Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | Athene Holding Ltd. | ||
Entity Central Index Key | 1,527,469 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7.9 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 161,378,611 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 25,433,465 | ||
Common Class M-1 | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,358,890 | ||
Common Class M-2 | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 841,011 | ||
Common Class M-3 | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,001,110 | ||
Common Class M-4 | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 4,104,539 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments | |||
Mortgage loans, net of allowances (portion at fair value: 2018 – $32 and 2017 – $41) | $ 10,631 | $ 6,233 | |
Investment funds | 3,559 | 2,580 | |
Cash and cash equivalents | [1] | 3,405 | 4,997 |
Restricted cash | 492 | 105 | |
Reinsurance recoverable (related party: 2018 – $344 and 2017 – $0; portion at fair value: 2018 – $1,676 and 2017 – $1,824) | 5,534 | 5,332 | |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,907 | 2,972 | |
Total assets | 125,505 | 100,161 | |
Liabilities | |||
Total liabilities | 117,229 | 90,985 | |
Equity | |||
Additional paid-in capital | 3,462 | 3,472 | |
Retained earnings | 5,286 | 4,255 | |
Accumulated other comprehensive income (loss) (related party: 2018 – $(25) and 2017 – $48) | (472) | 1,449 | |
Total shareholders’ equity | 8,276 | 9,176 | |
Total liabilities and equity | 125,505 | 100,161 | |
Related Party | |||
Equity | |||
Accumulated other comprehensive income (loss) (related party: 2018 – $(25) and 2017 – $48) | (25) | 48 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | |||
Investments | |||
Available-for-sale securities, at fair value (amortized cost: 2018 – $60,025 and 2017 – $58,502) | 59,265 | 61,008 | |
Trading securities, at fair value | 1,949 | 2,183 | |
Equity securities, at fair value | 216 | 803 | |
Mortgage loans, net of allowances (portion at fair value: 2018 – $32 and 2017 – $41) | 10,340 | 6,233 | |
Investment funds | 703 | 699 | |
Policy loans | 488 | 542 | |
Funds withheld at interest (portion at fair value: 2018 – $57 and 2017 – $312) | 15,023 | 7,085 | |
Derivative assets | 1,043 | 2,551 | |
Real estate (portion held for sale: 2017 – $32) | 0 | 624 | |
Short-term investments, at fair value | 191 | 201 | |
Other investments | 122 | 133 | |
Total investments | 89,340 | 82,062 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Investments | |||
Available-for-sale securities, at fair value (amortized cost: 2018 – $60,025 and 2017 – $58,502) | 60,702 | 61,418 | |
Cash and cash equivalents | 2,911 | 4,888 | |
Accrued investment income (related party: 2018 – $25 and 2017 – $10) | 682 | 652 | |
Reinsurance recoverable (related party: 2018 – $344 and 2017 – $0; portion at fair value: 2018 – $1,676 and 2017 – $1,824) | 5,534 | 5,332 | |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,907 | 2,972 | |
Other assets (related party: 2018 – $357 and 2017 – $0) | 1,635 | 969 | |
Liabilities | |||
Interest sensitive contract liabilities (related party: 2018 – $16,850 and 2017 – $0; portion at fair value: 2018 – $8,901 and 2017 – $8,904) | 96,610 | 68,099 | |
Future policy benefits (related party: 2018 – $1,259 and 2017 – $0; portion at fair value: 2018 – $2,173 and 2017 – $2,428) | 16,704 | 17,557 | |
Other policy claims and benefits (related party: 2018 – $10 and 2017 – $0) | 142 | 211 | |
Dividends payable to policyholders | 118 | 1,025 | |
Long-term debt | 991 | 0 | |
Derivative liabilities | 85 | 134 | |
Payables for collateral on derivatives | 969 | 2,323 | |
Funds withheld liability (related party: 2018 – $337 and 2017 – $0; portion at fair value: 2018 – $(1) and 2017 – $22) | 721 | 407 | |
Other liabilities (related party: 2018 – $59 and 2017 – $64) | 888 | 1,227 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | |||
Investments | |||
Available-for-sale securities, at fair value (amortized cost: 2018 – $60,025 and 2017 – $58,502) | 1,437 | 410 | |
Trading securities, at fair value | 249 | 307 | |
Equity securities, at fair value | 120 | 0 | |
Mortgage loans, net of allowances (portion at fair value: 2018 – $32 and 2017 – $41) | 291 | 0 | |
Investment funds | 2,232 | 1,310 | |
Funds withheld at interest (portion at fair value: 2018 – $57 and 2017 – $312) | 13,577 | 0 | |
Short-term investments, at fair value | 0 | 52 | |
Other investments | 386 | 238 | |
Accrued investment income (related party: 2018 – $25 and 2017 – $10) | 25 | 10 | |
Reinsurance recoverable (related party: 2018 – $344 and 2017 – $0; portion at fair value: 2018 – $1,676 and 2017 – $1,824) | 344 | 0 | |
Other assets (related party: 2018 – $357 and 2017 – $0) | 357 | 0 | |
Liabilities | |||
Interest sensitive contract liabilities (related party: 2018 – $16,850 and 2017 – $0; portion at fair value: 2018 – $8,901 and 2017 – $8,904) | 16,850 | 0 | |
Future policy benefits (related party: 2018 – $1,259 and 2017 – $0; portion at fair value: 2018 – $2,173 and 2017 – $2,428) | 1,259 | 0 | |
Other policy claims and benefits (related party: 2018 – $10 and 2017 – $0) | 10 | 0 | |
Funds withheld liability (related party: 2018 – $337 and 2017 – $0; portion at fair value: 2018 – $(1) and 2017 – $22) | 337 | 0 | |
Other liabilities (related party: 2018 – $59 and 2017 – $64) | 59 | 64 | |
Variable Interest Entities | |||
Investments | |||
Investment funds | 624 | 571 | |
Cash and cash equivalents | 2 | 4 | |
Other assets (related party: 2018 – $357 and 2017 – $0) | 1 | 1 | |
Liabilities | |||
Other liabilities (related party: 2018 – $59 and 2017 – $64) | 1 | 2 | |
Variable Interest Entities | Related Party | |||
Investments | |||
Trading securities, at fair value | 35 | 48 | |
Equity securities, at fair value | 50 | 240 | |
Investment funds | 583 | 571 | |
Common Class A | |||
Equity | |||
Common stock | 0 | 0 | |
Common Class B | |||
Equity | |||
Common stock | 0 | 0 | |
Common Class M-1 | |||
Equity | |||
Common stock | 0 | 0 | |
Common Class M-2 | |||
Equity | |||
Common stock | 0 | 0 | |
