riders: GMIB, GWBL/GMWB, and GMAB. 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. 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: (i) changes in the fair value of market risk benefits and purchased market risk benefits, including the related attributed fees and claims, offset by derivatives and other securities used to hedge the market risk benefits which result in residual net income volatility as the change in fair value of certain securities is reflected in OCI and due to our statutory capital hedge program; and (ii) market adjustments to deposit asset or liability accounts arising from reinsurance agreements which do not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk; • Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations, and the one-time impact of the settlement of the defined benefit obligation; • Other adjustments, which primarily include restructuring costs related to severance and separation, lease write-offs related to non-recurring restructuring activities, COVID-19 related impacts, net derivative gains (losses) on certain Non-GMxB derivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses and realized capital gains/losses from sales or disposals of select securities, certain legal accruals; a bespoke deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market, which disposed of the risk of additional COI litigation by that entity related to those UL policies, impact of the annual actuarial assumption updates attributable to LFPB; and • Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period and a decrease of deferred tax valuation allowance. The General Account investment portfolio is used to support the insurance and annuity liabilities of our Individual Retirement, Group Retirement, Protection Solutions and Legacy business segments. In the third quarter 2023, the Company updated its operating earnings measure to exclude the impact of the annual actuarial assumption update attributable to LFPB as the majority of the earnings volatility attributable to these assumption updates relate to the Company’s Legacy and non-business segment products and as such do not represent the Company’s ongoing revenue generating activities or future business strategy, and impedes comparability of operating results period over period. Operating earnings were favorably impacted by this change in the amount of $61 million for the three and nine months ended September 30, 2023, respectively. The presentation of operating earnings in prior periods was not revised to reflect this modification because the impact to those periods was immaterial. Revenues derived from any customer did not exceed 10% of revenues for the three and nine months ended September 30, 2023 and 2022. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to net income (loss) attributable to Holdings: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net income (loss) attributable to Holdings $ 1,064 $ 594 $ 2,000 $ 2,091 Adjustments related to: Variable annuity product features (4) (1,380) (675) (584) (2,322) Investment (gains) losses 411 333 554 890 Net actuarial (gains) losses related to pension and other postretirement benefit obligations 8 19 26 57 Other adjustments (1) 91 50 198 455 Income tax expense (benefit) related to above adjustments 183 58 (40) 194 Non-recurring tax items (3) 36 7 (936) 13 Non-GAAP Operating Earnings $ 413 $ 386 $ 1,218 $ 1,378 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Operating earnings (loss) by segment: Individual Retirement $ 210 $ 183 $ 644 $ 572 Group Retirement $ 105 $ 99 $ 301 $ 354 Investment Management and Research $ 99 $ 94 $ 297 $ 331 Protection Solutions $ 34 $ 30 $ 23 $ 137 Wealth Management $ 40 $ 22 $ 114 $ 78 Legacy $ 41 $ 50 $ 146 $ 170 Corporate and Other (2) $ (116) $ (92) $ (307) $ (264) ______________ (1) Includes certain legal accruals related to the COI litigation of $0 million and $35 million for the three and nine months ended September 30, 2023, respectively, and $2 million and $168 million for the three and nine months ended September 30, 2022, respectively. Includes policyholder benefit costs of $75 million for the nine months ended September 30, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. Includes the impact of annual actuarial assumptions updates related to LFPB of $61 million for the three and nine months ended September 30, 2023. Prior period impact was immaterial and was not revised. (2) Includes interest expense and financing fees of $54 million and $173 million for the three and nine months ended September 30, 2023, respectively, and $51 million and $156 million for the three and nine months ended September 30, 2022, respectively. (3) For the three and nine months ended September 30, 2023, non-recurring tax items reflect primarily the effect of uncertain tax positions for a given audit period and an increase of the deferred tax valuation allowance of $20 million and a decrease of $970 million, respectively. (4) Includes the impact of favorable assumption updates of $40 million for the three and nine months ended September 30, 2023. Includes the impact of unfavorable assumption updates of $204 million for the three and nine months ended September 30, 2022. 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, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Other adjustments, which primarily includes net derivative gains (losses) on certain Non-GMxB derivatives and net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments and unrealized gain/losses associated with equity securities. The table below presents revenues by segment and Corporate and Other: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Segment revenues: Individual Retirement (1) $ 693 $ 512 $ 1,928 $ 1,490 Group Retirement (1) 267 287 771 920 Investment Management and Research (2) (4) 1,034 996 3,043 3,134 Protection Solutions (1) 822 759 2,373 2,357 Wealth Management (3) 390 353 1,143 1,097 Legacy (1) 198 204 607 618 Corporate and Other (1) (4) 257 222 800 645 Eliminations (199) (184) (597) (579) Adjustments related to: Variable annuity product features 1,380 675 584 2,322 Investment gains (losses), net (411) (333) (554) (890) Other adjustments to segment revenues (807) (499) (1,740) (286) Total revenues $ 3,624 $ 2,992 $ 8,358 $ 10,828 ______________ (1) Includes investment expenses charged by AB of $35 million and $104 million for the three and nine months ended September 30, 2023, respectively, and $28 million and $82 million for the three and nine months ended September 30, 2022, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $40 million and $120 million for the three and nine months ended September 30, 2023, respectively, and $34 million and $101 million for the three and nine months ended September 30, 2022, respectively, are included in segment revenues of the Investment Management and Research segment. (3) Inter-segment distribution fees of $185 million and $553 million for the three and nine months ended September 30, 2023, respectively, and $178 million and $561 million for the three and nine months ended September 30, 2022, respectively, are included in segment revenues of the Wealth Management segment. (4) Includes interest expense charged to AB of $10 million and $29 million for the three and nine months ended September 30, 2023, respectively, and $0 million and $0 million for the three and nine months ended September 30, 2022, respectively. Total assets by segment were as follows: September 30, 2023 December 31, 2022 (in millions) Total assets by segment: Individual Retirement $ 83,581 $ 77,641 Group Retirement 44,104 42,421 Investment Management and Research 11,262 12,633 Protection Solutions 36,423 37,224 Wealth Management 255 137 Legacy 45,902 48,231 Corporate and Other 38,725 34,415 Total assets $ 260,252 $ 252,702 |
INSURANCE GROUP STATUTORY FINAN
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | INSURANCE GROUP STATUTORY FINANCIAL INFORMATION In May 17, 2023, Equitable Financial entered into a reinsurance agreement (the “Reinsurance Treaty”) with its affiliate, Equitable America, effective April 1, 2023. Pursuant to the Reinsurance Treaty, virtually all of Equitable Financial’s net retained General Account liabilities, including all of its net retained liabilities relating to the living benefit and death riders related to (i) its variable annuity contracts issued outside the State of New York prior to October 1, 2022 (and with respect to its EQUI-VEST variable annuity contracts, issued outside the State of New York prior to February 1, 2023) and (ii) certain universal life insurance policies issued outside the State of New York prior to October 1, 2022, were reinsured to Equitable America on a coinsurance funds withheld basis. In addition, all of the Separate Accounts liabilities relating to such variable annuity contracts were reinsured to Equitable America on a modified coinsurance basis. Equitable America’s obligations under the Reinsurance Treaty are secured through Equitable Financial’s retention of certain assets supporting the reinsured liabilities. This reinsurance treaty has no impact to the consolidated financial statements of the Company. The NYDFS and the Arizona Department of Insurance and Financial Institutions each approved the Reinsurance Treaty. Prescribed and Permitted Accounting Practices As of September 30, 2023, the following four prescribed and permitted practices resulted in net income (loss) and capital and surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied. Equitable Financial was granted a permitted practice by the NYDFS to apply SSAP 108, Derivatives Hedging Variable Annuity Guarantees on a retroactive basis from January 1, 2021 through June 30, 2021, after reflecting the impacts of our reinsurance transaction with Venerable. The permitted practice was amended to also permit Equitable Financial to adopt SSAP 108 prospectively as of July 1, 2021 and to consider the impact of both the interest rate derivatives and the general account assets used to fully hedge the interest rate risk inherent in its variable annuity guarantees when determining the amount of the deferred asset or liability under SSAP 108. Application of the permitted practice partially mitigates the New York Insurance Regulation 213 (“Reg 213”) impact of the Venerable Transaction on Equitable Financial’s statutory capital and surplus and enables Equitable Financial to more effectively neutralize the impact of interest rates on its statutory surplus and to better align with our economic hedging program. The impact of applying this permitted practice relative to SSAP 108 as written was a decrease of approximately $15 million in statutory special surplus funds as of September 30, 2023. The Reinsurance Treaty reduced the amount of interest rate hedging needed at Equitable Financial going forward, affecting future deferrals, but leaves our historical SSAP 108 deferred amounts unchanged. The permitted practice also reset Equitable Financial’s unassigned surplus to zero as of June 30, 2021 to reflect the transformative nature of the Venerable Transaction. The NAIC Accounting Practices and Procedures manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the State of New York. However, Reg 213 adopted in May of 2019 and as amended in February 2020 and March 2021, differs from the NAIC variable annuity reserve and capital framework. Reg 213 requires Equitable Financial to carry statutory basis reserves for its variable annuity contract obligations equal to the greater of those required under (i) the NAIC standard or (ii) a revised version of the NYDFS requirement in effect prior to the adoption of the first amendment for contracts issued prior to January 1, 2020, and for policies issued after that date a new standard that in current market conditions imposes more conservative reserving requirements for variable annuity contracts than the NAIC standard. The impact of the application of Reg 213 was a decrease of approximately $279 million in statutory surplus as of September 30, 2023 compared to statutory surplus under the NAIC variable annuity framework. Our hedging program is designed to hedge the economics of our insurance liabilities and largely offsets Reg 213 and NAIC framework reserve movements due to interest rates and equities. The NYDFS allows domestic insurance companies a five year phase-in provision for Reg 213 reserves. As of September 30, 2022, Equitable Financial’s Reg 213 reserves were 100% phased-in. As of September 30, 2023, given the prevailing market conditions and business mix, there are $267 million Reg 213 redundant reserves over the US RBC CTE 98 total asset requirement (“TAR”). During the fourth quarter 2020, Equitable Financial received approval from NYDFS for its proposed amended Plan of Operation for Separate Account No. 68 (“SA 68”) for our Structured Capital Strategies product and Separate Account No. 69 (“SA 69”) for our EQUI-VEST product Structured Investment Option, to change the accounting basis of these two non-insulated Separate Accounts from fair value to book value in accordance with Section 1414 of the Insurance Law to align with how we manage and measure our overall general account asset portfolio. In order to facilitate this change and comply with Section 4240(a)(10), the Company also sought approval to amend the Plans to remove the |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents a reconciliation of net income (loss) and weighted-average common shares used in calculating basic and diluted earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions, except per share data) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 346.4 374.5 354.4 380.6 Effect of dilutive potential common shares: Employee share awards (1) 1.6 2.3 1.4 2.3 Weighted-average common shares outstanding — diluted 348.0 376.8 355.9 382.9 Net income (loss): Net income (loss) $ 1,135 $ 648 $ 2,232 $ 2,256 Less: Net income (loss) attributable to the noncontrolling interest 71 54 232 165 Net income (loss) attributable to Holdings 1,064 594 2,000 2,091 Less: Preferred stock dividends 14 14 54 54 Net income (loss) available to Holdings’ common shareholders $ 1,050 $ 580 $ 1,946 $ 2,037 Earnings per common share: Basic $ 3.03 $ 1.55 $ 5.49 $ 5.35 Diluted $ 3.02 $ 1.54 $ 5.47 $ 5.32 _____________ (1) Calculated using the treasury stock method. For the three and nine months ended September 30, 2023, 3.5 million and 2.4 million respectively, and for the three and nine months ended September 30, 2022, 2.9 million and 3.5 million, respectively, of outstanding stock awards, were not included in the computation of diluted earnings per share because their effect was anti-dilutive. |
HELD-FOR-SALE
HELD-FOR-SALE | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
HELD-FOR-SALE | HELD-FOR-SALE Assets and liabilities related to the business classified as HFS are separately reported in the consolidated balance sheets beginning in the period in which the business is classified as HFS. AB Bernstein Research Services On November 22, 2022, AB and Société Générale, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. Upon closing, AB will own a 49% interest in the joint venture and Société Générale will own a 51% interest in the joint venture, with an option to reach 100% ownership after five years. The consummation of the joint venture is subject to customary closing conditions, including regulatory clearances. Due to the expected timing of regulatory approvals, the closing is expected to occur in the first half of 2024. The assets and liabilities of AB's research services business recorded at fair value, less cost to sell have been classified as held-for-sale in our Consolidated Financial Statements. As a result of classifying these assets as held-for-sale, AB recognized a non-cash valuation adjustment of $2 million, $8 million and $7 million on the consolidated statement of income, to recognize the net carrying value at lower of cost or fair value, less costs to sell for the three and nine months ended September 30, 2023 an d as of December 31, 2022, respectively. Approximately $5 million in costs to sell have been paid as of September 30, 2023. The following table summarizes the assets and liabilities classified as held-for-sale on the Company’s consolidated balance sheets: September 30, 2023 (1) December 31, 2022 (1) (in millions) Cash and cash equivalents $ 146 $ 159 Broker-dealer related receivables 175 74 Trading securities, at fair value 24 25 Goodwill and other intangible assets ,net 164 175 Other assets (2) 172 129 Total assets held-for-sale $ 681 $ 562 Broker-dealer related payables $ 71 $ 33 Customers related payables 29 10 Other liabilities 116 65 Total liabilities held-for-sale $ 216 $ 108 ____________ (1) The assets and liabilities classified as held-for-sale are reported within our Investment Management & Research segment. (2) Other assets includes a valuation adjustment of $(10) million and $(7) million, as of September 30, 2023 and December 31, 2022, respectively. |
REINSURANCE
REINSURANCE | 9 Months Ended |
Sep. 30, 2023 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | 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. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Direct charges and fee income $ 780 $ 761 $ 2,312 $ 2,344 Reinsurance assumed — — 3 (1) Reinsurance ceded (181) (158) (534) (470) Policy charges and fee income $ 599 $ 603 $ 1,781 $ 1,873 Direct premiums $ 287 $ 262 $ 868 $ 778 Reinsurance assumed 40 51 135 138 Reinsurance ceded (60) (54) (180) (172) Premiums $ 267 $ 259 $ 823 $ 744 Direct policyholders’ benefits $ 807 $ 765 $ 2,534 $ 2,369 Reinsurance assumed 29 44 105 150 Reinsurance ceded (143) (180) (532) (499) Policyholders’ benefits $ 693 $ 629 $ 2,107 $ 2,020 Direct interest credited to policyholders’ account balances $ 573 $ 389 $ 1,582 $ 1,035 Reinsurance ceded (17) (11) (62) (34) Interest credited to policyholders’ account balances $ 556 $ 378 $ 1,520 $ 1,001 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. On October 3, 2022, Equitable Financial ceded to First Allmerica Financial Life Insurance Company, a wholly owned subsidiary of Global Atlantic Financial Group, on a combined coinsurance and modified coinsurance basis, a 50% quota share of approximately 360,000 legacy Group EQUI-VEST deferred variable annuity contracts issued by Equitable Financial between 1980 and 2008. In addition to the above, the Company cedes a portion of its group health, 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 had a run-off portfolio of assumed reinsurance liabilities at CSLRC which was sold to Venerable in June 2021. 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. The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves: September 30, 2023 December 31, 2022 (in millions) Ceded Reinsurance: Estimated net fair values of purchased market risk benefits $ 8,745 $ 10,423 Third-party reinsurance recoverables related to insurance contracts 8,271 8,471 Top reinsurers: First Allmerica-GAF 3,735 4,005 Zurich Life Insurance Company, Ltd. 1,357 1,416 RGA Reinsurance Company 1,263 1,272 Ceded group health reserves 54 47 Amount due to reinsurers 1,424 1,533 Top reinsurers: RGA Reinsurance Company 1,155 1,171 First Allmerica-GAF 71 147 Protective Life Insurance Company 97 104 Assumed Reinsurance: Reinsurance assumed reserves $ 689 $ 701 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSIn September 2023, Holdings established an obligation to enter into an ASR with a third-party financial institution to repurchase an aggregate of $80 million of Holdings’ common stock. Pursuant to the ASR, on October 4, 2023, Holdings made a pre-payment of $80 million and received initial delivery of 2.3 million shares. The ASR terminated in October 2023, at which time an additional 596,000 shares of common stock were received. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 1,064 | $ 594 | $ 2,000 | $ 2,091 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Executive Officer Trading Arrangement [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The following table describes contracts, instructions or written plans for the sale or purchase of our securities adopted by our executive officers during the three months ended September 30, 2023, which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), referred to as Rule 10b5-1 trading plans. The plan listed below is only executed when the stock price reaches a required minimum. In addition, the executives identified in the table below are required to maintain an ownership of the Company’s common stock with a value equal to at least a multiple of their annual base salary (3 times for Mr. Lane). Name and Title Date of Adoption of Rule 10b5-1 Trading Plan Scheduled Start Date of Rule 10b5-1 Trading Plan Scheduled Expiration Date of Rule 10b5-1 Trading Plan(1) Aggregate Number of Securities to be Purchased or Sold Nick Lane Head of Retirement, Wealth Management and Protection Solutions 9/22/2023 12/22/2023 6/15/2024 Sale of up to 60,000 shares(2) of common stock in several transactions through the scheduled expiration date in 2024. (1) In each case, a Rule 10b5-1 trading plan may also expire on such earlier date as all transactions under the Rule 10b5-1 trading plan are completed. (2) 30,000 of Mr. Lane’s shares consist of stock options and 30,000 of Mr. Lane’s shares consist of common stock already owned. | |
Executive Officer Trading Arrangement [Member] | Nick Lane [Member] | ||
Trading Arrangements, by Individual | ||
Name | Nick Lane | |
Title | Head of Retirement, Wealth Management and Protection Solutions | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 9/22/2023 | |
Arrangement Duration | 176 days | |
Aggregate Available | 60,000 | 60,000 |
Director Trading Arrangement [Member] | ||
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited interim consolidated financial statements (the “consolidated financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s consolidated financial statements included in the Recast 2022 Annual Report. Certain prior period amounts were adjusted to reflect the adoption of ASU 2018-12: Financial Services - Insurance (Topic 944). The accompanying unaudited 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. All significant intercompany transactions and balances have been eliminated in consolidation. The terms “third quarter 2023” and “third quarter 2022” refer to the three months ended September 30, 2023 and 2022, respectively. The terms “first nine months of 2023” and “first nine months of 2022” refer to the nine months ended September 30, 2023 and 2022, respectively. |
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 employee 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. Contracts are measured on a grouped basis utilizing cohorts consistent with those used in the calculation of future policy benefit reserves. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the contract. For life insurance products, DAC is amortized in proportion to the face amount in force. For annuity products, DAC is amortized in proportion to policy counts. The constant level basis used for amortization determines the current period amortization considering both the current period’s actual experience and future projections. The amortization pattern is revised quarterly on a prospective basis. Amortization of DAC is included in amortization of DAC, part of total benefits and other deductions. 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 acquisition costs associated with the replacement contract are deferred. |
Amount due to and from Reinsurers | Amount due to and from Reinsurers 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. 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 consolidated balance sheets 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. For reinsurance contracts, reinsurance recoverable balances are generally calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. Ceded reinsurance transactions are recognized and measured in a manner consistent with underlying reinsured contracts, including using consistent assumptions. Assumed and ceded reinsurance contract rights and obligations are accounted for on a basis consistent with our direct contract. The reinsurance cost or benefit for traditional life non-participating and limited-payment contracts is recognized in proportion to the gross premiums of the underlying direct cohorts. The locked-in single A discount rate used to calculate the reinsurance cost or benefit is established at inception of the reinsurance contract. Changes to the single A discount rate are reflected in comprehensive income at each reporting date. 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 other assets. 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 income or other operating costs and expenses, as appropriate. |
Sales Inducement Assets | Sales Inducement Assets Sales inducement assets 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 sales inducement assets 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). |
Policyholders’ Account Balances, Future Policy Benefits and Other Policyholders’ Liabilities and Market Risk Benefits | Policyholders’ Account Balances 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. Obligations arising from funding agreements are also reported in policyholders’ account balances in the consolidated balance sheets. As a member of the FHLB, the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral. Future Policy Benefits and Other Policyholders’ Liabilities The liability for future policy benefits is estimated based upon the present value of future policy benefits and related claim expenses less the present value of estimated future net premiums where net premium equals gross premium under the contract multiplied by the net premium ratio. Related claim expenses include termination and settlement costs and exclude acquisition costs and non-claim related costs. The liability is estimated using current assumptions that include discount rate, mortality, lapses, and expenses. Assumptions are based on judgments that consider the Company’s historical experience, industry data, and other factors. For participating traditional life insurance policies, future policy benefit liabilities are calculated using a net level premium method based on 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 face amount over the life of the contract. For non-participating traditional life insurance policies (Term) and limited pay contracts (Payout, Pension), contracts are grouped into cohorts by contract type and issue year. Quarterly, the Company updates its estimate of cash flows using actual experience and current future cash flow assumptions, which is reflected in an updated net premium ratio used to calculate the liability. The ratio of actual and future expected claims to actual and future expected premiums determines the net premium ratio. The policy administration expense assumption is not updated after policy issuance. If actual expenses differ from the original expense assumptions, the differences are recognized in the period identified. The revised net premium ratio is used to determine the updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original contract issuance rate. Changes in the liability due to current discount rates differing from original rates are included in other comprehensive income within the consolidated statement of comprehensive income. For non-participating traditional life insurance policies and limited pay contracts, the discount rate assumption used is corporate A rated forward curve. We use a forward curve based upon a Bloomberg index. The liability is remeasured each quarter with the remeasurement change reported in other comprehensive income. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., single A) at contract inception for contracts issued after January 1, 2021. The Company developed an LDTI discount rate methodology used to calculate the LFPB for its traditional insurance liabilities and constructed a discount rate curve that references upper-medium grade (low credit risk) fixed-income instrument yields (i.e. single A rated Corporate bond yields) which are meant to reflect the duration characteristics of the corresponding insurance liabilities. The methodology uses observable market data, where available, and uses various estimation techniques in line with fair value guidance (such as interpolation and extrapolation) where data is limited. Discount rates are updated quarterly. For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). DPL will be amortized in relation to the expected future benefit payments. As the calculation of the DPL is based on discounted cash flows, interest accrues on the unamortized DPL balance using the discount rate determined at contract issuance. The DPL is updated at the same time as the estimates for cash flows for the liability for future policy benefits. Any difference between the recalculated and beginning of period DPL is recognized in remeasurement gain or loss in the consolidated statements of income (loss), remeasurement of liability for future policy benefits, part of total benefits and other deductions. On the consolidated balance sheets, the DPL is recorded in the liability for future policy benefits. Additional liabilities for contract or contract features that provide for additional benefits in addition to the account balance but are not market risk benefits or embedded derivatives (“additional insurance liabilities”) are established by estimating the expected value of death or other insurance 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). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. 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, and mortality experience. There can be no assurance that actual experience will be consistent with management’s estimates. Assumptions are reviewed annually and updated with the remeasurement gain or loss reflected in total benefit expense. The Company recognizes an adjustment in other comprehensive income for the additional insurance liabilities for unrealized gains and losses not included when calculating the present value of expected assessments for the benefit ratios. The Company conducts annual premium deficiency testing except for liability for future policy benefits for non- participating traditional and limited payment contracts. The Company reviews assumptions and determines whether the sum of existing liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid and settlement costs. Anticipated investment income is considered when performing premium deficiency for long duration contracts. The anticipated investment income is projected based on current investment portfolio returns grading to long term reinvestment rates over the projection periods, based on anticipated gross reinvestment spreads, defaults and investment expenses. Premium deficiency reserves are recorded in certain instances where 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 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 PFBL using a dynamic approach that changes over time as the projection of future losses change. Market Risk Benefits Market risk benefits (“MRBs”) are contracts or contract features that provide protection to the contract holder from other than nominal capital market risk and expose the Company to other than nominal capital market risk. Market risk benefits include contract features that provide minimum guarantees to policyholders and include GMIB, GMDB, GMWB, GMAB, and ROP DB benefits. MRBs are measured at fair value on a seriatim basis using an ascribed fee approach based upon policyholder behavior projections and risk neutral economic scenarios adjusted based on the facts and circumstances of the Company’s product features. The MRB asset and MRB liability will be equal to the average present value of benefits and risk margins less the average present value of ascribed fees. Ascribed fees will consist of the fee needed, under a stochastically generated set of risk-neutral scenarios, so that the mean present value of claims, including any risk charge, is equal to the mean present value of the projected attributed fees which will be capped at average present value of total policyholder contractual fees. The attributed fee percentage is considered a fixed term of the MRB feature and is held static over the life of the contract. Changes in fair value are recognized as a remeasurement gain/loss in the change in market risk benefits and purchased market risk benefits, part of total benefits and other deductions except for the portion of the change in the fair value due to a change in the Company’s own credit risk, which is recognized in other than comprehensive income. Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits) the balance related to the MRB will be derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) shall be used in the calculation of the liability for future policy benefits for the payout annuity. Upon derecognition, any related balance will be removed from AOCI. The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMLB (collectively, 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 GMIB base. The Company previously issued certain variable annuity products with GMIB, GWBL, GMWB, and GMAB features. The Company has also assumed reinsurance for products with GMxB features. Features in ceded reinsurance contracts that meet the definition of MRBs are accounted for at fair value as a purchased MRB. The fees used to determine the fair value of the reinsured market risk benefit are those defined in the reinsurance contract. The expected periodic future premiums would represent cash outflows and the expected future benefits would represent cash inflows in the fair value calculation. On the ceded side, the purchased MRB is measured considering the counterparty credit risk of the reinsurer, while the direct contract liabilities is measured considering the instrument-specific credit risk of the insurer. As a result of the difference in the treatment of the counterparty credit risk, the fair value of the direct and ceded contracts may be different even if the contractual fees and benefits are the same. Changes in instrument-specific credit risk of the Company is included in the fair value of its market risk benefit, whether in an asset or liability position, and whether related to an issued or purchased MRB, is recognized in OCI. The counterparty credit risk of the reinsurer is recorded in the consolidated statements of income (loss). |
Troubled Debt Restructuring | Troubled Debt Restructuring The Company invests in commercial, agricultural and residential mortgage loans included in the consolidated balance sheets as mortgage loans on real estate. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty. The types of modifications made may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The credit allowance is an estimate of lifetime expected losses reflecting historical loss information which included losses from modification to a borrower experiencing financial difficulty. As the effect of the modification made to a borrower experiencing financial difficulty is already included in the credit allowance, the carrying value (net of the allowance) before and after modification through a TDR may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. For information pertaining to our TDRs see Note 3 of the Notes to these Consolidated Financial Statements. |
Accounting and Consolidation of VIEs | Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, 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 is determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, the Company consolidates the entity. Quarterly, management of the Company reviews its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities 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. Consolidated VIEs Consolidated CLOs |
Fair Value Disclosures | U.S. GAAP 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 are also 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 Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended September 30, 2023 and December 31, 2022, the Company recognized impairment adjustments and impairment losses, respectively, to adjust the carrying value of held-for-sale asset and liabilities to their fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. The fair value was determined using a market approach, estimated based on the negotiated value of the asset and liabilities. See Note 20 of the Notes to these Consolidated Financial Statements for additional details of the Held-for-Sale assets and liabilities. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 2018-12: Financial Services - Insurance (Topic 944) This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. 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. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. 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. 3. 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. On January 1, 2023, the Company adopted the new accounting standard ASU 2018-12 using the modified retrospective approach, except for MRBs which will use the full retrospective approach. Refer to “Transition impact of ASU 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” section within this note for further details. The following table presents the effect of transition adjustment to total equity resulting from the adoption of ASU 2018-12 as of January 1, 2021: Retained Earnings Accumulated Other Comprehensive Income Total (in millions) Liability for future policy benefits $ 30 $ (1,343) $ (1,313) Market risk benefits (3,398) (902) (4,300) DAC — 1,548 1,548 Unearned revenue liability and sales inducement assets (1) — (166) (166) Total transition adjustment before taxes (3,368) (863) (4,231) Income taxes 707 181 888 Total transition adjustment (net of taxes) $ (2,661) $ (682) $ (3,343) _______________ (1) Unearned revenue liability included within liability for future policy benefits financial statement line item in the consolidated balance sheets. Sales inducement assets are included in other assets in the consolidated balance sheets. |
Schedule of Balance of and Changes in Liability for Future Policy Benefits | The following table summarizes the balance of and changes in liability for future policy benefits on January 1, 2021 resulting from the adoption of ASU 2018-12: Protection Solutions Individual Corporate & Other Total Term Payout Group Health (in millions) Balance, December 31, 2020 $ 1,423 $ 3,047 $ 771 $ 2,100 $ 7,341 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income — (171) (85) (100) (356) Effect of remeasurement of liability at current single A rate (1) 560 531 94 300 1,485 Balance, January 1, 2021 (1) 1,983 3,407 780 2,300 8,470 Less: Reinsurance recoverable (59) — — (1,837) (1,896) Balance, January 1, 2021, net of reinsurance $ 1,924 $ 3,407 $ 780 $ 463 $ 6,574 ________________ (1) LFPB transition table not inclusive of the following transition adjustments to AOCI including Protection Solutions PFBL of $550 million, PDR of $(230) million, Rider Reserves and Term Reinsurance of $(24) million and Corporate and Other of $(111) million. |