Common Class M-3 | |||
Equity | |||
Common stock | 0 | 0 | |
Common Class M-4 | |||
Equity | |||
Common stock | $ 0 | $ 0 | |
[1] | Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated variable interest entities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Mortgage loans | $ 10,631 | $ 6,233 |
Investment funds | 3,559 | 2,580 |
Reinsurance recoverable | 5,534 | 5,332 |
Accumulated other comprehensive income (loss) | (472) | 1,449 |
Related Party | ||
Accumulated other comprehensive income (loss) | (25) | 48 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Fixed maturity securities, amortized cost | 60,025 | 58,502 |
Mortgage loans | 10,340 | 6,233 |
Investment funds | 703 | 699 |
Funds withheld at interest | 15,023 | 7,085 |
Real estate held for sale | 0 | 32 |
Short-term investments, cost | 191 | 201 |
Other investments | 122 | 133 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fixed maturity securities, amortized cost | 61,487 | 58,905 |
Accrued investment income | 682 | 652 |
Reinsurance recoverable | 5,534 | 5,332 |
Other assets (related party: 2018 – $357 and 2017 – $0) | 1,635 | 969 |
Interest sensitive contract liabilities | 96,610 | 68,099 |
Future policy benefits | 16,704 | 17,557 |
Other policy claims and benefits (related party: 2018 – $10 and 2017 – $0) | 142 | 211 |
Funds withheld liability | 721 | 407 |
Other liabilities (related party: 2018 – $59 and 2017 – $64) | 888 | 1,227 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Fixed maturity securities, amortized cost | 1,462 | 403 |
Mortgage loans | 291 | 0 |
Investment funds | 2,232 | 1,310 |
Funds withheld at interest | 13,577 | 0 |
Short-term investments, cost | 0 | 52 |
Other investments | 386 | 238 |
Accrued investment income | 25 | 10 |
Reinsurance recoverable | 344 | 0 |
Other assets (related party: 2018 – $357 and 2017 – $0) | 357 | 0 |
Interest sensitive contract liabilities | 16,850 | 0 |
Future policy benefits | 1,259 | 0 |
Other policy claims and benefits (related party: 2018 – $10 and 2017 – $0) | 10 | 0 |
Funds withheld liability | 337 | 0 |
Other liabilities (related party: 2018 – $59 and 2017 – $64) | 59 | 64 |
Variable Interest Entities | ||
Investment funds | 624 | 571 |
Other assets (related party: 2018 – $357 and 2017 – $0) | 1 | 1 |
Other liabilities (related party: 2018 – $59 and 2017 – $64) | 1 | 2 |
Variable Interest Entities | Related Party | ||
Investment funds | $ 583 | $ 571 |
Common Class A | ||
Common stock outstanding (in shares) | 162.4 | 142.4 |
Common Class B | ||
Common stock outstanding (in shares) | 25.4 | 47.4 |
Common Class M-1 | ||
Common stock outstanding (in shares) | 3.4 | 3.4 |
Common Class M-2 | ||
Common stock outstanding (in shares) | 0.8 | 0.9 |
Common Class M-3 | ||
Common stock outstanding (in shares) | 1 | 1.1 |
Common Class M-4 | ||
Common stock outstanding (in shares) | 4.1 | 4.7 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Mortgage loans | $ 10,424 | $ 6,342 |
Funds withheld at interest | 14,966 | 6,773 |
Other investments | 70 | 133 |
Interest sensitive contract liabilities | 51,655 | 31,656 |
Funds withheld liability | 722 | 385 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Mortgage loans | 290 | |
Funds withheld at interest | 13,687 | |
Other investments | 361 | 259 |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Mortgage loans | 32 | 41 |
Investment funds | 182 | 145 |
Funds withheld at interest | 57 | 312 |
Other investments | 52 | 0 |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Mortgage loans | 32 | 41 |
Short-term investments, cost | 191 | 201 |
Other investments | 52 | |
Reinsurance recoverable | 1,676 | 1,824 |
Interest sensitive contract liabilities | 8,901 | 8,904 |
Future policy benefits | 2,173 | 2,428 |
Funds withheld liability | (1) | 22 |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Investment funds | 201 | 30 |
Funds withheld at interest | (110) | 0 |
Short-term investments, cost | 52 | |
Recurring | Fair Value | Variable Interest Entities | ||
Investment funds | $ 567 | $ 549 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Revenues | |||||
Net investment income | $ 4,004 | $ 3,269 | $ 2,914 | ||
Total revenues | 6,543 | 8,727 | 4,105 | ||
Premiums (related party: 2018 – $679, 2017 – $0 and 2016 – $0) | 3,368 | 2,465 | 240 | ||
Other-than-temporary impairment investment losses | |||||
Other-than-temporary impairment losses reclassified to (from) other comprehensive income | 6 | (4) | 2 | ||
Benefits and expenses | |||||
Amortization of deferred sales inducements | 61 | 67 | 36 | ||
Future policy and other policy benefits (related party: 2018 – $707, 2017 – $0 and 2016 – $0) | 4,187 | 3,200 | 1,030 | ||
Total benefits and expenses | 5,368 | 7,263 | 3,393 | ||
Income before income taxes | 1,175 | 1,464 | 712 | ||
Income tax expense (benefit) | 122 | 106 | (61) | ||
Net income | 1,053 | 1,358 | 773 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||||
Revenues | |||||
Net investment income | 4,004 | 3,269 | 2,914 | ||
Other revenues | 26 | 37 | 34 | ||
Premiums (related party: 2018 – $679, 2017 – $0 and 2016 – $0) | 3,368 | 2,465 | 240 | ||
Product charges (related party: 2018 – $34, 2017 – $0 and 2016 – $0) | 449 | 340 | 281 | ||
Gain (Loss) on Investments | (1,324) | 2,572 | 652 | ||
Other-than-temporary impairment investment losses | |||||
Other-than-temporary impairment losses | (24) | (29) | (32) | ||
Other-than-temporary impairment losses reclassified to (from) other comprehensive income | 6 | (4) | 2 | ||
Net other-than-temporary impairment losses | (18) | (33) | (30) | ||
Benefits and expenses | |||||
Interest sensitive contract benefits (related party: 2018 – $63, 2017 – $0 and 2016 – $0) | 290 | 2,866 | 1,343 | ||
Amortization of deferred sales inducements | 54 | 63 | 39 | ||
Future policy and other policy benefits (related party: 2018 – $707, 2017 – $0 and 2016 – $0) | 4,187 | 3,200 | 1,030 | ||
Amortization of deferred acquisition costs and value of business acquired | 174 | 344 | 304 | ||
Dividends to policyholders | 37 | 118 | 37 | ||
Policy and other operating expenses (related party: 2018 – $42, 2017 – $13 and 2016 – $22) | 625 | 672 | 627 | ||
Variable Interest Entities | |||||
Revenues | |||||
Net investment income | 56 | 42 | 67 | ||
Gain (Loss) on Investments | (18) | 35 | (53) | ||
Benefits and expenses | |||||
Operating expenses of consolidated variable interest entities | $ 1 | $ 0 | $ 13 | ||
Common Class A | |||||
Earnings per share | |||||
Basic (in USD per share) | $ 5.34 | $ 6.95 | $ 4.14 | ||
Diluted (in USD per share) | 5.32 | 6.91 | 4.04 | ||
Common Class B | |||||
Earnings per share | |||||
Basic (in USD per share) | 5.34 | 6.95 | 4.14 | ||
Diluted (in USD per share) | 5.34 | 6.95 | 4.14 | ||
Common Class M-1 | |||||
Earnings per share | |||||
Basic (in USD per share) | 5.34 | 6.95 | 4.14 | ||
Diluted (in USD per share) | 5.34 | 6.95 | $ 0.20 | ||
Common Class M-2 | |||||
Earnings per share | |||||
Basic (in USD per share) | [1] | 5.34 | 6.95 | ||
Diluted (in USD per share) | 5.31 | [1] | 5.05 | ||
Common Class M-3 | |||||
Earnings per share | |||||
Basic (in USD per share) | [1] | 5.34 | 6.95 | ||
Diluted (in USD per share) | 5.31 | [1] | 3.86 | ||
Common Class M-4 | |||||
Earnings per share | |||||
Basic (in USD per share) | [1] | 5.34 | 6.95 | ||
Diluted (in USD per share) | $ 4.11 | [1] | $ 3.10 | ||
[1] | Basic and diluted earnings per share for Class M-2, M-3 and M-4 were applicable only for the years ended December 31, 2018 and 2017. See Note 13 – Earnings Per Share for further discussion. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Premiums | $ 3,368 | $ 2,465 | $ 240 |
Future policy and other policy benefits | 4,187 | 3,200 | 1,030 |
Net investment income | 4,004 | 3,269 | 2,914 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Premiums | 3,368 | 2,465 | 240 |
Product charges | 449 | 340 | 281 |
Investment income | 4,359 | 3,601 | 3,217 |
Investment expense | 355 | 332 | 303 |
Gain (Loss) on Investments | (1,324) | 2,572 | 652 |
Interest Sensitive Contract Benefits Expense | 290 | 2,866 | 1,343 |
Future policy and other policy benefits | 4,187 | 3,200 | 1,030 |
Net investment income | 4,004 | 3,269 | 2,914 |
Policy and other operating expenses | 625 | 672 | 627 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | |||
Premiums | 679 | 0 | 0 |
Product charges | 34 | 0 | 0 |
Investment income | 539 | 220 | 226 |
Investment expense | 349 | 318 | 295 |
Gain (Loss) on Investments | (77) | (16) | (38) |
Interest Sensitive Contract Benefits Expense | 63 | 0 | 0 |
Future policy and other policy benefits | 707 | 0 | 0 |
Policy and other operating expenses | 42 | 13 | 22 |
Variable Interest Entities | |||
Gain (Loss) on Investments | (18) | 35 | (53) |
Net investment income | 56 | 42 | 67 |
Variable Interest Entities | Related Party | |||
Gain (Loss) on Investments | (21) | 35 | (25) |
Net investment income | $ 55 | $ 42 | $ 44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,053 | $ 1,358 | $ 773 |
Other comprehensive income (loss), before tax | |||
Unrealized investment gains (losses) on available-for-sale securities | (2,442) | 1,312 | 882 |
Noncredit component of other-than-temporary impairment losses on available-for-sale securities | (6) | 4 | (2) |
Unrealized gains (losses) on hedging instruments | 146 | (105) | (5) |
Pension adjustments | 3 | (1) | 0 |
Foreign currency translation adjustments | (11) | 20 | (8) |
Other comprehensive income (loss), before tax | (2,310) | 1,230 | 867 |
Income tax expense (benefit) related to other comprehensive income | (431) | 334 | 260 |
Other comprehensive income (loss) | (1,879) | 896 | 607 |
Comprehensive income (loss) | $ (826) | $ 2,254 | $ 1,380 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total Athene Holding Ltd. shareholders’ equity | Noncontrolling interest |
Beginning Balance at Dec. 31, 2015 | $ 5,368 | $ 0 | $ 3,281 | $ 2,327 | $ (241) | $ 5,367 | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 773 | 773 | 773 | 0 | |||
Other comprehensive loss | 607 | 607 | 607 | ||||
Issuance of shares, net of expenses | 1 | 1 | 1 | ||||
Stock-based compensation | 153 | 153 | 153 | ||||
Retirement or repurchase of shares | (20) | (14) | (6) | (20) | |||
Ending Balance at Dec. 31, 2016 | 6,882 | 0 | 3,421 | 3,094 | 366 | 6,881 | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,358 | 1,358 | 1,358 | 0 | |||
Other comprehensive loss | 896 | 896 | 896 | ||||
Issuance of shares, net of expenses | 1 | 1 | 1 | ||||
Stock-based compensation | 50 | 50 | 50 | ||||
Retirement or repurchase of shares | (10) | 0 | (10) | (10) | |||
Other changes in equity of noncontrolling interests | (1) | (1) | |||||
Ending Balance at Dec. 31, 2017 | 9,176 | 0 | 3,472 | 4,255 | 1,449 | 9,176 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reclassification of taxes | (187) | 187 | |||||
Net income | 1,053 | 1,053 | 1,053 | 0 | |||
Other comprehensive loss | (1,879) | (1,879) | (1,879) | ||||
Issuance of shares, net of expenses | 2 | 2 | 2 | ||||
Stock-based compensation | 32 | 32 | 32 | ||||
Retirement or repurchase of shares | (105) | (44) | (61) | (105) | |||
Ending Balance at Dec. 31, 2018 | $ 8,276 | $ 0 | $ 3,462 | $ 5,286 | $ (472) | $ 8,276 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash flows from operating activities | ||||
Net income | $ 1,053 | $ 1,358 | $ 773 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Amortization of deferred sales inducements | 61 | 67 | 36 | |
Policy acquisition costs deferred | (2,481) | (493) | (601) | |
Changes in operating assets and liabilities: | ||||
Net cash provided by operating activities | 2,874 | 3,170 | 1,199 | |
Purchases of: | ||||
Deconsolidation of Athora Holding Ltd. | (296) | 0 | 0 | |
Net cash provided by (used in) investing activities | (8,173) | (5,769) | (2,661) | |
Cash flows from financing activities | ||||
Proceeds from short-term debt | 183 | 0 | 0 | |
Proceeds from long-term debt | 998 | 0 | 0 | |
Net cash provided by financing activities | 3,707 | 5,048 | 1,155 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 32 | (13) | |
Net (decrease) increase in cash and cash equivalents | (1,592) | 2,481 | (320) | |
Cash and cash equivalents at beginning of year | [1] | 4,997 | 2,516 | 2,836 |