Schedule of Market Risk Benefit, Activity | The following table summarizes the balance of and changes in the net liability position of market risk benefits on January 1, 2021 resulting from the adoption of ASU 2018-12: Individual Retirement Legacy Total GMxB Core GMxB Legacy Purchased MRB (in millions) Balance, December 31, 2020 $ 2,206 $ 19,891 $ (2,572) $ 19,525 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income (4) (70) — (74) Adjustments for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (1) 505 461 2 968 Adjustments for the remaining difference (exclusive of the instrument specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurement for the MRB (1) (563) 4,122 (194) 3,365 Balance, January 1, 2021 $ 2,144 $ 24,404 $ (2,764) $ 23,784 _____________ (1) MRB transition table not inclusive of the following transition adjustments to retained earnings and AOCI including Individual Retirement EQUI-VEST of $43 million, SCS of $21 million, Protection Solutions of $(2) million and Group Retirement EQUI-VEST of $(20) million. The following table presents the balances and changes to the balances for market risk benefits for the GMxB benefits on deferred variable annuities: Three Months Ended September 30, 2023 2022 Individual Retirement Legacy Individual Retirement Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy (in millions) Balance, beginning of period $ 131 $ 12,720 $ (9,923) $ 2,797 $ 414 $ 15,708 $ (11,725) $ 3,983 Balance BOP before changes in the instrument specific credit risk 351 14,142 (9,827) 4,315 779 17,735 (11,623) 6,112 Model changes and effect of changes in cash flow assumptions 20 (11) (33) (44) (8) 404 (174) 230 Actual market movement effect 202 718 (300) 418 281 754 (259) 495 Interest accrual 22 213 (150) 63 13 224 (170) 54 Attributed fees accrued (1) 100 212 (66) 146 98 221 (69) 152 Benefit payments (11) (322) 190 (132) (11) (316) 184 (132) Actual policyholder behavior different from expected behavior 7 (13) (2) (15) 11 42 (32) 10 Changes in future economic assumptions (411) (2,609) 1,511 (1,098) (450) (2,627) 1,513 (1,115) Issuances — — — — — — — — Balance EOP before changes in the instrument-specific credit risk 280 12,330 (8,677) 3,653 713 16,437 (10,630) 5,807 Changes in the instrument-specific credit risk (2) 38 (349) (61) (410) (313) (1,838) (96) (1,934) Balance, end of period $ 318 $ 11,981 $ (8,738) $ 3,243 $ 400 $ 14,599 $ (10,726) $ 3,873 Weighted-average age of policyholders (years) 64.2 72.9 72.5 N/A 63.3 72.4 71.9 N/A Net amount at risk $ 3,598 $ 23,123 $ 12,188 N/A $ 3,788 $ 23,933 $ 12,364 N/A Nine Months Ended September 30, 2023 2022 Individual Retirement Legacy Individual Retirement Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy (in millions) Balance, beginning of period $ 530 $ 14,699 $ (10,415) $ 4,284 $ 1,061 $ 20,236 $ (14,059) $ 6,177 Balance BOP before changes in the instrument specific credit risk 529 15,314 (10,358) 4,956 666 19,719 (14,051) 5,668 Model changes and effect of changes in cash flow assumptions 20 (11) (33) (44) (8) 317 (145) 172 Actual market movement effect (128) (662) 402 (260) 1,284 4,414 (1,672) 2,742 Interest accrual 60 604 (437) 167 30 507 (334) 173 Attributed fees accrued (1) 306 630 (207) 423 299 659 (216) 443 Benefit payments (35) (1,008) 560 (448) (24) (849) 472 (377) Actual policyholder behavior different from expected behavior 19 1 (28) (27) 16 101 (72) 29 Changes in future economic assumptions (488) (2,538) 1,424 (1,114) (1,546) (8,431) 5,388 (3,043) Issuances (3) — — — (4) — — — Balance EOP before changes in the instrument-specific credit risk 280 12,330 (8,677) 3,653 713 16,437 (10,630) 5,807 Changes in the instrument-specific credit risk (2) 38 (349) (61) (410) (313) (1,838) (96) (1,934) Balance, end of period $ 318 $ 11,981 $ (8,738) $ 3,243 $ 400 $ 14,599 $ (10,726) $ 3,873 Weighted-average age of policyholders (years) 64.2 72.9 72.5 N/A 63.3 72.4 71.9 N/A Net amount at risk $ 3,598 $ 23,123 $ 12,188 N/A $ 3,788 $ 23,933 $ 12,364 N/A _____________ (1) Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims. (2) Changes are recorded in OCI except for reinsurer credit which is reflected in the consolidated income statement. September 30, 2023 December 31, 2022 Direct Asset Direct Liability Net Direct MRB Purchased MRB Total Direct Asset Direct Liability Net Direct MRB Purchased MRB Total (in millions) Individual Retirement GMxB Core $ (515) $ 833 $ 318 $ — $ 318 $ (387) $ 917 $ 530 $ — $ 530 Legacy Segment GMxB Legacy (129) 12,110 11,981 (8,738) 3,243 (51) 14,749 14,699 (10,412) 4,287 Other (1) (57) 68 11 (7) 4 (52) 100 47 (11) 36 Total $ (701) $ 13,011 $ 12,310 $ (8,745) $ 3,565 $ (490) $ 15,766 $ 15,276 $ (10,423) $ 4,853 ______________ |
Schedule of Deferred Policy Acquisition Costs | The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12: Protection Solutions Legacy Individual Retirement Group Retirement Total Term UL (1) VUL (2) IUL (3) GMxB Legacy GMxB Core EI (4) IE (5) SCS EG (6) Momentum (in millions) Balance, December 31, 2020 $ 403 $ — $ — $ — $ 654 $ 1,635 $ 134 $ 95 $ 645 $ 553 $ 79 $ 4,198 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income — 177 714 162 13 11 20 (1) 210 81 22 1,409 Balance, January 1, 2021 (7) $ 403 $ 177 $ 714 $ 162 $ 667 $ 1,646 $ 154 $ 94 $ 855 $ 634 $ 101 $ 5,607 ______________ (1) “UL” defined as Universal Life (2) “VUL” defined as Variable Universal Life (3) “IUL” defined as Indexed Universal Life (4) “EI” defined as EQUI-VEST Individual (5) “IE” defined as Investment Edge (6) “EG” defined as EQUI-VEST Group (7) DAC transition table not inclusive of Closed Block of $136 million and Protection Solutions of $3 million transition adjustment. Changes in the DAC asset were as follows: Nine Months Ended September 30, 2023 Protection Solutions Individual Retirement Legacy Group Retirement Corporate and Other Total Term UL VUL IUL GMxB Core EI IE SCS GMxB Legacy EG Momentum CB (1) (in millions) Balance, beginning of period $ 362 $ 179 $ 889 $ 185 $ 1,625 $ 156 $ 148 $ 1,279 $ 593 $ 710 $ 89 $ 127 $ 6,342 Capitalization 11 5 109 10 87 8 30 364 19 51 7 — 701 Amortization (2) (29) (9) (42) (8) (107) (9) (11) (154) (48) (31) (13) (8) (469) Balance, end of period $ 344 $ 175 $ 956 $ 187 $ 1,605 $ 155 $ 167 $ 1,489 $ 564 $ 730 $ 83 $ 119 $ 6,574 ______________ (1) “CB” defined as Closed Block. (2) DAC amortization of $3 million related to Other not reflected in table above. Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Group Retirement Corporate and Other Total Term UL VUL IUL GMxB Core EI IE SCS GMxB Legacy EG Momentum CB (1) (in millions) Balance, beginning of period $ 385 $ 180 $ 799 $ 180 $ 1,653 $ 156 $ 121 $ 1,070 $ 631 $ 677 $ 94 $ 138 $ 6,084 Capitalization 14 9 106 12 85 10 31 287 25 55 11 — 645 Amortization (2) (31) (9) (38) (8) (102) (10) (10) (124) (49) (31) (14) (8) (434) Balance, end of period $ 368 $ 180 $ 867 $ 184 $ 1,636 $ 156 $ 142 $ 1,233 $ 607 $ 701 $ 91 $ 130 $ 6,295 ______________ (1) “CB” defined as Closed Block. (2) DAC amortization of $2 million related to Other not reflected in table above. Changes in the Individual Retirement sales inducement assets were as follows: Nine Months Ended September 30, 2023 2022 GMxB Core GMxB Legacy GMxB Core GMxB Legacy (in millions) Balance, beginning of period $ 137 $ 200 $ 147 $ 222 Capitalization 2 — 2 — Amortization (9) (16) (9) (17) Balance, end of period $ 130 $ 184 $ 140 $ 205 Changes in the Protection Solutions unearned revenue liability were as follows: Nine Months Ended September 30, 2023 2022 UL VUL IUL UL VUL IUL (in millions) Balance, beginning of period $ 95 $ 684 $ 157 $ 80 $ 619 $ 94 Capitalization 14 86 49 16 77 54 Amortization (5) (34) (8) (4) (30) (5) Balance, end of period $ 104 $ 736 $ 198 $ 92 $ 666 $ 143 |
Schedule of Deferred Income | The following tables summarizes the balance of and changes in sales inducement assets and unearned revenue liability on January 1, 2021 resulting from the adoption of ASU 2018-12: Sales Inducement Assets Legacy Individual Retirement Total GMxB Legacy GMxB Core (in millions) Balance, December 31, 2020 $ 246 $ 158 $ 404 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income — — — Balance, January 1, 2021 $ 246 $ 158 $ 404 Protection Solutions Total Unearned Revenue Liability UL VUL IUL (in millions) Balance, December 31, 2020 $ 31 $ 438 $ 14 $ 483 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income 29 127 9 165 Balance, January 1, 2021 $ 60 $ 565 $ 23 $ 648 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Fixed Maturities by Classification | The following tables provide information relating to the Company’s fixed maturities classified as AFS: AFS Fixed Maturities by Classification Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) September 30, 2023 Fixed Maturities: Corporate (1) $ 50,800 $ 2 $ 58 $ 8,082 $ 42,774 U.S. Treasury, government and agency 5,744 — — 1,573 4,171 States and political subdivisions 615 — 2 102 515 Foreign governments 821 — 1 161 661 Residential mortgage-backed (2) 1,791 — — 136 1,655 Asset-backed (3) 10,477 — 15 212 10,280 Commercial mortgage-backed 4,051 — — 680 3,371 Redeemable preferred stock 41 — 2 — 43 Total at September 30, 2023 $ 74,340 $ 2 $ 78 $ 10,946 $ 63,470 December 31, 2022: Fixed Maturities: Corporate (1) $ 50,712 $ 24 $ 89 $ 7,206 $ 43,571 U.S. Treasury, government and agency 7,054 — 1 1,218 5,837 States and political subdivisions 609 — 7 89 527 Foreign governments 985 — 2 151 836 Residential mortgage-backed (2) 908 — 1 87 822 Asset-backed (3) 8,859 — 4 373 8,490 Commercial mortgage-backed 3,823 — — 588 3,235 Redeemable preferred stock 41 — 2 — 43 Total at December 31, 2022 $ 72,991 $ 24 $ 106 $ 9,712 $ 63,361 ______________ (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, credit risk transfer securities and other asset types. |
Schedule of Contractual Maturities of Available-for-Sale Fixed Maturities | The contractual maturities of AFS fixed maturities as of September 30, 2023 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 pre-payment penalties. Contractual Maturities of AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) September 30, 2023 Contractual maturities: Due in one year or less $ 1,677 $ 1,658 Due in years two through five 14,540 13,675 Due in years six through ten 17,460 15,411 Due after ten years 24,301 17,377 Subtotal 57,978 48,121 Residential mortgage-backed 1,791 1,655 Asset-backed 10,477 10,280 Commercial mortgage-backed 4,051 3,371 Redeemable preferred stock 41 43 Total at September 30, 2023 $ 74,338 $ 63,470 |
Schedule of Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Proceeds from sales $ 2,524 $ 905 $ 5,579 $ 11,640 Gross gains on sales $ 1 $ — $ 8 $ 44 Gross losses on sales $ (348) $ (62) $ (417) $ (653) Net (increase) decrease in Allowance for Credit and Intent to Sell losses $ (1) $ (243) $ (64) $ (246) |
Schedule of Debt Securities, Available-for-Sale, Allowance for Credit Loss | The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts: AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Balance, beginning of period $ 44 $ 32 $ 36 $ 44 Previously recognized impairments on securities that matured, paid, prepaid or sold (1) (2) (58) (17) Recognized impairments on securities impaired to fair value this period (1) (2) — 246 52 246 Credit losses recognized this period on securities for which credit losses were not previously recognized 1 (1) 10 — Additional credit losses this period on securities previously impaired — 5 4 7 Balance, end of period $ 44 $ 280 $ 44 $ 280 ______________ (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. |
Schedule of Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities | The tables below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI: Net Unrealized Gains (Losses) on AFS Fixed Maturities Three Months Ended September 30, 2023 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, beginning of period $ (8,641) $ 36 $ 238 $ (8,367) Net investment gains (losses) arising during the period (2,575) — — (2,575) Reclassification adjustment: Included in net income (loss) 348 — — 348 Excluded from net income (loss) — — — — Other — — — — Impact of net unrealized investment gains (losses) — 38 460 498 Net unrealized investment gains (losses) excluding credit losses (10,868) 74 698 (10,096) Net unrealized investment gains (losses) with credit losses 1 — — 1 Balance, end of period $ (10,867) $ 74 $ 698 $ (10,095) Three Months Ended September 30, 2022 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, beginning of period $ (6,965) $ 25 $ 1,457 $ (5,483) Net investment gains (losses) arising during the period (4,045) — — (4,045) Reclassification adjustment: Included in net income (loss) 311 — — 311 Excluded from net income (loss) — — — — Other — — — — Impact of net unrealized investment gains (losses) — 16 781 797 Net unrealized investment gains (losses) excluding credit losses (10,699) 41 2,238 (8,420) Net unrealized investment gains (losses) with credit losses 1 — — 1 Balance, end of period $ (10,698) $ 41 $ 2,238 $ (8,419) Nine Months Ended September 30, 2023 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, beginning of period $ (9,606) $ 41 $ 440 $ (9,125) Net investment gains (losses) arising during the period (1,730) — — (1,730) Reclassification adjustment: Included in net income (loss) 474 — — 474 Other — — — — Impact of net unrealized investment gains (losses) — 33 257 290 Net unrealized investment gains (losses) excluding credit losses (10,862) 74 697 (10,091) Net unrealized investment gains (losses) with credit losses (5) — 1 (4) Balance, end of period $ (10,867) $ 74 $ 698 $ (10,095) Nine Months Ended September 30, 2022 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, beginning of period $ 4,809 $ (169) $ (974) $ 3,666 Net investment gains (losses) arising during the period (16,359) — — (16,359) Reclassification adjustment: Included in net income (loss) 859 — — 859 Other — — — — Impact of net unrealized investment gains (losses) — 210 3,210 3,420 Net unrealized investment gains (losses) excluding credit losses (10,691) 41 2,236 (8,414) Net unrealized investment gains (losses) with credit losses (7) — 2 (5) Balance, end of period $ (10,698) $ 41 $ 2,238 $ (8,419) |
Schedule of Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 5,517 issues as of September 30, 2023 and the 5,209 issues as of December 31, 2022 that are not deemed to have credit losses, 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: AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded 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) September 30, 2023 Fixed Maturities: Corporate $ 7,091 $ 349 $ 32,564 $ 7,733 $ 39,655 $ 8,082 U.S. Treasury, government and agency 175 7 3,994 1,566 4,169 1,573 States and political subdivisions 137 2 270 100 407 102 Foreign governments 46 2 556 159 602 161 Residential mortgage-backed 967 22 675 114 1,642 136 Asset-backed 2,067 18 6,244 194 8,311 212 Commercial mortgage-backed 300 8 2,956 672 3,256 680 Total at September 30, 2023 $ 10,783 $ 408 $ 47,259 $ 10,538 $ 58,042 $ 10,946 December 31, 2022: Fixed Maturities: Corporate $ 24,580 $ 2,668 $ 16,534 $ 4,536 $ 41,114 $ 7,204 U.S. Treasury, government and agency 5,564 1,200 204 18 5,768 1,218 States and political subdivisions 130 25 173 64 303 89 Foreign governments 349 42 417 109 766 151 Residential mortgage-backed 671 49 83 38 754 87 Asset-backed 6,298 230 1,765 143 8,063 373 Commercial mortgage-backed 1,577 201 1,640 387 3,217 588 Total at December 31, 2022 $ 39,169 $ 4,415 $ 20,816 $ 5,295 $ 59,985 $ 9,710 |
Schedule of Financing Receivable, Allowance for Credit Loss | The change in the allowance for credit losses for commercial, agricultural and residential mortgage loans were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 140 $ 58 $ 123 $ 57 Current-period provision for expected credit losses 63 19 80 20 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance 63 19 80 20 Balance, end of period $ 203 $ 77 $ 203 $ 77 Agricultural mortgages: Balance, beginning of period $ 5 $ 6 $ 6 $ 5 Current-period provision for expected credit losses 1 — — 1 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance 1 — — 1 Balance, end of period $ 6 $ 6 $ 6 $ 6 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Residential mortgages: Balance, beginning of period $ — $ — $ — $ — Current-period provision for expected credit losses — — — — Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance — — — — Balance, end of period $ — $ — $ — $ — Total allowance for credit losses $ 209 $ 83 $ 209 $ 83 |
Schedule of Financing Receivable Credit Quality Indicators | The Company’s commercial and agricultural mortgage loans segregated by risk rating exposure were as follows: Loan to Value (“LTV”) Ratios (1) (3) September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial and agricultural mortgage loans: Commercial: 0% - 50% $ 250 $ 484 $ 130 $ 35 $ — $ 1,620 $ — $ — $ 2,519 50% - 70% 688 2,313 815 869 257 2,618 419 96 8,075 70% - 90% 247 488 1,139 463 289 1,198 6 36 3,866 90% plus — — 34 — 92 696 — — 822 Total commercial $ 1,185 $ 3,285 $ 2,118 $ 1,367 $ 638 $ 6,132 $ 425 $ 132 $ 15,282 Agricultural: 0% - 50% $ 86 $ 163 $ 186 $ 235 $ 134 $ 811 $ — $ — $ 1,615 50% - 70% 46 146 162 204 58 303 — — 919 70% - 90% — — — — — 16 — — 16 90% plus — — — — — — — — — Total agricultural $ 132 $ 309 $ 348 $ 439 $ 192 $ 1,130 $ — $ — $ 2,550 September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total commercial and agricultural mortgage loans: 0% - 50% $ 336 $ 647 $ 316 $ 270 $ 134 $ 2,431 $ — $ — $ 4,134 50% - 70% 734 2,459 977 1,073 315 2,921 419 96 8,994 70% - 90% 247 488 1,139 463 289 1,214 6 36 3,882 90% plus — — 34 — 92 696 — — 822 Total commercial and agricultural mortgage loans $ 1,317 $ 3,594 $ 2,466 $ 1,806 $ 830 $ 7,262 $ 425 $ 132 $ 17,832 Debt Service Coverage (“DSC”) Ratios (2 ) (3) September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial and agricultural mortgage loans: Commercial: Greater than 2.0x $ 175 $ 695 $ 1,126 $ 1,140 $ 157 $ 3,127 $ — $ — $ 6,420 1.8x to 2.0x — — 181 167 172 737 256 96 1,609 1.5x to 1.8x 81 799 234 — 236 984 92 — 2,426 1.2x to 1.5x 522 762 455 — 30 761 6 — 2,536 1.0x to 1.2x 400 674 43 — 43 416 71 36 1,683 Less than 1.0x 7 355 79 60 — 107 — — 608 Total commercial $ 1,185 $ 3,285 $ 2,118 $ 1,367 $ 638 $ 6,132 $ 425 $ 132 $ 15,282 Agricultural: Greater than 2.0x $ 7 $ 51 $ 39 $ 60 $ 20 $ 184 $ — $ — $ 361 1.8x to 2.0x 16 16 56 32 23 62 — — 205 1.5x to 1.8x 9 50 31 109 18 199 — — 416 1.2x to 1.5x 38 111 155 173 99 374 — — 950 1.0x to 1.2x 33 57 63 57 26 287 — — 523 Less than 1.0x 29 24 4 8 6 24 — — 95 Total agricultural $ 132 $ 309 $ 348 $ 439 $ 192 $ 1,130 $ — $ — $ 2,550 September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total commercial and agricultural mortgage loans: Greater than 2.0x $ 182 $ 746 $ 1,165 $ 1,200 $ 177 $ 3,311 $ — $ — $ 6,781 1.8x to 2.0x 16 16 237 199 195 799 256 96 1,814 1.5x to 1.8x 90 849 265 109 254 1,183 92 — 2,842 1.2x to 1.5x 560 873 610 173 129 1,135 6 — 3,486 1.0x to 1.2x 433 731 106 57 69 703 71 36 2,206 Less than 1.0x 36 379 83 68 6 131 — — 703 Total commercial and agricultural mortgage loans $ 1,317 $ 3,594 $ 2,466 $ 1,806 $ 830 $ 7,262 $ 425 $ 132 $ 17,832 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Residential mortgage loans are excluded from the above tables. LTV Ratios (1) (3) December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial and agricultural mortgage loans: Commercial: 0% - 50% $ 624 $ 130 $ — $ — $ 119 $ 1,259 $ — $ — $ 2,132 50% - 70% 2,285 1,569 906 313 623 2,254 328 — 8,278 70% - 90% 363 415 463 329 424 1,314 — 34 3,342 90% plus — — — — 35 233 — — 268 Total commercial $ 3,272 $ 2,114 $ 1,369 $ 642 $ 1,201 $ 5,060 $ 328 $ 34 $ 14,020 Agricultural: 0% - 50% $ 163 $ 182 $ 228 $ 129 $ 132 $ 725 $ — $ — $ 1,559 50% - 70% 190 185 222 68 83 267 — — 1,015 70% - 90% — — — — — 16 — — 16 90% plus — — — — — — — — — Total agricultural $ 353 $ 367 $ 450 $ 197 $ 215 $ 1,008 $ — $ — $ 2,590 December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total commercial and agricultural mortgage loans: 0% - 50% $ 787 $ 312 $ 228 $ 129 $ 251 $ 1,984 $ — $ — $ 3,691 50% - 70% 2,475 1,754 1,128 381 706 2,521 328 — 9,293 70% - 90% 363 415 463 329 424 1,330 — 34 3,358 90% plus — — — — 35 233 — — 268 Total commercial and agricultural mortgage loans $ 3,625 $ 2,481 $ 1,819 $ 839 $ 1,416 $ 6,068 $ 328 $ 34 $ 16,610 DSC Ratios (2) (3) December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial and agricultural mortgage loans: Commercial: Greater than 2.0x $ 771 $ 1,159 $ 1,113 $ 102 $ 571 $ 1,923 $ — $ — $ 5,639 1.8x to 2.0x 158 215 164 197 186 482 279 — 1,681 1.5x to 1.8x 337 390 32 153 176 1,175 4 — 2,267 1.2x to 1.5x 1,041 259 — 92 73 917 — — 2,382 1.0x to 1.2x 507 43 60 98 160 492 45 34 1,439 Less than 1.0x 458 48 — — 35 71 — — 612 Total commercial $ 3,272 $ 2,114 $ 1,369 $ 642 $ 1,201 $ 5,060 $ 328 $ 34 $ 14,020 December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Agricultural: Greater than 2.0x $ 51 $ 40 $ 62 $ 21 $ 12 $ 193 $ — $ — $ 379 1.8x to 2.0x 16 58 35 24 14 51 — — 198 1.5x to 1.8x 69 42 111 18 19 196 — — 455 1.2x to 1.5x 107 147 177 98 99 298 — — 926 1.0x to 1.2x 91 80 61 30 60 257 — — 579 Less than 1.0x 19 — 4 6 11 13 — — 53 Total agricultural $ 353 $ 367 $ 450 $ 197 $ 215 $ 1,008 $ — $ — $ 2,590 Total commercial and agricultural mortgage loans: Greater than 2.0x $ 822 $ 1,199 $ 1,175 $ 123 $ 583 $ 2,116 $ — $ — $ 6,018 1.8x to 2.0x 174 273 199 221 200 533 279 — 1,879 1.5x to 1.8x 406 432 143 171 195 1,371 4 — 2,722 1.2x to 1.5x 1,148 406 177 190 172 1,215 — — 3,308 1.0x to 1.2x 598 123 121 128 220 749 45 34 2,018 Less than 1.0x 477 48 4 6 46 84 — — 665 Total commercial and agricultural mortgage loans $ 3,625 $ 2,481 $ 1,819 $ 839 $ 1,416 $ 6,068 $ 328 $ 34 $ 16,610 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Residential mortgage loans are excluded from the above tables. The amortized cost of residential mortgage loans by credit quality indicator and origination year was as follows: September 30, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total (in millions) Performance indicators: Performing $ 21 $ 11 $ — $ — $ — $ — $ 32 Nonperforming — — — — — — — Total $ 21 $ 11 $ — $ — $ — $ — $ 32 |
Schedule of Age Analysis Of Past Due Mortgage Loans | The aging analysis of past-due mortgage loans were as follows: Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) September 30, 2023: Mortgage loans: Commercial $ — $ — $ — $ — $ 15,248 $ 15,248 $ 34 $ 15,282 $ — $ 1 Agricultural 18 4 42 64 2,467 2,531 19 2,550 3 — Residential — — — — 32 32 — 32 — — Total $ 18 $ 4 $ 42 $ 64 $ 17,747 $ 17,811 $ 53 $ 17,864 $ 3 $ 1 December 31, 2022: Mortgage loans: Commercial $ 56 $ — $ — $ 56 $ 13,964 $ 14,020 $ — $ 14,020 $ — $ — Agricultural 3 5 13 21 2,553 2,574 16 2,590 — — Residential — — — — — — — — — — Total $ 59 $ 5 $ 13 $ 77 $ 16,517 $ 16,594 $ 16 $ 16,610 $ — $ — _______________ |
Schedule of Unrealized and Realized Gains (Losses) from Equity Securities and Net Investment Income (Loss) from Trading Securities and Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option | The breakdown of unrealized and realized gains and (losses) on equity securities was as follows: Unrealized and Realized Gains (Losses) from Equity Securities Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (5) $ (33) $ (3) $ (143) Net investment gains (losses) recognized on securities sold during the period (6) — (9) (11) Unrealized and realized gains (losses) on equity securities $ (11) $ (33) $ (12) $ (154) The breakdown of net investment income (loss) from trading securities was as follows: Net Investment Income (Loss) from Trading Securities Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (26) $ (44) $ 20 $ (246) Net investment gains (losses) recognized on securities sold during the period (1) — (3) 6 Unrealized and realized gains (losses) on trading securities (27) (44) 17 (240) Interest and dividend income from trading securities 8 2 20 20 Net investment income (loss) from trading securities $ (19) $ (42) $ 37 $ (220) The breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option were as follows: Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 4 $ (7) $ 23 $ (20) Net investment gains (losses) recognized on securities sold during the period (5) (1) (19) 5 Unrealized and realized gains (losses) from fixed maturities (1) (8) 4 (15) Interest and dividend income from fixed maturities 3 1 7 — Net investment income (loss) from fixed maturities $ 2 $ (7) $ 11 $ (15) |
Schedule of Net Investment Income | The following tables provides the components of net investment income by investment type: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Fixed maturities $ 788 $ 700 $ 2,254 $ 1,939 Mortgage loans on real estate 224 148 599 424 Other equity investments 33 13 63 129 Policy loans 55 49 158 160 Trading securities (19) (42) 37 (220) Other investment income 18 14 59 17 Fixed maturities, at fair value using the fair value option 2 (7) 11 (15) Gross investment income (loss) 1,101 875 3,181 2,434 Investment expenses (30) (33) (84) (77) Net investment income (loss) $ 1,071 $ 842 $ 3,097 $ 2,357 |
Schedule of Investment Gains (Losses), Net | Investment gains (losses), net, including changes in the valuation allowances and credit losses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Fixed maturities $ (348) $ (311) $ (475) $ (859) Mortgage loans on real estate (63) (19) (80) (21) Other equity investments (1) — — — — Other — (2) 1 (10) Investment gains (losses), net $ (411) $ (332) $ (554) $ (890) _____________ |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments by Category | The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category September 30, 2023 December 31, 2022 Fair Value Fair Value Notional Amount Derivative Assets Derivative Liabilities Net Derivatives Notional Amount Derivative Assets Derivative Liabilities Net Derivatives (in millions) Derivatives: designated for hedge accounting (1) Cash flow hedges: Currency swaps $ 2,140 $ 86 $ 87 $ (1) $ 1,431 $ 99 $ 85 $ 14 Interest swaps 952 — 294 (294) 955 — 294 (294) Total: designated for hedge accounting 3,092 86 381 (295) 2,386 99 379 (280) Derivatives: not designated for hedge accounting (1) Equity contracts: Futures 8,481 3 — 3 5,151 2 — 2 Swaps 12,556 51 14 37 11,188 39 9 30 Options 47,628 10,336 2,718 7,618 40,122 7,583 3,412 4,171 Interest rate contracts: Futures 6,449 — — — 12,693 — — — Swaps 3,073 1 157 (156) 1,515 — 166 (166) Credit contracts: Credit default swaps 272 13 7 6 327 18 9 9 Currency contracts: Currency swaps 721 38 — 38 397 4 13 (9) Currency forwards 29 19 18 1 62 31 32 (1) Other freestanding contracts: Margin — 470 — 470 — 226 — 226 Collateral — 156 7,994 (7,838) — 142 4,472 (4,330) Total: not designated for hedge accounting 79,209 11,087 10,908 179 71,455 8,045 8,113 (68) Embedded derivatives: SCS, SIO, MSO and IUL indexed features (2) — — 7,905 (7,905) — — 4,164 (4,164) Total embedded derivatives — — 7,905 (7,905) — — 4,164 (4,164) Total derivative instruments $ 82,301 $ 11,173 $ 19,194 $ (8,021) $ 73,841 $ 8,144 $ 12,656 $ (4,512) ___________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in policyholders’ account balances in the consolidated balance sheets. The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss): Derivative Instruments by Category Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Net Derivatives Gain (Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Net Derivatives Gain (Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI (in millions) Derivatives: designated for hedge accounting Cash flow hedges: Currency swaps $ (12) $ 2 $ 8 $ 14 $ (2) $ 8 $ (59) $ 41 Interest swaps 8 — — 27 (13) — — 30 Total: designated for hedge accounting (4) 2 8 41 (15) 8 (59) 71 Derivatives: not Designated for hedge accounting Equity contracts: Futures (28) — — — (187) — — — Swaps 666 — — — (645) — — — Options (868) — — — 3,133 — — — Interest rate contracts: Futures 26 — — — 36 — — — Swaps (288) — — — (297) — — — Credit contracts: Credit default swaps — — — — (5) — — — Currency contracts: Currency swaps 28 — — — 9 — — — Currency forwards 1 — — — 1 — — — Other freestanding contracts: Margin — — — — — — — — Collateral — — — — — — — — Total: not designated for hedge accounting (463) — — — 2,045 — — — Embedded derivatives: SCS, SIO,MSO and IUL indexed features 1,082 — — — (3,173) — — — Total embedded derivatives 1,082 — — — (3,173) — — — Total derivative instruments $ 615 $ 2 $ 8 $ 41 $ (1,143) $ 8 $ (59) $ 71 ______________ (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Net Derivatives Gain (Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Net Derivatives Gain (Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI (in millions) Derivatives: designated for hedge accounting Cash flow hedges: Currency swaps $ 7 $ 5 $ (36) $ 111 $ 21 $ 7 $ (46) $ 116 Interest swaps (38) — — 94 (79) — — 242 Total: designated for hedge accounting (31) 5 (36) 205 (58) 7 (46) 358 Derivatives: not Designated for hedge accounting Equity contracts: Futures 31 — — — 486 — — — Swaps 596 — — — 3,374 — — — Options (649) — — — (4,379) — — — Interest rate contracts: Futures (428) — — — (1,486) — — — Swaps (125) — — — (428) — — — Credit contracts: Credit default swaps (1) — — — 13 — — — Currency contracts: Currency swaps 23 — — — 41 — — — Currency forwards 2 — — — 5 — — — Other freestanding contracts: Margin — — — — — — — — Collateral — — — — — — — — Total: not designated for hedge accounting (551) — — — (2,374) — — — Embedded derivatives: SCS, SIO,MSO and IUL indexed features 781 — — — 4,648 — — — Total embedded derivatives 781 — — — 4,648 — — — Total derivative instruments $ 199 $ 5 $ (36) $ 205 $ 2,216 $ 7 $ (46) $ 358 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents a roll-forward of cash flow hedges recognized in AOCI: Roll-forward of Cash flow hedges in AOCI Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Balance, beginning of period $ 52 $ (55) $ 22 $ (208) Amount recorded in AOCI Currency swaps (17) 77 (12) 77 Interest swaps 31 51 4 149 Total amount recorded in AOCI 14 128 (8) 226 Amount reclassified from income to AOCI Currency swaps (1) 31 34 53 39 Interest swaps (1) (4) 43 26 93 Total amount reclassified from income to AOCI 27 77 79 132 Balance, end of period (2) $ 93 $ 150 $ 93 $ 150 _______________ (1) Currency swaps income is reported in net investment income in the consolidated statements of income (loss). Interest swaps income is reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) The Company does not estimate the amount of the deferred losses in AOCI at September 30, 2023 and 2022 which will be released and reclassified into net income (loss) over the next 12 months as the amounts cannot be reasonably estimated. |
Schedule of Offsetting Financial Assets and Liabilities and Derivative Instruments | The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of September 30, 2023 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: Derivative assets (1) $ 11,173 $ 7,532 $ 3,641 $ (3,137) $ 504 Secured lending 113 — 113 — 113 Other financial assets 2,326 — 2,326 — 2,326 Other invested assets $ 13,612 $ 7,532 $ 6,080 $ (3,137) $ 2,943 Liabilities: Derivative liabilities (2) $ 8,151 $ 7,532 $ 619 $ — $ 619 Secured lending 113 — $ 113 — 113 Other financial liabilities 6,680 — 6,680 — 6,680 Other liabilities $ 14,944 $ 7,532 $ 7,412 $ — $ 7,412 ______________ (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) Financial instruments/collateral sent (held). As of December 31, 2022 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: Derivative assets (1) $ 8,143 $ 7,047 $ 1,096 $ (848) $ 248 Other financial assets 2,789 — 2,789 — 2,789 Other invested assets $ 10,932 $ 7,047 $ 3,885 $ (848) $ 3,037 Liabilities: Derivative liabilities (2) $ 7,645 $ 7,047 $ 598 $ — $ 598 Other financial liabilities 6,510 — 6,510 — 6,510 Other liabilities $ 14,155 $ 7,047 $ 7,108 $ — $ 7,108 ______________ (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) Financial instruments sent (held). |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company’s Closed Block is as follows: September 30, 2023 December 31, 2022 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 5,508 $ 5,692 Policyholder dividend obligation — — Other liabilities 110 68 Total Closed Block liabilities 5,618 5,760 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,062 and $3,171) (allowance for credit losses of $0 and $0) 2,804 2,948 Mortgage loans on real estate (net of allowance for credit losses of $11 and $4) 1,622 1,645 Policy loans 555 569 Cash and other invested assets 6 — Other assets 193 187 Total assets designated to the Closed Block 5,180 5,349 Excess of Closed Block liabilities over assets designated to the Closed Block 438 411 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $54 and $47 (203) (177) Maximum future earnings to be recognized from Closed Block assets and liabilities $ 235 $ 234 |
Schedule of Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Revenues: Premiums and other income $ 27 $ 29 $ 86 $ 93 Net investment income (loss) 53 52 156 164 Investment gains (losses), net (6) (2) (6) (2) Total revenues 74 79 236 255 Benefits and Other Deductions: Policyholders’ benefits and dividends 79 93 237 249 Other operating costs and expenses — — — — Total benefits and other deductions 79 93 237 249 Net income (loss), before income taxes (5) (14) (1) 6 Income tax (expense) benefit 2 1 — (1) Net income (loss) $ (3) $ (13) $ (1) $ 5 |
DAC AND OTHER DEFERRED ASSETS_2
DAC AND OTHER DEFERRED ASSETS/LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Contract Holder Bonus Interest Credits [Abstract] | |
Schedule of Deferred Policy Acquisition Costs | The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12: Protection Solutions Legacy Individual Retirement Group Retirement Total Term UL (1) VUL (2) IUL (3) GMxB Legacy GMxB Core EI (4) IE (5) SCS EG (6) Momentum (in millions) Balance, December 31, 2020 $ 403 $ — $ — $ — $ 654 $ 1,635 $ 134 $ 95 $ 645 $ 553 $ 79 $ 4,198 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income — 177 714 162 13 11 20 (1) 210 81 22 1,409 Balance, January 1, 2021 (7) $ 403 $ 177 $ 714 $ 162 $ 667 $ 1,646 $ 154 $ 94 $ 855 $ 634 $ 101 $ 5,607 ______________ (1) “UL” defined as Universal Life (2) “VUL” defined as Variable Universal Life (3) “IUL” defined as Indexed Universal Life (4) “EI” defined as EQUI-VEST Individual (5) “IE” defined as Investment Edge (6) “EG” defined as EQUI-VEST Group (7) DAC transition table not inclusive of Closed Block of $136 million and Protection Solutions of $3 million transition adjustment. Changes in the DAC asset were as follows: Nine Months Ended September 30, 2023 Protection Solutions Individual Retirement Legacy Group Retirement Corporate and Other Total Term UL VUL IUL GMxB Core EI IE SCS GMxB Legacy EG Momentum CB (1) (in millions) Balance, beginning of period $ 362 $ 179 $ 889 $ 185 $ 1,625 $ 156 $ 148 $ 1,279 $ 593 $ 710 $ 89 $ 127 $ 6,342 Capitalization 11 5 109 10 87 8 30 364 19 51 7 — 701 Amortization (2) (29) (9) (42) (8) (107) (9) (11) (154) (48) (31) (13) (8) (469) Balance, end of period $ 344 $ 175 $ 956 $ 187 $ 1,605 $ 155 $ 167 $ 1,489 $ 564 $ 730 $ 83 $ 119 $ 6,574 ______________ (1) “CB” defined as Closed Block. (2) DAC amortization of $3 million related to Other not reflected in table above. Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Group Retirement Corporate and Other Total Term UL VUL IUL GMxB Core EI IE SCS GMxB Legacy EG Momentum CB (1) (in millions) Balance, beginning of period $ 385 $ 180 $ 799 $ 180 $ 1,653 $ 156 $ 121 $ 1,070 $ 631 $ 677 $ 94 $ 138 $ 6,084 Capitalization 14 9 106 12 85 10 31 287 25 55 11 — 645 Amortization (2) (31) (9) (38) (8) (102) (10) (10) (124) (49) (31) (14) (8) (434) Balance, end of period $ 368 $ 180 $ 867 $ 184 $ 1,636 $ 156 $ 142 $ 1,233 $ 607 $ 701 $ 91 $ 130 $ 6,295 ______________ (1) “CB” defined as Closed Block. (2) DAC amortization of $2 million related to Other not reflected in table above. Changes in the Individual Retirement sales inducement assets were as follows: Nine Months Ended September 30, 2023 2022 GMxB Core GMxB Legacy GMxB Core GMxB Legacy (in millions) Balance, beginning of period $ 137 $ 200 $ 147 $ 222 Capitalization 2 — 2 — Amortization (9) (16) (9) (17) Balance, end of period $ 130 $ 184 $ 140 $ 205 Changes in the Protection Solutions unearned revenue liability were as follows: Nine Months Ended September 30, 2023 2022 UL VUL IUL UL VUL IUL (in millions) Balance, beginning of period $ 95 $ 684 $ 157 $ 80 $ 619 $ 94 Capitalization 14 86 49 16 77 54 Amortization (5) (34) (8) (4) (30) (5) Balance, end of period $ 104 $ 736 $ 198 $ 92 $ 666 $ 143 |
Schedule of Reconciliation of Deferred Acquisition Cost | The following table presents a reconciliation of DAC to the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Protection Solutions Term $ 344 $ 362 Universal Life 175 179 Variable Universal Life 956 889 Indexed Universal Life 187 185 Individual Retirement GMxB Core 1,605 1,625 EQUI-VEST Individual 155 156 Investment Edge 167 148 SCS 1,489 1,279 Legacy Segment GMxB Legacy 564 593 Group Retirement EQUI-VEST Group 730 710 Momentum 83 89 Corporate and Other 119 127 Other 25 27 Total $ 6,599 $ 6,369 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements as of September 30, 2023 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments Fixed maturities, AFS: Corporate (1) $ — $ 40,671 $ 2,103 $ 42,774 U.S. Treasury, government and agency — 4,171 — 4,171 States and political subdivisions — 489 26 515 Foreign governments — 661 — 661 Residential mortgage-backed (2) — 1,616 39 1,655 Asset-backed (3) — 10,270 10 10,280 Commercial mortgage-backed — 3,321 50 3,371 Redeemable preferred stock — 43 — 43 Total fixed maturities, AFS — 61,242 2,228 63,470 Fixed maturities, at fair value using the fair value option — 1,454 180 1,634 Other equity investments (4) 217 445 53 715 Trading securities 329 610 70 1,009 Other invested assets: Short-term investments — 677 — 677 Assets of consolidated VIEs/VOEs 73 248 53 374 Swaps — (376) — (376) Credit default swaps — 6 — 6 Futures 3 — — 3 Options — 7,618 — 7,618 Total other invested assets 76 8,173 53 8,302 Cash equivalents 3,889 721 — 4,610 Segregated securities — 928 — 928 Purchased market risk benefits — — 8,745 8,745 Assets for market risk benefits — — 701 701 Separate Accounts assets (5) 114,566 2,454 1 117,021 Total Assets $ 119,077 $ 76,027 $ 12,031 $ 207,135 Liabilities: Notes issued by consolidated VIE’s, at fair value using the fair value option (6) $ — $ 1,510 $ — $ 1,510 SCS, SIO, MSO and IUL indexed features’ liability — 7,905 — 7,905 Liabilities of consolidated VIEs and VOEs 1 3 — 4 Liabilities for market risk benefits — — 13,011 13,011 Contingent payment arrangements — — 252 252 Total Liabilities $ 1 $ 9,418 $ 13,263 $ 22,682 ______________ (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, credit risk transfer securities and other asset types. (4) Includes short position equity securities of $13 million that are reported in other liabilities. (5) Separate Accounts 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. As of September 30, 2023, the fair value of such investments was $382 million. (6) Accrued interest payable of $31 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments Fixed maturities, AFS: Corporate (1) $ — $ 41,450 $ 2,121 $ 43,571 U.S. Treasury, government and agency — 5,837 — 5,837 States and political subdivisions — 499 28 527 Foreign governments — 836 — 836 Residential mortgage-backed (2) — 788 34 822 Asset-backed (3) — 8,490 — 8,490 Commercial mortgage-backed (2) — 3,203 32 3,235 Redeemable preferred stock — 43 — 43 Total fixed maturities, AFS — 61,146 2,215 63,361 Fixed maturities, at fair value using the fair value option — 1,284 224 1,508 Other equity investments (4) 214 497 12 723 Trading securities 290 332 55 677 Other invested assets: Short-term investments — 943 — 943 Assets of consolidated VIEs/VOEs 131 393 5 529 Swaps — (425) — (425) Credit default swaps — 9 — 9 Futures 2 — — 2 Options — 4,171 — 4,171 Total other invested assets 133 5,091 5 5,229 Cash equivalents 2,386 501 — 2,887 Segregated securities — 1,522 — 1,522 Purchased market risk benefits — — 10,423 10,423 Assets for market risk benefits — — 490 490 Separate Accounts assets (5) 111,744 2,436 1 114,181 Total Assets $ 114,767 $ 72,809 $ 13,425 $ 201,001 Liabilities: Notes issued by consolidated VIE’s, at fair value using the fair value option (6) $ — $ 1,374 $ — $ 1,374 SCS, SIO, MSO and IUL indexed features’ liability — 4,164 — 4,164 Liabilities of consolidated VIEs and VOEs 15 7 — 22 Liabilities for market risk benefits — — 15,766 15,766 Contingent payment arrangements — — 247 247 Total Liabilities $ 15 $ 5,545 $ 16,013 $ 21,573 ______________ (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) Includes short position equity securities of $12 million that are reported in other liabilities. (5) Separate Accounts 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. As of December 31, 2022, the fair value of such investments was $456 million. (6) Includes CLO short-term debt of $239 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option accrued interest payable of $15 million is reported in notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. |
Schedule of Reconciliation of Assets and Liabilities at Level 3 | The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses). Not included below are the changes in balances related to market risk benefits and purchased market risk benefits level 3 assets and liabilities, which are included in Note 9 of the Notes to these Consolidated Financial Statements. Three Months Ended September 30, 2023 Corporate State and Political Subdivisions CMBS Asset-backed RMBS (in millions) Balance, beginning of period $ 2,037 $ 27 $ 34 $ — $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — Investment gains (losses), net (5) — — — — Subtotal (4) — — — — Other comprehensive income (loss) 5 — (1) — (1) Purchases 163 — 17 10 40 Sales (53) (1) — — — Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) (11) — — — — Transfers out of Level 3 (1) (34) — — — — Balance, end of period $ 2,103 $ 26 $ 50 $ 10 $ 39 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 5 $ — $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2023, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Three Months Ended September 30, 2023 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, beginning of period $ 105 $ 1 $ (250) $ 56 $ 217 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — — 7 Investment gains (losses), net — — — — 1 Subtotal — — — — 8 Other comprehensive income (loss) — — — — — Purchases — — — 14 1 Sales — — — — (8) Settlements — — — — — Other — — (2) — — Activity related to consolidated VIEs/VOEs 1 — — — — Transfers into Level 3 (1) — — — — (78) Transfers out of Level 3 (1) — — — — 40 Balance, end of period $ 106 $ 1 $ (252) $ 70 $ 180 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ 7 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2023, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. (3) Other Equity Investments include other invested assets. Three Months Ended September 30, 2022 Corporate State and Political Subdivisions CMBS Asset-backed RMBS (in millions) Balance, beginning of period $ 1,767 $ 30 $ 25 $ 18 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — Investment gains (losses), net (3) — — — — Subtotal (2) — — — — Other comprehensive income (loss) (71) (1) — 1 — Purchases 218 — 7 (3) — Sales (34) — — — — Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) 25 — — — — Transfers out of Level 3 (1) 8 — — (6) — Balance, end of period $ 1,911 $ 29 $ 32 $ 10 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (70) $ (1) $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Three Months Ended September 30, 2022 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, beginning of period $ 67 $ 1 $ (42) $ 52 $ 423 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) (1) — — — (20) Investment gains (losses), net — — — — — Subtotal (1) — — — (20) Other comprehensive income (loss) — — — — — Purchases (49) — (228) — 6 Sales — — — — 17 Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — (3) — — Transfers into Level 3 (1) — — — — (84) Transfers out of Level 3 (1) — — — — 32 Balance, end of period $ 17 $ 1 $ (273) $ 52 $ 374 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ (1) $ — $ — $ — $ (20) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2022, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. (3) Other Equity Investments include other invested assets. Nine Months Ended September 30, 2023 Corporate State and Political Subdivisions CMBS Asset-backed RMBS (in millions) Balance, beginning of period $ 2,121 $ 28 $ 32 $ — $ 34 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 4 — — — — Investment gains (losses), net (16) — — — — Subtotal (12) — — — — Other comprehensive income (loss) 15 — (1) — (1) Purchases 539 — 19 10 40 Sales (215) (2) — — — Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) — — — — — Transfers out of Level 3 (1) (345) — — — (34) Balance, end of period $ 2,103 $ 26 $ 50 $ 10 $ 39 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 9 $ — $ (1) $ — $ (1) ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2023, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Nine Months Ended September 30, 2023 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, beginning of period $ 17 $ 1 $ (247) $ 55 $ 224 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) (3) — — — 6 Investment gains (losses), net — — — — (1) Subtotal (3) — — — 5 Other comprehensive income (loss) — — — — — Purchases 44 — 15 75 Sales — — — — (43) Settlements — — 1 — — Other — — (6) — — Activity related to consolidated VIEs/VOEs 48 — — — — Transfers into Level 3 (1) — — — — 29 Transfers out of Level 3 (1) — — — — (110) Nine Months Ended September 30, 2023 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO Balance, end of period $ 106 $ 1 $ (252) $ 70 $ 180 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ (3) $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ 4 ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of September 30, 2023, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. (3) Other Equity Investments include other invested assets. Nine Months Ended September 30, 2022 Corporate State and Political Subdivisions Asset-backed CMBS RMBS (in millions) Balance, beginning of period $ 1,504 $ 35 $ 8 $ 20 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 3 — — — — Investment gains (losses), net (3) — — — — Subtotal — — — — — Other comprehensive income (loss) (152) (5) — (2) — Purchases 777 — 9 14 — Sales (195) (1) (1) — — Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) 90 — — — — Transfers out of Level 3 (1) (113) — (6) — — Balance, end of period $ 1,911 $ 29 $ 10 $ 32 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (149) $ (5) $ — $ (2) $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Nine Months Ended September 30, 2022 Other Equity Investments (3) Separate Accounts Assets Contingent Payment Arrangement Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, beginning of period $ 16 $ 1 $ (38) $ 65 $ 201 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) (1) — — — (20) Investment gains (losses), net — — — (13) — Subtotal (1) — — (13) (20) Other comprehensive income (loss) — — — — — Purchases 8 — (230) — 159 Sales — — — — (36) Settlements — — — — — Other — — — — — Activity related to consolidated VIEs/VOEs (3) — (5) — — Transfers into Level 3 (1) — — — — 101 Transfers out of Level 3 (1) (3) — — — (31) Balance, end of period $ 17 $ 1 $ (273) $ 52 $ 374 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ (1) $ — $ — $ (13) $ (9) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — (2) For instruments held as of September 30, 2022, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. (3) Other Equity Investments include other invested assets. |
Schedule of 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: Quantitative Information about Level 3 Fair Value Measurements as of September 30, 2023 Fair Valuation Technique Significant Unobservable Input Range Weighted Average (2) (Dollars in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 363 Matrix pricing model Spread over Benchmark 20 bps - 295 bps 174 bps 985 Market comparable EBITDA multiples Discount rate Cash flow multiples Loan to value 1.7x - 30.0x 0.0% - 22.3% 1.1x - 13.9x 0.0% - 59.5% 12.5x 11.7% 5.6x 39.0% Trading securities, at fair value 70 Discounted cash flow Earnings multiple Discount factor Discount years 8.3x 10.0% 7 Other equity investments 2 Discounted cash flow Earnings Multiple 6.7x - 14.0x 7.0x Purchased MRB asset (1) (2) (4) 8,745 Discounted cash flow Lapse rates Withdrawal rates GMIB Utilization rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.21%-12.38% 0.07%-14.97% 0.04%-66.21% 48 bps - 118 bps 14%-27% 0.01%-0.18% 0.07%-0.53% 0.33%-42.00% 1.76% 0.52% 7.14% 50 bps 22% 3.01% (same for all ages) (same for all ages) Liabilities: AB Contingent consideration payable $ 252 Discounted cash flow Expected revenue growth rates Discount rate 2.0% - 83.9% 1.9% - 10.4% 10.3% 4.6% Direct MRB (1) (2) (3) (4) 12,310 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115 151 bps 0.21%-29.37% 0.00%-14.97% 0.04%-100.00% 0.01%-0.18% 0.07%-0.53% 0.33%-42.00% 151 bps 3.06% 0.61% 5.51% 2.55% (same for all ages) (same for all ages) ______________ (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. (2) Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. Utilization rates were developed as a function of the benefit base. (3) MRB liabilities are shown net of MRB assets. Net amount is made up of $13.0 billion of MRB liabilities and $701 million of MRB assets. (4) Includes Legacy and Core products. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022 Fair Valuation Significant Range Weighted Average (2) (Dollars in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 417 Matrix pricing model Spread over benchmark 20 bps - 797 bps 205 bps 1,029 Market comparable companies EBITDA multiples Discount rate Cash flow multiples Loan to value 5.3x - 35.8x 9.0% - 45.7% 0.0x-10.3x 0.0%-40.4% 13.6x 11.9% 6.1x 12.0% Trading securities, at fair value 55 Discounted cash flow Earnings multiple Discounts factor Discount years 8.3x 10.00% 7 Other equity investments 4 Market comparable companies Revenue multiple 0.5x - 10.8x 2.4x Purchased MRB asset (1) (2) (4) 10,423 Discounted cash flow Lapse rates Withdrawal rates GMIB Utilization rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.26% - 26.23% 0.06% - 10.93% 0.04% - 66.66% 54 bps - 124 bps 14% - 32% 0.01% - 0.17% 0.06% - 0.52% 0.32% - 40.00% 1.58% 0.69% 7.39% 69 bps 24% 2.87% (same for all ages) (same for all ages) Liabilities: AB Contingent consideration payable $ 247 Discounted cash flow Expected revenue growth rates Discount rate 2.0% - 83.9% 1.9% - 10.4% 11.5% 4.5% Direct MRB (1) (2) (3) (4) 15,276 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115 157 bps 0.26% - 35.42% 0.00% - 10.93% 0.04% - 100.00% 0.01% - 0.17% 0.06% - 0.52% 0.32% - 40.00% 157 bps 3.01% 0.68% 5.53% 2.43% (same for all ages) (same for all ages) ______________ (1) Mortality rates vary by age and demographic characteristic such as gender and benefits elected with the policy. 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. (2) Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. Utilization rates were developed as a function of the benefit base. (3) MRB liabilities are shown net of MRB assets. Net amount is made up of $15.8 billion of MRB liabilities and $490 million of MRB assets. (4) Includes Legacy and Core products. |
Schedule of Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements were as follows: Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) September 30, 2023: Mortgage loans on real estate $ 17,655 $ — $ — $ 15,458 $ 15,458 Policy loans $ 4,089 $ — $ — $ 4,284 $ 4,284 Policyholders’ liabilities: Investment contracts $ 1,707 $ — $ — $ 1,519 $ 1,519 FHLB funding agreements $ 8,178 $ — $ 8,074 $ — $ 8,074 FABN funding agreements $ 6,717 $ — $ 6,177 $ — $ 6,177 Funding agreement-backed commercial paper (FABCP) $ 788 $ — $ 788 $ — $ 788 Short-term debt (1) $ — $ — $ — $ — $ — Long-term debt $ 3,820 $ — $ 3,441 $ — $ 3,441 Separate Accounts liabilities $ 10,414 $ — $ — $ 10,414 $ 10,414 December 31, 2022: Mortgage loans on real estate $ 16,481 $ — $ — $ 14,690 $ 14,690 Policy loans $ 4,033 $ — $ — $ 4,349 $ 4,349 Policyholders’ liabilities: Investment contracts $ 1,916 $ — $ — $ 1,750 $ 1,750 FHLB funding agreements $ 8,505 $ — $ 8,390 $ — $ 8,390 FABN funding agreements $ 7,095 $ — $ 6,384 $ — $ 6,384 Short-term debt (1) $ 520 $ — $ 518 $ — $ 518 Long-term debt $ 3,322 $ — $ 3,130 $ — $ 3,130 Separate Accounts liabilities $ 10,236 $ — $ — $ 10,236 $ 10,236 _____________ (1) As of September 30, 2023 and December 31, 2022, excludes CLO short-term debt of $0 million and $239 million, respectively which is inclusive as fair valued within notes issued by consolidated VIE’s, at fair value using the fair value option. |
LIABILITIES FOR FUTURE POLICY_2
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Schedule of Policyholder Account Balance And Liability For Unpaid Claims And Claims Adjustment Expense | The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Reconciliation Term $ 1,265 $ 1,365 Individual Retirement - Payout 789 828 Legacy - Payout 3,192 2,689 Group Pension - Benefit Reserve & DPL 475 523 Health 1,437 1,558 UL 1,131 1,109 Subtotal 8,289 8,072 Whole Life Closed Block and Open Block products 5,502 5,664 Other (1) 922 908 Future policyholder benefits total 14,713 14,644 Other policyholder funds and dividends payable 1,934 1,959 Total $ 16,647 $ 16,603 _____________ |
Schedule of Policyholder Account Balance | The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts: Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Corporate & Other Protection Solutions Individual Retirement Legacy Corporate & Other Term Payout Payout Group Pension Health Term Payout Payout Group Pension Health (in millions) Present Value of Expected Net Premiums Balance, beginning of period $ 2,100 $ — $ — $ — $ (5) $ 2,485 $ — $ — $ — $ 22 Beginning balance at original discount rate 2,078 — — — (5) 1,864 — — — 19 Effect of changes in cash flow assumptions 32 — — — (8) 204 — — — (10) Effect of actual variances from expected experience (14) — — — (6) 38 — — — (12) Adjusted beginning of period balance 2,096 — — — (19) 2,106 — — — (3) Issuances 49 — — — — 62 — — — — Interest accrual 76 — — — (1) 73 — — — — Net premiums collected (147) — — — 2 (144) — — — 1 Ending Balance at original discount rate 2,074 — — — (18) 2,097 — — — (2) Effect of changes in discount rate assumptions (82) — — — 1 (5) — — — — Balance, end of period $ 1,992 $ — $ — $ — $ (17) $ 2,092 $ — $ — $ — $ (2) Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Corporate & Other Protection Solutions Individual Retirement Legacy Corporate & Other Term Payout Payout Group Pension Health Term Payout Payout Group Pension Health (in millions) Present Value of Expected Future Policy Benefits Balance, beginning of period $ 3,465 $ 828 $ 2,689 $ 523 $ 1,553 $ 4,294 $ 1,114 $ 2,547 $ 683 $ 2,092 Beginning balance of original discount rate 3,391 845 3,024 583 1,795 3,241 883 2,400 632 1,915 Effect of changes in cash flow assumptions 40 — — — (12) 222 (1) (1) — (5) Effect of actual variances from expected experience (16) — 1 — (5) 41 (1) (2) — (10) Adjusted beginning of period balance 3,415 845 3,025 583 1,778 3,504 881 2,397 632 1,900 Issuances 53 38 733 — — 67 19 556 — — Interest accrual 126 29 65 15 43 125 30 47 16 46 Benefits payments (254) (69) (199) (50) (111) (283) (74) (143) (53) (124) Ending Balance at original discount rate 3,340 843 3,624 548 1,710 3,413 856 2,857 595 1,822 Effect of changes in discount rate assumptions (84) (54) (432) (73) (290) 37 (26) (373) (65) (264) Balance, end of period $ 3,256 $ 789 $ 3,192 $ 475 $ 1,420 $ 3,450 $ 830 $ 2,484 $ 530 $ 1,558 Impact of flooring LFPB at zero 1 — — — — 1 — — — — Net liability for future policy benefits $ 1,265 789 3,192 475 1,437 1,359 830 2,484 530 1,560 Less: Reinsurance recoverable 25 — (777) — (1,145) 22 — (365) — (1,248) Net liability for future policy benefits, after reinsurance recoverable $ 1,290 $ 789 $ 2,415 $ 475 $ 292 $ 1,381 $ 830 $ 2,119 $ 530 $ 312 Weighted-average duration of liability for future policyholder benefits (years) 7.1 9.3 7.7 7.1 8.7 7.1 9.5 8.2 7.2 8.8 The following table reconciles the policyholders account balances to the policyholders’ account balance liability in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Policyholders’ account balance reconciliation Protection Solutions Universal Life $ 5,236 $ 5,340 Variable Universal Life 4,807 4,909 Legacy Segment GMxB Legacy 644 688 Individual Retirement GMxB Core 51 69 SCS 44,221 35,702 EQUI-VEST Individual 2,434 2,652 Group Retirement EQUI-VEST Group 11,729 12,045 Momentum 628 702 Other (1) 6,409 6,118 Balance (exclusive of Funding Agreements) 76,159 68,225 Funding Agreements 15,753 15,641 Balance, end of period $ 91,912 $ 83,866 _____________ (1) Primarily reflects products IR Payout, IR Other, Indexed Universal Life, Investment Edge, Group Pension, Closed Block and Corporate and Other. The following table summarizes the balances and changes in policyholder’s account balances: Nine Months Ended September 30, 2023 Protection Solutions Legacy Individual Retirement Group Retirement Universal Life Variable Universal Life GMxB Legacy GMxB Core SCS (1) EQUI-VEST Individual EQUI-VEST Group Momentum (Dollars in millions) Balance, beginning of period $ 5,340 $ 4,909 $ 688 $ 69 $ 35,702 $ 2,652 $ 12,045 $ 702 Issuances — — — — — — — — Premiums received 528 107 70 163 5 27 460 49 Policy charges (572) (190) 9 2 (6) — (4) — Surrenders and withdrawals (57) (33) (68) (24) (2,046) (256) (1,207) (105) Benefit payments (169) (84) (75) (1) (194) (56) (54) (4) Net transfers from (to) separate account — (53) — (162) 7,366 7 210 (24) Interest credited (2) 166 151 20 4 3,394 56 268 10 Other — — — — — 4 11 — Balance, end of period $ 5,236 $ 4,807 $ 644 $ 51 $ 44,221 $ 2,434 $ 11,729 $ 628 Weighted-average crediting rate 3.75% 3.70% 2.71% 1.57% N/A 2.90% 2.56% 2.33% Net amount at risk (3) $ 36,003 $ 115,752 $ 23,123 $ 3,598 $ 31 $ 126 $ 51 $ — Cash surrender value $ 3,450 $ 3,201 $ 607 $ 273 $ 40,156 $ 2,427 $ 11,672 $ 630 ______________ (1) SCS sales are recorded as a Separate Account liability until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) SCS and EQUI-VEST Group includes amounts related to the change in embedded derivative. (3) For life insurance products the net amount at risk is death benefit less account value for the policyholder. For variable annuity products the net amount at risk is the maximum GMxB NAR for the policyholder. Nine Months Ended September 30, 2022 Protection Solutions Legacy Individual Retirement Group Retirement Universal Life Variable Universal Life GMxB Legacy GMxB Core SCS (1) EQUI-VEST Individual EQUI-VEST Group Momentum (Dollars in millions) Balance, beginning of period $ 5,462 $ 4,807 $ 745 $ 112 $ 33,443 $ 2,784 $ 11,951 $ 704 Issuances — — — — — — — — Premiums received 557 122 49 133 1 37 450 61 Policy charges (595) (181) 6 (17) — (1) (5) — Surrenders and withdrawals (68) (12) (43) (23) (1,931) (131) (611) (100) Benefit payments (156) (73) (75) (2) (157) (43) (55) (2) Net transfers from (to) separate account — 131 6 (115) 5,684 25 242 47 Interest credited (2) 168 117 22 5 (4,250) 60 142 11 Other — — — — — — — — Balance, end of period $ 5,368 $ 4,911 $ 710 $ 93 $ 32,790 $ 2,731 $ 12,114 $ 721 Weighted-average crediting rate 3.66% 3.69% 2.71% 1.05% N/A 2.94% 2.55% 2.03% Net amount at risk (3) $ 38,282 $ 115,357 $ 23,933 $ 3,788 $ 163 $ 160 $ 274 $ — Cash surrender value $ 3,518 $ 3,413 $ 697 $ 310 $ 28,910 $ 2,723 $ 12,029 $ 721 ______________ (1) SCS sales are recorded as a Separate Account liability until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) SCS and EQUI-VEST includes amounts related to the change in embedded derivative. The following table presents the balances of and changes in Separate Account liabilities: Nine Months Ended September 30, 2023 Protection Solutions Legacy Individual Retirement Group Retirement VUL GMxB Legacy GMxB Core EQUI-VEST Individual Investment Edge EQUI-VEST Group Momentum (in millions) Balance, beginning of period $ 13,187 $ 32,616 $ 27,772 $ 4,161 $ 3,798 $ 22,393 $ 3,885 Premiums and deposits 845 166 1,170 70 659 1,574 478 Policy charges (419) (495) (365) (2) — (13) (15) Surrenders and withdrawals (415) (2,001) (1,898) (293) (291) (1,218) (529) Benefit payments (68) (562) (176) (43) (33) (43) (8) Investment performance (1) 1,127 2,045 1,120 360 191 1,790 305 Net transfers from (to) general account 53 — 161 (7) (363) (210) 24 Other charges (2) — — — 4 — 25 — Balance, end of period $ 14,310 $ 31,769 $ 27,784 $ 4,250 $ 3,961 $ 24,298 $ 4,140 Cash surrender value $ 13,988 $ 31,481 $ 26,939 $ 4,218 $ 3,872 $ 24,031 $ 4,132 _____________ (1) Investment performance is reflected net of M&E fees. (2) EQUI-VEST Individual and EQUI-VEST Group for the nine months ended September 30, 2023, amounts reflect a total special payment applied to the accounts of active clients as part of a previously disclosed settlement agreement between Equitable Financial Life Insurance Company and the Securities & Exchange Commission. Nine Months Ended September 30, 2022 Protection Solutions Legacy Individual Retirement Group Retirement VUL GMxB Legacy GMxB Core EQUI-VEST Individual Investment Edge EQUI-VEST Group Momentum (in millions) Balance, beginning of period $ 16,405 $ 44,912 $ 35,288 $ 5,583 $ 4,287 $ 27,509 $ 4,975 Premiums and deposits 827 183 1,162 102 663 1,545 480 Policy charges (402) (516) (367) (2) 1 (12) (16) Surrenders and withdrawals (307) (2,056) (1,778) (225) (248) (1,018) (510) Benefit payments (85) (537) (172) (41) (26) (47) (9) Investment performance (1) (3,998) (9) 115 (25) (158) (242) (47) Net transfers from (to) general account (131) (10,375) (7,445) (1,396) (954) (7,033) (1,176) Balance, end of period $ 12,309 $ 31,602 $ 26,803 $ 3,996 $ 3,565 $ 20,702 $ 3,697 Cash surrender value $ 12,039 $ 31,301 $ 25,903 $ 3,965 $ 3,470 $ 20,482 $ 3,692 ______________ (1) Investment performance is reflected net of M&E fees. The following table reconciles the Separate Account liabilities to the Separate Account liability balance in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Separate Account Reconciliation Protection Solutions Variable Universal Life $ 14,310 $ 13,187 Legacy Segment GMxB Legacy 31,769 32,616 Individual Retirement GMxB Core 27,784 27,772 EQUI-VEST Individual 4,250 4,161 Investment Edge 3,961 3,798 Group Retirement EQUI-VEST Group 24,298 22,393 Momentum 4,140 3,885 Other (1) 7,065 7,041 Total $ 117,577 $ 114,853 ______________ |
Schedule of Liability for Future Policy Benefits, Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses | The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts: September 30, 2023 December 31, 2022 (in millions) Term Expected future benefit payments and expenses (undiscounted) $ 5,918 $ 6,022 Expected future gross premiums (undiscounted) 7,039 7,273 Expected future benefit payments and expenses (discounted; AOCI basis) 3,255 3,465 Expected future gross premiums (discounted; AOCI basis) 3,610 3,904 September 30, 2023 December 31, 2022 (in millions) Payout - Legacy Expected future benefit payments and expenses (undiscounted) 4,872 3,947 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 3,105 2,607 Expected future gross premiums (discounted; AOCI basis) — — Payout Expected future benefit payments and expenses (undiscounted) 1,437 1,460 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 759 801 Expected future gross premiums (discounted; AOCI basis) — — Group Pension Expected future benefit payments and expenses (undiscounted) 683 730 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted; AOCI basis) 456 563 Expected future gross premiums (discounted; AOCI basis) — — Health Expected future benefit payments and expenses (undiscounted) 2,375 2,510 Expected future gross premiums (undiscounted) 90 99 Expected future benefit payments and expenses (discounted; AOCI basis) 1,403 1,533 Expected future gross premiums (discounted; AOCI basis) $ 69 $ 78 |
Schedule of Liability for Future Policy Benefits, Revenue and Interest Accretion | The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts: Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Gross Premium Interest Accretion (in millions) Revenue and Interest Accretion Term $ 206 $ 206 $ 50 $ 53 Payout - Legacy 99 76 74 47 Payout 36 17 29 30 Group Pension — — 15 16 Health 6 7 44 46 Total $ 347 $ 306 $ 212 $ 192 |
Schedule of Liability for Future Policy Benefits, Weighted Average Interest Rates | The following table provides the weighted average interest rates for the liability for future policy benefits: September 30, 2023 December 31, 2022 Weighted Average Interest Rate Term Interest accretion rate 5.6 % 5.7 % Current discount rate 5.6 % 5.1 % Payout - Legacy Interest accretion rate 3.9 % 3.4 % Current discount rate 5.7 % 5.0 % Payout Interest accretion rate 5.0 % 4.9 % Current discount rate 5.8 % 5.2 % Group Pension Interest accretion rate 3.3 % 3.4 % Current discount rate 5.7 % 5.1 % Health Interest accretion rate 3.4 % 3.3 % Current discount rate 5.8 % 5.2 % |
Schedule of Balances of and Changes in Additional Liabilities Related to Insurance Guarantees | The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities: Nine months ended September 30, 2023 2022 Protection Solutions UL (Dollars in millions) Balance, beginning of period $ 1,109 $ 1,087 Beginning balance before AOCI adjustments 1,135 1,076 Effect of changes in interest rate & cash flow assumptions and model changes (12) 8 Effect of actual variances from expected experience 14 11 Adjusted beginning of period balance 1,137 1,095 Interest accrual 38 36 Net assessments collected 50 49 Benefit payments (39) (45) Ending balance before shadow reserve adjustments 1,186 1,135 Effect of reserve adjustment recorded in AOCI (55) (27) Balance, end of period $ 1,131 $ 1,108 Net liability for additional liability $ 1,131 $ 1,108 Less: Reinsurance recoverable — — Net liability for additional liability, after reinsurance recoverable $ 1,131 $ 1,108 Weighted-average duration of additional liability - death benefit (years) 19.2 22.0 The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities: Nine Months Ended September 30, 2023 2022 2023 2022 Assessments Interest Accretion (in millions) Revenue and Interest Accretion UL $ 487 $ 473 $ 38 $ 36 Total $ 487 $ 473 $ 38 $ 36 Nine Months Ended September 30, 2023 2022 Weighted Average Interest Rate UL 4.5 % 4.5 % Interest accretion rate 4.5 % 4.5 % |
MARKET RISK BENEFITS (Tables)
MARKET RISK BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Market Risk Benefit [Abstract] | |
Schedule of Market Risk Benefit, Activity | The following table summarizes the balance of and changes in the net liability position of market risk benefits on January 1, 2021 resulting from the adoption of ASU 2018-12: Individual Retirement Legacy Total GMxB Core GMxB Legacy Purchased MRB (in millions) Balance, December 31, 2020 $ 2,206 $ 19,891 $ (2,572) $ 19,525 Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income (4) (70) — (74) Adjustments for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (1) 505 461 2 968 Adjustments for the remaining difference (exclusive of the instrument specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurement for the MRB (1) (563) 4,122 (194) 3,365 Balance, January 1, 2021 $ 2,144 $ 24,404 $ (2,764) $ 23,784 _____________ (1) MRB transition table not inclusive of the following transition adjustments to retained earnings and AOCI including Individual Retirement EQUI-VEST of $43 million, SCS of $21 million, Protection Solutions of $(2) million and Group Retirement EQUI-VEST of $(20) million. The following table presents the balances and changes to the balances for market risk benefits for the GMxB benefits on deferred variable annuities: Three Months Ended September 30, 2023 2022 Individual Retirement Legacy Individual Retirement Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy (in millions) Balance, beginning of period $ 131 $ 12,720 $ (9,923) $ 2,797 $ 414 $ 15,708 $ (11,725) $ 3,983 Balance BOP before changes in the instrument specific credit risk 351 14,142 (9,827) 4,315 779 17,735 (11,623) 6,112 Model changes and effect of changes in cash flow assumptions 20 (11) (33) (44) (8) 404 (174) 230 Actual market movement effect 202 718 (300) 418 281 754 (259) 495 Interest accrual 22 213 (150) 63 13 224 (170) 54 Attributed fees accrued (1) 100 212 (66) 146 98 221 (69) 152 Benefit payments (11) (322) 190 (132) (11) (316) 184 (132) Actual policyholder behavior different from expected behavior 7 (13) (2) (15) 11 42 (32) 10 Changes in future economic assumptions (411) (2,609) 1,511 (1,098) (450) (2,627) 1,513 (1,115) Issuances — — — — — — — — Balance EOP before changes in the instrument-specific credit risk 280 12,330 (8,677) 3,653 713 16,437 (10,630) 5,807 Changes in the instrument-specific credit risk (2) 38 (349) (61) (410) (313) (1,838) (96) (1,934) Balance, end of period $ 318 $ 11,981 $ (8,738) $ 3,243 $ 400 $ 14,599 $ (10,726) $ 3,873 Weighted-average age of policyholders (years) 64.2 72.9 72.5 N/A 63.3 72.4 71.9 N/A Net amount at risk $ 3,598 $ 23,123 $ 12,188 N/A $ 3,788 $ 23,933 $ 12,364 N/A Nine Months Ended September 30, 2023 2022 Individual Retirement Legacy Individual Retirement Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy GMxB Core GMxB Legacy Purchased MRB (3) Net Legacy (in millions) Balance, beginning of period $ 530 $ 14,699 $ (10,415) $ 4,284 $ 1,061 $ 20,236 $ (14,059) $ 6,177 Balance BOP before changes in the instrument specific credit risk 529 15,314 (10,358) 4,956 666 19,719 (14,051) 5,668 Model changes and effect of changes in cash flow assumptions 20 (11) (33) (44) (8) 317 (145) 172 Actual market movement effect (128) (662) 402 (260) 1,284 4,414 (1,672) 2,742 Interest accrual 60 604 (437) 167 30 507 (334) 173 Attributed fees accrued (1) 306 630 (207) 423 299 659 (216) 443 Benefit payments (35) (1,008) 560 (448) (24) (849) 472 (377) Actual policyholder behavior different from expected behavior 19 1 (28) (27) 16 101 (72) 29 Changes in future economic assumptions (488) (2,538) 1,424 (1,114) (1,546) (8,431) 5,388 (3,043) Issuances (3) — — — (4) — — — Balance EOP before changes in the instrument-specific credit risk 280 12,330 (8,677) 3,653 713 16,437 (10,630) 5,807 Changes in the instrument-specific credit risk (2) 38 (349) (61) (410) (313) (1,838) (96) (1,934) Balance, end of period $ 318 $ 11,981 $ (8,738) $ 3,243 $ 400 $ 14,599 $ (10,726) $ 3,873 Weighted-average age of policyholders (years) 64.2 72.9 72.5 N/A 63.3 72.4 71.9 N/A Net amount at risk $ 3,598 $ 23,123 $ 12,188 N/A $ 3,788 $ 23,933 $ 12,364 N/A _____________ (1) Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims. (2) Changes are recorded in OCI except for reinsurer credit which is reflected in the consolidated income statement. September 30, 2023 December 31, 2022 Direct Asset Direct Liability Net Direct MRB Purchased MRB Total Direct Asset Direct Liability Net Direct MRB Purchased MRB Total (in millions) Individual Retirement GMxB Core $ (515) $ 833 $ 318 $ — $ 318 $ (387) $ 917 $ 530 $ — $ 530 Legacy Segment GMxB Legacy (129) 12,110 11,981 (8,738) 3,243 (51) 14,749 14,699 (10,412) 4,287 Other (1) (57) 68 11 (7) 4 (52) 100 47 (11) 36 Total $ (701) $ 13,011 $ 12,310 $ (8,745) $ 3,565 $ (490) $ 15,766 $ 15,276 $ (10,423) $ 4,853 ______________ |
POLICYHOLDER ACCOUNT BALANCES (
POLICYHOLDER ACCOUNT BALANCES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Policyholder Account Balance [Abstract] | |
Schedule of Policyholder Account Balance | The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts: Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Corporate & Other Protection Solutions Individual Retirement Legacy Corporate & Other Term Payout Payout Group Pension Health Term Payout Payout Group Pension Health (in millions) Present Value of Expected Net Premiums Balance, beginning of period $ 2,100 $ — $ — $ — $ (5) $ 2,485 $ — $ — $ — $ 22 Beginning balance at original discount rate 2,078 — — — (5) 1,864 — — — 19 Effect of changes in cash flow assumptions 32 — — — (8) 204 — — — (10) Effect of actual variances from expected experience (14) — — — (6) 38 — — — (12) Adjusted beginning of period balance 2,096 — — — (19) 2,106 — — — (3) Issuances 49 — — — — 62 — — — — Interest accrual 76 — — — (1) 73 — — — — Net premiums collected (147) — — — 2 (144) — — — 1 Ending Balance at original discount rate 2,074 — — — (18) 2,097 — — — (2) Effect of changes in discount rate assumptions (82) — — — 1 (5) — — — — Balance, end of period $ 1,992 $ — $ — $ — $ (17) $ 2,092 $ — $ — $ — $ (2) Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Protection Solutions Individual Retirement Legacy Corporate & Other Protection Solutions Individual Retirement Legacy Corporate & Other Term Payout Payout Group Pension Health Term Payout Payout Group Pension Health (in millions) Present Value of Expected Future Policy Benefits Balance, beginning of period $ 3,465 $ 828 $ 2,689 $ 523 $ 1,553 $ 4,294 $ 1,114 $ 2,547 $ 683 $ 2,092 Beginning balance of original discount rate 3,391 845 3,024 583 1,795 3,241 883 2,400 632 1,915 Effect of changes in cash flow assumptions 40 — — — (12) 222 (1) (1) — (5) Effect of actual variances from expected experience (16) — 1 — (5) 41 (1) (2) — (10) Adjusted beginning of period balance 3,415 845 3,025 583 1,778 3,504 881 2,397 632 1,900 Issuances 53 38 733 — — 67 19 556 — — Interest accrual 126 29 65 15 43 125 30 47 16 46 Benefits payments (254) (69) (199) (50) (111) (283) (74) (143) (53) (124) Ending Balance at original discount rate 3,340 843 3,624 548 1,710 3,413 856 2,857 595 1,822 Effect of changes in discount rate assumptions (84) (54) (432) (73) (290) 37 (26) (373) (65) (264) Balance, end of period $ 3,256 $ 789 $ 3,192 $ 475 $ 1,420 $ 3,450 $ 830 $ 2,484 $ 530 $ 1,558 Impact of flooring LFPB at zero 1 — — — — 1 — — — — Net liability for future policy benefits $ 1,265 789 3,192 475 1,437 1,359 830 2,484 530 1,560 Less: Reinsurance recoverable 25 — (777) — (1,145) 22 — (365) — (1,248) Net liability for future policy benefits, after reinsurance recoverable $ 1,290 $ 789 $ 2,415 $ 475 $ 292 $ 1,381 $ 830 $ 2,119 $ 530 $ 312 Weighted-average duration of liability for future policyholder benefits (years) 7.1 9.3 7.7 7.1 8.7 7.1 9.5 8.2 7.2 8.8 The following table reconciles the policyholders account balances to the policyholders’ account balance liability in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Policyholders’ account balance reconciliation Protection Solutions Universal Life $ 5,236 $ 5,340 Variable Universal Life 4,807 4,909 Legacy Segment GMxB Legacy 644 688 Individual Retirement GMxB Core 51 69 SCS 44,221 35,702 EQUI-VEST Individual 2,434 2,652 Group Retirement EQUI-VEST Group 11,729 12,045 Momentum 628 702 Other (1) 6,409 6,118 Balance (exclusive of Funding Agreements) 76,159 68,225 Funding Agreements 15,753 15,641 Balance, end of period $ 91,912 $ 83,866 _____________ (1) Primarily reflects products IR Payout, IR Other, Indexed Universal Life, Investment Edge, Group Pension, Closed Block and Corporate and Other. The following table summarizes the balances and changes in policyholder’s account balances: Nine Months Ended September 30, 2023 Protection Solutions Legacy Individual Retirement Group Retirement Universal Life Variable Universal Life GMxB Legacy GMxB Core SCS (1) EQUI-VEST Individual EQUI-VEST Group Momentum (Dollars in millions) Balance, beginning of period $ 5,340 $ 4,909 $ 688 $ 69 $ 35,702 $ 2,652 $ 12,045 $ 702 Issuances — — — — — — — — Premiums received 528 107 70 163 5 27 460 49 Policy charges (572) (190) 9 2 (6) — (4) — Surrenders and withdrawals (57) (33) (68) (24) (2,046) (256) (1,207) (105) Benefit payments (169) (84) (75) (1) (194) (56) (54) (4) Net transfers from (to) separate account — (53) — (162) 7,366 7 210 (24) Interest credited (2) 166 151 20 4 3,394 56 268 10 Other — — — — — 4 11 — Balance, end of period $ 5,236 $ 4,807 $ 644 $ 51 $ 44,221 $ 2,434 $ 11,729 $ 628 Weighted-average crediting rate 3.75% 3.70% 2.71% 1.57% N/A 2.90% 2.56% 2.33% Net amount at risk (3) $ 36,003 $ 115,752 $ 23,123 $ 3,598 $ 31 $ 126 $ 51 $ — Cash surrender value $ 3,450 $ 3,201 $ 607 $ 273 $ 40,156 $ 2,427 $ 11,672 $ 630 ______________ (1) SCS sales are recorded as a Separate Account liability until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) SCS and EQUI-VEST Group includes amounts related to the change in embedded derivative. (3) For life insurance products the net amount at risk is death benefit less account value for the policyholder. For variable annuity products the net amount at risk is the maximum GMxB NAR for the policyholder. Nine Months Ended September 30, 2022 Protection Solutions Legacy Individual Retirement Group Retirement Universal Life Variable Universal Life GMxB Legacy GMxB Core SCS (1) EQUI-VEST Individual EQUI-VEST Group Momentum (Dollars in millions) Balance, beginning of period $ 5,462 $ 4,807 $ 745 $ 112 $ 33,443 $ 2,784 $ 11,951 $ 704 Issuances — — — — — — — — Premiums received 557 122 49 133 1 37 450 61 Policy charges (595) (181) 6 (17) — (1) (5) — Surrenders and withdrawals (68) (12) (43) (23) (1,931) (131) (611) (100) Benefit payments (156) (73) (75) (2) (157) (43) (55) (2) Net transfers from (to) separate account — 131 6 (115) 5,684 25 242 47 Interest credited (2) 168 117 22 5 (4,250) 60 142 11 Other — — — — — — — — Balance, end of period $ 5,368 $ 4,911 $ 710 $ 93 $ 32,790 $ 2,731 $ 12,114 $ 721 Weighted-average crediting rate 3.66% 3.69% 2.71% 1.05% N/A 2.94% 2.55% 2.03% Net amount at risk (3) $ 38,282 $ 115,357 $ 23,933 $ 3,788 $ 163 $ 160 $ 274 $ — Cash surrender value $ 3,518 $ 3,413 $ 697 $ 310 $ 28,910 $ 2,723 $ 12,029 $ 721 ______________ (1) SCS sales are recorded as a Separate Account liability until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) SCS and EQUI-VEST includes amounts related to the change in embedded derivative. The following table presents the balances of and changes in Separate Account liabilities: Nine Months Ended September 30, 2023 Protection Solutions Legacy Individual Retirement Group Retirement VUL GMxB Legacy GMxB Core EQUI-VEST Individual Investment Edge EQUI-VEST Group Momentum (in millions) Balance, beginning of period $ 13,187 $ 32,616 $ 27,772 $ 4,161 $ 3,798 $ 22,393 $ 3,885 Premiums and deposits 845 166 1,170 70 659 1,574 478 Policy charges (419) (495) (365) (2) — (13) (15) Surrenders and withdrawals (415) (2,001) (1,898) (293) (291) (1,218) (529) Benefit payments (68) (562) (176) (43) (33) (43) (8) Investment performance (1) 1,127 2,045 1,120 360 191 1,790 305 Net transfers from (to) general account 53 — 161 (7) (363) (210) 24 Other charges (2) — — — 4 — 25 — Balance, end of period $ 14,310 $ 31,769 $ 27,784 $ 4,250 $ 3,961 $ 24,298 $ 4,140 Cash surrender value $ 13,988 $ 31,481 $ 26,939 $ 4,218 $ 3,872 $ 24,031 $ 4,132 _____________ (1) Investment performance is reflected net of M&E fees. (2) EQUI-VEST Individual and EQUI-VEST Group for the nine months ended September 30, 2023, amounts reflect a total special payment applied to the accounts of active clients as part of a previously disclosed settlement agreement between Equitable Financial Life Insurance Company and the Securities & Exchange Commission. Nine Months Ended September 30, 2022 Protection Solutions Legacy Individual Retirement Group Retirement VUL GMxB Legacy GMxB Core EQUI-VEST Individual Investment Edge EQUI-VEST Group Momentum (in millions) Balance, beginning of period $ 16,405 $ 44,912 $ 35,288 $ 5,583 $ 4,287 $ 27,509 $ 4,975 Premiums and deposits 827 183 1,162 102 663 1,545 480 Policy charges (402) (516) (367) (2) 1 (12) (16) Surrenders and withdrawals (307) (2,056) (1,778) (225) (248) (1,018) (510) Benefit payments (85) (537) (172) (41) (26) (47) (9) Investment performance (1) (3,998) (9) 115 (25) (158) (242) (47) Net transfers from (to) general account (131) (10,375) (7,445) (1,396) (954) (7,033) (1,176) Balance, end of period $ 12,309 $ 31,602 $ 26,803 $ 3,996 $ 3,565 $ 20,702 $ 3,697 Cash surrender value $ 12,039 $ 31,301 $ 25,903 $ 3,965 $ 3,470 $ 20,482 $ 3,692 ______________ (1) Investment performance is reflected net of M&E fees. The following table reconciles the Separate Account liabilities to the Separate Account liability balance in the consolidated balance sheets: September 30, 2023 December 31, 2022 (in millions) Separate Account Reconciliation Protection Solutions Variable Universal Life $ 14,310 $ 13,187 Legacy Segment GMxB Legacy 31,769 32,616 Individual Retirement GMxB Core 27,784 27,772 EQUI-VEST Individual 4,250 4,161 Investment Edge 3,961 3,798 Group Retirement EQUI-VEST Group 24,298 22,393 Momentum 4,140 3,885 Other (1) 7,065 7,041 Total $ 117,577 $ 114,853 ______________ |