Cash and cash equivalents at end of year | [1] | 3,405 | 4,997 | 2,516 |
Supplementary information | ||||
Cash paid (refunded) for taxes | 52 | (64) | (31) | |
Cash paid for interest | 26 | 0 | 9 | |
Non-cash transactions | ||||
Deposits on investment-type policies and contracts through reinsurance agreements (related party: 2018 – $17,619, 2017 – $0 and 2016 – $0) | 26,532 | 663 | 3,441 | |
Withdrawals on investment-type policies and contracts through reinsurance agreements (related party: 2018 – $1,050, 2017 – $0 and 2016 – $0) | 1,843 | 482 | 448 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Amortization of deferred acquisition costs and value of business acquired | 174 | 344 | 304 | |
Amortization of deferred sales inducements | 54 | 63 | 39 | |
Accretion of net investment premiums, discounts and other | (178) | (192) | (172) | |
Reinsurance Agreement Payments | (394) | 0 | 0 | |
Stock-based compensation | 26 | 45 | 84 | |
Net investment (income) loss (related party: 2018 – $(103), 2017 – $(63) and 2016 – $(51)) | (84) | (53) | (25) | |
Net recognized (gains) losses on investments and derivatives | 1,095 | (2,180) | (342) | |
Policy acquisition costs deferred | (919) | (493) | (601) | |
Changes in operating assets and liabilities: | ||||
Accrued investment income (related party: 2018 – $(15), 2017 – $0 and 2016 – $0) | (66) | (91) | (34) | |
Interest sensitive contract liabilities (related party: 2018 – $30, 2017 – $0 and 2016 – $0) | (365) | 2,564 | 956 | |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable (related party: 2018 – $109, 2017 – $0 and 2016 – $0) | 2,457 | 2,019 | 331 | |
Funds withheld assets and liabilities (related party: 2018 – $113, 2017 – $0 and 2016 – $0) | 270 | (419) | (128) | |
Other assets and liabilities | (266) | 238 | (42) | |
Sales, maturities and repayments of: | ||||
Available-for-sale securities (related party: 2018 – $181, 2017 – $131 and 2016 – $78) | 12,121 | 12,634 | ||
Trading securities (related party: 2018 – $30, 2017 – $55 and 2016 – $26) | 348 | 156 | 356 | |
Mortgage loans (related party: 2018 – $13, 2017 – $0 and 2016 – $0) | 1,373 | 1,669 | 1,176 | |
Investment funds (related party: 2018 – $305, 2017 – $349 and 2016 – $293) | 481 | 496 | 420 | |
Derivative instruments and other invested assets (related party: 2018 – $2, 2017 – $0 and 2016 – $0) | 1,859 | 1,503 | 468 | |
Real estate | 0 | 4 | 36 | |
Short-term investments (related party: 2018 – $172, 2017 – $65 and 2016 – $55) | 538 | 351 | 870 | |
Purchases of: | ||||
Available-for-sale securities (related party: 2018 – $(811), 2017 – $(186) and 2016 – $(86)) | (15,435) | (18,883) | (11,797) | |
Trading securities (related party: 2018 – $(4), 2017 – $0 and 2016 – $(39)) | (54) | (89) | (473) | |
Payments to Acquire Marketable Securities | 714 | |||
Mortgage loans (related party: 2018 – $(389), 2017 – $0 and 2016 – $0) | (5,745) | (2,428) | (1,157) | |
Investment funds (related party: 2018 – $(1,140), 2017 – $(509) and 2016 – $(441)) | (1,375) | (660) | (535) | |
Derivative instruments and other invested assets (related party: 2018 – $(150), 2017 – $0 and 2016 – $0) | (1,348) | (738) | (686) | |
Real estate | 0 | (76) | (39) | |
Short-term investments (related party: 2018 – $(121), 2017 – $(117) and 2016 – $0) | (478) | (421) | (873) | |
Cash settlement of derivatives | 18 | (4) | 34 | |
Other investing activities, net | (112) | 507 | (185) | |
Cash flows from financing activities | ||||
Capital contributions | 2 | 1 | 1 | |
Repayment of short-term debt | (183) | 0 | 0 | |
Deposits on investment-type policies and contracts (related party: 2018 – $151, 2017 – $0 and 2016 – $0) | 10,262 | 9,056 | 5,791 | |
Withdrawals on investment-type policies and contracts (related party: 2018 – $(252), 2017 – $0 and 2016 – $0) | (6,205) | (4,843) | (4,617) | |
Payments for coinsurance agreements on investment-type contracts, net | (2) | (33) | (89) | |
Net change in cash collateral posted for derivative transactions | (1,354) | 940 | 516 | |
Repurchase of common stock | (105) | (10) | (20) | |
Other financing activities, net | 111 | (63) | 73 | |
Cash and cash equivalents at end of year | 2,911 | 4,888 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fixed Maturity Securities | ||||
Sales, maturities and repayments of: | ||||
Available-for-sale securities (related party: 2018 – $181, 2017 – $131 and 2016 – $78) | 9,211 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | ||||
Sales, maturities and repayments of: | ||||
Proceeds from Sale and Maturity of Marketable Securities | 132 | 985 | 742 | |
Purchases of: | ||||
Payments to Acquire Marketable Securities | (334) | (847) | ||
Variable Interest Entities | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net recognized (gains) losses on investments and derivatives | 17 | (36) | 25 | |
Changes in operating assets and liabilities: | ||||
Other Noncash Income (Expense) | 0 | (3) | (31) | |
Purchases of: | ||||
Sales, maturities and repayments of investments (related party: 2018 – $203, 2017 – $85 and 2016 – $22) | 217 | 95 | 504 | |
Purchases of investments (related party: 2018 – $(31), 2017 – $(23) and 2016 – $(19)) | (83) | (23) | (19) | |
Cash flows from financing activities | ||||
Repayment on borrowings | 0 | 0 | (500) | |
Cash and cash equivalents at end of year | 2 | 4 | ||
Reinsurance Settlements [Member] | ||||
Non-cash transactions | ||||
Transfer to Investments | 52 | 73 | 47 | |
Pension Risk Transfer Premiums [Member] | ||||
Non-cash transactions | ||||
Transfer to Investments | 435 | 334 | 0 | |
Reinsurance Agreement [Member] | ||||
Non-cash transactions | ||||
Ceding commission on reinsurance agreements settled in investments | 266 | 0 | 0 | |
Investment funds | Exchange of Stock for Stock [Member] | ||||
Purchases of: | ||||
Investment funds (related party: 2018 – $(1,140), 2017 – $(509) and 2016 – $(441)) | (108) | 0 | 0 | |
Related Party | ||||
Non-cash transactions | ||||
Transfer to Investments | 115 | 0 | 0 | |
Transfer from Investments | 95 | 26 | 0 | |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Reinsurance Agreement Payments | (407) | 0 | 0 | |