Schedule of Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following table presents the account values by range of guaranteed minimum crediting rates and the related range of the difference in basis points, between rates being credited policyholders and the respective guaranteed minimums: September 30, 2023 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total ( in millions) Protection Solutions Universal Life 0.00% - 1.50% $ — $ — $ 1 $ 5 $ 6 1.51% - 2.50% 89 66 553 326 1,034 Greater than2.50% 3,529 635 — — 4,164 Total $ 3,618 $ 701 $ 554 $ 331 $ 5,204 Variable Universal Life 0.00% - 1.50% $ 20 $ 39 $ 36 $ 6 $ 101 1.51% - 2.50% 139 415 6 — 560 Greater than 2.50% 3,701 — 12 5 3,718 Total $ 3,860 $ 454 $ 54 $ 11 $ 4,379 Legacy Segment GMxB Legacy 0.00% - 1.50% $ 81 $ 16 $ — $ — $ 97 1.51% - 2.50% 23 — — — 23 Greater than 2.50% 489 — — — 489 Total $ 593 $ 16 $ — $ — $ 609 September 30, 2023 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total ( in millions) Individual Retirement GMxB Core 0.00% - 1.50% $ 13 $ 202 $ — $ — $ 215 1.51% - 2.50% 13 — — — 13 Greater than 2.50% 54 — — — 54 Total $ 80 $ 202 $ — $ — $ 282 EQUI-VEST Individual 0.00% - 1.50% $ 52 $ 225 $ — $ — $ 277 1.51% - 2.50% 44 — — — 44 Greater than 2.50% 2,112 — — — 2,112 Total $ 2,208 $ 225 $ — $ — $ 2,433 Group Retirement EQUI-VEST 0.00% - 1.50% $ 791 $ 2,310 $ 35 $ 341 $ 3,477 1.51% - 2.50% 336 — — — 336 Greater than 2.50% 6,845 — — — 6,845 Total $ 7,972 $ 2,310 $ 35 $ 341 $ 10,658 Momentum 0.00% - 1.50% $ — $ 12 $ 337 $ 55 $ 404 1.51% - 2.50% 148 1 — — 149 Greater than 2.50% 70 — 5 — 75 Total $ 218 $ 13 $ 342 $ 55 $ 628 December 31, 2022 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total ( in millions) Protection Solutions Universal Life 0.00% - 1.50% $ — $ — $ 5 $ 1 $ 6 1.51% - 2.50% 181 197 605 47 1,030 Greater than 2.50% 3,615 657 — — 4,272 Total $ 3,796 $ 854 $ 610 $ 48 $ 5,308 Variable Universal Life 0.00% - 1.50% $ 30 $ 40 $ 7 $ 1 $ 78 1.51% - 2.50% 485 53 — — 538 Greater than 2.50% 3,900 — 2 — 3,902 Total $ 4,415 $ 93 $ 9 $ 1 $ 4,518 Legacy Segment GMxB Legacy 0.00% - 1.50% $ 386 $ — $ — $ — $ 386 1.51% - 2.50% 560 — — — 560 Greater than 2.50% 35 — — — 35 Total $ 981 $ — $ — $ — $ 981 Individual Retirement GMxB Core 0.00% - 1.50% $ 289 $ — $ — $ — $ 289 1.51% - 2.50% 14 — — — 14 Greater than 2.50% — — — — — Total $ 303 $ — $ — $ — $ 303 EQUI-VEST Individual 0.00% - 1.50% $ 345 $ — $ — $ — $ 345 1.51% - 2.50% 46 — — — 46 Greater than 2.50% 2,199 — 62 — 2,261 Total $ 2,590 $ — $ 62 $ — $ 2,652 SCS Products with either a fixed rate or no guaranteed minimum N/A N/A N/A N/A N/A Group Retirement EQUI-VEST Group 0.00% - 1.50% $ 109 $ 5 $ 366 $ 3,112 $ 3,592 1.51% - 2.50% 11 2 889 — 902 Greater than 2.50% 6,949 21 330 — 7,300 Total $ 7,069 $ 28 $ 1,585 $ 3,112 $ 11,794 Momentum 0.00% - 1.50% $ 15 $ 301 $ 122 $ 7 $ 445 1.51% - 2.50% 178 1 — — 179 Greater than 2.50% 73 — 5 — 78 Total $ 266 $ 302 $ 127 $ 7 $ 702 |
Schedule of Aggregate Fair Value of Separate Account Assets | The following table presents the aggregate fair value of Separate Account assets by major asset category: September 30, 2023 Protection Solutions Individual Retirement Group Retirement Corp & Other Legacy Segment Total (in millions) Asset Type Debt securities $ 53 $ 1 $ 19 $ 7 $ — $ 80 Common Stock 59 33 457 1,558 — 2,107 Mutual Funds 14,650 37,285 29,733 695 31,784 114,147 Bonds and Notes 95 3 1 1,144 — 1,243 Total $ 14,857 $ 37,322 $ 30,210 $ 3,404 $ 31,784 $ 117,577 December 31, 2022 Protection Solutions Individual Retirement Group Retirement Corp & Other Legacy Segment Total (in millions) Asset Type Debt securities $ 58 $ 1 $ 17 $ 8 $ — $ 84 Common Stock 41 32 430 1,686 — 2,189 Mutual Funds 13,498 36,860 27,639 773 32,625 111,395 Bonds and Notes 119 3 1 1,062 — 1,185 Total $ 13,716 $ 36,896 $ 28,087 $ 3,529 $ 32,625 $ 114,853 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Certain Benefit Costs | Components of net periodic pension expense for the Company’s plans were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Service cost $ 2 $ 2 $ 6 $ 6 Interest cost 31 21 93 49 Expected return on assets (38) (40) (116) (119) Prior period service cost amortization 1 (1) — (2) Actuarial (gain) loss — — 1 1 Net amortization 11 15 28 55 Net Periodic Pension Expense $ 7 $ (3) $ 12 $ (10) |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock authorized, issued and outstanding was as follows: September 30, 2023 December 31, 2022 Series Shares Authorized Shares Shares Outstanding Shares Authorized Shares Shares Outstanding Series A 32,000 32,000 32,000 32,000 32,000 32,000 Series B 20,000 20,000 20,000 20,000 20,000 20,000 Series C 12,000 12,000 12,000 12,000 12,000 12,000 Total 64,000 64,000 64,000 64,000 64,000 64,000 |
Schedule of Dividends Declared | Dividends declared per share were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Series A dividends declared $ 328 $ 328 $ 984 $ 984 Series B dividends declared $ — $ — $ 619 $ 619 Series C dividends declared $ 269 $ 269 $ 806 $ 806 Common Stock Dividends declared per share of common stock were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Dividends declared $ 0.22 $ 0.20 $ 0.64 $ 0.58 |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances were as follows: September 30 December 31, 2023 2022 (in millions) Unrealized gains (losses) on investments $ (10,067) $ (9,324) Market risk benefits - instrument-specific credit risk component 370 668 Liability for future policy benefits - current discount rate component 554 355 Defined benefit pension plans (615) (650) Foreign currency translation adjustments (96) (91) Total accumulated other comprehensive income (loss) (9,854) (9,042) Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (52) (50) Accumulated other comprehensive income (loss) attributable to Holdings $ (9,802) $ (8,992) |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (2,102) $ (3,195) $ (1,231) $ (12,929) (Gains) losses reclassified into net income (loss) during the period (1) 274 246 374 679 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net unrealized gains (losses) on investments (1,828) (2,949) (857) (12,250) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 62 165 93 436 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(384), $(740), $(375) and $(3,141)) (1,766) (2,784) (764) (11,814) Change in LFPB discount rate and MRB credit risk, net of tax Market risk benefits - change in instrument-specific credit risk (net of deferred income tax expense (benefit) of $(289), $(53), $(63) and $665) (1,086) (198) (235) 2,501 Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $52, $74, $42 and $299) 195 279 157 1,126 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) 6 16 35 61 Change in defined benefit plans (net of deferred income tax expense (benefit) of $(2), $(4), $(9), and $(13)) 6 16 35 61 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (16) (30) (5) (75) Foreign currency translation adjustment (16) (30) (5) (75) Total other comprehensive income (loss), net of income taxes (2,667) (2,717) (812) (8,201) Less: Other comprehensive income (loss) attributable to noncontrolling interest (7) (12) (2) (28) Other comprehensive income (loss) attributable to Holdings $ (2,660) $ (2,705) $ (810) $ (8,173) ______________ (1) See “Reclassification adjustment” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $(73) million and $(99) million for the three and nine months ended September 30, 2023, respectively, and $(65) million and $(180) million for the three and nine months ended September 30, 2022, respectively. |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The changes in the components of redeemable noncontrolling interests were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Balance, beginning of period $ 531 $ 348 $ 455 $ 468 Net earnings (loss) attributable to redeemable noncontrolling interests 6 (9) 24 (65) Purchase/change of redeemable noncontrolling interests 99 15 157 (49) Balance, end of period $ 636 $ 354 $ 636 $ 354 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Activity of Funding Agreements | The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Nine Months Ended September 30, 2023 Outstanding Balance at December 31, 2022 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at September 30, 2023 (in millions) Short-term funding agreements: Due in one year or less $ 6,130 $ 46,499 $ (46,825) $ 656 $ — $ 6,460 Long-term funding agreements: Due in years two through five 1,679 — — (645) — 1,034 Due in more than five years 692 — — — (11) 681 Total long-term funding agreements 2,371 — — (645) (11) 1,715 Total funding agreements (1) $ 8,501 $ 46,499 $ (46,825) $ 11 $ (11) $ 8,175 _____________ (1) The $3 million and $4 million difference between the funding agreements carrying value shown in fair value table for September 30, 2023 and December 31, 2022, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Change in FABN Funding Agreements during the Nine Months Ended September 30, 2023 Outstanding Balance at December 31, 2022 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Foreign Currency Transaction Adjustment Outstanding Balance at September 30, (in millions) Short-term funding agreements: Due in one year or less $ 1,500 $ — $ (1,000) $ 500 $ — $ — $ 1,000 Long-term funding agreements: Due in years two through five 4,000 671 — (500) 1,285 (11) 5,445 Due in more than five years 1,585 — — — (1,285) — 300 Total long-term funding agreements 5,585 671 — (500) — (11) 5,745 Total funding agreements (1) $ 7,085 $ 671 $ (1,000) $ — $ — $ (11) $ 6,745 _____________ (1) The $28 million and $66 million difference between the funding agreements notional value shown and carrying value table as of September 30, 2023 and December 31, 2022, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Net income (loss) attributable to Holdings $ 1,064 $ 594 $ 2,000 $ 2,091 Adjustments related to: Variable annuity product features (4) (1,380) (675) (584) (2,322) Investment (gains) losses 411 333 554 890 Net actuarial (gains) losses related to pension and other postretirement benefit obligations 8 19 26 57 Other adjustments (1) 91 50 198 455 Income tax expense (benefit) related to above adjustments 183 58 (40) 194 Non-recurring tax items (3) 36 7 (936) 13 Non-GAAP Operating Earnings $ 413 $ 386 $ 1,218 $ 1,378 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Operating earnings (loss) by segment: Individual Retirement $ 210 $ 183 $ 644 $ 572 Group Retirement $ 105 $ 99 $ 301 $ 354 Investment Management and Research $ 99 $ 94 $ 297 $ 331 Protection Solutions $ 34 $ 30 $ 23 $ 137 Wealth Management $ 40 $ 22 $ 114 $ 78 Legacy $ 41 $ 50 $ 146 $ 170 Corporate and Other (2) $ (116) $ (92) $ (307) $ (264) ______________ (1) Includes certain legal accruals related to the COI litigation of $0 million and $35 million for the three and nine months ended September 30, 2023, respectively, and $2 million and $168 million for the three and nine months ended September 30, 2022, respectively. Includes policyholder benefit costs of $75 million for the nine months ended September 30, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. Includes the impact of annual actuarial assumptions updates related to LFPB of $61 million for the three and nine months ended September 30, 2023. Prior period impact was immaterial and was not revised. (2) Includes interest expense and financing fees of $54 million and $173 million for the three and nine months ended September 30, 2023, respectively, and $51 million and $156 million for the three and nine months ended September 30, 2022, respectively. (3) For the three and nine months ended September 30, 2023, non-recurring tax items reflect primarily the effect of uncertain tax positions for a given audit period and an increase of the deferred tax valuation allowance of $20 million and a decrease of $970 million, respectively. (4) Includes the impact of favorable assumption updates of $40 million for the three and nine months ended September 30, 2023. Includes the impact of unfavorable assumption updates of $204 million for the three and nine months ended September 30, 2022. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Segment revenues: Individual Retirement (1) $ 693 $ 512 $ 1,928 $ 1,490 Group Retirement (1) 267 287 771 920 Investment Management and Research (2) (4) 1,034 996 3,043 3,134 Protection Solutions (1) 822 759 2,373 2,357 Wealth Management (3) 390 353 1,143 1,097 Legacy (1) 198 204 607 618 Corporate and Other (1) (4) 257 222 800 645 Eliminations (199) (184) (597) (579) Adjustments related to: Variable annuity product features 1,380 675 584 2,322 Investment gains (losses), net (411) (333) (554) (890) Other adjustments to segment revenues (807) (499) (1,740) (286) Total revenues $ 3,624 $ 2,992 $ 8,358 $ 10,828 ______________ (1) Includes investment expenses charged by AB of $35 million and $104 million for the three and nine months ended September 30, 2023, respectively, and $28 million and $82 million for the three and nine months ended September 30, 2022, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $40 million and $120 million for the three and nine months ended September 30, 2023, respectively, and $34 million and $101 million for the three and nine months ended September 30, 2022, respectively, are included in segment revenues of the Investment Management and Research segment. (3) Inter-segment distribution fees of $185 million and $553 million for the three and nine months ended September 30, 2023, respectively, and $178 million and $561 million for the three and nine months ended September 30, 2022, respectively, are included in segment revenues of the Wealth Management segment. (4) Includes interest expense charged to AB of $10 million and $29 million for the three and nine months ended September 30, 2023, respectively, and $0 million and $0 million for the three and nine months ended September 30, 2022, respectively. Total assets by segment were as follows: September 30, 2023 December 31, 2022 (in millions) Total assets by segment: Individual Retirement $ 83,581 $ 77,641 Group Retirement 44,104 42,421 Investment Management and Research 11,262 12,633 Protection Solutions 36,423 37,224 Wealth Management 255 137 Legacy 45,902 48,231 Corporate and Other 38,725 34,415 Total assets $ 260,252 $ 252,702 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of net income (loss) and weighted-average common shares used in calculating basic and diluted earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions, except per share data) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 346.4 374.5 354.4 380.6 Effect of dilutive potential common shares: Employee share awards (1) 1.6 2.3 1.4 2.3 Weighted-average common shares outstanding — diluted 348.0 376.8 355.9 382.9 Net income (loss): Net income (loss) $ 1,135 $ 648 $ 2,232 $ 2,256 Less: Net income (loss) attributable to the noncontrolling interest 71 54 232 165 Net income (loss) attributable to Holdings 1,064 594 2,000 2,091 Less: Preferred stock dividends 14 14 54 54 Net income (loss) available to Holdings’ common shareholders $ 1,050 $ 580 $ 1,946 $ 2,037 Earnings per common share: Basic $ 3.03 $ 1.55 $ 5.49 $ 5.35 Diluted $ 3.02 $ 1.54 $ 5.47 $ 5.32 _____________ (1) Calculated using the treasury stock method. |
HELD-FOR-SALE (Tables)
HELD-FOR-SALE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets And Liabilities Held-for-sale | The following table summarizes the assets and liabilities classified as held-for-sale on the Company’s consolidated balance sheets: September 30, 2023 (1) December 31, 2022 (1) (in millions) Cash and cash equivalents $ 146 $ 159 Broker-dealer related receivables 175 74 Trading securities, at fair value 24 25 Goodwill and other intangible assets ,net 164 175 Other assets (2) 172 129 Total assets held-for-sale $ 681 $ 562 Broker-dealer related payables $ 71 $ 33 Customers related payables 29 10 Other liabilities 116 65 Total liabilities held-for-sale $ 216 $ 108 ____________ (1) The assets and liabilities classified as held-for-sale are reported within our Investment Management & Research segment. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Reinsurance Disclosures [Abstract] | |
Schedule Of Effect Of Reinsurance | The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Direct charges and fee income $ 780 $ 761 $ 2,312 $ 2,344 Reinsurance assumed — — 3 (1) Reinsurance ceded (181) (158) (534) (470) Policy charges and fee income $ 599 $ 603 $ 1,781 $ 1,873 Direct premiums $ 287 $ 262 $ 868 $ 778 Reinsurance assumed 40 51 135 138 Reinsurance ceded (60) (54) (180) (172) Premiums $ 267 $ 259 $ 823 $ 744 Direct policyholders’ benefits $ 807 $ 765 $ 2,534 $ 2,369 Reinsurance assumed 29 44 105 150 Reinsurance ceded (143) (180) (532) (499) Policyholders’ benefits $ 693 $ 629 $ 2,107 $ 2,020 Direct interest credited to policyholders’ account balances $ 573 $ 389 $ 1,582 $ 1,035 Reinsurance ceded (17) (11) (62) (34) Interest credited to policyholders’ account balances $ 556 $ 378 $ 1,520 $ 1,001 |
Schedule of Ceded Credit Risk | The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves: September 30, 2023 December 31, 2022 (in millions) Ceded Reinsurance: Estimated net fair values of purchased market risk benefits $ 8,745 $ 10,423 Third-party reinsurance recoverables related to insurance contracts 8,271 8,471 Top reinsurers: First Allmerica-GAF 3,735 4,005 Zurich Life Insurance Company, Ltd. 1,357 1,416 RGA Reinsurance Company 1,263 1,272 Ceded group health reserves 54 47 Amount due to reinsurers 1,424 1,533 Top reinsurers: RGA Reinsurance Company 1,155 1,171 First Allmerica-GAF 71 147 Protective Life Insurance Company 97 104 Assumed Reinsurance: Reinsurance assumed reserves $ 689 $ 701 |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) - segment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Organization Basis Of Presentation [Line Items] | ||
Number of reportable segments | 6 | |
Alliance Bernstein | ||
Organization Basis Of Presentation [Line Items] | ||
Economic interest | 62% | 61% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Effect of Transition Adjustment to Total Equity Resulting (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | |||
Liability for future policy benefits | $ 16,647 | $ 16,603 | |
Market risk benefits | (13,011) | (15,766) | |
DAC | $ 5,607 | $ 6,599 | $ 6,369 |
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
DAC | 1,409 | ||
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Liability for future policy benefits | (1,313) | ||
Market risk benefits | (4,300) | ||
DAC | 1,548 | ||
Unearned revenue liability and sales inducement assets | (166) | ||
Total transition adjustment before taxes | (4,231) | ||
Income taxes | 888 | ||
Total transition adjustment (net of taxes) | (3,343) | ||
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Retained Earnings | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Liability for future policy benefits | 30 | ||
Market risk benefits | (3,398) | ||
DAC | 0 | ||
Unearned revenue liability and sales inducement assets | 0 | ||
Total transition adjustment before taxes | (3,368) | ||
Income taxes | 707 | ||
Total transition adjustment (net of taxes) | (2,661) | ||
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accumulated Other Comprehensive Income (Loss) | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Liability for future policy benefits | (1,343) | ||
Market risk benefits | (902) | ||
DAC | 1,548 | ||
Unearned revenue liability and sales inducement assets | (166) | ||
Total transition adjustment before taxes | (863) | ||
Income taxes | 181 | ||
Total transition adjustment (net of taxes) | $ (682) |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Balance of and Changes in Liability for Future Policy Benefits (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | $ 8,470 | |
Less: Reinsurance recoverable | (1,896) | |
Net liability for future policy benefits, after reinsurance recoverable | 6,574 | |
Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 7,341 | |
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | (356) | |
Effect of remeasurement of liability at current single A rate | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | 1,485 | |
Protection Solutions | Term | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 1,983 | |
Less: Reinsurance recoverable | (59) | |
Net liability for future policy benefits, after reinsurance recoverable | 1,924 | |
Protection Solutions | Term | Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 1,423 | |
Protection Solutions | Term | Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | 0 | |
Protection Solutions | Term | Effect of remeasurement of liability at current single A rate | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | 560 | |
Individual Retirement | Payout - Legacy | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 3,407 | |
Less: Reinsurance recoverable | 0 | |
Net liability for future policy benefits, after reinsurance recoverable | 3,407 | |
Individual Retirement | Payout - Legacy | Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 3,047 | |
Individual Retirement | Payout - Legacy | Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | (171) | |
Individual Retirement | Payout - Legacy | Effect of remeasurement of liability at current single A rate | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | 531 | |
Corporate & Other | No Effect Of Application Of Accounting Standards Update 2018-12 | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Net liability for future policy benefits, after reinsurance recoverable | $ (111) | |
Corporate & Other | Group Pension | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 780 | |
Less: Reinsurance recoverable | 0 | |
Net liability for future policy benefits, after reinsurance recoverable | 780 | |
Corporate & Other | Group Pension | Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 771 | |
Corporate & Other | Group Pension | Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | (85) | |
Corporate & Other | Group Pension | Effect of remeasurement of liability at current single A rate | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | 94 | |
Corporate & Other | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 2,300 | |
Less: Reinsurance recoverable | (1,837) | |
Net liability for future policy benefits, after reinsurance recoverable | 463 | |
Corporate & Other | Health | Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for future policy benefits | 2,100 | |
Corporate & Other | Health | Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | (100) | |
Corporate & Other | Health | Effect of remeasurement of liability at current single A rate | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Effect of changes in cash flow assumptions | $ 300 | |
Protection Solutions PFBL | No Effect Of Application Of Accounting Standards Update 2018-12 | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Net liability for future policy benefits, after reinsurance recoverable | 550 | |
PDR | No Effect Of Application Of Accounting Standards Update 2018-12 | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Net liability for future policy benefits, after reinsurance recoverable | (230) | |
Rider Reserves and Term Reinsurance | No Effect Of Application Of Accounting Standards Update 2018-12 | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Net liability for future policy benefits, after reinsurance recoverable | $ (24) |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Market Risk Benefit, Activity (Details) $ in Millions | Dec. 31, 2020 USD ($) |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | $ 23,784 |
Previously Reported | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 19,525 |
Effect Of Application Of Accounting Standards Updated 2018-12, Adjustments For Reversal Of Balances Recorded In Accumulated Other Comprehensive Income | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | (74) |
Effect Of Application Of Accounting Standards Update 2018-12, Cumulative Effect Of Changes In Instrument-Specific Credit Risk | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 968 |
Effect Of Application Of Accounting Standards Update 2018-12, Adjustments For Remaining Difference Between Carrying Amount And Fair Value For MRB | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 3,365 |
Protection Solutions | No Effect Of Application Of Accounting Standards Update 2018-12 | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | (2) |
GMxB Core | Individual Retirement | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 2,144 |
GMxB Core | Individual Retirement | Previously Reported | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 2,206 |
GMxB Core | Individual Retirement | Effect Of Application Of Accounting Standards Updated 2018-12, Adjustments For Reversal Of Balances Recorded In Accumulated Other Comprehensive Income | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | (4) |
GMxB Core | Individual Retirement | Effect Of Application Of Accounting Standards Update 2018-12, Cumulative Effect Of Changes In Instrument-Specific Credit Risk | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 505 |
GMxB Core | Individual Retirement | Effect Of Application Of Accounting Standards Update 2018-12, Adjustments For Remaining Difference Between Carrying Amount And Fair Value For MRB | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | (563) |
GMxB Legacy | Legacy Segment | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 24,404 |
GMxB Legacy | Legacy Segment | Previously Reported | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 19,891 |
GMxB Legacy | Legacy Segment | Effect Of Application Of Accounting Standards Updated 2018-12, Adjustments For Reversal Of Balances Recorded In Accumulated Other Comprehensive Income | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | (70) |
GMxB Legacy | Legacy Segment | Effect Of Application Of Accounting Standards Update 2018-12, Cumulative Effect Of Changes In Instrument-Specific Credit Risk | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 461 |
GMxB Legacy | Legacy Segment | Effect Of Application Of Accounting Standards Update 2018-12, Adjustments For Remaining Difference Between Carrying Amount And Fair Value For MRB | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 4,122 |
Purchased MRB | Legacy Segment | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | (2,764) |
Purchased MRB | Legacy Segment | Previously Reported | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | (2,572) |
Purchased MRB | Legacy Segment | Effect Of Application Of Accounting Standards Updated 2018-12, Adjustments For Reversal Of Balances Recorded In Accumulated Other Comprehensive Income | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 0 |
Purchased MRB | Legacy Segment | Effect Of Application Of Accounting Standards Update 2018-12, Cumulative Effect Of Changes In Instrument-Specific Credit Risk | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 2 |
Purchased MRB | Legacy Segment | Effect Of Application Of Accounting Standards Update 2018-12, Adjustments For Remaining Difference Between Carrying Amount And Fair Value For MRB | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | (194) |
EQUI-VEST Individual | No Effect Of Application Of Accounting Standards Update 2018-12 | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 43 |
SCS | No Effect Of Application Of Accounting Standards Update 2018-12 | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | 21 |
Group Retirement EQUI-VEST | No Effect Of Application Of Accounting Standards Update 2018-12 | |
Market Risk Benefit [Line Items] | |
Changes in the instrument-specific credit risk | $ (20) |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | $ 6,599 | $ 6,369 | $ 5,607 | ||
Closed block liabilities | 5,618 | 5,760 | |||
Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 4,198 | ||||
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 1,409 | ||||
Closed block liabilities | 136 | ||||
Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 3 | ||||
Term | Protection Solutions | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 344 | 362 | $ 368 | $ 385 | 403 |
Term | Protection Solutions | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 403 | ||||
Term | Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 0 | ||||
UL | Protection Solutions | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 175 | 179 | 180 | 180 | 177 |
UL | Protection Solutions | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 0 | ||||
UL | Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 177 | ||||
VUL | Protection Solutions | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 956 | 889 | 867 | 799 | 714 |
VUL | Protection Solutions | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 0 | ||||
VUL | Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 714 | ||||
IUL | Protection Solutions | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 187 | 185 | 184 | 180 | 162 |
IUL | Protection Solutions | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 0 | ||||
IUL | Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 162 | ||||
GMxB Legacy | Legacy | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 564 | 593 | 607 | 631 | 667 |
GMxB Legacy | Legacy | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 654 | ||||
GMxB Legacy | Legacy | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 13 | ||||
GMxB Core | Individual Retirement | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 1,646 | ||||
GMxB Core | Individual Retirement | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 1,635 | ||||
GMxB Core | Individual Retirement | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 11 | ||||
EI | Individual Retirement | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 155 | 156 | 156 | 156 | 154 |
EI | Individual Retirement | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 134 | ||||
EI | Individual Retirement | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 20 | ||||
IE | Individual Retirement | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 167 | 148 | 142 | 121 | 94 |
IE | Individual Retirement | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 95 | ||||
IE | Individual Retirement | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | (1) | ||||
SCS | Individual Retirement | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 855 | ||||
SCS | Individual Retirement | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 645 | ||||
SCS | Individual Retirement | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 210 | ||||
EG | Group Retirement | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 730 | 710 | 701 | 677 | 634 |
EG | Group Retirement | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 553 | ||||
EG | Group Retirement | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 81 | ||||
Momentum | Group Retirement | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | $ 83 | $ 89 | $ 91 | $ 94 | 101 |
Momentum | Group Retirement | Previously Reported | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | 79 | ||||
Momentum | Group Retirement | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
DAC | $ 22 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Deferred Income (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | $ 404 | ||||
Previously Reported | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | 404 | ||||
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | 0 | ||||
Protection Solutions | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 648 | ||||
Protection Solutions | Previously Reported | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 483 | ||||
Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 165 | ||||
GMxB Legacy | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | $ 184 | $ 200 | $ 205 | $ 222 | |
GMxB Legacy | Legacy Segment | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | 246 | ||||
GMxB Legacy | Legacy Segment | Previously Reported | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | 246 | ||||
GMxB Legacy | Legacy Segment | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | 0 | ||||
GMxB Core | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | $ 130 | $ 137 | $ 140 | $ 147 | |
GMxB Core | Individual Retirement | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | 158 | ||||
GMxB Core | Individual Retirement | Previously Reported | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | 158 | ||||
GMxB Core | Individual Retirement | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Sales Inducement Assets | 0 | ||||
UL | Protection Solutions | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 60 | ||||
UL | Protection Solutions | Previously Reported | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 31 | ||||
UL | Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 29 | ||||
VUL | Protection Solutions | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 565 | ||||
VUL | Protection Solutions | Previously Reported | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 438 | ||||
VUL | Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 127 | ||||
IUL | Protection Solutions | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 23 | ||||
IUL | Protection Solutions | Previously Reported | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | 14 | ||||
IUL | Protection Solutions | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Deferred Sale Inducement Cost [Line Items] | |||||
Unearned Revenue Liability | $ 9 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |||
Variable Interest Entity [Line Items] | |||||||||
Investments | $ 97,209 | $ 93,097 | |||||||
Fixed maturities, at fair value using the fair value option | [1] | 1,634 | 1,508 | ||||||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 1,541 | 1,150 | ||||||
Unpaid outstanding balance and short-term borrowing | 1,600 | 1,400 | |||||||
Assets | 260,252 | 252,702 | |||||||
Liabilities | 256,335 | 249,106 | |||||||
Redeemable noncontrolling interest | 636 | [1],[2] | $ 531 | 455 | [1],[2] | $ 354 | $ 348 | $ 468 | |
Variable Interest Entity, Primary Beneficiary | CLO Warehouse Debt | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Investments | 113 | 85 | |||||||
Investment assets, special purpose entity | 22 | ||||||||
Consolidated Limited Partnerships | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 1,400 | 644 | |||||||
Consolidated Entity | AB-Sponsored Investment Funds | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 324 | 581 | |||||||
Liabilities | 13 | 56 | |||||||
Redeemable noncontrolling interest | 176 | 369 | |||||||
Consolidated Entity, Excluding VIE | AB-Sponsored Investment Funds | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 23 | 0 | |||||||
Liabilities | 1 | 0 | |||||||
Redeemable noncontrolling interest | 7 | 0 | |||||||
Non-consolidated Vairable Interest Entities | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Investments | 2,500 | 2,400 | |||||||
Assets | 265,200 | 282,500 | |||||||
Variable interest entity, maximum loss exposure | 2,500 | 2,400 | |||||||
Unfunded commitments | 1,300 | 1,300 | |||||||
Non-consolidated Vairable Interest Entities | AB-Sponsored Investment Funds | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Variable interest entity, maximum loss exposure | 11 | 6 | |||||||
Non-consolidated Vairable Interest Entities | AB-Sponsored Investment Funds | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | $ 54,900 | $ 46,400 | |||||||
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.[2]See Note 15 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest. |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Change in Accounting Estimate [Line Items] | ||||
Other income | $ 266 | $ 242 | $ 775 | $ 797 |
Increase (decrease) in remeasurement of liability for future policy benefits | (49) | (20) | (46) | (54) |
Policyholders’ benefits | (693) | (629) | (2,107) | (2,020) |
Increase (decrease) in income (loss) from continuing operation, before income taxes | 1,475 | 825 | 1,555 | 2,834 |
Increase (decrease) in net income (loss) | 1,135 | 648 | 2,232 | 2,256 |
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates | ||||
Change in Accounting Estimate [Line Items] | ||||
Other income | (9) | (9) | ||
Increase (decrease) in remeasurement of liability for future policy benefits | 51 | 14 | 51 | 14 |
Policyholders’ benefits | 2 | 13 | 2 | 13 |
Increase (decrease) purchased market risk benefits | (53) | 204 | 53 | 204 |
Increase (decrease) in income (loss) from continuing operation, before income taxes | (5) | (206) | (5) | (206) |
Increase (decrease) in net income (loss) | $ (4) | (163) | $ (4) | (163) |
Interest credited to policyholder account balances | $ 1 | $ 1 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2023 USD ($) issue | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) issue | Sep. 30, 2022 USD ($) | Dec. 31, 2027 | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) issue | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Net Investment Income [Line Items] | ||||||||||
Number of positions in unrealized loss position | issue | 5,517 | 5,517 | 5,209 | |||||||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.90% | 0.90% | ||||||||
Amortized cost of fixed maturities available-for-sale | $ 74,340,000,000 | $ 74,340,000,000 | $ 72,991,000,000 | |||||||
12 months or longer, gross unrealized losses | 10,538,000,000 | 10,538,000,000 | 5,295,000,000 | |||||||
Loaned securities | 111,000,000 | $ 111,000,000 | ||||||||
Minimum requirement percentage of the fair value of the loaned securities to be held as cash collateral | 102% | |||||||||
Cash collateral | 113,000,000 | $ 113,000,000 | ||||||||
Allowance for credit losses | 209,000,000 | $ 83,000,000 | $ 209,000,000 | $ 83,000,000 | 129,000,000 | |||||
Percentage of mortgage loans on real estate, interest rate | 0.35% | |||||||||
Separate account equity investment carrying value | 45,000,000 | $ 45,000,000 | 39,000,000 | |||||||