Net investment (income) loss (related party: 2018 – $(103), 2017 – $(63) and 2016 – $(51)) | (103) | (63) | (51) | |
Net recognized (gains) losses on investments and derivatives | (8) | 8 | 34 | |
Changes in operating assets and liabilities: | ||||
Accrued investment income (related party: 2018 – $(15), 2017 – $0 and 2016 – $0) | (15) | 0 | 0 | |
Interest sensitive contract liabilities (related party: 2018 – $30, 2017 – $0 and 2016 – $0) | 30 | 0 | 0 | |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable (related party: 2018 – $109, 2017 – $0 and 2016 – $0) | 109 | 0 | 0 | |
Funds withheld assets and liabilities (related party: 2018 – $113, 2017 – $0 and 2016 – $0) | 113 | 0 | 0 | |
Sales, maturities and repayments of: | ||||
Available-for-sale securities (related party: 2018 – $181, 2017 – $131 and 2016 – $78) | 181 | 131 | ||
Trading securities (related party: 2018 – $30, 2017 – $55 and 2016 – $26) | 30 | 55 | 26 | |
Mortgage loans (related party: 2018 – $13, 2017 – $0 and 2016 – $0) | 13 | 0 | 0 | |
Investment funds (related party: 2018 – $305, 2017 – $349 and 2016 – $293) | 305 | 349 | 293 | |
Derivative instruments and other invested assets (related party: 2018 – $2, 2017 – $0 and 2016 – $0) | 2 | 0 | 0 | |
Short-term investments (related party: 2018 – $172, 2017 – $65 and 2016 – $55) | 172 | 65 | 55 | |
Purchases of: | ||||
Available-for-sale securities (related party: 2018 – $(811), 2017 – $(186) and 2016 – $(86)) | (811) | (186) | (86) | |
Trading securities (related party: 2018 – $(4), 2017 – $0 and 2016 – $(39)) | (4) | 0 | (39) | |
Payments to Acquire Marketable Securities | 20 | |||
Mortgage loans (related party: 2018 – $(389), 2017 – $0 and 2016 – $0) | (389) | 0 | 0 | |
Investment funds (related party: 2018 – $(1,140), 2017 – $(509) and 2016 – $(441)) | (1,140) | (509) | (441) | |
Derivative instruments and other invested assets (related party: 2018 – $(150), 2017 – $0 and 2016 – $0) | (150) | 0 | 0 | |
Short-term investments (related party: 2018 – $(121), 2017 – $(117) and 2016 – $0) | (121) | (117) | 0 | |
Cash flows from financing activities | ||||
Deposits on investment-type policies and contracts (related party: 2018 – $151, 2017 – $0 and 2016 – $0) | 151 | 0 | 0 | |
Withdrawals on investment-type policies and contracts (related party: 2018 – $(252), 2017 – $0 and 2016 – $0) | (252) | 0 | 0 | |
Non-cash transactions | ||||
Deposits on investment-type policies and contracts through reinsurance agreements (related party: 2018 – $17,619, 2017 – $0 and 2016 – $0) | 17,619 | 0 | 0 | |
Withdrawals on investment-type policies and contracts through reinsurance agreements (related party: 2018 – $1,050, 2017 – $0 and 2016 – $0) | 1,050 | 0 | 0 | |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | Fixed Maturity Securities | ||||
Sales, maturities and repayments of: | ||||
Available-for-sale securities (related party: 2018 – $181, 2017 – $131 and 2016 – $78) | 78 | |||
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | ||||
Sales, maturities and repayments of: | ||||
Proceeds from Sale and Maturity of Marketable Securities | 29 | 22 | 0 | |
Purchases of: | ||||
Payments to Acquire Marketable Securities | 149 | 0 | ||
Related Party | Variable Interest Entities | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net recognized (gains) losses on investments and derivatives | 20 | (36) | 3 | |
Purchases of: | ||||
Sales, maturities and repayments of investments (related party: 2018 – $203, 2017 – $85 and 2016 – $22) | 203 | 85 | 22 | |
Purchases of investments (related party: 2018 – $(31), 2017 – $(23) and 2016 – $(19)) | $ (31) | $ (23) | $ (19) | |
[1] | Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated variable interest entities. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Purchases of: | |||
Deposits on investment-type policies and contracts through reinsurance agreements (related party: 2018 – $17,619, 2017 – $0 and 2016 – $0) | $ 26,532 | $ 663 | $ 3,441 |
Withdrawals on investment-type policies and contracts through reinsurance agreements (related party: 2018 – $1,050, 2017 – $0 and 2016 – $0) | 1,843 | 482 | 448 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Reinsurance Agreement Payments | (394) | 0 | 0 |
Net investments (income) loss | (84) | (53) | (25) |
Net recognized (gains) losses on investments and derivatives | 1,095 | (2,180) | (342) |
Accrued investment income (related party: 2018 – $(15), 2017 – $0 and 2016 – $0) | (66) | (91) | (34) |
Interest sensitive contract liabilities | (365) | 2,564 | 956 |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable (related party: 2018 – $109, 2017 – $0 and 2016 – $0) | 2,457 | 2,019 | 331 |
Funds withheld assets and liabilities (related party: 2018 – $113, 2017 – $0 and 2016 – $0) | 270 | (419) | (128) |
Sales, maturities and repayments of: | |||
Available-for-sale securities (related party: 2018 – $181, 2017 – $131 and 2016 – $78) | 12,121 | 12,634 | |
Trading securities | 348 | 156 | 356 |
Mortgage loans (related party: 2018 – $13, 2017 – $0 and 2016 – $0) | 1,373 | 1,669 | 1,176 |
Investment funds | 481 | 496 | 420 |
Derivative instruments and other invested assets (related party: 2018 – $2, 2017 – $0 and 2016 – $0) | 1,859 | 1,503 | 468 |
Short-term investments | 538 | 351 | 870 |
Purchases of: | |||
Available-for-sale securities (related party: 2018 – $(811), 2017 – $(186) and 2016 – $(86)) | (15,435) | (18,883) | (11,797) |
Mortgage loans (related party: 2018 – $(389), 2017 – $0 and 2016 – $0) | (5,745) | (2,428) | (1,157) |
Trading securities | (54) | (89) | (473) |
Payments to Acquire Marketable Securities | 714 | ||
Investment funds | (1,375) | (660) | (535) |
Derivative instruments and other invested assets (related party: 2018 – $(150), 2017 – $0 and 2016 – $0) | (1,348) | (738) | (686) |
Short-term investments | (478) | (421) | (873) |
Deposits on investment-type policies and contracts (related party: 2018 – $151, 2017 – $0 and 2016 – $0) | 10,262 | 9,056 | 5,791 |
Repayments of Annuities and Investment Certificates | (6,205) | (4,843) | (4,617) |
Variable Interest Entities | |||