Interest credited to policyholders account balances participating group annuity contracts | 0 | 0 | 1,000,000 | 1,000,000 | ||||||
Recurring | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Trading securities, at fair value | 1,009,000,000 | 1,009,000,000 | 677,000,000 | |||||||
Forecast | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Percentage of mortgage loans on real estate, interest rate | 5% | |||||||||
Commercial, Agricultural And Residential Mortgage Loan | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Accrued investment income receivable | 78,000,000 | 78,000,000 | 71,000,000 | |||||||
Accrued interest written off | 0 | 0 | ||||||||
Individually Assessed Mortgage Loans | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Mortgage loans foreclosure probable | 0 | 0 | ||||||||
Allowance for credit losses | 0 | 0 | ||||||||
Mortgage Loans | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Non-accruing loans, amortized cost | 19,000,000 | 19,000,000 | 16,000,000 | |||||||
Commercial mortgages: | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Allowance for credit losses | 203,000,000 | 77,000,000 | 203,000,000 | 77,000,000 | $ 140,000,000 | 123,000,000 | $ 58,000,000 | $ 57,000,000 | ||
Troubled debt restructuring, postmodification | $ 56,000,000 | |||||||||
Fixed maturities | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Accrued investment income receivable | 654,000,000 | 654,000,000 | 591,000,000 | |||||||
Accrued interest written off | 0 | $ 0 | 0 | $ 0 | ||||||
Amortized cost of fixed maturities available-for-sale | 74,300,000,000 | 74,300,000,000 | 73,000,000,000 | |||||||
Fixed maturities | Non-Investment Grade | Other Than Investment Grade | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Available-for-sale securities, amortized cost basis other than investment grade | $ 2,700,000,000 | $ 2,700,000,000 | $ 2,900,000,000 | |||||||
Percentage of available for sale securities | 3.70% | 3.70% | 4% | |||||||
Unrealized loss on available for sale securities | $ (153,000,000) | $ (153,000,000) | $ (208,000,000) | |||||||
Public Corporate | ||||||||||
Net Investment Income [Line Items] | ||||||||||
Exposure in single issuer of total investments | $ 400,000,000 | $ 400,000,000 | $ 327,000,000 | |||||||
Debt securities exposure in single issuer of total investments, percentage | 12.20% | 12.20% | 10.40% | |||||||
Amortized cost of fixed maturities available-for-sale | $ 50,800,000,000 | $ 50,800,000,000 | $ 50,712,000,000 | |||||||
12 months or longer, gross unrealized losses | $ 7,733,000,000 | $ 7,733,000,000 | $ 4,536,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | $ 74,340 | $ 74,340 | $ 72,991 | ||
Allowance for Credit Losses | 2 | 2 | 24 | ||
Gross Unrealized Gains | 78 | 78 | 106 | ||
Gross Unrealized Losses | 10,946 | 10,946 | 9,712 | ||
Fair Value | 63,470 | 63,470 | 63,361 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Due in one year or less | 1,677 | 1,677 | |||
Due in years two through five | 14,540 | 14,540 | |||
Due in years six through ten | 17,460 | 17,460 | |||
Due after ten years | 24,301 | 24,301 | |||
Subtotal | 57,978 | 57,978 | |||
Amortized Cost (Less Allowance for Credit Losses) | 74,338 | 74,338 | |||
Fair Value | |||||
Due in one year or less | 1,658 | 1,658 | |||
Due in years two through five | 13,675 | 13,675 | |||
Due in years six through ten | 15,411 | 15,411 | |||
Due after ten years | 17,377 | 17,377 | |||
Subtotal | 48,121 | 48,121 | |||
Fair Value | 63,470 | 63,470 | 63,361 | ||
Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments | |||||
Proceeds from sales | 2,524 | $ 905 | 5,579 | $ 11,640 | |
Gross gains on sales | 1 | 0 | 8 | 44 | |
Gross losses on sales | (348) | (62) | (417) | (653) | |
Net (increase) decrease in Allowance for Credit and Intent to Sell losses | (1) | (243) | (64) | (246) | |
Fixed Maturities - Credit Loss Impairments | |||||
Balance, beginning of period | 44 | 32 | 36 | 44 | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | (1) | (2) | (58) | (17) | |
Recognized impairments on securities impaired to fair value this period | 0 | 246 | 52 | 246 | |
Credit losses recognized this period on securities for which credit losses were not previously recognized | 1 | (1) | 10 | 0 | |
Additional credit losses this period on securities previously impaired | 0 | 5 | 4 | 7 | |
Balance, end of period | 44 | $ 280 | 44 | $ 280 | |
Corporate | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 50,800 | 50,800 | 50,712 | ||
Allowance for Credit Losses | 2 | 2 | 24 | ||
Gross Unrealized Gains | 58 | 58 | 89 | ||
Gross Unrealized Losses | 8,082 | 8,082 | 7,206 | ||
Fair Value | 42,774 | 42,774 | 43,571 | ||
Fair Value | |||||
Fair Value | 42,774 | 42,774 | 43,571 | ||
U.S. government, agencies and authorities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 5,744 | 5,744 | 7,054 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 0 | 0 | 1 | ||
Gross Unrealized Losses | 1,573 | 1,573 | 1,218 | ||
Fair Value | 4,171 | 4,171 | 5,837 | ||
Fair Value | |||||
Fair Value | 4,171 | 4,171 | 5,837 | ||
States and political subdivisions | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 615 | 615 | 609 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 2 | 2 | 7 | ||
Gross Unrealized Losses | 102 | 102 | 89 | ||
Fair Value | 515 | 515 | 527 | ||
Fair Value | |||||
Fair Value | 515 | 515 | 527 | ||
Foreign governments | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 821 | 821 | 985 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 1 | 1 | 2 | ||
Gross Unrealized Losses | 161 | 161 | 151 | ||
Fair Value | 661 | 661 | 836 | ||
Fair Value | |||||
Fair Value | 661 | 661 | 836 | ||
Residential mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 1,791 | 1,791 | 908 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 0 | 0 | 1 | ||
Gross Unrealized Losses | 136 | 136 | 87 | ||
Fair Value | 1,655 | 1,655 | 822 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 1,791 | 1,791 | |||
Fair Value | |||||
Without single maturity date | 1,655 | 1,655 | |||
Fair Value | 1,655 | 1,655 | 822 | ||
Asset-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 10,477 | 10,477 | 8,859 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 15 | 15 | 4 | ||
Gross Unrealized Losses | 212 | 212 | 373 | ||
Fair Value | 10,280 | 10,280 | 8,490 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 10,477 | 10,477 | |||
Fair Value | |||||
Without single maturity date | 10,280 | 10,280 | |||
Fair Value | 10,280 | 10,280 | 8,490 | ||
Commercial mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 4,051 | 4,051 | 3,823 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 0 | 0 | 0 | ||
Gross Unrealized Losses | 680 | 680 | 588 | ||
Fair Value | 3,371 | 3,371 | 3,235 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 4,051 | 4,051 | |||
Fair Value | |||||
Without single maturity date | 3,371 | 3,371 | |||
Fair Value | 3,371 | 3,371 | 3,235 | ||
Redeemable preferred stock | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 41 | 41 | 41 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 2 | 2 | 2 | ||
Gross Unrealized Losses | 0 | 0 | 0 | ||
Fair Value | 43 | 43 | 43 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 41 | 41 | |||
Fair Value | |||||
Without single maturity date | 43 | 43 | |||
Fair Value | $ 43 | $ 43 | $ 43 |
INVESTMENTS - Net Unrealized Ga
INVESTMENTS - Net Unrealized Gain (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Beginning of year | $ 5,260 | $ 7,111 | $ 3,141 | $ 11,927 |
Net unrealized investment gains (losses) | (1,828) | (2,949) | (857) | (12,250) |
End of year | 3,281 | 4,889 | 3,281 | 4,889 |
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 | (8,641) | (6,965) | (9,606) | 4,809 |
Net investment gains (losses) arising during the period | (2,575) | (4,045) | (1,730) | (16,359) |
Included in net income (loss) | 348 | 311 | 474 | 859 |
Excluded from net income (loss) | 0 | 0 | ||
Other | 0 | 0 | 0 | 0 |
Impact of net unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses) | (10,699) | |||
End of year | (10,867) | (10,698) | (10,867) | (10,698) |
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 | 36 | 25 | 41 | (169) |
Impact of net unrealized investment gains (losses) | 38 | 16 | 33 | 210 |
Net unrealized investment gains (losses) | 41 | |||
End of year | 74 | 41 | 74 | 41 |
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 | 238 | 1,457 | 440 | (974) |
Impact of net unrealized investment gains (losses) | 460 | 781 | 257 | 3,210 |
Net unrealized investment gains (losses) | 2,238 | |||
End of year | 698 | 2,238 | 698 | 2,238 |
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 | (8,367) | (5,483) | (9,125) | 3,666 |
Net investment gains (losses) arising during the period | (2,575) | (4,045) | (1,730) | (16,359) |
Included in net income (loss) | 348 | 311 | 474 | 859 |
Excluded from net income (loss) | 0 | 0 | ||
Other | 0 | 0 | 0 | 0 |
Impact of net unrealized investment gains (losses) | 498 | 797 | 290 | 3,420 |
Net unrealized investment gains (losses) | (8,420) | |||
End of year | (10,095) | (8,419) | (10,095) | (8,419) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) excluding credit losses | Net Unrealized Gains (Losses) on Investments | ||||
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Net unrealized investment gains (losses) | (10,868) | (10,862) | (10,691) | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) excluding credit losses | Policyholders’ Liabilities | ||||
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Net unrealized investment gains (losses) | 74 | 74 | 41 | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) excluding credit losses | Deferred Income Tax Asset (Liability) | ||||
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Net unrealized investment gains (losses) | 698 | 697 | 2,236 | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) excluding credit losses | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | ||||
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Net unrealized investment gains (losses) | (10,096) | (10,091) | (8,414) | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) with credit losses | Net Unrealized Gains (Losses) on Investments | ||||
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Net unrealized investment gains (losses) | 1 | 1 | (5) | (7) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) with credit losses | Policyholders’ Liabilities | ||||
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Net unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) with credit losses | Deferred Income Tax Asset (Liability) | ||||
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Net unrealized investment gains (losses) | 0 | 0 | 1 | 2 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) with credit losses | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | ||||
Debt Securities, Available-For-Sale, Net Unrealized Investments [Roll Forward] | ||||
Net unrealized investment gains (losses) | $ 1 | $ 1 | $ (4) | $ (5) |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than twelve months, fair value | $ 10,783 | $ 39,169 |
Less than 12 months, gross unrealized losses | 408 | 4,415 |
12 months or longer, fair value | 47,259 | 20,816 |
12 months or longer, gross unrealized losses | 10,538 | 5,295 |
Total fair value | 58,042 | 59,985 |
Total gross unrealized losses | 10,946 | 9,710 |
Corporate | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than twelve months, fair value | 7,091 | 24,580 |
Less than 12 months, gross unrealized losses | 349 | 2,668 |
12 months or longer, fair value | 32,564 | 16,534 |
12 months or longer, gross unrealized losses | 7,733 | 4,536 |
Total fair value | 39,655 | 41,114 |
Total gross unrealized losses | 8,082 | 7,204 |
U.S. government, agencies and authorities | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than twelve months, fair value | 175 | 5,564 |
Less than 12 months, gross unrealized losses | 7 | 1,200 |
12 months or longer, fair value | 3,994 | 204 |
12 months or longer, gross unrealized losses | 1,566 | 18 |
Total fair value | 4,169 | 5,768 |
Total gross unrealized losses | 1,573 | 1,218 |
States and political subdivisions | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than twelve months, fair value | 137 | 130 |
Less than 12 months, gross unrealized losses | 2 | 25 |
12 months or longer, fair value | 270 | 173 |
12 months or longer, gross unrealized losses | 100 | 64 |
Total fair value | 407 | 303 |
Total gross unrealized losses | 102 | 89 |
Foreign governments | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than twelve months, fair value | 46 | 349 |
Less than 12 months, gross unrealized losses | 2 | 42 |
12 months or longer, fair value | 556 | 417 |
12 months or longer, gross unrealized losses | 159 | 109 |
Total fair value | 602 | 766 |
Total gross unrealized losses | 161 | 151 |
Residential mortgage-backed | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than twelve months, fair value | 967 | 671 |
Less than 12 months, gross unrealized losses | 22 | 49 |
12 months or longer, fair value | 675 | 83 |
12 months or longer, gross unrealized losses | 114 | 38 |
Total fair value | 1,642 | 754 |
Total gross unrealized losses | 136 | 87 |
Asset-backed | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than twelve months, fair value | 2,067 | 6,298 |
Less than 12 months, gross unrealized losses | 18 | 230 |
12 months or longer, fair value | 6,244 | 1,765 |
12 months or longer, gross unrealized losses | 194 | 143 |
Total fair value | 8,311 | 8,063 |
Total gross unrealized losses | 212 | 373 |
Commercial mortgage-backed | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than twelve months, fair value | 300 | 1,577 |
Less than 12 months, gross unrealized losses | 8 | 201 |
12 months or longer, fair value | 2,956 | 1,640 |
12 months or longer, gross unrealized losses | 672 | 387 |
Total fair value | 3,256 | 3,217 |
Total gross unrealized losses | $ 680 | $ 588 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 129 | |||
Balance, end of period | $ 209 | $ 83 | 209 | $ 83 |
Commercial mortgages: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 140 | 58 | 123 | 57 |
Current-period provision for expected credit losses | 63 | 19 | 80 | 20 |
Write-offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Net change in allowance | 63 | 19 | 80 | 20 |
Balance, end of period | 203 | 77 | 203 | 77 |
Agricultural mortgages: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 5 | 6 | 6 | 5 |
Current-period provision for expected credit losses | 1 | 0 | 0 | 1 |
Write-offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Net change in allowance | 1 | 0 | 0 | 1 |
Balance, end of period | 6 | 6 | 6 | 6 |
Residential mortgages: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Current-period provision for expected credit losses | 0 | 0 | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Net change in allowance | 0 | 0 | 0 | 0 |
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
INVESTMENTS - Credit Quality (D
INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | $ 17,864 | $ 16,610 |
Total | 17,811 | 16,594 |
Non-accruing Loans | 53 | 16 |
Non-accruing Loans with No Allowance | 3 | 0 |
Interest Income on Non-accruing Loans | 1 | 0 |
Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 64 | 77 |
30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 18 | 59 |
60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 4 | 5 |
90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 42 | 13 |
Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 17,747 | 16,517 |
Commercial | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 1,185 | 3,272 |
2022 | 3,285 | 2,114 |
2021 | 2,118 | 1,369 |
2020 | 1,367 | 642 |
2019 | 638 | 1,201 |
Prior | 6,132 | 5,060 |
Revolving Loans Amortized Cost Basis | 425 | 328 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 132 | 34 |
Total | 15,282 | 14,020 |
Total | 15,248 | 14,020 |
Non-accruing Loans | 34 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 1 | 0 |
Commercial | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 56 |
Commercial | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 56 |
Commercial | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial | 90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 15,248 | 13,964 |
Commercial | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 175 | 771 |
2022 | 695 | 1,159 |
2021 | 1,126 | 1,113 |
2020 | 1,140 | 102 |
2019 | 157 | 571 |
Prior | 3,127 | 1,923 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 6,420 | 5,639 |
Commercial | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 0 | 158 |
2022 | 0 | 215 |
2021 | 181 | 164 |
2020 | 167 | 197 |
2019 | 172 | 186 |
Prior | 737 | 482 |
Revolving Loans Amortized Cost Basis | 256 | 279 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 96 | 0 |
Total | 1,609 | 1,681 |
Commercial | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 81 | 337 |
2022 | 799 | 390 |
2021 | 234 | 32 |
2020 | 0 | 153 |
2019 | 236 | 176 |
Prior | 984 | 1,175 |
Revolving Loans Amortized Cost Basis | 92 | 4 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,426 | 2,267 |
Commercial | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 522 | 1,041 |
2022 | 762 | 259 |
2021 | 455 | 0 |
2020 | 0 | 92 |
2019 | 30 | 73 |
Prior | 761 | 917 |
Revolving Loans Amortized Cost Basis | 6 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,536 | 2,382 |
Commercial | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 400 | 507 |
2022 | 674 | 43 |
2021 | 43 | 60 |
2020 | 0 | 98 |
2019 | 43 | 160 |
Prior | 416 | 492 |
Revolving Loans Amortized Cost Basis | 71 | 45 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 36 | 34 |
Total | 1,683 | 1,439 |
Commercial | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 7 | 458 |
2022 | 355 | 48 |
2021 | 79 | 0 |
2020 | 60 | 0 |
2019 | 0 | 35 |
Prior | 107 | 71 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 608 | 612 |
Commercial | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 250 | 624 |
2022 | 484 | 130 |
2021 | 130 | 0 |
2020 | 35 | 0 |
2019 | 0 | 119 |
Prior | 1,620 | 1,259 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,519 | 2,132 |
Commercial | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 688 | 2,285 |
2022 | 2,313 | 1,569 |
2021 | 815 | 906 |
2020 | 869 | 313 |
2019 | 257 | 623 |
Prior | 2,618 | 2,254 |
Revolving Loans Amortized Cost Basis | 419 | 328 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 96 | 0 |
Total | 8,075 | 8,278 |
Commercial | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 247 | 363 |
2022 | 488 | 415 |
2021 | 1,139 | 463 |
2020 | 463 | 329 |
2019 | 289 | 424 |
Prior | 1,198 | 1,314 |
Revolving Loans Amortized Cost Basis | 6 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 36 | 34 |
Total | 3,866 | 3,342 |
Commercial | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 34 | 0 |
2020 | 0 | 0 |
2019 | 92 | 35 |
Prior | 696 | 233 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 822 | 268 |
Agricultural | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 132 | 353 |
2022 | 309 | 367 |
2021 | 348 | 450 |
2020 | 439 | 197 |
2019 | 192 | 215 |
Prior | 1,130 | 1,008 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,550 | 2,590 |
Total | 2,531 | 2,574 |
Non-accruing Loans | 19 | 16 |
Non-accruing Loans with No Allowance | 3 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Agricultural | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 64 | 21 |
Agricultural | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 18 | 3 |
Agricultural | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 4 | 5 |
Agricultural | 90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 42 | 13 |
Agricultural | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 2,467 | 2,553 |
Agricultural | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 7 | 51 |
2022 | 51 | 40 |
2021 | 39 | 62 |
2020 | 60 | 21 |
2019 | 20 | 12 |
Prior | 184 | 193 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 361 | 379 |
Agricultural | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 16 | 16 |
2022 | 16 | 58 |
2021 | 56 | 35 |
2020 | 32 | 24 |
2019 | 23 | 14 |
Prior | 62 | 51 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 205 | 198 |
Agricultural | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 9 | 69 |
2022 | 50 | 42 |
2021 | 31 | 111 |
2020 | 109 | 18 |
2019 | 18 | 19 |
Prior | 199 | 196 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 416 | 455 |
Agricultural | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 38 | 107 |
2022 | 111 | 147 |
2021 | 155 | 177 |
2020 | 173 | 98 |
2019 | 99 | 99 |
Prior | 374 | 298 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 950 | 926 |
Agricultural | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 33 | 91 |
2022 | 57 | 80 |
2021 | 63 | 61 |
2020 | 57 | 30 |
2019 | 26 | 60 |
Prior | 287 | 257 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 523 | 579 |
Agricultural | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 29 | 19 |
2022 | 24 | 0 |
2021 | 4 | 4 |
2020 | 8 | 6 |
2019 | 6 | 11 |
Prior | 24 | 13 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 95 | 53 |
Agricultural | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 86 | 163 |
2022 | 163 | 182 |
2021 | 186 | 228 |
2020 | 235 | 129 |
2019 | 134 | 132 |
Prior | 811 | 725 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,615 | 1,559 |
Agricultural | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 46 | 190 |
2022 | 146 | 185 |
2021 | 162 | 222 |
2020 | 204 | 68 |
2019 | 58 | 83 |
Prior | 303 | 267 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 919 | 1,015 |
Agricultural | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 16 | 16 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 16 | 16 |
Agricultural | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Total commercial and agricultural mortgage loans: | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 1,317 | 3,625 |
2022 | 3,594 | 2,481 |
2021 | 2,466 | 1,819 |
2020 | 1,806 | 839 |
2019 | 830 | 1,416 |
Prior | 7,262 | 6,068 |
Revolving Loans Amortized Cost Basis | 425 | 328 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 132 | 34 |
Total | 17,832 | 16,610 |
Total commercial and agricultural mortgage loans: | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 182 | 822 |
2022 | 746 | 1,199 |
2021 | 1,165 | 1,175 |
2020 | 1,200 | 123 |
2019 | 177 | 583 |
Prior | 3,311 | 2,116 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 6,781 | 6,018 |
Total commercial and agricultural mortgage loans: | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 16 | 174 |
2022 | 16 | 273 |
2021 | 237 | 199 |
2020 | 199 | 221 |
2019 | 195 | 200 |
Prior | 799 | 533 |
Revolving Loans Amortized Cost Basis | 256 | 279 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 96 | 0 |
Total | 1,814 | 1,879 |
Total commercial and agricultural mortgage loans: | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 90 | 406 |
2022 | 849 | 432 |
2021 | 265 | 143 |
2020 | 109 | 171 |
2019 | 254 | 195 |
Prior | 1,183 | 1,371 |
Revolving Loans Amortized Cost Basis | 92 | 4 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,842 | 2,722 |
Total commercial and agricultural mortgage loans: | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 560 | 1,148 |
2022 | 873 | 406 |
2021 | 610 | 177 |
2020 | 173 | 190 |
2019 | 129 | 172 |
Prior | 1,135 | 1,215 |
Revolving Loans Amortized Cost Basis | 6 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 3,486 | 3,308 |
Total commercial and agricultural mortgage loans: | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 433 | 598 |
2022 | 731 | 123 |
2021 | 106 | 121 |
2020 | 57 | 128 |
2019 | 69 | 220 |
Prior | 703 | 749 |
Revolving Loans Amortized Cost Basis | 71 | 45 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 36 | 34 |
Total | 2,206 | 2,018 |
Total commercial and agricultural mortgage loans: | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 36 | 477 |
2022 | 379 | 48 |
2021 | 83 | 4 |
2020 | 68 | 6 |
2019 | 6 | 46 |
Prior | 131 | 84 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 703 | 665 |
Total commercial and agricultural mortgage loans: | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 336 | 787 |
2022 | 647 | 312 |
2021 | 316 | 228 |
2020 | 270 | 129 |
2019 | 134 | 251 |
Prior | 2,431 | 1,984 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 4,134 | 3,691 |
Total commercial and agricultural mortgage loans: | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 734 | 2,475 |
2022 | 2,459 | 1,754 |
2021 | 977 | 1,128 |
2020 | 1,073 | 381 |
2019 | 315 | 706 |
Prior | 2,921 | 2,521 |
Revolving Loans Amortized Cost Basis | 419 | 328 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 96 | 0 |
Total | 8,994 | 9,293 |
Total commercial and agricultural mortgage loans: | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 247 | 363 |
2022 | 488 | 415 |
2021 | 1,139 | 463 |
2020 | 463 | 329 |
2019 | 289 | 424 |
Prior | 1,214 | 1,330 |
Revolving Loans Amortized Cost Basis | 6 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 36 | 34 |
Total | 3,882 | 3,358 |
Total commercial and agricultural mortgage loans: | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 34 | 0 |
2020 | 0 | 0 |
2019 | 92 | 35 |
Prior | 696 | 233 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 822 | 268 |
Residential mortgages: | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
2023 | 21 | |
2022 | 11 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Total | 32 | 0 |
Total | 32 | 0 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Residential mortgages: | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Residential mortgages: | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Residential mortgages: | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Residential mortgages: | 90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Residential mortgages: | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | $ 32 | $ 0 |
INVESTMENTS - Amortized Cost of
INVESTMENTS - Amortized Cost of Loans by Credit Quality Indicator and Origination Year (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost Basis by Origination Year | ||
Total | $ 17,864 | $ 16,610 |
Residential mortgages: | ||
Amortized Cost Basis by Origination Year | ||
2023 | 21 | |
2022 | 11 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Total | 32 | $ 0 |
Residential mortgages: | Performing | ||
Amortized Cost Basis by Origination Year | ||
2023 | 21 | |
2022 | 11 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Total | 32 | |
Residential mortgages: | Nonperforming | ||
Amortized Cost Basis by Origination Year | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Total | $ 0 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (5) | $ (33) | $ (3) | $ (143) |
Net investment gains (losses) recognized on securities sold during the period | (6) | 0 | (9) | (11) |
Unrealized and realized gains (losses) on equity securities | $ (11) | $ (33) | $ (12) | $ (154) |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (26) | $ (44) | $ 20 | $ (246) |
Net investment gains (losses) recognized on securities sold during the period | (1) | 0 | (3) | 6 |
Unrealized and realized gains (losses) on trading securities | (27) | (44) | 17 | (240) |
Interest and dividend income from trading securities | 8 | 2 | 20 | 20 |
Net investment income (loss) from trading securities | $ (19) | $ (42) | $ 37 | $ (220) |
INVESTMENTS - Fixed Maturitie_2
INVESTMENTS - Fixed Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 4 | $ (7) | $ 23 | $ (20) |
Net investment gains (losses) recognized on securities sold during the period | (5) | (1) | (19) | 5 |
Unrealized and realized gains (losses) from fixed maturities | (1) | (8) | 4 | (15) |
Interest and dividend income from fixed maturities | 3 | 1 | 7 | 0 |
Net investment income (loss) from fixed maturities | $ 2 | $ (7) | $ 11 | $ (15) |
INVESTMENTS - Net Investment In
INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net Investment Income [Line Items] | ||||
Gross investment income (loss) | $ 1,101 | $ 875 | $ 3,181 | $ 2,434 |
Investment expenses | (30) | (33) | (84) | (77) |
Net investment income (loss) | 1,071 | 842 | 3,097 | 2,357 |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income (loss) | 788 | 700 | 2,254 | 1,939 |
Mortgage loans on real estate | ||||
Net Investment Income [Line Items] | ||||
Gross investment income (loss) | 224 | 148 | 599 | 424 |
Other equity investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income (loss) | 33 | 13 | 63 | 129 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income (loss) | 55 | 49 | 158 | 160 |
Trading securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income (loss) | (19) | (42) | 37 | (220) |
Other investment income | ||||
Net Investment Income [Line Items] | ||||
Gross investment income (loss) | 18 | 14 | 59 | 17 |
Fixed maturities, at fair value using the fair value option | ||||
Net Investment Income [Line Items] | ||||
Gross investment income (loss) | $ 2 | $ (7) | $ 11 | $ (15) |
INVESTMENTS - Investment Gains
INVESTMENTS - Investment Gains (Losses), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net Investment Income [Line Items] | ||||
Investment gains (losses), net | $ (411) | $ (332) | $ (554) | $ (890) |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Investment gains (losses), net | (348) | (311) | (475) | (859) |
Mortgage loans on real estate | ||||
Net Investment Income [Line Items] | ||||
Investment gains (losses), net | (63) | (19) | (80) | (21) |
Other equity investments | ||||
Net Investment Income [Line Items] | ||||
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Other | ||||
Net Investment Income [Line Items] | ||||
Investment gains (losses), net | $ 0 | $ (2) | $ 1 | $ (10) |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
SCS, SIO, MSO and IUL Indexed Features | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 0 | $ 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 7,905 | 4,164 |
Net Derivatives | (7,905) | (4,164) |
Embedded Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 7,905 | 4,164 |
Net Derivatives | (7,905) | (4,164) |
Derivative Instruments Including Embedded Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 82,301 | 73,841 |
Derivative Assets | 11,173 | 8,144 |
Derivative Liabilities | 19,194 | 12,656 |
Net Derivatives | (8,021) | (4,512) |
Not Designated for Hedge Accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 79,209 | 71,455 |
Derivative Assets | 11,087 | 8,045 |
Derivative Liabilities | 10,908 | 8,113 |
Net Derivatives | 179 | (68) |
Not Designated for Hedge Accounting | Currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 721 | 397 |
Derivative Assets | 38 | 4 |
Derivative Liabilities | 0 | 13 |
Net Derivatives | 38 | (9) |
Not Designated for Hedge Accounting | Interest swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,073 | 1,515 |
Derivative Assets | 1 | 0 |
Derivative Liabilities | 157 | 166 |
Net Derivatives | (156) | (166) |
Not Designated for Hedge Accounting | Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 8,481 | 5,151 |
Derivative Assets | 3 | 2 |
Derivative Liabilities | 0 | 0 |
Net Derivatives | 3 | 2 |
Not Designated for Hedge Accounting | Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 12,556 | 11,188 |
Derivative Assets | 51 | 39 |
Derivative Liabilities | 14 | 9 |
Net Derivatives | 37 | 30 |
Not Designated for Hedge Accounting | Options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 47,628 | 40,122 |
Derivative Assets | 10,336 | 7,583 |
Derivative Liabilities | 2,718 | 3,412 |
Net Derivatives | 7,618 | 4,171 |
Not Designated for Hedge Accounting | Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,449 | 12,693 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Net Derivatives | 0 | 0 |
Not Designated for Hedge Accounting | Credit default swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 272 | 327 |
Derivative Assets | 13 | 18 |
Derivative Liabilities | 7 | 9 |
Net Derivatives | 6 | 9 |
Not Designated for Hedge Accounting | Currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 29 | 62 |
Derivative Assets | 19 | 31 |
Derivative Liabilities | 18 | 32 |
Net Derivatives | 1 | (1) |
Not Designated for Hedge Accounting | Margin | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 470 | 226 |
Derivative Liabilities | 0 | 0 |
Net Derivatives | 470 | 226 |
Not Designated for Hedge Accounting | Collateral | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 156 | 142 |
Derivative Liabilities | 7,994 | 4,472 |
Net Derivatives | (7,838) | (4,330) |
Cash Flow Hedge | Designated for Hedge Accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,092 | 2,386 |
Derivative Assets | 86 | 99 |
Derivative Liabilities | 381 | 379 |
Net Derivatives | (295) | (280) |
Cash Flow Hedge | Designated for Hedge Accounting | Currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,140 | 1,431 |
Derivative Assets | 86 | 99 |
Derivative Liabilities | 87 | 85 |
Net Derivatives | (1) | 14 |
Cash Flow Hedge | Designated for Hedge Accounting | Interest swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 952 | 955 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 294 | 294 |
Net Derivatives | $ (294) | $ (294) |
DERIVATIVES - Financial Stateme
DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | $ 615 | $ 199 | $ (1,143) | $ 2,216 |
Net investment income (loss) | 1,071 | 842 | 3,097 | 2,357 |
SCS, SIO, MSO and IUL Indexed Features | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 1,082 | 781 | (3,173) | 4,648 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Embedded Derivatives | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 1,082 | 781 | (3,173) | 4,648 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Derivative Instruments Including Embedded Derivative | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 615 | 199 | (1,143) | 2,216 |
Net investment income (loss) | 2 | 5 | 8 | 7 |
Interest credited to policyholders’ account balances | 8 | (36) | (59) | (46) |
AOCI | 41 | 205 | 71 | 358 |
Not Designated for Hedge Accounting | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (463) | (551) | 2,045 | (2,374) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Currency swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 28 | 23 | 9 | 41 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Interest swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (288) | (125) | (297) | (428) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Futures | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (28) | 31 | (187) | 486 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 666 | 596 | (645) | 3,374 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Options | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (868) | (649) | 3,133 | (4,379) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Futures | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 26 | (428) | 36 | (1,486) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Credit default swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | (1) | (5) | 13 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Currency forwards | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 1 | 2 | 1 | 5 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Margin | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not Designated for Hedge Accounting | Collateral | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Cash Flow Hedge | Designated for Hedge Accounting | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (4) | (31) | (15) | (58) |
Net investment income (loss) | 2 | 5 | 8 | 7 |
Interest credited to policyholders’ account balances | 8 | (36) | (59) | (46) |
AOCI | 41 | 205 | 71 | 358 |
Cash Flow Hedge | Designated for Hedge Accounting | Currency swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (12) | 7 | (2) | 21 |
Net investment income (loss) | 2 | 5 | 8 | 7 |
Interest credited to policyholders’ account balances | 8 | (36) | (59) | (46) |
AOCI | 14 | 111 | 41 | 116 |
Cash Flow Hedge | Designated for Hedge Accounting | Interest swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 8 | (38) | (13) | (79) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | $ 27 | $ 94 | $ 30 | $ 242 |
DERIVATIVES - Rollforward for C
DERIVATIVES - Rollforward for Cash Flows Hedges in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 1,401 | |||
Balance, ending of the period | $ 1,642 | 1,642 | ||
Cash Flow Hedges Recognized in AOCI | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 52 | $ (55) | 22 | $ (208) |
Amount recorded in AOCI | 14 | 128 | (8) | 226 |
Amount reclassified from income to AOCI | 27 | 77 | 79 | 132 |
Balance, ending of the period | 93 | 150 | 93 | 150 |
Cash Flow Hedges Recognized in AOCI | Currency swaps | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amount recorded in AOCI | (17) | 77 | (12) | 77 |
Amount reclassified from income to AOCI | 31 | 34 | 53 | 39 |
Cash Flow Hedges Recognized in AOCI | Interest swaps | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amount recorded in AOCI | 31 | 51 | 4 | 149 |
Amount reclassified from income to AOCI | $ (4) | $ 43 | $ 26 | $ 93 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Cash and securities collateral for derivative contract | $ 8,000 | $ 4,500 |
Cash and securities collateral | 156 | 142 |
S&P 500, Nasdaq, Russell 2000 And Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | 391 | 247 |
U.S. Treasury Notes, U.S. Treasury Bonds And Ultra-Long Bonds | ||
Derivative [Line Items] | ||
Initial margin requirement | 96 | 113 |
Euro Stoxx, FTSE100, Topix, ASX200 and EAFE Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | $ 14 | $ 16 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives | ||
Assets: | ||
Gross Amount Recognized | $ 11,173 | $ 8,143 |
Gross Amount Offset in the Balance Sheets | 7,532 | 7,047 |
Net Amount Presented in the Balance Sheets | 3,641 | 1,096 |
Gross amount not offset in the balance sheets | (3,137) | (848) |
Net Amount | 504 | 248 |
Liabilities: | ||
Gross Amount Recognized | 8,151 | 7,645 |
Gross Amount Offset in the Balance Sheets | 7,532 | 7,047 |
Net Amount Presented in the Balance Sheets | 619 | 598 |
Gross amount not offset in the balance sheets | 0 | 0 |
Net Amount | 619 | 598 |
Secured lending | ||
Assets: | ||
Gross Amount Recognized | 113 | |
Gross Amount Offset in the Balance Sheets | 0 | |
Net Amount Presented in the Balance Sheets | 113 | |
Gross amount not offset in the balance sheets | 0 | |
Net Amount | 113 | |
Liabilities: | ||
Gross Amount Recognized | 113 | |
Gross Amount Offset in the Balance Sheets | 0 | |
Net Amount Presented in the Balance Sheets | 113 | |
Gross amount not offset in the balance sheets | 0 | |
Net Amount | 113 | |
Other financial assets | ||
Assets: | ||
Gross Amount Recognized | 2,326 | 2,789 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 2,326 | 2,789 |
Gross amount not offset in the balance sheets | 0 | 0 |
Net Amount | 2,326 | 2,789 |
Other invested assets | ||
Assets: | ||
Gross Amount Recognized | 13,612 | 10,932 |
Gross Amount Offset in the Balance Sheets | 7,532 | 7,047 |
Net Amount Presented in the Balance Sheets | 6,080 | 3,885 |
Gross amount not offset in the balance sheets | (3,137) | (848) |
Net Amount | 2,943 | 3,037 |
Other financial liabilities | ||
Liabilities: | ||
Gross Amount Recognized | 6,680 | 6,510 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 6,680 | 6,510 |
Gross amount not offset in the balance sheets | 0 | 0 |
Net Amount | 6,680 | 6,510 |
Other liabilities | ||
Liabilities: | ||
Gross Amount Recognized | 14,944 | 14,155 |
Gross Amount Offset in the Balance Sheets | 7,532 | 7,047 |
Net Amount Presented in the Balance Sheets | 7,412 | 7,108 |
Gross amount not offset in the balance sheets | 0 | 0 |
Net Amount | $ 7,412 | $ 7,108 |
CLOSED BLOCK - Closed Block Sum
CLOSED BLOCK - Closed Block Summarized Financial Information (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Closed Block Liabilities: | ||
Future policy benefits, policyholders’ account balances and other | $ 5,508 | $ 5,692 |
Policyholder dividend obligation | 0 | 0 |
Other liabilities | 110 | 68 |
Total Closed Block liabilities | 5,618 | 5,760 |
Assets Designated to the Closed Block: | ||
Fixed maturities AFS, at fair value (amortized cost of $3,062 and $3,171) (allowance for credit losses of $0 and $0) | 2,804 | 2,948 |
Mortgage loans on real estate (net of allowance for credit losses of $11 and $4) | 1,622 | 1,645 |
Policy loans | 555 | 569 |
Cash and other invested assets | 6 | 0 |
Other assets | 193 | 187 |
Total assets designated to the Closed Block | 5,180 | 5,349 |
Excess of Closed Block liabilities over assets designated to the Closed Block | 438 | 411 |
Amounts included in AOCI: | ||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $54 and $47 | (203) | (177) |
Maximum future earnings to be recognized from Closed Block assets and liabilities | 235 | 234 |
Amortized cost of fixed maturity AFS | 3,062 | 3,171 |
Allowance for credit losses of fixed maturities AFS | 0 | 0 |
Allowance for credit losses of mortgage loans on real estates | 11 | 4 |
Policy holders' dividend obligations | 0 | 0 |
Income tax | $ 54 | $ 47 |
CLOSED BLOCK - Closed Block Rev
CLOSED BLOCK - Closed Block Revenues and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Premiums and other income | $ 27 | $ 29 | $ 86 | $ 93 |
Net investment income (loss) | 53 | 52 | 156 | 164 |
Investment gains (losses), net | (6) | (2) | (6) | (2) |
Total revenues | 74 | 79 | 236 | 255 |
Benefits and Other Deductions: | ||||
Policyholders’ benefits and dividends | 79 | 93 | 237 | 249 |
Other operating costs and expenses | 0 | 0 | 0 | 0 |
Total benefits and other deductions | 79 | 93 | 237 | 249 |
Net income (loss), before income taxes | (5) | (14) | (1) | 6 |
Income tax (expense) benefit | 2 | 1 | 0 | (1) |
Net income (loss) | $ (3) | $ (13) | $ (1) | $ 5 |
DAC AND OTHER DEFERRED ASSETS_3
DAC AND OTHER DEFERRED ASSETS/LIABILITIES - DAC Costs (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | $ 6,369 | |
Balance, end of year | 6,599 | |
Other | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Amortization | (3) | $ (2) |
Corporate Segment | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 6,342 | 6,084 |
Capitalization | 701 | 645 |
Amortization | (469) | (434) |
Balance, end of year | 6,574 | 6,295 |
Protection Solutions | Term | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 362 | 385 |
Capitalization | 11 | 14 |
Amortization | (29) | (31) |
Balance, end of year | 344 | 368 |
Protection Solutions | UL | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 179 | 180 |
Capitalization | 5 | 9 |
Amortization | (9) | (9) |
Balance, end of year | 175 | 180 |
Protection Solutions | VUL | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 889 | 799 |
Capitalization | 109 | 106 |
Amortization | (42) | (38) |
Balance, end of year | 956 | 867 |
Protection Solutions | IUL | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 185 | 180 |
Capitalization | 10 | 12 |
Amortization | (8) | (8) |
Balance, end of year | 187 | 184 |
Individual Retirement | GMxB Core | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 1,625 | 1,653 |
Capitalization | 87 | 85 |
Amortization | (107) | (102) |
Balance, end of year | 1,605 | 1,636 |
Individual Retirement | EI | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 156 | 156 |
Capitalization | 8 | 10 |
Amortization | (9) | (10) |
Balance, end of year | 155 | 156 |
Individual Retirement | IE | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 148 | 121 |
Capitalization | 30 | 31 |
Amortization | (11) | (10) |
Balance, end of year | 167 | 142 |
Individual Retirement | SCS | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 1,279 | 1,070 |
Capitalization | 364 | 287 |
Amortization | (154) | (124) |
Balance, end of year | 1,489 | 1,233 |
Legacy Segment | GMxB Legacy | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 593 | 631 |
Capitalization | 19 | 25 |
Amortization | (48) | (49) |
Balance, end of year | 564 | 607 |
Group Retirement | EG | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 710 | 677 |
Capitalization | 51 | 55 |
Amortization | (31) | (31) |
Balance, end of year | 730 | 701 |
Group Retirement | Momentum | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 89 | 94 |
Capitalization | 7 | 11 |
Amortization | (13) | (14) |
Balance, end of year | 83 | 91 |
Corporate & Other | CB | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 127 | 138 |
Capitalization | 0 | 0 |
Amortization | (8) | (8) |
Balance, end of year | $ 119 | $ 130 |
DAC AND OTHER DEFERRED ASSETS_4
DAC AND OTHER DEFERRED ASSETS/LIABILITIES - DAC Credits (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
GMxB Core | ||
Movement in Deferred Sales Inducements [Roll Forward] | ||
Balance, beginning of year | $ 137 | $ 147 |
Capitalization | 2 | 2 |
Amortization | (9) | (9) |
Balance, end of year | 130 | 140 |
GMxB Legacy | ||
Movement in Deferred Sales Inducements [Roll Forward] | ||
Balance, beginning of year | 200 | 222 |
Capitalization | 0 | 0 |
Amortization | (16) | (17) |
Balance, end of year | 184 | 205 |
UL | ||
Movement in Deferred Revenue [Roll Forward] | ||
Balance, beginning of period | 95 | 80 |
Capitalization | 14 | 16 |
Amortization | (5) | (4) |
Balance, end of period | 104 | 92 |
VUL | ||
Movement in Deferred Revenue [Roll Forward] | ||
Balance, beginning of period | 684 | 619 |
Capitalization | 86 | 77 |
Amortization | (34) | (30) |
Balance, end of period | 736 | 666 |
IUL | ||
Movement in Deferred Revenue [Roll Forward] | ||
Balance, beginning of period | 157 | 94 |
Capitalization | 49 | 54 |
Amortization | (8) | (5) |
Balance, end of period | $ 198 | $ 143 |
DAC AND OTHER DEFERRED ASSETS_5
DAC AND OTHER DEFERRED ASSETS/LIABILITIES - Reconciliation of DAC (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | $ 6,599 | $ 6,369 | $ 5,607 | ||
Protection Solutions | Term | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 344 | 362 | $ 368 | $ 385 | 403 |
Protection Solutions | Universal Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 175 | 179 | 180 | 180 | 177 |
Protection Solutions | Variable Universal Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 956 | 889 | 867 | 799 | 714 |
Protection Solutions | Indexed Universal Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 187 | 185 | 184 | 180 | 162 |
Individual Retirement | GMxB Core | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 1,605 | 1,625 | 1,636 | 1,653 | |
Individual Retirement | EQUI-VEST Individual | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 155 | 156 | 156 | 156 | 154 |
Individual Retirement | Investment Edge | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 167 | 148 | 142 | 121 | 94 |
Individual Retirement | SCS | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 1,489 | 1,279 | 1,233 | 1,070 | |
Legacy Segment | GMxB Legacy | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 564 | 593 | 607 | 631 | 667 |
Group Retirement | EQUI-VEST Group | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 730 | 710 | 701 | 677 | 634 |
Group Retirement | Momentum | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 83 | 89 | 91 | 94 | $ 101 |
Corporate & Other | Corporate and Other | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 119 | 127 | $ 130 | $ 138 | |
Corporate & Other | Other | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | $ 25 | $ 27 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Investments | |||
Fixed maturities, AFS: | $ 63,470 | $ 63,361 | |
Fixed maturities, at fair value using the fair value option | [1] | 1,634 | 1,508 |
Purchased market risk benefits | 8,745 | 10,423 | |
Liabilities: | |||
Notes issued by consolidated VIE's, at fair value using the fair value option | [1] | 1,541 | 1,150 |
Short-term debt | 0 | 759 | |
Accrued interest payable for notes issued by consolidated variable interest entity | 31 | 15 | |
Carrying Value | CLO Warehouse Debt | |||
Liabilities: | |||
Short-term debt | 0 | 239 | |
Other liabilities | Carrying Value | |||
Investments | |||
Other equity investments | 13 | 12 | |
U.S. Treasury, government and agency | |||
Investments | |||
Fixed maturities, AFS: | 4,171 | 5,837 | |
States and political subdivisions | |||
Investments | |||
Fixed maturities, AFS: | 515 | 527 | |
Foreign governments | |||
Investments | |||
Fixed maturities, AFS: | 661 | 836 | |
Residential mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 1,655 | 822 | |
Asset-backed | |||
Investments | |||
Fixed maturities, AFS: | 10,280 | 8,490 | |
Commercial mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 3,371 | 3,235 | |
Redeemable preferred stock | |||
Investments | |||
Fixed maturities, AFS: | 43 | 43 | |
Recurring | |||
Investments | |||
Fixed maturities, AFS: | 63,470 | 63,361 | |
Fixed maturities, at fair value using the fair value option | 1,634 | 1,508 | |
Other equity investments | 715 | 723 | |
Trading securities | 1,009 | 677 | |
Other invested assets: | 8,302 | 5,229 | |
Cash equivalents | 4,610 | 2,887 | |
Segregated securities | 928 | 1,522 | |
Purchased market risk benefits | 8,745 | 10,423 | |
Assets for market risk benefits | 701 | 490 | |
Separate accounts assets | 117,021 | 114,181 | |
Total Assets | 207,135 | 201,001 | |
Liabilities: | |||
Notes issued by consolidated VIE's, at fair value using the fair value option | 1,510 | 1,374 | |
Liabilities for market risk benefits | 13,011 | 15,766 | |
Contingent payment arrangements | 252 | 247 | |
Total Liabilities | 22,682 | 21,573 | |
Recurring | Variable Interest Entity, Primary Beneficiary | |||
Liabilities: | |||
Guarantees | 4 | 22 | |
Recurring | Corporate | |||
Investments | |||
Fixed maturities, AFS: | 42,774 | 43,571 | |
Recurring | U.S. Treasury, government and agency | |||
Investments | |||
Fixed maturities, AFS: | 4,171 | 5,837 | |
Recurring | States and political subdivisions | |||
Investments | |||
Fixed maturities, AFS: | 515 | 527 | |
Recurring | Foreign governments | |||
Investments | |||
Fixed maturities, AFS: | 661 | 836 | |
Recurring | Residential mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 1,655 | 822 | |
Recurring | Asset-backed | |||
Investments | |||
Fixed maturities, AFS: | 10,280 | 8,490 | |
Recurring | Commercial mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 3,371 | 3,235 | |
Recurring | Redeemable preferred stock | |||
Investments | |||
Fixed maturities, AFS: | 43 | 43 | |
Recurring | Short-term investments | |||
Investments | |||
Other invested assets: | 677 | 943 | |
Recurring | Assets of consolidated VIEs/VOEs | |||
Investments | |||
Other invested assets: | 374 | 529 | |
Recurring | Swaps | |||
Investments | |||
Other invested assets: | (376) | (425) | |
Recurring | Credit default swaps | |||
Investments | |||
Other invested assets: | 6 | 9 | |
Recurring | Futures | |||
Investments | |||
Other invested assets: | 3 | 2 | |
Recurring | Options | |||
Investments | |||
Other invested assets: | 7,618 | 4,171 | |
Recurring | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 7,905 | 4,164 | |
Recurring | Level 1 | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Fixed maturities, at fair value using the fair value option | 0 | 0 | |
Other equity investments | 217 | 214 | |
Trading securities | 329 | 290 | |
Other invested assets: | 76 | 133 | |
Cash equivalents | 3,889 | 2,386 | |
Segregated securities | 0 | 0 | |
Purchased market risk benefits | 0 | 0 | |
Assets for market risk benefits | 0 | 0 | |
Separate accounts assets | 114,566 | 111,744 | |
Total Assets | 119,077 | 114,767 | |
Liabilities: | |||
Notes issued by consolidated VIE's, at fair value using the fair value option | 0 | 0 | |
Liabilities for market risk benefits | 0 | 0 | |
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 1 | 15 | |
Recurring | Level 1 | Variable Interest Entity, Primary Beneficiary | |||
Liabilities: | |||
Guarantees | 1 | 15 | |
Recurring | Level 1 | Corporate | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 1 | U.S. Treasury, government and agency | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 1 | States and political subdivisions | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 1 | Foreign governments | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 1 | Residential mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 1 | Asset-backed | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 1 | Commercial mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 1 | Redeemable preferred stock | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 1 | Short-term investments | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Assets of consolidated VIEs/VOEs | |||
Investments | |||
Other invested assets: | 73 | 131 | |
Recurring | Level 1 | Swaps | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Credit default swaps | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Futures | |||
Investments | |||
Other invested assets: | 3 | 2 | |
Recurring | Level 1 | Options | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | Level 2 | |||
Investments | |||
Fixed maturities, AFS: | 61,242 | 61,146 | |
Fixed maturities, at fair value using the fair value option | 1,454 | 1,284 | |
Other equity investments | 445 | 497 | |
Trading securities | 610 | 332 | |
Other invested assets: | 8,173 | 5,091 | |
Cash equivalents | 721 | 501 | |
Segregated securities | 928 | 1,522 | |
Purchased market risk benefits | 0 | 0 | |
Assets for market risk benefits | 0 | 0 | |
Separate accounts assets | 2,454 | 2,436 | |
Total Assets | 76,027 | 72,809 | |
Liabilities: | |||
Notes issued by consolidated VIE's, at fair value using the fair value option | 1,510 | 1,374 | |
Liabilities for market risk benefits | 0 | 0 | |
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 9,418 | 5,545 | |
Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary | |||
Liabilities: | |||
Guarantees | 3 | 7 | |
Recurring | Level 2 | Corporate | |||
Investments | |||
Fixed maturities, AFS: | 40,671 | 41,450 | |
Recurring | Level 2 | U.S. Treasury, government and agency | |||
Investments | |||
Fixed maturities, AFS: | 4,171 | 5,837 | |
Recurring | Level 2 | States and political subdivisions | |||
Investments | |||
Fixed maturities, AFS: | 489 | 499 | |
Recurring | Level 2 | Foreign governments | |||
Investments | |||
Fixed maturities, AFS: | 661 | 836 | |
Recurring | Level 2 | Residential mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 1,616 | 788 | |
Recurring | Level 2 | Asset-backed | |||
Investments | |||
Fixed maturities, AFS: | 10,270 | 8,490 | |
Recurring | Level 2 | Commercial mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 3,321 | 3,203 | |
Recurring | Level 2 | Redeemable preferred stock | |||
Investments | |||
Fixed maturities, AFS: | 43 | 43 | |
Recurring | Level 2 | Short-term investments | |||
Investments | |||
Other invested assets: | 677 | 943 | |
Recurring | Level 2 | Assets of consolidated VIEs/VOEs | |||
Investments | |||
Other invested assets: | 248 | 393 | |
Recurring | Level 2 | Swaps | |||
Investments | |||
Other invested assets: | (376) | (425) | |
Recurring | Level 2 | Credit default swaps | |||
Investments | |||
Other invested assets: | 6 | 9 | |
Recurring | Level 2 | Futures | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 2 | Options | |||
Investments | |||
Other invested assets: | 7,618 | 4,171 | |
Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 7,905 | 4,164 | |
Recurring | Level 3 | |||
Investments | |||
Fixed maturities, AFS: | 2,228 | 2,215 | |
Fixed maturities, at fair value using the fair value option | 180 | 224 | |
Other equity investments | 53 | 12 | |
Trading securities | 70 | 55 | |
Other invested assets: | 53 | 5 | |
Cash equivalents | 0 | 0 | |
Segregated securities | 0 | 0 | |
Purchased market risk benefits | 8,745 | 10,423 | |
Assets for market risk benefits | 701 | 490 | |
Separate accounts assets | 1 | 1 | |
Total Assets | 12,031 | 13,425 | |
Liabilities: | |||
Notes issued by consolidated VIE's, at fair value using the fair value option | 0 | 0 | |
Liabilities for market risk benefits | 13,011 | 15,766 | |
Contingent payment arrangements | 252 | 247 | |
Total Liabilities | 13,263 | 16,013 | |
Recurring | Level 3 | Variable Interest Entity, Primary Beneficiary | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | Level 3 | Corporate | |||
Investments | |||
Fixed maturities, AFS: | 2,103 | 2,121 | |
Recurring | Level 3 | U.S. Treasury, government and agency | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 3 | States and political subdivisions | |||
Investments | |||
Fixed maturities, AFS: | 26 | 28 | |
Recurring | Level 3 | Foreign governments | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 3 | Residential mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 39 | 34 | |
Recurring | Level 3 | Asset-backed | |||
Investments | |||
Fixed maturities, AFS: | 10 | 0 | |
Recurring | Level 3 | Commercial mortgage-backed | |||
Investments | |||
Fixed maturities, AFS: | 50 | 32 | |
Recurring | Level 3 | Redeemable preferred stock | |||
Investments | |||
Fixed maturities, AFS: | 0 | 0 | |
Recurring | Level 3 | Short-term investments | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Assets of consolidated VIEs/VOEs | |||
Investments | |||
Other invested assets: | 53 | 5 | |
Recurring | Level 3 | Swaps | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Credit default swaps | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Futures | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Options | |||
Investments | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | NAV | |||
Investments | |||
Separate accounts assets | $ 382 | $ 456 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Change in purchased market risk benefit asset fair value | $ 730 | $ 1,100 | |
AFS fixed maturities transferred from Level 3 to Level 2 | 489 | $ 150 | |
AFS fixed maturities transferred from Level 2 to Level 3 | $ 29 | $ 191 | |
Percentage of total equity representing AFS fixed maturities transferred | 15.80% | 7% | |
Nonrecurring | Level 3 | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Investments, fair value | $ 1,200 | $ 1,000 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation for All Levels (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total gains and (losses), realized and unrealized, included in: | ||||
Other | $ 0 | $ 0 | ||
Transfers into level 3 | $ 29 | $ 191 | ||
Transfers out of level 3 | (489) | (150) | ||
Level 3 | Corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 2,037 | 1,767 | 2,121 | 1,504 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 1 | 1 | 4 | 3 |
Investment gains (losses), net | (5) | (3) | (16) | (3) |
Subtotal | (4) | (2) | (12) | 0 |
Other comprehensive income (loss) | 5 | (71) | 15 | (152) |
Purchases | 163 | 218 | 539 | 777 |
Sales | (53) | (34) | (215) | (195) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | (11) | 25 | 0 | 90 |
Transfers out of level 3 | (34) | 8 | (345) | (113) |
Ending Balance | 2,103 | 1,911 | 2,103 | 1,911 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 5 | (70) | 9 | (149) |
Level 3 | States and political subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 27 | 30 | 28 | 35 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | (1) | 0 | (5) |
Purchases | 0 | 0 | 0 | 0 |
Sales | (1) | 0 | (2) | (1) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 26 | 29 | 26 | 29 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | (1) | 0 | (5) |
Level 3 | CMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 34 | 25 | 32 | 20 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (1) | 0 | (1) | (2) |
Purchases | 17 | 7 | 19 | 14 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 50 | 32 | 50 | 32 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | (1) | (2) |
Level 3 | Asset-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 0 | 18 | 0 | 8 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 1 | 0 | 0 |
Purchases | 10 | (3) | 10 | 9 |
Sales | 0 | 0 | 0 | (1) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | (6) | 0 | (6) |
Ending Balance | 10 | 10 | 10 | 10 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Level 3 | RMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 0 | 0 | 34 | 0 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (1) | 0 | (1) | 0 |
Purchases | 40 | 0 | 40 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | (34) | 0 |
Ending Balance | 39 | 0 | 39 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | (1) | 0 |
Level 3 | Other equity investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 105 | 67 | 17 | 16 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | (1) | (3) | (1) |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 0 | (1) | (3) | (1) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | (49) | 44 | 8 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 1 | 0 | 48 | (3) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | (3) |
Ending Balance | 106 | 17 | 106 | 17 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | (1) | (3) | (1) |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Level 3 | Separate Accounts Assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 1 | 1 | 1 | 1 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 1 | 1 | 1 | 1 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Level 3 | Contingent Payment Arrangement | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | (250) | (42) | (247) | (38) |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | (228) | (230) | |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 1 | 0 |
Other | (2) | 0 | (6) | 0 |
Activity related to consolidated VIEs/VOEs | 0 | (3) | 0 | (5) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | (252) | (273) | (252) | (273) |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Level 3 | Trading Securities, at Fair Value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 56 | 52 | 55 | 65 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | (13) |
Subtotal | 0 | 0 | 0 | (13) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 14 | 0 | 15 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 70 | 52 | 70 | 52 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | (13) |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Level 3 | Fixed maturities, at FVO | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 217 | 423 | 224 | 201 |
Total gains and (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 7 | (20) | 6 | (20) |
Investment gains (losses), net | 1 | 0 | (1) | 0 |
Subtotal | 8 | (20) | 5 | (20) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 1 | 6 | 75 | 159 |
Sales | (8) | 17 | (43) | (36) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | (78) | (84) | 29 | 101 |
Transfers out of level 3 | 40 | 32 | (110) | (31) |
Ending Balance | 180 | 374 | 180 | 374 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 7 | (20) | 0 | (9) |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | $ 0 | $ 0 | $ 4 | $ 0 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information about Level 3 (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Market risk benefits | $ 13,011 | $ 15,766 | |
Assets for market risk benefits | 701 | 490 | |
Level 3 | Discounted cash flow | Alliance Bernstein | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
AB Contingent consideration payable | $ 252 | $ 247 | |
Level 3 | Discounted cash flow | Discount Rate | Minimum | Alliance Bernstein | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Expected revenue growth and discount rate | 0.019 | 0.019 | |
Level 3 | Discounted cash flow | Discount Rate | Maximum | Alliance Bernstein | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Expected revenue growth and discount rate | 0.104 | 0.104 | |
Level 3 | Discounted cash flow | Discount Rate | Weighted Average | Alliance Bernstein | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Expected revenue growth and discount rate | 0.046 | 0.045 | |
Level 3 | Discounted cash flow | Expected Revenue Growth Rate | Minimum | Alliance Bernstein | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Expected revenue growth and discount rate | 0.020 | 0.020 | |
Level 3 | Discounted cash flow | Expected Revenue Growth Rate | Maximum | Alliance Bernstein | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Expected revenue growth and discount rate | 0.839 | 0.839 | |
Level 3 | Discounted cash flow | Expected Revenue Growth Rate | Weighted Average | Alliance Bernstein | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Expected revenue growth and discount rate | 0.103 | 0.115 | |
Level 3 | Corporate | Matrix pricing model | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of fixed maturities AFS | $ 363 | $ 417 | |
Level 3 | Corporate | Matrix pricing model | Spread over Benchmark | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0020 | 0.0020 | |
Level 3 | Corporate | Matrix pricing model | Spread over Benchmark | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0295 | 0.0797 | |
Level 3 | Corporate | Matrix pricing model | Spread over Benchmark | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0174 | 0.0205 | |
Level 3 | Corporate | Market comparable companies | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of fixed maturities AFS | $ 985 | $ 1,029 | |
Level 3 | Corporate | Market comparable companies | EBITDA Multiples | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 1.7 | 5.3 | |
Level 3 | Corporate | Market comparable companies | EBITDA Multiples | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 30 | 35.8 | |
Level 3 | Corporate | Market comparable companies | EBITDA Multiples | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 12.5 | 13.6 | |
Level 3 | Corporate | Market comparable companies | Discount Rate | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0 | 0.090 | |
Level 3 | Corporate | Market comparable companies | Discount Rate | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.223 | 0.457 | |
Level 3 | Corporate | Market comparable companies | Discount Rate | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.117 | 0.119 | |
Level 3 | Corporate | Market comparable companies | Cash Flow Multiples | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 1.1 | 0 | |
Level 3 | Corporate | Market comparable companies | Cash Flow Multiples | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 13.9 | 10.3 | |
Level 3 | Corporate | Market comparable companies | Cash Flow Multiples | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 5.6 | 6.1 | |
Level 3 | Corporate | Market comparable companies | Loan to Value | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0 | 0 | |
Level 3 | Corporate | Market comparable companies | Loan to Value | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.595 | 0.404 | |
Level 3 | Corporate | Market comparable companies | Loan to Value | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.390 | 0.120 | |
Level 3 | Trading Securities, at Fair Value | Discounted cash flow | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of fixed maturities AFS | $ 70 | $ 55 | |
Discount years | 7 years | 7 years | |
Level 3 | Trading Securities, at Fair Value | Discounted cash flow | Earnings Multiple | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 8.3 | 8.3 | |
Level 3 | Trading Securities, at Fair Value | Discounted cash flow | Discount Factor | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.100 | 0.1000 | |
Level 3 | Other equity investments | Market comparable companies | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of fixed maturities AFS | $ 4 | ||
Level 3 | Other equity investments | Market comparable companies | Earnings Multiple | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.5 | ||
Level 3 | Other equity investments | Market comparable companies | Earnings Multiple | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 10.8 | ||
Level 3 | Other equity investments | Market comparable companies | Earnings Multiple | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 2.4 | ||
Level 3 | Other equity investments | Discounted cash flow | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of fixed maturities AFS | $ 2 | ||
Level 3 | Other equity investments | Discounted cash flow | Earnings Multiple | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 6.7 | ||
Level 3 | Other equity investments | Discounted cash flow | Earnings Multiple | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 14 | ||
Level 3 | Other equity investments | Discounted cash flow | Earnings Multiple | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 7 | ||
Level 3 | Purchased MRB asset | Discounted cash flow | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of fixed maturities AFS | $ 8,745 | $ 10,423 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Lapse Rate | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0021 | 0.0026 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Lapse Rate | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.1238 | 0.2623 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Lapse Rate | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0176 | 0.0158 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Withdrawal Rate | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0007 | 0.0006 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Withdrawal Rate | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.1497 | 0.1093 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Withdrawal Rate | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0052 | 0.0069 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Utilization Rate | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0004 | 0.0004 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Utilization Rate | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.6621 | 0.6666 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Utilization Rate | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0714 | 0.0739 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Non-Performance Risk | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0048 | 0.0054 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Non-Performance Risk | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0118 | 0.0124 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Non-Performance Risk | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0050 | 0.0069 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Volatility Rate - Equity | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.14 | 0.14 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Volatility Rate - Equity | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.27 | 0.32 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Volatility Rate - Equity | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.22 | 0.24 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Mortality | Ages 0 - 40 | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0001 | 0.0001 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Mortality | Ages 0 - 40 | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0018 | 0.0017 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Mortality | Ages 0 - 40 | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0301 | 0.0287 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Mortality | Ages 41 - 60 | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0007 | 0.0006 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Mortality | Ages 41 - 60 | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0053 | 0.0052 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Mortality | Ages 61 - 115 | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.0033 | 0.0032 | |
Level 3 | Purchased MRB asset | Discounted cash flow | Mortality | Ages 61 - 115 | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percentage measurement input of equity securities | 0.4200 | 0.4000 | |
Level 3 | Direct MRB | Discounted cash flow | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Direct MRB | $ 12,310 | $ 15,276 | |
Level 3 | Direct MRB | Discounted cash flow | Lapse Rate | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0021 | 0.0026 | |
Level 3 | Direct MRB | Discounted cash flow | Lapse Rate | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.2937 | 0.3542 | |
Level 3 | Direct MRB | Discounted cash flow | Lapse Rate | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0306 | 0.0301 | |
Level 3 | Direct MRB | Discounted cash flow | Withdrawal Rate | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0 | 0 | |
Level 3 | Direct MRB | Discounted cash flow | Withdrawal Rate | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.1497 | 0.1093 | |
Level 3 | Direct MRB | Discounted cash flow | Withdrawal Rate | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0061 | 0.0068 | |
Level 3 | Direct MRB | Discounted cash flow | Non-Performance Risk | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 151 | 0.0157 | |
Level 3 | Direct MRB | Discounted cash flow | Non-Performance Risk | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 151 | 0.0157 | |
Level 3 | Direct MRB | Discounted cash flow | Mortality | Ages 0 - 40 | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0001 | 0.0001 | |
Level 3 | Direct MRB | Discounted cash flow | Mortality | Ages 0 - 40 | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0018 | 0.0017 | |
Level 3 | Direct MRB | Discounted cash flow | Mortality | Ages 0 - 40 | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0255 | 0.0243 | |
Level 3 | Direct MRB | Discounted cash flow | Mortality | Ages 41 - 60 | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0007 | 0.0006 | |
Level 3 | Direct MRB | Discounted cash flow | Mortality | Ages 41 - 60 | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0053 | 0.0052 | |
Level 3 | Direct MRB | Discounted cash flow | Mortality | Ages 61 - 115 | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0033 | 0.0032 | |
Level 3 | Direct MRB | Discounted cash flow | Mortality | Ages 61 - 115 | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.4200 | 0.4000 | |
Level 3 | Direct MRB | Discounted cash flow | Annuitization Rate | Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0004 | 0.0004 | |
Level 3 | Direct MRB | Discounted cash flow | Annuitization Rate | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 1 | 1 | |
Level 3 | Direct MRB | Discounted cash flow | Annuitization Rate | Weighted Average | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input of servicing liability | 0.0551 | 0.0553 |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Consolidated Amounts [Abstract] | |||
Mortgage loans on real estate | [1] | $ 17,655 | $ 16,481 |
Policy loans | 4,089 | 4,033 | |
Policyholders’ liabilities: Investment contracts | 91,912 | 83,866 | |
Separate Accounts liabilities | 117,577 | 114,853 | |
Short-term debt using fair value option | 0 | 759 | |
Carrying Value | |||
Consolidated Amounts [Abstract] | |||
Mortgage loans on real estate | 17,655 | 16,481 | |
Policy loans | 4,089 | 4,033 | |
Policyholders’ liabilities: Investment contracts | 1,707 | 1,916 | |
FHLB funding agreements | 8,178 | 8,505 | |
FABN funding agreements | 6,717 | 7,095 | |
Funding agreement-backed commercial paper (FABCP) | 788 | ||
Short-term debt | 0 | 520 | |
Long-term debt | 3,820 | 3,322 | |
Separate Accounts liabilities | 10,414 | 10,236 | |
Carrying Value | CLO Warehouse Debt | |||
Consolidated Amounts [Abstract] | |||
Short-term debt using fair value option | 0 | 239 | |
Measured at Fair Value | |||
Consolidated Amounts [Abstract] | |||
Mortgage loans on real estate | 15,458 | 14,690 | |
Policy loans | 4,284 | 4,349 | |
Policyholders’ liabilities: Investment contracts | 1,519 | 1,750 | |
FHLB funding agreements | 8,074 | 8,390 | |
FABN funding agreements | 6,177 | 6,384 | |
Funding agreement-backed commercial paper (FABCP) | 788 | ||
Short-term debt | 0 | 518 | |
Long-term debt | 3,441 | 3,130 | |
Separate Accounts liabilities | 10,414 | 10,236 | |
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 | |
FHLB funding agreements | 0 | 0 | |
FABN funding agreements | 0 | 0 | |
Funding agreement-backed commercial paper (FABCP) | 0 | ||
Short-term debt | 0 | 0 | |
Long-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 | |
FHLB funding agreements | 8,074 | 8,390 | |
FABN funding agreements | 6,177 | 6,384 | |
Funding agreement-backed commercial paper (FABCP) | 788 | ||
Short-term debt | 0 | 518 | |
Long-term debt | 3,441 | 3,130 | |
Separate Accounts liabilities | 0 | 0 | |
Measured at Fair Value | Level 3 | |||
Consolidated Amounts [Abstract] | |||
Mortgage loans on real estate | 15,458 | 14,690 | |
Policy loans | 4,284 | 4,349 | |
Policyholders’ liabilities: Investment contracts | 1,519 | 1,750 | |
FHLB funding agreements | 0 | 0 | |
FABN funding agreements | 0 | 0 | |
Funding agreement-backed commercial paper (FABCP) | 0 | ||
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Separate Accounts liabilities | $ 10,414 | $ 10,236 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
LIABILITIES FOR FUTURE POLICY_3
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Policyholder Account Balance And Liability For Unpaid Claims And Claims Adjustment Expense (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | $ 16,647 | $ 16,603 |
Future policyholder benefits total | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 14,713 | 14,644 |
Subtotal | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 8,289 | 8,072 |
Term | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 1,265 | 1,365 |
Individual Retirement - Payout | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 789 | 828 |
Payout - Legacy | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 3,192 | 2,689 |
Group Pension - Benefit Reserve & DPL | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 475 | 523 |
Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 1,437 | 1,558 |
UL | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 1,131 | 1,109 |
Whole Life Closed Block and Open Block products | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 5,502 | 5,664 |
Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | 922 | 908 |
Other policyholder funds and dividends payable | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits and other policyholders' liabilities | $ 1,934 | $ 1,959 |
LIABILITIES FOR FUTURE POLICY_4
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Policyholder Account Balance (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Future policy benefits and other policyholders' liabilities | $ 16,647 | $ 16,603 | |||
Less: Reinsurance recoverable | $ (1,896) | ||||
Net liability for future policy benefits, after reinsurance recoverable | 6,574 | ||||
Term | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Future policy benefits and other policyholders' liabilities | 1,265 | 1,365 | |||
Payout - Non-Legacy | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Future policy benefits and other policyholders' liabilities | 789 | 828 | |||
Payout - Legacy | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Future policy benefits and other policyholders' liabilities | 3,192 | 2,689 | |||