Net recognized (gains) losses on investments and derivatives | 17 | (36) | 25 |
Purchases of: | |||
Sales, maturities, and repayments of investments | 217 | 95 | 504 |
Purchases of investments | (83) | (23) | (19) |
Related Party | |||
Purchases of: | |||
Transfer from Investments | 95 | 26 | 0 |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Reinsurance Agreement Payments | (407) | 0 | 0 |
Net investments (income) loss | (103) | (63) | (51) |
Net recognized (gains) losses on investments and derivatives | (8) | 8 | 34 |
Accrued investment income (related party: 2018 – $(15), 2017 – $0 and 2016 – $0) | (15) | 0 | 0 |
Interest sensitive contract liabilities | 30 | 0 | 0 |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable (related party: 2018 – $109, 2017 – $0 and 2016 – $0) | 109 | 0 | 0 |
Funds withheld assets and liabilities (related party: 2018 – $113, 2017 – $0 and 2016 – $0) | 113 | 0 | 0 |
Sales, maturities and repayments of: | |||
Available-for-sale securities (related party: 2018 – $181, 2017 – $131 and 2016 – $78) | 181 | 131 | |
Trading securities | 30 | 55 | 26 |
Mortgage loans (related party: 2018 – $13, 2017 – $0 and 2016 – $0) | 13 | 0 | 0 |
Investment funds | 305 | 349 | 293 |
Derivative instruments and other invested assets (related party: 2018 – $2, 2017 – $0 and 2016 – $0) | 2 | 0 | 0 |
Short-term investments | 172 | 65 | 55 |
Purchases of: | |||
Available-for-sale securities (related party: 2018 – $(811), 2017 – $(186) and 2016 – $(86)) | (811) | (186) | (86) |
Mortgage loans (related party: 2018 – $(389), 2017 – $0 and 2016 – $0) | (389) | 0 | 0 |
Trading securities | (4) | 0 | (39) |
Payments to Acquire Marketable Securities | 20 | ||
Investment funds | (1,140) | (509) | (441) |
Derivative instruments and other invested assets (related party: 2018 – $(150), 2017 – $0 and 2016 – $0) | (150) | 0 | 0 |
Short-term investments | (121) | (117) | 0 |
Deposits on investment-type policies and contracts (related party: 2018 – $151, 2017 – $0 and 2016 – $0) | 151 | 0 | 0 |
Repayments of Annuities and Investment Certificates | (252) | 0 | 0 |
Deposits on investment-type policies and contracts through reinsurance agreements (related party: 2018 – $17,619, 2017 – $0 and 2016 – $0) | 17,619 | 0 | 0 |
Withdrawals on investment-type policies and contracts through reinsurance agreements (related party: 2018 – $1,050, 2017 – $0 and 2016 – $0) | 1,050 | 0 | 0 |
Related Party | Variable Interest Entities | |||
Net recognized (gains) losses on investments and derivatives | 20 | (36) | 3 |
Purchases of: | |||
Sales, maturities, and repayments of investments | 203 | 85 | 22 |
Purchases of investments | (31) | (23) | (19) |
Fixed Maturity Securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Sales, maturities and repayments of: | |||
Available-for-sale securities (related party: 2018 – $181, 2017 – $131 and 2016 – $78) | 9,211 | ||
Fixed Maturity Securities | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Sales, maturities and repayments of: | |||
Available-for-sale securities (related party: 2018 – $181, 2017 – $131 and 2016 – $78) | 78 | ||
Equity securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Sales, maturities and repayments of: | |||
Proceeds from Sale and Maturity of Marketable Securities | 132 | 985 | 742 |
Purchases of: | |||
Payments to Acquire Marketable Securities | (334) | (847) | |
Equity securities | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Sales, maturities and repayments of: | |||
Proceeds from Sale and Maturity of Marketable Securities | 29 | 22 | $ 0 |
Purchases of: | |||
Payments to Acquire Marketable Securities | $ 149 | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation, and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation, and Significant Accounting Policies | 1. Business, Basis of Presentation and Significant Accounting Policies Athene Holding Ltd. (AHL), a Bermuda exempted company, together with its subsidiaries (collectively, Athene, we, our, us, or the Company), is a leading retirement services company that issues, reinsures and acquires retirement savings products in all U.S. states and the District of Columbia. We conduct business primarily through the following consolidated subsidiaries: • Our non-U.S. reinsurance subsidiaries, to which AHL’s other insurance subsidiaries and third party ceding companies directly and indirectly reinsure a portion of their liabilities, including Athene Life Re Ltd. (ALRe), a Bermuda exempted company; and • Athene USA Corporation, an Iowa corporation (together with its subsidiaries, Athene USA). Consolidation and Basis of Presentation —Our consolidated financial statements include our wholly owned subsidiaries, investees we control and any variable interest entities (VIEs) where we are the primary beneficiary. Investments in entities that we do not control, but have the ability to exercise significant influence over operating and financing decisions, other than investments for which we have elected the fair value option, are accounted for under the equity method. Intercompany balances and transactions have been eliminated. For entities that are consolidated, but not 100% owned, we allocate a portion of the income or loss and corresponding equity to the owners other than the Company. We include the aggregate of the income or loss and corresponding equity that is not owned by the Company in noncontrolling interests in the consolidated financial statements. We report investments in related parties and assets and liabilities of consolidated VIEs separately, as further described in the accounting policies that follow. We have prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual experience could materially differ from these estimates and assumptions. Our principal estimates impact: • fair value of investments; • impairment of investments and valuation allowances; • derivatives valuation, including embedded derivatives; • deferred acquisition costs (DAC), deferred sales inducements (DSI) and value of business acquired (VOBA); • future policy benefit reserves; • valuation allowances on deferred tax