Group Pension | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Future policy benefits and other policyholders' liabilities | 475 | 523 | |||
Health | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Future policy benefits and other policyholders' liabilities | 1,437 | 1,558 | |||
Protection Solutions | Term | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Less: Reinsurance recoverable | (59) | ||||
Net liability for future policy benefits, after reinsurance recoverable | $ 1,924 | ||||
Operating Segments | Protection Solutions | Term | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | 2,100 | $ 2,485 | |||
Beginning balance at original discount rate | 2,078 | 1,864 | |||
Effect of changes in cash flow assumptions | 32 | $ 204 | |||
Effect of actual variances from expected experience | (14) | 38 | |||
Adjusted beginning of period balance | 2,096 | 2,106 | |||
Issuances | 49 | 62 | |||
Interest accrual | 76 | 73 | |||
Net premiums collected | (147) | (144) | |||
Ending balance at original discount rate | 2,074 | 2,097 | |||
Effect of changes in discount rate assumptions | (82) | (5) | |||
Ending balance | 1,992 | 2,092 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 3,465 | 4,294 | |||
Beginning balance at original discount rate | 3,391 | 3,241 | |||
Effect of changes in cash flow assumptions | 40 | 222 | |||
Effect of actual variances from expected experience | (16) | 41 | |||
Adjusted beginning of period balance | 3,415 | 3,504 | |||
Issuances | 53 | 67 | |||
Interest accrual | 126 | 125 | |||
Benefits payments | (254) | (283) | |||
Ending balance at original discount rate | 3,340 | 3,413 | |||
Effect of changes in discount rate assumptions | (84) | 37 | |||
Ending balance | 3,256 | 3,450 | |||
Impact of flooring LFPB at zero | 1 | 1 | |||
Future policy benefits and other policyholders' liabilities | 1,265 | 1,359 | |||
Less: Reinsurance recoverable | 25 | 22 | |||
Net liability for future policy benefits, after reinsurance recoverable | $ 1,290 | $ 1,381 | |||
Weighted-average duration of additional liability - death benefit (years) | 7 years 1 month 6 days | 7 years 1 month 6 days | |||
Operating Segments | Individual Retirement | Payout - Non-Legacy | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | $ 0 | $ 0 | |||
Beginning balance at original discount rate | 0 | 0 | |||
Effect of changes in cash flow assumptions | 0 | 0 | |||
Effect of actual variances from expected experience | 0 | 0 | |||
Adjusted beginning of period balance | 0 | 0 | |||
Issuances | 0 | 0 | |||
Interest accrual | 0 | 0 | |||
Net premiums collected | 0 | 0 | |||
Ending balance at original discount rate | 0 | 0 | |||
Effect of changes in discount rate assumptions | 0 | 0 | |||
Ending balance | 0 | 0 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 828 | 1,114 | |||
Beginning balance at original discount rate | 845 | 883 | |||
Effect of changes in cash flow assumptions | 0 | (1) | |||
Effect of actual variances from expected experience | 0 | (1) | |||
Adjusted beginning of period balance | 845 | 881 | |||
Issuances | 38 | 19 | |||
Interest accrual | 29 | 30 | |||
Benefits payments | (69) | (74) | |||
Ending balance at original discount rate | 843 | 856 | |||
Effect of changes in discount rate assumptions | (54) | (26) | |||
Ending balance | 789 | 830 | |||
Impact of flooring LFPB at zero | 0 | 0 | |||
Future policy benefits and other policyholders' liabilities | 789 | 830 | |||
Less: Reinsurance recoverable | 0 | 0 | |||
Net liability for future policy benefits, after reinsurance recoverable | $ 789 | $ 830 | |||
Weighted-average duration of additional liability - death benefit (years) | 9 years 3 months 18 days | 9 years 6 months | |||
Operating Segments | Legacy | Payout - Legacy | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | $ 0 | $ 0 | |||
Beginning balance at original discount rate | 0 | 0 | |||
Effect of changes in cash flow assumptions | 0 | 0 | |||
Effect of actual variances from expected experience | 0 | 0 | |||
Adjusted beginning of period balance | 0 | 0 | |||
Issuances | 0 | 0 | |||
Interest accrual | 0 | 0 | |||
Net premiums collected | 0 | 0 | |||
Ending balance at original discount rate | 0 | 0 | |||
Effect of changes in discount rate assumptions | 0 | 0 | |||
Ending balance | 0 | 0 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 2,689 | 2,547 | |||
Beginning balance at original discount rate | 3,024 | 2,400 | |||
Effect of changes in cash flow assumptions | 0 | (1) | |||
Effect of actual variances from expected experience | 1 | (2) | |||
Adjusted beginning of period balance | 3,025 | 2,397 | |||
Issuances | 733 | 556 | |||
Interest accrual | 65 | 47 | |||
Benefits payments | (199) | (143) | |||
Ending balance at original discount rate | 3,624 | 2,857 | |||
Effect of changes in discount rate assumptions | (432) | (373) | |||
Ending balance | 3,192 | 2,484 | |||
Impact of flooring LFPB at zero | 0 | 0 | |||
Future policy benefits and other policyholders' liabilities | 3,192 | 2,484 | |||
Less: Reinsurance recoverable | (777) | (365) | |||
Net liability for future policy benefits, after reinsurance recoverable | $ 2,415 | $ 2,119 | |||
Weighted-average duration of additional liability - death benefit (years) | 7 years 8 months 12 days | 8 years 2 months 12 days | |||
Corporate and Other | Group Pension | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | $ 0 | $ 0 | |||
Beginning balance at original discount rate | 0 | 0 | |||
Effect of changes in cash flow assumptions | 0 | 0 | |||
Effect of actual variances from expected experience | 0 | 0 | |||
Adjusted beginning of period balance | 0 | 0 | |||
Issuances | 0 | 0 | |||
Interest accrual | 0 | 0 | |||
Net premiums collected | 0 | 0 | |||
Ending balance at original discount rate | 0 | 0 | |||
Effect of changes in discount rate assumptions | 0 | 0 | |||
Ending balance | 0 | 0 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 523 | 683 | |||
Beginning balance at original discount rate | 583 | 632 | |||
Effect of changes in cash flow assumptions | 0 | 0 | |||
Effect of actual variances from expected experience | 0 | 0 | |||
Adjusted beginning of period balance | 583 | 632 | |||
Issuances | 0 | 0 | |||
Interest accrual | 15 | 16 | |||
Benefits payments | (50) | (53) | |||
Ending balance at original discount rate | 548 | 595 | |||
Effect of changes in discount rate assumptions | (73) | (65) | |||
Ending balance | 475 | 530 | |||
Impact of flooring LFPB at zero | 0 | 0 | |||
Future policy benefits and other policyholders' liabilities | 475 | 530 | |||
Less: Reinsurance recoverable | 0 | 0 | |||
Net liability for future policy benefits, after reinsurance recoverable | $ 475 | $ 530 | |||
Weighted-average duration of additional liability - death benefit (years) | 7 years 1 month 6 days | 7 years 2 months 12 days | |||
Corporate and Other | Health | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | $ (5) | $ 22 | |||
Beginning balance at original discount rate | (5) | 19 | |||
Effect of changes in cash flow assumptions | (8) | (10) | |||
Effect of actual variances from expected experience | (6) | (12) | |||
Adjusted beginning of period balance | (19) | (3) | |||
Issuances | 0 | 0 | |||
Interest accrual | (1) | 0 | |||
Net premiums collected | 2 | 1 | |||
Ending balance at original discount rate | (18) | (2) | |||
Effect of changes in discount rate assumptions | 1 | 0 | |||
Ending balance | (17) | (2) | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 1,553 | 2,092 | |||
Beginning balance at original discount rate | 1,795 | 1,915 | |||
Effect of changes in cash flow assumptions | (12) | (5) | |||
Effect of actual variances from expected experience | (5) | (10) | |||
Adjusted beginning of period balance | $ 1,778 | $ 1,900 | |||
Issuances | 0 | 0 | |||
Interest accrual | 43 | 46 | |||
Benefits payments | (111) | (124) | |||
Ending balance at original discount rate | 1,710 | 1,822 | |||
Effect of changes in discount rate assumptions | (290) | (264) | |||
Ending balance | 1,420 | 1,558 | |||
Impact of flooring LFPB at zero | 0 | 0 | |||
Future policy benefits and other policyholders' liabilities | 1,437 | 1,560 | |||
Less: Reinsurance recoverable | (1,145) | (1,248) | |||
Net liability for future policy benefits, after reinsurance recoverable | $ 292 | $ 312 | |||
Weighted-average duration of additional liability - death benefit (years) | 8 years 8 months 12 days | 8 years 9 months 18 days |
LIABILITIES FOR FUTURE POLICY_5
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Term | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future benefit payments and expenses (undiscounted) | $ 5,918 | $ 6,022 |
Expected future gross premiums (undiscounted) | 7,039 | 7,273 |
Expected future benefit payments and expenses (discounted; AOCI basis) | 3,255 | 3,465 |
Expected future gross premiums (discounted; AOCI basis) | 3,610 | 3,904 |
Payout - Legacy | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future benefit payments and expenses (undiscounted) | 4,872 | 3,947 |
Expected future gross premiums (undiscounted) | 0 | 0 |
Expected future benefit payments and expenses (discounted; AOCI basis) | 3,105 | 2,607 |
Expected future gross premiums (discounted; AOCI basis) | 0 | 0 |
Payout | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future benefit payments and expenses (undiscounted) | 759 | 801 |
Expected future gross premiums (undiscounted) | 0 | 0 |
Expected future benefit payments and expenses (discounted; AOCI basis) | 1,437 | 1,460 |
Expected future gross premiums (discounted; AOCI basis) | 0 | 0 |
Group Pension | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future benefit payments and expenses (undiscounted) | 683 | 730 |
Expected future gross premiums (undiscounted) | 0 | 0 |
Expected future benefit payments and expenses (discounted; AOCI basis) | 456 | 563 |
Expected future gross premiums (discounted; AOCI basis) | 0 | 0 |
Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future benefit payments and expenses (undiscounted) | 2,375 | 2,510 |
Expected future gross premiums (undiscounted) | 90 | 99 |
Expected future benefit payments and expenses (discounted; AOCI basis) | 1,403 | 1,533 |
Expected future gross premiums (discounted; AOCI basis) | $ 69 | $ 78 |
LIABILITIES FOR FUTURE POLICY_6
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Revenue and Interest Accretion (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premium | $ 347 | $ 306 |
Interest Accretion | 212 | 192 |
Term | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premium | 206 | 206 |
Interest Accretion | 50 | 53 |
Payout - Legacy | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premium | 99 | 76 |
Interest Accretion | 74 | 47 |
Payout | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premium | 36 | 17 |
Interest Accretion | 29 | 30 |
Group Pension | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premium | 0 | 0 |
Interest Accretion | 15 | 16 |
Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premium | 6 | 7 |
Interest Accretion | $ 44 | $ 46 |
LIABILITIES FOR FUTURE POLICY_7
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Weighted Average Interest Rates (Details) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 4.50% | 4.50% | |
Term | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 5.60% | 5.70% | |
Current discount rate | 5.60% | 5.10% | |
Payout - Legacy | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 3.90% | 3.40% | |
Current discount rate | 5.70% | 5% | |
Individual Retirement - Payout | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 5.80% | 5.20% | |
Current discount rate | 5% | 4.90% | |
Group Pension | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 3.30% | 3.40% | |
Current discount rate | 5.70% | 5.10% | |
Health | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 5.80% | 5.20% | |
Current discount rate | 3.40% | 3.30% |
LIABILITIES FOR FUTURE POLICY_8
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Balances of and Changes in Additional Liabilities Related to Insurance Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for additional liability | $ 16,647 | $ 16,603 | |||
Less: Reinsurance recoverable | $ 1,896 | ||||
Net liability for future policy benefits, after reinsurance recoverable | $ 6,574 | ||||
Weighted Average Interest Rate | 4.50% | 4.50% | |||
Assessments | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Revenue and Interest Accretion | $ 487 | $ 473 | |||
Interest Accretion | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Revenue and Interest Accretion | 38 | $ 36 | |||
UL | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for additional liability | $ 1,131 | 1,109 | |||
Weighted Average Interest Rate | 4.50% | 4.50% | |||
UL | Assessments | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Revenue and Interest Accretion | $ 487 | $ 473 | |||
UL | Interest Accretion | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Revenue and Interest Accretion | 38 | 36 | |||
Protection Solutions | UL | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 1,109 | 1,087 | |||
Beginning balance before AOCI adjustments | 1,135 | 1,076 | |||
Effect of changes in interest rate & cash flow assumptions and model changes | (12) | $ 8 | |||
Effect of actual variances from expected experience | 14 | 11 | |||
Adjusted beginning of period balance | $ 1,137 | $ 1,095 | |||
Interest accrual | 38 | 36 | |||
Net assessments collected | 50 | 49 | |||
Benefits payments | (39) | (45) | |||
Ending balance before shadow reserve adjustments | 1,186 | 1,135 | |||
Effect of reserve adjustment recorded in AOCI | (55) | (27) | |||
Ending balance | 1,131 | 1,108 | |||
Net liability for additional liability | 1,131 | 1,108 | |||
Less: Reinsurance recoverable | 0 | 0 | |||
Net liability for future policy benefits, after reinsurance recoverable | $ 1,131 | $ 1,108 | |||
Weighted-average duration of additional liability - death benefit (years) | 19 years 2 months 12 days | 22 years |
MARKET RISK BENEFITS - Changes
MARKET RISK BENEFITS - Changes in the Market Risk Benefits for Deferred Variable Annuities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2020 | |
Market Risk Benefit [Roll Forward] | |||||
Changes in the instrument-specific credit risk | $ 23,784 | ||||
Individual Retirement | GMxB Core | |||||
Market Risk Benefit [Roll Forward] | |||||
Balance, beginning of the period | $ 131 | $ 414 | $ 530 | $ 1,061 | |
Balance BOP before changes in the instrument specific credit risk | 351 | 779 | 529 | 666 | |
Model changes and effect of changes in cash flow assumptions | 20 | (8) | 20 | (8) | |
Actual market movement effect | 202 | 281 | (128) | 1,284 | |
Interest accrual | 22 | 13 | 60 | 30 | |
Attributed fees accrued | 100 | 98 | 306 | 299 | |
Benefit payments | (11) | (11) | (35) | (24) | |
Actual policyholder behavior different from expected behavior | 7 | 11 | 19 | 16 | |
Changes in future economic assumptions | (411) | (450) | (488) | (1,546) | |
Issuances | 0 | 0 | (3) | (4) | |
Balance EOP before changes in the instrument-specific credit risk | 280 | 713 | 280 | 713 | |
Changes in the instrument-specific credit risk | 38 | (313) | 38 | (313) | |
Balance, end of the period | $ 318 | $ 400 | $ 318 | $ 400 | |
Weighted-average age of policyholders (years) | 64 years 2 months 12 days | 63 years 3 months 18 days | 64 years 2 months 12 days | 63 years 3 months 18 days | |
Net amount at risk | $ 3,598 | $ 3,788 | $ 3,598 | $ 3,788 | |
Legacy | GMxB Legacy | |||||
Market Risk Benefit [Roll Forward] | |||||
Balance, beginning of the period | 12,720 | 15,708 | 14,699 | 20,236 | |
Balance BOP before changes in the instrument specific credit risk | 14,142 | 17,735 | 15,314 | 19,719 | |
Model changes and effect of changes in cash flow assumptions | (11) | 404 | (11) | 317 | |
Actual market movement effect | 718 | 754 | (662) | 4,414 | |
Interest accrual | 213 | 224 | 604 | 507 | |
Attributed fees accrued | 212 | 221 | 630 | 659 | |
Benefit payments | (322) | (316) | (1,008) | (849) | |
Actual policyholder behavior different from expected behavior | (13) | 42 | 1 | 101 | |
Changes in future economic assumptions | (2,609) | (2,627) | (2,538) | (8,431) | |
Issuances | 0 | 0 | 0 | 0 | |
Balance EOP before changes in the instrument-specific credit risk | 12,330 | 16,437 | 12,330 | 16,437 | |
Changes in the instrument-specific credit risk | (349) | (1,838) | (349) | (1,838) | |
Balance, end of the period | $ 11,981 | $ 14,599 | $ 11,981 | $ 14,599 | |
Weighted-average age of policyholders (years) | 72 years 10 months 24 days | 72 years 4 months 24 days | 72 years 10 months 24 days | 72 years 4 months 24 days | |
Net amount at risk | $ 23,123 | $ 23,933 | $ 23,123 | $ 23,933 | |
Legacy | Purchased MRB | |||||
Market Risk Benefit [Roll Forward] | |||||
Balance, beginning of the period | (9,923) | (11,725) | (10,415) | (14,059) | |
Balance BOP before changes in the instrument specific credit risk | (9,827) | (11,623) | (10,358) | (14,051) | |
Model changes and effect of changes in cash flow assumptions | (33) | (174) | (33) | (145) | |
Actual market movement effect | (300) | (259) | 402 | (1,672) | |
Interest accrual | (150) | (170) | (437) | (334) | |
Attributed fees accrued | (66) | (69) | (207) | (216) | |
Benefit payments | 190 | 184 | 560 | 472 | |
Actual policyholder behavior different from expected behavior | (2) | (32) | (28) | (72) | |
Changes in future economic assumptions | 1,511 | 1,513 | 1,424 | 5,388 | |
Issuances | 0 | 0 | 0 | 0 | |
Balance EOP before changes in the instrument-specific credit risk | (8,677) | (10,630) | (8,677) | (10,630) | |
Changes in the instrument-specific credit risk | (61) | (96) | (61) | (96) | |
Balance, end of the period | $ (8,738) | $ (10,726) | $ (8,738) | $ (10,726) | |
Weighted-average age of policyholders (years) | 72 years 6 months | 71 years 10 months 24 days | 72 years 6 months | 71 years 10 months 24 days | |
Net amount at risk | $ 12,188 | $ 12,364 | $ 12,188 | $ 12,364 | |
Legacy | Net Legacy | |||||
Market Risk Benefit [Roll Forward] | |||||
Balance, beginning of the period | 2,797 | 3,983 | 4,284 | 6,177 | |
Balance BOP before changes in the instrument specific credit risk | 4,315 | 6,112 | 4,956 | 5,668 | |
Model changes and effect of changes in cash flow assumptions | (44) | 230 | (44) | 172 | |
Actual market movement effect | 418 | 495 | (260) | 2,742 | |
Interest accrual | 63 | 54 | 167 | 173 | |
Attributed fees accrued | 146 | 152 | 423 | 443 | |
Benefit payments | (132) | (132) | (448) | (377) | |
Actual policyholder behavior different from expected behavior | (15) | 10 | (27) | 29 | |
Changes in future economic assumptions | (1,098) | (1,115) | (1,114) | (3,043) | |
Issuances | 0 | 0 | 0 | 0 | |
Balance EOP before changes in the instrument-specific credit risk | 3,653 | 5,807 | 3,653 | 5,807 | |
Changes in the instrument-specific credit risk | (410) | (1,934) | (410) | (1,934) | |
Balance, end of the period | $ 3,243 | $ 3,873 | $ 3,243 | $ 3,873 |
MARKET RISK BENEFITS - Reconcil
MARKET RISK BENEFITS - Reconciles Market Risk Benefits (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Market Risk Benefit [Line Items] | ||
Direct Asset | $ (701) | $ (490) |
Direct Liability | 13,011 | 15,766 |
Net Direct MRB | 12,310 | 15,276 |
Purchased MRB | (8,745) | (10,423) |
Total | 3,565 | 4,853 |
Individual Retirement | GMxB Core | ||
Market Risk Benefit [Line Items] | ||
Direct Asset | (515) | (387) |
Direct Liability | 833 | 917 |
Net Direct MRB | 318 | 530 |
Purchased MRB | 0 | 0 |
Total | 318 | 530 |
Legacy | GMxB Legacy | ||
Market Risk Benefit [Line Items] | ||
Direct Asset | (129) | (51) |
Direct Liability | 12,110 | 14,749 |
Net Direct MRB | 11,981 | 14,699 |
Purchased MRB | (8,738) | (10,412) |
Total | 3,243 | 4,287 |
Other | ||
Market Risk Benefit [Line Items] | ||
Direct Asset | (57) | (52) |
Direct Liability | 68 | 100 |
Net Direct MRB | 11 | 47 |
Purchased MRB | (7) | (11) |
Total | $ 4 | $ 36 |
POLICYHOLDER ACCOUNT BALANCES -
POLICYHOLDER ACCOUNT BALANCES - Reconciliation of Policyholders Account Balances to Policyholders' Account Balance Liability (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance (exclusive of Funding Agreements) | $ 76,159 | $ 68,225 | ||
Funding Agreements | 15,753 | 15,641 | ||
Balance, end of period | 91,912 | 83,866 | ||
Protection Solutions | Universal Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | 5,236 | 5,340 | $ 5,368 | $ 5,462 |
Protection Solutions | Variable Universal Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | 4,807 | 4,909 | 4,911 | 4,807 |
Legacy Segment | GMxB Legacy | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | 644 | 688 | 710 | 745 |
Individual Retirement | GMxB Core | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | 51 | 69 | 93 | 112 |
Individual Retirement | SCS | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | 44,221 | 35,702 | 32,790 | 33,443 |
Individual Retirement | EQUI-VEST Individual | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | 2,434 | 2,652 | 2,731 | 2,784 |
Group Retirement | EQUI-VEST Group | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | 11,729 | 12,045 | 12,114 | 11,951 |
Group Retirement | Momentum | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | 628 | 702 | $ 721 | $ 704 |
Other | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder account balance | $ 6,409 | $ 6,118 |
POLICYHOLDER ACCOUNT BALANCES_2
POLICYHOLDER ACCOUNT BALANCES - Balances and Changes in Policyholders' Account Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Policyholder Account Balance [Roll Forward] | ||||
Interest credited | $ 556 | $ 378 | $ 1,520 | $ 1,001 |
Protection Solutions | Universal Life | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 5,340 | 5,462 | ||
Issuances | 0 | 0 | ||
Premiums received | 528 | 557 | ||
Policy charges | (572) | (595) | ||
Surrenders and withdrawals | (57) | (68) | ||
Benefit payments | (169) | (156) | ||
Net transfers from (to) separate account | 0 | 0 | ||
Interest credited | 166 | 168 | ||
Other | 0 | 0 | ||
Balance, end of period | $ 5,236 | $ 5,368 | $ 5,236 | $ 5,368 |
Weighted-average crediting rate | 3.75% | 3.66% | 3.75% | 3.66% |
Net amount at risk | $ 36,003 | $ 38,282 | $ 36,003 | $ 38,282 |
Cash surrender value | 3,450 | 3,518 | 3,450 | 3,518 |
Protection Solutions | Variable Universal Life | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 4,909 | 4,807 | ||
Issuances | 0 | 0 | ||
Premiums received | 107 | 122 | ||
Policy charges | (190) | (181) | ||
Surrenders and withdrawals | (33) | (12) | ||
Benefit payments | (84) | (73) | ||
Net transfers from (to) separate account | (53) | 131 | ||
Interest credited | 151 | 117 | ||
Other | 0 | 0 | ||
Balance, end of period | $ 4,807 | $ 4,911 | $ 4,807 | $ 4,911 |
Weighted-average crediting rate | 3.70% | 3.69% | 3.70% | 3.69% |
Net amount at risk | $ 115,752 | $ 115,357 | $ 115,752 | $ 115,357 |
Cash surrender value | 3,201 | 3,413 | 3,201 | 3,413 |
Legacy Segment | GMxB Legacy | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 688 | 745 | ||
Issuances | 0 | 0 | ||
Premiums received | 70 | 49 | ||
Policy charges | 9 | 6 | ||
Surrenders and withdrawals | (68) | (43) | ||
Benefit payments | (75) | (75) | ||
Net transfers from (to) separate account | 0 | 6 | ||
Interest credited | 20 | 22 | ||
Other | 0 | 0 | ||
Balance, end of period | $ 644 | $ 710 | $ 644 | $ 710 |
Weighted-average crediting rate | 2.71% | 2.71% | 2.71% | 2.71% |
Net amount at risk | $ 23,123 | $ 23,933 | $ 23,123 | $ 23,933 |
Cash surrender value | 607 | 697 | 607 | 697 |
Individual Retirement | GMxB Core | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 69 | 112 | ||
Issuances | 0 | 0 | ||
Premiums received | 163 | 133 | ||
Policy charges | 2 | (17) | ||
Surrenders and withdrawals | (24) | (23) | ||
Benefit payments | (1) | (2) | ||
Net transfers from (to) separate account | (162) | (115) | ||
Interest credited | 4 | 5 | ||
Other | 0 | 0 | ||
Balance, end of period | $ 51 | $ 93 | $ 51 | $ 93 |
Weighted-average crediting rate | 1.57% | 1.05% | 1.57% | 1.05% |
Net amount at risk | $ 3,598 | $ 3,788 | $ 3,598 | $ 3,788 |
Cash surrender value | 273 | 310 | 273 | 310 |
Individual Retirement | SCS | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 35,702 | 33,443 | ||
Issuances | 0 | 0 | ||
Premiums received | 5 | 1 | ||
Policy charges | (6) | 0 | ||
Surrenders and withdrawals | (2,046) | (1,931) | ||
Benefit payments | (194) | (157) | ||
Net transfers from (to) separate account | 7,366 | 5,684 | ||
Interest credited | 3,394 | (4,250) | ||
Other | 0 | 0 | ||
Balance, end of period | 44,221 | 32,790 | 44,221 | 32,790 |
Net amount at risk | 31 | 163 | 31 | 163 |
Cash surrender value | 40,156 | 28,910 | 40,156 | 28,910 |
Individual Retirement | EQUI-VEST Individual | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 2,652 | 2,784 | ||
Issuances | 0 | 0 | ||
Premiums received | 27 | 37 | ||
Policy charges | 0 | (1) | ||
Surrenders and withdrawals | (256) | (131) | ||
Benefit payments | (56) | (43) | ||
Net transfers from (to) separate account | 7 | 25 | ||
Interest credited | 56 | 60 | ||
Other | 4 | 0 | ||
Balance, end of period | $ 2,434 | $ 2,731 | $ 2,434 | $ 2,731 |
Weighted-average crediting rate | 2.90% | 2.94% | 2.90% | 2.94% |
Net amount at risk | $ 126 | $ 160 | $ 126 | $ 160 |
Cash surrender value | 2,427 | 2,723 | 2,427 | 2,723 |
Group Retirement | EQUI-VEST Group | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 12,045 | 11,951 | ||
Issuances | 0 | 0 | ||
Premiums received | 460 | 450 | ||
Policy charges | (4) | (5) | ||
Surrenders and withdrawals | (1,207) | (611) | ||
Benefit payments | (54) | (55) | ||
Net transfers from (to) separate account | 210 | 242 | ||
Interest credited | 268 | 142 | ||
Other | 11 | 0 | ||
Balance, end of period | $ 11,729 | $ 12,114 | $ 11,729 | $ 12,114 |
Weighted-average crediting rate | 2.56% | 2.55% | 2.56% | 2.55% |
Net amount at risk | $ 51 | $ 274 | $ 51 | $ 274 |
Cash surrender value | 11,672 | 12,029 | 11,672 | 12,029 |
Group Retirement | Momentum | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 702 | 704 | ||
Issuances | 0 | 0 | ||
Premiums received | 49 | 61 | ||
Policy charges | 0 | 0 | ||
Surrenders and withdrawals | (105) | (100) | ||
Benefit payments | (4) | (2) | ||
Net transfers from (to) separate account | (24) | 47 | ||
Interest credited | 10 | 11 | ||
Other | 0 | 0 | ||
Balance, end of period | $ 628 | $ 721 | $ 628 | $ 721 |
Weighted-average crediting rate | 2.33% | 2.03% | 2.33% | 2.03% |
Net amount at risk | $ 0 | $ 0 | $ 0 | $ 0 |
Cash surrender value | $ 630 | $ 721 | $ 630 | $ 721 |
POLICYHOLDER ACCOUNT BALANCES_3
POLICYHOLDER ACCOUNT BALANCES - Guaranteed Minimum Interest Rates (Details) $ in Millions | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
1 Basis Point - 50 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Basis points above guaranteed minimum crediting rate | 0.0001 | 0.0001 |
1 Basis Point - 50 Basis Points Above | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Basis points above guaranteed minimum crediting rate | 0.0050 | 0.0050 |
51 Basis Points - 150 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Basis points above guaranteed minimum crediting rate | 0.0051 | 0.0051 |
51 Basis Points - 150 Basis Points Above | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Basis points above guaranteed minimum crediting rate | 0.0150 | 0.0150 |
Greater Than 150 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Basis points above guaranteed minimum crediting rate | 0.0150 | 0.0150 |
Protection Solutions | Universal Life | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 5,204 | $ 5,308 |
Protection Solutions | Universal Life | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 6 | $ 6 |
Protection Solutions | Universal Life | 0.00% - 1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Protection Solutions | Universal Life | 0.00% - 1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Protection Solutions | Universal Life | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 1,034 | $ 1,030 |
Protection Solutions | Universal Life | 1.51% - 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Protection Solutions | Universal Life | 1.51% - 2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Protection Solutions | Universal Life | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 4,164 | $ 4,272 |
Protection Solutions | Universal Life | Greater than2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Protection Solutions | Universal Life | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 3,618 | $ 3,796 |
Protection Solutions | Universal Life | At Guaranteed Minimum | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Protection Solutions | Universal Life | At Guaranteed Minimum | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 89 | 181 |
Protection Solutions | Universal Life | At Guaranteed Minimum | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 3,529 | 3,615 |
Protection Solutions | Universal Life | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 701 | 854 |
Protection Solutions | Universal Life | 1 Basis Point - 50 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Protection Solutions | Universal Life | 1 Basis Point - 50 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 66 | 197 |
Protection Solutions | Universal Life | 1 Basis Point - 50 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 635 | 657 |
Protection Solutions | Universal Life | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 554 | 610 |
Protection Solutions | Universal Life | 51 Basis Points - 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 1 | 5 |
Protection Solutions | Universal Life | 51 Basis Points - 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 553 | 605 |
Protection Solutions | Universal Life | 51 Basis Points - 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Protection Solutions | Universal Life | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 331 | 48 |
Protection Solutions | Universal Life | Greater Than 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 5 | 1 |
Protection Solutions | Universal Life | Greater Than 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 326 | 47 |
Protection Solutions | Universal Life | Greater Than 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Protection Solutions | Variable Universal Life | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 4,379 | 4,518 |
Protection Solutions | Variable Universal Life | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 101 | $ 78 |
Protection Solutions | Variable Universal Life | 0.00% - 1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Protection Solutions | Variable Universal Life | 0.00% - 1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Protection Solutions | Variable Universal Life | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 560 | $ 538 |
Protection Solutions | Variable Universal Life | 1.51% - 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Protection Solutions | Variable Universal Life | 1.51% - 2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Protection Solutions | Variable Universal Life | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 3,718 | $ 3,902 |
Protection Solutions | Variable Universal Life | Greater than2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Protection Solutions | Variable Universal Life | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 3,860 | $ 4,415 |
Protection Solutions | Variable Universal Life | At Guaranteed Minimum | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 20 | 30 |
Protection Solutions | Variable Universal Life | At Guaranteed Minimum | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 139 | 485 |
Protection Solutions | Variable Universal Life | At Guaranteed Minimum | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 3,701 | 3,900 |
Protection Solutions | Variable Universal Life | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 454 | 93 |
Protection Solutions | Variable Universal Life | 1 Basis Point - 50 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 39 | 40 |
Protection Solutions | Variable Universal Life | 1 Basis Point - 50 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 415 | 53 |
Protection Solutions | Variable Universal Life | 1 Basis Point - 50 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Protection Solutions | Variable Universal Life | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 54 | 9 |
Protection Solutions | Variable Universal Life | 51 Basis Points - 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 36 | 7 |
Protection Solutions | Variable Universal Life | 51 Basis Points - 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 6 | 0 |
Protection Solutions | Variable Universal Life | 51 Basis Points - 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 12 | 2 |
Protection Solutions | Variable Universal Life | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 11 | 1 |
Protection Solutions | Variable Universal Life | Greater Than 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 6 | 1 |
Protection Solutions | Variable Universal Life | Greater Than 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Protection Solutions | Variable Universal Life | Greater Than 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 5 | 0 |
Legacy Segment | GMxB Legacy | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 609 | 981 |
Legacy Segment | GMxB Legacy | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 97 | $ 386 |
Legacy Segment | GMxB Legacy | 0.00% - 1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Legacy Segment | GMxB Legacy | 0.00% - 1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Legacy Segment | GMxB Legacy | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 23 | $ 560 |
Legacy Segment | GMxB Legacy | 1.51% - 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Legacy Segment | GMxB Legacy | 1.51% - 2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Legacy Segment | GMxB Legacy | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 489 | $ 35 |
Legacy Segment | GMxB Legacy | Greater than2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Legacy Segment | GMxB Legacy | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 593 | $ 981 |
Legacy Segment | GMxB Legacy | At Guaranteed Minimum | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 81 | 386 |
Legacy Segment | GMxB Legacy | At Guaranteed Minimum | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 23 | 560 |
Legacy Segment | GMxB Legacy | At Guaranteed Minimum | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 489 | 35 |
Legacy Segment | GMxB Legacy | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 16 | 0 |
Legacy Segment | GMxB Legacy | 1 Basis Point - 50 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 16 | 0 |
Legacy Segment | GMxB Legacy | 1 Basis Point - 50 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | 1 Basis Point - 50 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | 51 Basis Points - 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | 51 Basis Points - 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | 51 Basis Points - 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | Greater Than 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | Greater Than 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Legacy Segment | GMxB Legacy | Greater Than 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 282 | 303 |
Individual Retirement | GMxB Core | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 215 | $ 289 |
Individual Retirement | GMxB Core | 0.00% - 1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Individual Retirement | GMxB Core | 0.00% - 1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Individual Retirement | GMxB Core | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 13 | $ 14 |
Individual Retirement | GMxB Core | 1.51% - 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Individual Retirement | GMxB Core | 1.51% - 2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Individual Retirement | GMxB Core | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 54 | $ 0 |
Individual Retirement | GMxB Core | Greater than2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Individual Retirement | GMxB Core | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 80 | $ 303 |
Individual Retirement | GMxB Core | At Guaranteed Minimum | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 13 | 289 |
Individual Retirement | GMxB Core | At Guaranteed Minimum | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 13 | 14 |
Individual Retirement | GMxB Core | At Guaranteed Minimum | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 54 | 0 |
Individual Retirement | GMxB Core | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 202 | 0 |
Individual Retirement | GMxB Core | 1 Basis Point - 50 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 202 | 0 |
Individual Retirement | GMxB Core | 1 Basis Point - 50 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | 1 Basis Point - 50 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | 51 Basis Points - 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | 51 Basis Points - 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | 51 Basis Points - 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | Greater Than 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | Greater Than 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | GMxB Core | Greater Than 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | EQUI-VEST Individual | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 2,433 | 2,652 |
Individual Retirement | EQUI-VEST Individual | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 277 | $ 345 |
Individual Retirement | EQUI-VEST Individual | 0.00% - 1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Individual Retirement | EQUI-VEST Individual | 0.00% - 1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Individual Retirement | EQUI-VEST Individual | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 44 | $ 46 |
Individual Retirement | EQUI-VEST Individual | 1.51% - 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Individual Retirement | EQUI-VEST Individual | 1.51% - 2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Individual Retirement | EQUI-VEST Individual | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 2,112 | $ 2,261 |
Individual Retirement | EQUI-VEST Individual | Greater than2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Individual Retirement | EQUI-VEST Individual | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 2,208 | $ 2,590 |
Individual Retirement | EQUI-VEST Individual | At Guaranteed Minimum | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 52 | 345 |
Individual Retirement | EQUI-VEST Individual | At Guaranteed Minimum | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 44 | 46 |
Individual Retirement | EQUI-VEST Individual | At Guaranteed Minimum | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 2,112 | 2,199 |
Individual Retirement | EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 225 | 0 |
Individual Retirement | EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 225 | 0 |
Individual Retirement | EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | EQUI-VEST Individual | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 62 |
Individual Retirement | EQUI-VEST Individual | 51 Basis Points - 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | EQUI-VEST Individual | 51 Basis Points - 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | EQUI-VEST Individual | 51 Basis Points - 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 62 |