assets; and • stock-based compensation. Additional details around these principal estimates and assumptions are discussed in the significant accounting policies that follow and the related footnote disclosures. Deconsolidation – AGER Bermuda Holding Ltd. and its subsidiaries, now known as Athora Holding Ltd. (Athora), was our consolidated subsidiary for the years ended December 31, 2017 and 2016. In April 2017, Athora entered into subscription agreements pursuant to which Athora secured commitments to purchase new common shares in Athora (Athora Offering). On January 1, 2018, the Athora Offering closed and Athora called capital from all of its investors, excluding us. In connection with the closing of the Athora Offering, our equity interest in Athora was exchanged for new common shares of Athora and our interest in Athora was reduced such that immediately after the closing of the Athora Offering, we held 10% of the aggregate voting power of and less than 50% of the economic interest in Athora. Our interest in Athora has since been held as a related party investment rather than a consolidated subsidiary. We did not recognize a material amount in the consolidated statements of income upon deconsolidation in 2018. Summary of Significant Accounting Policies Investments Fixed Maturity Securities – Fixed maturity securities includes bonds, collateralized loan obligations (CLO), asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and redeemable preferred stock. We classify fixed maturity securities as available-for-sale (AFS) or trading at the time of purchase and subsequently carry them at fair value. Fair value hierarchy and valuation methodologies are discussed in Note 6 – Fair Value . Classification is dependent on a variety of factors including our expected holding period, election of the fair value option and asset and liability matching. AFS Securities – Unrealized gains and losses on AFS securities, net of tax and adjustments to DAC, DSI, VOBA and future policy benefits, if applicable, are generally reflected in accumulated other comprehensive income (loss) (AOCI) on the consolidated balance sheets. Unrealized gains or losses relating to identified risks within AFS securities in fair value hedging relationships are reflected in investment related gains (losses) on the consolidated statements of income. Trading Securities – We elected the fair value option for certain fixed maturity securities. These fixed maturity securities are classified as trading, with changes to fair value included in investment related gains (losses) on the consolidated statements of income. Although the securities are classified as trading, the trading activity related to these investments is primarily focused on asset and liability matching activities and is not intended to be an income strategy based on active trading. As such, the activity related to these investments on the consolidated statements of cash flows is classified as investing activities. Trading securities includes mutual funds supporting unit-linked investment contracts. We generally record security transactions on a trade date basis, with any unsettled trades recorded in other assets or other liabilities on the consolidated balance sheets. Equity Securities – Equity securities includes common stock, mutual funds and non-redeemable preferred stock. Equity securities are carried at fair value with subsequent changes in fair value recognized in net income effective January 1, 2018. Prior to January 1, 2018, the accounting for subsequent changes in the fair value of an equity security was dependent on its classification as AFS or trading as discussed previously. Purchased Credit Impaired (PCI) Investments – We purchase certain structured securities, primarily RMBS, and re-performing mortgage loans having experienced deterioration in credit quality since their issuance which meet the definition of PCI investments. We determined, based on our expectations as to the timing and amount of cash flows expected to be received, that it was probable at acquisition that we would not collect all contractually required payments, including both principal and interest, while also considering the effects of any prepayments for these PCI investments. Based on these assumptions, the difference between the undiscounted expected future cash flows of the PCI investment and the recorded investment represents the initial accretable yield, which is accreted into investment income, net of related expenses, over its remaining life on a level-yield basis. The difference between the contractually required payments on the PCI investment and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. Over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, the accretable yield and the non-accretable difference can change. PCI investments are presented on the consolidated financial statements consistent with AFS securities or mortgage loans depending on the underlying investment. Quarterly, we evaluate the undiscounted expected future cash flows associated with PCI investments based on updates to key assumptions. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI investments will change the accretable yield prospectively. Declines in undiscounted expected future cash flows due to further credit deterioration, as well as changes in the expected timing of the cash flows, can result in the recognition of an other-than-temporary impairment (OTTI) charge for PCI securities or a valuation allowance for PCI loans. Significant increases in undiscounted expected future cash flows are recognized prospectively as an adjustment to the accretable yield. Mortgage Loans – Mortgage loans are primarily stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on its contractual interest rate. We record amortization of premiums and discounts using the effective yield method and contractual cash flows on the underlying loan. We accrue interest on loans until it is probable we will not receive interest or the loan is 90 days past due. Interest income, amortization of premiums and discounts, and prepayment fees are reported in net