Individual Retirement | EQUI-VEST Individual | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | EQUI-VEST Individual | Greater Than 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | EQUI-VEST Individual | Greater Than 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Individual Retirement | EQUI-VEST Individual | Greater Than 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Group Retirement | EQUI-VEST Group | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 10,658 | 11,794 |
Group Retirement | EQUI-VEST Group | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 3,477 | $ 3,592 |
Group Retirement | EQUI-VEST Group | 0.00% - 1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Group Retirement | EQUI-VEST Group | 0.00% - 1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Group Retirement | EQUI-VEST Group | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 336 | $ 902 |
Group Retirement | EQUI-VEST Group | 1.51% - 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Group Retirement | EQUI-VEST Group | 1.51% - 2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Group Retirement | EQUI-VEST Group | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 6,845 | $ 7,300 |
Group Retirement | EQUI-VEST Group | Greater than2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Group Retirement | EQUI-VEST Group | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 7,972 | $ 7,069 |
Group Retirement | EQUI-VEST Group | At Guaranteed Minimum | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 791 | 109 |
Group Retirement | EQUI-VEST Group | At Guaranteed Minimum | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 336 | 11 |
Group Retirement | EQUI-VEST Group | At Guaranteed Minimum | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 6,845 | 6,949 |
Group Retirement | EQUI-VEST Group | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 2,310 | 28 |
Group Retirement | EQUI-VEST Group | 1 Basis Point - 50 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 2,310 | 5 |
Group Retirement | EQUI-VEST Group | 1 Basis Point - 50 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 2 |
Group Retirement | EQUI-VEST Group | 1 Basis Point - 50 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 21 |
Group Retirement | EQUI-VEST Group | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 35 | 1,585 |
Group Retirement | EQUI-VEST Group | 51 Basis Points - 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 35 | 366 |
Group Retirement | EQUI-VEST Group | 51 Basis Points - 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 889 |
Group Retirement | EQUI-VEST Group | 51 Basis Points - 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 330 |
Group Retirement | EQUI-VEST Group | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 341 | 3,112 |
Group Retirement | EQUI-VEST Group | Greater Than 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 341 | 3,112 |
Group Retirement | EQUI-VEST Group | Greater Than 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Group Retirement | EQUI-VEST Group | Greater Than 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Group Retirement | Momentum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 628 | 702 |
Group Retirement | Momentum | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 404 | $ 445 |
Group Retirement | Momentum | 0.00% - 1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Group Retirement | Momentum | 0.00% - 1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Group Retirement | Momentum | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 149 | $ 179 |
Group Retirement | Momentum | 1.51% - 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Group Retirement | Momentum | 1.51% - 2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Group Retirement | Momentum | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 75 | $ 78 |
Group Retirement | Momentum | Greater than2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Group Retirement | Momentum | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 218 | $ 266 |
Group Retirement | Momentum | At Guaranteed Minimum | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 15 |
Group Retirement | Momentum | At Guaranteed Minimum | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 148 | 178 |
Group Retirement | Momentum | At Guaranteed Minimum | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 70 | 73 |
Group Retirement | Momentum | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 13 | 302 |
Group Retirement | Momentum | 1 Basis Point - 50 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 12 | 301 |
Group Retirement | Momentum | 1 Basis Point - 50 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 1 | 1 |
Group Retirement | Momentum | 1 Basis Point - 50 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Group Retirement | Momentum | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 342 | 127 |
Group Retirement | Momentum | 51 Basis Points - 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 337 | 122 |
Group Retirement | Momentum | 51 Basis Points - 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Group Retirement | Momentum | 51 Basis Points - 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 5 | 5 |
Group Retirement | Momentum | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 55 | 7 |
Group Retirement | Momentum | Greater Than 150 Basis Points Above | 0.00% - 1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 55 | 7 |
Group Retirement | Momentum | Greater Than 150 Basis Points Above | 1.51% - 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Group Retirement | Momentum | Greater Than 150 Basis Points Above | Greater than2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 0 | $ 0 |
POLICYHOLDER ACCOUNT BALANCES_4
POLICYHOLDER ACCOUNT BALANCES - Balances and Changes in Separate Accounts Liability (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of the period | $ 114,853 | |
Balance, end of the period | 117,577 | |
Protection Solutions | VUL | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of the period | 13,187 | $ 16,405 |
Premiums and deposits | 845 | 827 |
Policy charges | (419) | (402) |
Surrenders and withdrawals | (415) | (307) |
Benefit payments | (68) | (85) |
Investment performance | 1,127 | (3,998) |
Net transfers from (to) general account | 53 | (131) |
Other charges | 0 | |
Balance, end of the period | 14,310 | 12,309 |
Cash surrender value | 13,988 | 12,039 |
Legacy Segment | GMxB Legacy | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of the period | 32,616 | 44,912 |
Premiums and deposits | 166 | 183 |
Policy charges | (495) | (516) |
Surrenders and withdrawals | (2,001) | (2,056) |
Benefit payments | (562) | (537) |
Investment performance | 2,045 | (9) |
Net transfers from (to) general account | 0 | (10,375) |
Other charges | 0 | |
Balance, end of the period | 31,769 | 31,602 |
Cash surrender value | 31,481 | 31,301 |
Individual Retirement | GMxB Core | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of the period | 27,772 | 35,288 |
Premiums and deposits | 1,170 | 1,162 |
Policy charges | (365) | (367) |
Surrenders and withdrawals | (1,898) | (1,778) |
Benefit payments | (176) | (172) |
Investment performance | 1,120 | 115 |
Net transfers from (to) general account | 161 | (7,445) |
Other charges | 0 | |
Balance, end of the period | 27,784 | 26,803 |
Cash surrender value | 26,939 | 25,903 |
Individual Retirement | EQUI-VEST Individual | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of the period | 4,161 | 5,583 |
Premiums and deposits | 70 | 102 |
Policy charges | (2) | (2) |
Surrenders and withdrawals | (293) | (225) |
Benefit payments | (43) | (41) |
Investment performance | 360 | (25) |
Net transfers from (to) general account | (7) | (1,396) |
Other charges | 4 | |
Balance, end of the period | 4,250 | 3,996 |
Cash surrender value | 4,218 | 3,965 |
Individual Retirement | Investment Edge | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of the period | 3,798 | 4,287 |
Premiums and deposits | 659 | 663 |
Policy charges | 0 | 1 |
Surrenders and withdrawals | (291) | (248) |
Benefit payments | (33) | (26) |
Investment performance | 191 | (158) |
Net transfers from (to) general account | (363) | (954) |
Other charges | 0 | |
Balance, end of the period | 3,961 | 3,565 |
Cash surrender value | 3,872 | 3,470 |
Group Retirement | EQUI-VEST Group | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of the period | 22,393 | 27,509 |
Premiums and deposits | 1,574 | 1,545 |
Policy charges | (13) | (12) |
Surrenders and withdrawals | (1,218) | (1,018) |
Benefit payments | (43) | (47) |
Investment performance | 1,790 | (242) |
Net transfers from (to) general account | (210) | (7,033) |
Other charges | 25 | |
Balance, end of the period | 24,298 | 20,702 |
Cash surrender value | 24,031 | 20,482 |
Group Retirement | Momentum | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of the period | 3,885 | 4,975 |
Premiums and deposits | 478 | 480 |
Policy charges | (15) | (16) |
Surrenders and withdrawals | (529) | (510) |
Benefit payments | (8) | (9) |
Investment performance | 305 | (47) |
Net transfers from (to) general account | 24 | (1,176) |
Other charges | 0 | |
Balance, end of the period | 4,140 | 3,697 |
Cash surrender value | $ 4,132 | $ 3,692 |
POLICYHOLDER ACCOUNT BALANCES_5
POLICYHOLDER ACCOUNT BALANCES - Reconciliation of Separate Account Liabilities to Separate Account Liability balance (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | $ 117,577 | $ 114,853 | ||
Protection Solutions | Variable Universal Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 14,310 | 13,187 | $ 12,309 | $ 16,405 |
Legacy Segment | GMxB Legacy | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 31,769 | 32,616 | 31,602 | 44,912 |
Individual Retirement | GMxB Core | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 27,784 | 27,772 | 26,803 | 35,288 |
Individual Retirement | EQUI-VEST Individual | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 4,250 | 4,161 | 3,996 | 5,583 |
Individual Retirement | Investment Edge | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 3,961 | 3,798 | 3,565 | 4,287 |
Group Retirement | EQUI-VEST Group | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 24,298 | 22,393 | 20,702 | 27,509 |
Group Retirement | Momentum | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 4,140 | 3,885 | $ 3,697 | $ 4,975 |
Other | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | $ 7,065 | $ 7,041 |
POLICYHOLDER ACCOUNT BALANCES_6
POLICYHOLDER ACCOUNT BALANCES - Aggregate Fair Value of Separate Account Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | $ 117,577 | $ 114,853 |
Debt securities | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 80 | 84 |
Common Stock | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 2,107 | 2,189 |
Mutual Funds | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 114,147 | 111,395 |
Bonds and Notes | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 1,243 | 1,185 |
Protection Solutions | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 14,857 | 13,716 |
Protection Solutions | Debt securities | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 53 | 58 |
Protection Solutions | Common Stock | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 59 | 41 |
Protection Solutions | Mutual Funds | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 14,650 | 13,498 |
Protection Solutions | Bonds and Notes | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 95 | 119 |
Individual Retirement | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 37,322 | 36,896 |
Individual Retirement | Debt securities | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 1 | 1 |
Individual Retirement | Common Stock | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 33 | 32 |
Individual Retirement | Mutual Funds | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 37,285 | 36,860 |
Individual Retirement | Bonds and Notes | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 3 | 3 |
Group Retirement | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 30,210 | 28,087 |
Group Retirement | Debt securities | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 19 | 17 |
Group Retirement | Common Stock | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 457 | 430 |
Group Retirement | Mutual Funds | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 29,733 | 27,639 |
Group Retirement | Bonds and Notes | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 1 | 1 |
Corp & Other | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 3,404 | 3,529 |
Corp & Other | Debt securities | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 7 | 8 |
Corp & Other | Common Stock | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 1,558 | 1,686 |
Corp & Other | Mutual Funds | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 695 | 773 |
Corp & Other | Bonds and Notes | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 1,144 | 1,062 |
Legacy Segment | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 31,784 | 32,625 |
Legacy Segment | Debt securities | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 0 | 0 |
Legacy Segment | Common Stock | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 0 | 0 |
Legacy Segment | Mutual Funds | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 31,784 | 32,625 |
Legacy Segment | Bonds and Notes | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 2 | $ 2 | $ 6 | $ 6 |
Interest cost | 31 | 21 | 93 | 49 |
Expected return on assets | (38) | (40) | (116) | (119) |
Prior period service cost amortization | 1 | (1) | 0 | (2) |
Actuarial (gain) loss | 0 | 0 | 1 | 1 |
Net amortization | 11 | 15 | 28 | 55 |
Net Periodic Pension Expense | $ 7 | $ (3) | $ 12 | $ (10) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Valuation Allowance [Line Items] | |||
Valuation allowance | $ 464 | $ 464 | $ 1,600 |
Other Comprehensive Income | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in valuation allowance | (136) | ||
Net Income | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in valuation allowance | $ 20 | $ (970) |
EQUITY - Preferred Stock Activi
EQUITY - Preferred Stock Activity (Details) - shares | Sep. 30, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 64,000 | 64,000 |
Preferred stock, shares issued (in shares) | 64,000 | 64,000 |
Preferred stock, shares outstanding (in shares) | 64,000 | 64,000 |
Series A | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 32,000 | 32,000 |
Preferred stock, shares issued (in shares) | 32,000 | 32,000 |
Preferred stock, shares outstanding (in shares) | 32,000 | 32,000 |
Series B | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares issued (in shares) | 20,000 | 20,000 |
Preferred stock, shares outstanding (in shares) | 20,000 | 20,000 |
Series C | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 12,000 | 12,000 |
Preferred stock, shares issued (in shares) | 12,000 | 12,000 |
Preferred stock, shares outstanding (in shares) | 12,000 | 12,000 |
EQUITY - Dividends Declared (De
EQUITY - Dividends Declared (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class of Stock [Line Items] | ||||
Dividends declared per share of common stock (in dollars per share) | $ 0.22 | $ 0.20 | $ 0.64 | $ 0.58 |
Series A | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | 328 | 328 | 984 | 984 |
Series B | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | 0 | 0 | 619 | 619 |
Series C | ||||
Class of Stock [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | $ 269 | $ 269 | $ 806 | $ 806 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Oct. 04, 2023 | Jul. 06, 2023 | Oct. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 31, 2023 | Jul. 31, 2023 | May 31, 2023 | Mar. 31, 2023 | Feb. 09, 2023 | Feb. 09, 2022 | |
Class of Stock [Line Items] | |||||||||||||||||
Aggregate amount of share repurchases authorized | $ 700 | $ 1,200 | |||||||||||||||
Share repurchase program, remaining authorized repurchase amount | $ 392 | $ 392 | $ 392 | ||||||||||||||
Shares repurchased (in shares) | 3,400,000 | 4,700,000 | 11,500,000 | 12,600,000 | |||||||||||||
Accelerated Share Repurchase Agreement | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Aggregate amount of share repurchases authorized | $ 70 | $ 70 | $ 75 | $ 75 | $ 75 | $ 70 | $ 70 | ||||||||||
Shares repurchased (in shares) | 2,000,000 | 2,000,000 | 2,400,000 | 2,400,000 | 2,000,000 | 8,300,000 | 7,000,000 | 24,500,000 | 23,200,000 | ||||||||
Share repurchases, average purchase price (in dollars per share) | $ 28.69 | $ 28.67 | $ 27.70 | $ 30.17 | |||||||||||||
Pre-payment of share repurchases | $ 70 | $ 70 | $ 75 | $ 75 | $ 75 | $ 70 | $ 70 | ||||||||||
Additional shares received (in shares) | 464,000 | 369,000 | 598,000 | 424,000 | |||||||||||||
Accelerated Share Repurchase Agreement | Subsequent Event | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Aggregate amount of share repurchases authorized | $ 80 | ||||||||||||||||
Shares repurchased (in shares) | 2,300,000 | 596,000 | |||||||||||||||
Pre-payment of share repurchases | $ 80 | ||||||||||||||||
Additional shares received (in shares) | 555,000 |
EQUITY - Cumulative Gains (Loss
EQUITY - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | $ 3,281 | $ 5,260 | $ 3,141 | $ 4,889 | $ 7,111 | $ 11,927 |
Total accumulated other comprehensive income (loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | (9,854) | (9,042) | ||||
Unrealized gains (losses) on investments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | (10,067) | (9,324) | ||||
Market risk benefits - instrument-specific credit risk component | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | 370 | 668 | ||||
Liability for future policy benefits - current discount rate component | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | 554 | 355 | ||||
Defined benefit pension plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | (615) | (650) | ||||
Foreign currency translation adjustments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | (96) | (91) | ||||
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | (52) | (50) | ||||
Accumulated other comprehensive income (loss) attributable to Holdings | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | $ (9,802) | $ (7,142) | $ (8,992) | $ (6,870) | $ (4,165) | $ 1,303 |
EQUITY - Components of OCI, Net
EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Change in net unrealized gains (losses) on investments: | ||||
Net unrealized gains (losses) arising during the period | $ (2,102) | $ (3,195) | $ (1,231) | $ (12,929) |
(Gains) losses reclassified into net income (loss) during the period | 274 | 246 | 374 | 679 |
Net unrealized gains (losses) on investments | (1,828) | (2,949) | (857) | (12,250) |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 62 | 165 | 93 | 436 |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(384), $(740), $(375) and $(3,141)) | (1,766) | (2,784) | (764) | (11,814) |
Change in LFPB discount rate and MRB credit risk, net of tax | ||||
Market risk benefits - change in instrument-specific credit risk (net of deferred income tax expense (benefit) of $(289), $(53), $(63) and $665) | (1,086) | (198) | (235) | 2,501 |
Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $52, $74, $42 and $299) | 195 | 279 | 157 | 1,126 |
Change in defined benefit plans: | ||||
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | 6 | 16 | 35 | 61 |
Change in defined benefit plans (net of deferred income tax expense (benefit) of $(9) and $9) | 6 | 16 | 35 | 61 |
Foreign currency translation adjustments: | ||||
Foreign currency translation gains (losses) arising during the period | (16) | (30) | (5) | (75) |
Foreign currency translation adjustment | (16) | (30) | (5) | (75) |
Total other comprehensive income (loss), net of income taxes | (2,667) | (2,717) | (812) | (8,201) |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | (7) | (12) | (2) | (28) |
Other comprehensive income (loss) attributable to Holdings | (2,660) | (2,705) | (810) | (8,173) |
Deferred income tax expense (benefit) for change in unrealized gains (losses) | (384) | (740) | (375) | (3,141) |
Deferred income tax expense (benefit) for market risk benefits - change in instrument-specific credit risk | 289 | 53 | 63 | (665) |
Deferred income tax expense (benefit) for liability for future policy benefits - change in current discount rate | 52 | 74 | 42 | 299 |
Defined income tax expense (benefit) for change in defined benefit plans | (2) | (4) | (9) | (13) |
Reclassification adjustment | $ (73) | $ (65) | $ (99) | $ (180) |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Details) - Senior Notes - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 11, 2023 | Dec. 31, 2021 | Apr. 20, 2018 | |
Short-term Debt [Line Items] | |||
Short-term debt including accrued interest | $ 500 | ||
Debt instrument, face amount | $ 5 | ||
Debt instrument, stated percentage | 5.594% | ||
Redemption price, percentage | 100% | ||
Senior Notes (3.9%, due 2023) | |||
Short-term Debt [Line Items] | |||
Short-term debt including accrued interest | $ 800 | ||
Debt instrument, stated percentage | 3.90% | 3.90% | |
Repayments of short-term debt | $ 280 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balance, beginning of period | $ 531 | $ 348 | $ 455 | [1],[2] | $ 468 | |
Net earnings (loss) attributable to redeemable noncontrolling interests | 6 | (9) | 24 | (65) | ||
Purchase/change of redeemable noncontrolling interests | 99 | 15 | 157 | (49) | ||
Balance, end of period | $ 636 | [1],[2] | $ 354 | $ 636 | [1],[2] | $ 354 |
[1]See Note 15 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.[2]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) | 1 Months Ended | |||
Apr. 30, 2019 USD ($) shares | Sep. 30, 2023 USD ($) legalAction | May 31, 2023 USD ($) | Feb. 29, 2016 USD ($) federal_action | |
Loss Contingencies [Line Items] | ||||
Unaccrued amounts of reasonably possible range of losses | $ 250,000,000 | |||
Federal home loan bank stock | 382,000,000 | |||
Carrying value of collateral pledged for federal home loan bank | 10,300,000,000 | |||
Commitments by the Company to provide equity financing | 1,400,000,000 | |||
Commitments under existing mortgage loan agreements | 726,000,000 | |||
Letter of Credit | ||||
Loss Contingencies [Line Items] | ||||
Undrawn balance | 17,000,000 | |||
Trust Notes | ||||
Loss Contingencies [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 10,000,000,000 | |||
Funding Agreement-Backed Commercial Paper Program | ||||
Loss Contingencies [Line Items] | ||||
Long-term line of credit outstanding | $ 3,000,000,000 | |||
Pre-Capitalized Trust Securities, Redeemable February 15, 2029 | ||||
Loss Contingencies [Line Items] | ||||
Shares issued (in shares) | shares | 600,000 | |||
Proceeds from offering | $ 600,000,000 | |||
Sale of stock, funding arrangement, period to issue senior notes to trust | 10 years | |||
Sale of stock, semi-annual facility fee, rate | 2.125% | |||
Pre-Capitalized Trust Securities, Redeemable February 15, 2049 | ||||
Loss Contingencies [Line Items] | ||||
Shares issued (in shares) | shares | 400,000 | |||
Proceeds from offering | $ 400,000,000 | |||
Sale of stock, funding arrangement, period to issue senior notes to trust | 30 years | |||
Sale of stock, semi-annual facility fee, rate | 2.715% | |||
Equitable Financial | ||||
Loss Contingencies [Line Items] | ||||
Number of federal actions | federal_action | 3 | |||
Equitable Financial | Funding Agreement-Backed Notes Program (FABN) | ||||
Loss Contingencies [Line Items] | ||||
Long-term line of credit outstanding | $ 788,000,000 | $ 1,000,000,000 | ||
Equitable Financial | NEW YORK | ||||
Loss Contingencies [Line Items] | ||||
Number of actions | legalAction | 2 | |||
Equitable America | Funding Agreement-Backed Notes Program (FABN) | ||||
Loss Contingencies [Line Items] | ||||
Long-term line of credit outstanding | $ 0 | |||
Brach Family Foundation Litigation | ||||
Loss Contingencies [Line Items] | ||||
Liability for future policy benefits, face value of policy | $ 1,000,000 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Funding Agreements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | $ 8,501 | |
Issued During the Period | 46,499 | |
Repaid During the Period | (46,825) | |
Long-term Agreements Maturing Within One Year | 11 | |
Long-term Agreements Maturing Within Five Years | (11) | |
Outstanding Balance, period end | 8,175 | |
Difference related to remaining amortization | 3 | $ 4 |
Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 7,085 | |
Issued During the Period | 671 | |
Repaid During the Period | (1,000) | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (11) | |
Outstanding Balance, period end | 6,745 | |
Difference related to remaining amortization | 28 | $ 66 |
Due in one year or less | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 6,130 | |
Issued During the Period | 46,499 | |
Repaid During the Period | (46,825) | |
Long-term Agreements Maturing Within One Year | 656 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 6,460 | |
Due in one year or less | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,500 | |
Issued During the Period | 0 | |
Repaid During the Period | (1,000) | |
Long-term Agreements Maturing Within One Year | 500 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | 0 | |
Outstanding Balance, period end | 1,000 | |
Due in years two through five | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,679 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (645) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,034 | |
Due in years two through five | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 4,000 | |
Issued During the Period | 671 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (500) | |
Long-term Agreements Maturing Within Five Years | 1,285 | |
Foreign Currency Transaction Adjustment | (11) | |
Outstanding Balance, period end | 5,445 | |
Due in more than five years | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 692 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | (11) | |
Outstanding Balance, period end | 681 | |
Due in more than five years | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,585 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | (1,285) | |
Foreign Currency Transaction Adjustment | 0 | |
Outstanding Balance, period end | 300 | |
Total long-term funding agreements | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 2,371 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (645) | |
Long-term Agreements Maturing Within Five Years | (11) | |
Outstanding Balance, period end | 1,715 | |
Total long-term funding agreements | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 5,585 | |
Issued During the Period | 671 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (500) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (11) | |
Outstanding Balance, period end | $ 5,745 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) segment | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 6 | |
Adjustments | ||
Segment Reporting Information [Line Items] | ||
Impact of actuarial assumptions | $ | $ 61 | $ 61 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net income (loss) attributable to Holdings | $ 1,064 | $ 594 | $ 2,000 | $ 2,091 |
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 413 | 386 | 1,218 | 1,378 |
Legal expense | 0 | 2 | 35 | 168 |
Policyholders’ benefits | 693 | 629 | 2,107 | 2,020 |
Increase (decrease) in income (loss) from continuing operation, before income taxes | 1,475 | 825 | 1,555 | 2,834 |
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates | ||||
Adjustments related to: | ||||
Variable annuity product features | 40 | (204) | 40 | (204) |
Policyholders’ benefits | (2) | (13) | (2) | (13) |
Increase (decrease) in income (loss) from continuing operation, before income taxes | (5) | (206) | (5) | (206) |
Adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) attributable to Holdings | 1,064 | 594 | 2,000 | 2,091 |
Adjustments related to: | ||||
Variable annuity product features | (1,380) | (675) | (584) | (2,322) |
Investment (gains) losses | 411 | 333 | 554 | 890 |
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 8 | 19 | 26 | 57 |
Other adjustments | 91 | 50 | 198 | 455 |
Income tax expense (benefit) related to above adjustments | 183 | 58 | (40) | 194 |
Non-recurring tax items | 36 | 7 | (936) | 13 |
Policyholders’ benefits | 75 | |||
Operating Segments | Individual Retirement | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 210 | 183 | 644 | 572 |
Operating Segments | Group Retirement | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 105 | 99 | 301 | 354 |
Operating Segments | Investment Management and Research | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 99 | 94 | 297 | 331 |
Operating Segments | Protection Solutions | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 34 | 30 | 23 | 137 |
Operating Segments | Wealth Management | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 40 | 22 | 114 | 78 |
Operating Segments | Legacy | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 41 | 50 | 146 | 170 |
Corporate and Other | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | (116) | (92) | (307) | (264) |
Interest and debt expense | $ 54 | $ 51 | $ 173 | $ 156 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 3,624 | $ 2,992 | $ 8,358 | $ 10,828 |
Adjustments related to: | ||||
Other adjustments to segment revenues | 3,624 | 2,992 | 8,358 | 10,828 |
Investment expenses | 30 | 33 | 84 | 77 |
Interest expense | 55 | 51 | 171 | 148 |
Operating Segments | Individual Retirement | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 693 | 512 | 1,928 | 1,490 |
Operating Segments | Group Retirement | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 267 | 287 | 771 | 920 |
Operating Segments | Investment Management and Research | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,034 | 996 | 3,043 | 3,134 |
Operating Segments | Protection Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 822 | 759 | 2,373 | 2,357 |
Operating Segments | Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 390 | 353 | 1,143 | 1,097 |
Operating Segments | Legacy | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 198 | 204 | 607 | 618 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 257 | 222 | 800 | 645 |
Adjustments related to: | ||||
Interest expense | 10 | 0 | 29 | 0 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (199) | (184) | (597) | (579) |
Intersegment Eliminations | Investment Management and Other Fees | ||||
Adjustments related to: | ||||
Revenues | (40) | (34) | (120) | (101) |
Intersegment Eliminations | AB Holding | ||||
Adjustments related to: | ||||
Investment expenses | 35 | 28 | 104 | 82 |
Intersegment Eliminations | Wealth Management | ||||
Adjustments related to: | ||||
Expense related to distribution fees | 185 | 178 | 553 | 561 |
Adjustments | ||||
Adjustments related to: | ||||
Variable annuity product features | 1,380 | 675 | 584 | 2,322 |
Investment gains (losses), net | (411) | (333) | (554) | (890) |
Other adjustments to segment revenues | $ (807) | $ (499) | $ (1,740) | $ (286) |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 260,252 | $ 252,702 |
Operating Segments | Individual Retirement | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 83,581 | 77,641 |
Operating Segments | Group Retirement | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 44,104 | 42,421 |
Operating Segments | Investment Management and Research | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 11,262 | 12,633 |
Operating Segments | Protection Solutions | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 36,423 | 37,224 |
Operating Segments | Wealth Management | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 255 | 137 |
Operating Segments | Legacy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 45,902 | 48,231 |
Corporate and Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 38,725 | $ 34,415 |
INSURANCE GROUP STATUTORY FIN_2
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION (Details) | 9 Months Ended | ||
Sep. 30, 2023 USD ($) prescribed_and_permitted_practice | Sep. 30, 2022 | Jun. 30, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||
Number of prescribed and permitted practices | prescribed_and_permitted_practice | 4 | ||
Change in statutory surplus | $ 46,000,000 | ||
Statement of Statutory Accounting Principles 108 | |||
Related Party Transaction [Line Items] | |||
Change in statutory special surplus funds | (15,000,000) | ||
Unassigned surplus balance | $ 0 | ||
Regulation Number 213 | |||
Related Party Transaction [Line Items] | |||
Change in statutory surplus | (279,000,000) | ||
Percentage of reserves phased-in | 100% | ||
Redundant reserve balance over TAR | 267,000,000 | ||
Regulation Number 213 with Seperate Accounts | |||
Related Party Transaction [Line Items] | |||
Change in statutory surplus | $ 2,400,000,000 |
EARNINGS PER COMMON SHARE - Bas
EARNINGS PER COMMON SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Weighted-average common shares outstanding: | |||||
Weighted-average common shares outstanding — basic (in shares) | 346.4 | 374.5 | 354.4 | 380.6 | |
Effect of dilutive potential common shares, employee stock awards (in shares) | 1.6 | 2.3 | 1.4 | 2.3 | |
Weighted average common shares outstanding - diluted (in shares) | 348 | 376.8 | 355.9 | 382.9 | |
Net income (loss): | |||||
Net income (loss) | $ 1,135 | $ 648 | $ 2,232 | $ 2,256 | |
Less: Net income (loss) attributable to the noncontrolling interest | [1] | 71 | 54 | 232 | 165 |
Net income (loss) attributable to Holdings | 1,064 | 594 | 2,000 | 2,091 | |
Less: Preferred stock dividends | 14 | 14 | 54 | 54 | |
Net income (loss) available to Holdings’ common shareholders, basic | 1,050 | 580 | 1,946 | 2,037 | |
Net income (loss) available to Holdings’ common shareholders, diluted | $ 1,050 | $ 580 | $ 1,946 | $ 2,037 | |
Earnings per common share: | |||||
Basic (in dollars per share) | $ 3.03 | $ 1.55 | $ 5.49 | $ 5.35 | |
Diluted (in dollars per share) | $ 3.02 | $ 1.54 | $ 5.47 | $ 5.32 | |
[1]Includes redeemable noncontrolling interest. See Note 15 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest. |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities (in shares) | 3.5 | 2.9 | 2.4 | 3.5 |
HELD-FOR-SALE - Narrative (Deta
HELD-FOR-SALE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Nov. 22, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in joint venture expected | 100% | |||
Interest in joint venture maximum limit expected period | 5 years | |||
Non cash valuation adjustment | $ 2 | $ 8 | $ 7 | |
AB Holding | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in joint venture | 49% | |||
Payment of cost to sell | $ 5 | $ 5 | ||
Societe Generale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in joint venture | 51% |
HELD-FOR-SALE - Assets and Liab
HELD-FOR-SALE - Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Total liabilities held-for-sale | $ 216 | $ 108 |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Corporate Solutions Life Reinsurance Company (CS Life) | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Cash and cash equivalents | 146 | 159 |
Broker-dealer related receivables | 175 | 74 |
Trading securities, at fair value | 24 | 25 |
Goodwill and other intangible assets, net | 164 | 175 |
Other assets | 172 | 129 |
Total assets held-for-sale | 681 | 562 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Broker-dealer related payables | 71 | 33 |
Customers related payables | 29 | 10 |
Other liabilities | 116 | 65 |
Total liabilities held-for-sale | 216 | 108 |
Other real estate, valuation adjustments | $ (10) | $ (7) |
REINSURANCE - Effects of Reinsu
REINSURANCE - Effects of Reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reinsurance Disclosures [Abstract] | ||||
Direct charges and fee income | $ 780 | $ 761 | $ 2,312 | $ 2,344 |
Reinsurance assumed | 0 | 0 | 3 | (1) |
Reinsurance ceded | (181) | (158) | (534) | (470) |
Policy charges and fee income | 599 | 603 | 1,781 | 1,873 |
Direct premiums | 287 | 262 | 868 | 778 |
Reinsurance assumed | 40 | 51 | 135 | 138 |
Reinsurance ceded | (60) | (54) | (180) | (172) |
Premiums | 267 | 259 | 823 | 744 |
Direct policyholders’ benefits | 807 | 765 | 2,534 | 2,369 |
Reinsurance assumed | 29 | 44 | 105 | 150 |
Reinsurance ceded | (143) | (180) | (532) | (499) |
Policyholders’ benefits | 693 | 629 | 2,107 | 2,020 |
Direct interest credited to policyholders’ account balances | 573 | 389 | 1,582 | 1,035 |
Reinsurance ceded | (17) | (11) | (62) | (34) |
Interest credited to policyholders’ account balances | $ 556 | $ 378 | $ 1,520 | $ 1,001 |
REINSURANCE - Narrative (Detail
REINSURANCE - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2022 | Sep. 30, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance per life for single lives, amount retained | $ 25,000 | |
Reinsurance per life for joint lives, amount retained | $ 30,000 | |
Reinsurance retention policy, percentage of excess reinsured | 100% | |
Deferred variable annuity | $ 360 | |
Global Atlantic Transaction | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Percentage of loans receivable, fair value disclosure | 50% |
REINSURANCE - Ceded Reinsurance
REINSURANCE - Ceded Reinsurance (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Estimated net fair values of purchased market risk benefits | $ 8,745 | $ 10,423 |
Third-party reinsurance recoverables related to insurance contracts | 8,271 | 8,471 |
Amount due to reinsurers | 1,424 | 1,533 |
Top reinsurers | 1,424 | 1,533 |
Ceded group health reserves | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance recoverables related to insurance contracts | 54 | 47 |
Reinsurance assumed reserves | 689 | 701 |
First Allmerica-GAF | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance recoverables related to insurance contracts | 3,735 | 4,005 |
Top reinsurers | 71 | 147 |
Zurich Life Insurance Company, Ltd. | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance recoverables related to insurance contracts | 1,357 | 1,416 |
RGA Reinsurance Company | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance recoverables related to insurance contracts | 1,263 | 1,272 |
Top reinsurers | 1,155 | 1,171 |
Protective Life Insurance Company | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Top reinsurers | $ 97 | $ 104 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Oct. 04, 2023 | Jul. 06, 2023 | Oct. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Feb. 09, 2023 | Feb. 09, 2022 | |
Subsequent Event [Line Items] | |||||||||||||
Aggregate amount of share repurchases authorized | $ 700 | $ 1,200 | |||||||||||
Shares repurchased (in shares) | 3,400,000 | 4,700,000 | 11,500,000 | 12,600,000 | |||||||||
Accelerated Share Repurchase Agreement | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Aggregate amount of share repurchases authorized | $ 70 | $ 70 | $ 75 | $ 75 | $ 75 | $ 70 | $ 70 | ||||||
Pre-payment of share repurchases | $ 70 | $ 70 | $ 75 | $ 75 | $ 75 | $ 70 | $ 70 | ||||||
Shares repurchased (in shares) | 2,000,000 | 2,000,000 | 2,400,000 | 2,400,000 | 2,000,000 | 8,300,000 | 7,000,000 | 24,500,000 | 23,200,000 | ||||
Subsequent Event | Accelerated Share Repurchase Agreement | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Aggregate amount of share repurchases authorized | $ 80 | ||||||||||||
Pre-payment of share repurchases | $ 80 | ||||||||||||
Shares repurchased (in shares) | 2,300,000 | 596,000 |