investment income on the consolidated statements of income. We have also elected the fair value option on a portion of our mortgage loans. Investment Funds – We invest in certain non-fixed income, alternative investments in the form of limited partnerships or similar legal structures (investment funds). For investment funds in which we have determined we are not the primary beneficiary, and therefore not required to consolidate, we typically record these investments using the equity method of accounting, where the cost is recorded as an investment in the fund, or we have elected the fair value option. Adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by net asset value (NAV) in the investment fund financial statements, which can be on a lag of up to three months when investee information is not received in a timely manner. We record our proportionate share of investment fund income within net investment income on the consolidated statements of income. Contributions paid or distributions received by us are recorded directly to the investment fund balance as an increase to carrying value or as a return of capital, thus reducing our carrying value. Policy Loans – Policy loans are funds provided to policyholders in return for a claim on the policy’s account value. The funds provided are limited to a specified percentage of the account balance. The majority of policy loans do not have a stated maturity and the balances and accrued interest are repaid with proceeds from the policy account balance. Policy loans are reported at the unpaid principal balance. Interest income is recorded as earned using the contract interest rate and is reported in net investment income on the consolidated statements of income. Funds Withheld at Interest – Funds withheld at interest represents a receivable for amounts contractually withheld by ceding companies in accordance with funds withheld coinsurance (funds withheld) and modified coinsurance (modco) reinsurance agreements in which we act as reinsurer. Generally, assets equal to statutory reserves are withheld and legally owned by the ceding company, and any excess or shortfall is settled periodically. The underlying agreements contain embedded derivatives as discussed below. Real Estate – Real estate investments are stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset, which is typically 40 years , and is included in net investment income on the consolidated statements of income. We periodically review our real estate investments for impairment and test for recoverability when events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. We recognize an impairment to fair value if the carrying amount of a property exceeds the expected undiscounted cash flows. Real estate investments for which we have committed to a plan to sell within one year and are actively marketing are classified as held for sale. Real estate held for sale is stated at the lower of depreciated cost as of the date we committed to a plan to sell or estimated fair value less expected disposition costs. Short-term Investments – Short-term investments consists of financial instruments with maturities of greater than three months but less than twelve months when purchased. Short-term debt securities are accounted for as trading or AFS consistent with our policies for those investments. Short-term loans are carried at amortized cost. Fair values are determined consistent with methodologies described in Note 6 – Fair Value for the respective investment type. Investment Income – We recognize investment income as it accrues or is legally due, net of investment management and custody fees. Investment income on fixed maturity securities includes coupon interest, as well as the amortization of any premium and the accretion of any discount. Investment income on equity securities represents dividend income and preferred coupons interest. Realized gains and losses on sales of investments are included in investment related gains (losses) on the consolidated statements of income. Realized gains and losses on investments sold are determined based on a first-in first-out method. Other-Than-Temporary Impairment – We identify securities that could potentially have impairments that are other-than-temporary by monitoring market events for changes in market interest rates, credit issues, changes in business climate, management changes, litigation, government actions and other similar factors. Indicators of impairment may include changes in the issuers’ credit ratings and outlook, frequency of late payments, pricing levels, key financial ratios, financial statements, revenue forecasts and cash flow projections. We review securities on a case-by-case basis to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. We consider relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary. Relevant facts and circumstances include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in fair value; (3) the issuer’s financial position and access to capital; and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not that we will be required to sell the security before the recovery of its cost or amortized cost which, in some cases, may extend to maturity and for equity securities prior to January 1, 2018, our ability and intent to hold the security for a period of time that allows for the recovery in value. To the extent we determine that a security is other-than-temporarily impaired, an impairment loss is recognized. The recognition of impairment losses on fixed maturity securities is dependent upon the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its cost or amortized cost, less any recorded credit loss, we recognize a loss in other-than-temporary impairment losses on the consolidated statements of income for the difference between cost or amortized cost and fair value. If neither of these two conditions exists, then the recognition of the loss is bifurcated and we recognize the credit loss portion in other-than-temporary impairment losses on the consolidated statements of income and the non-credit loss portion in AOCI on the consolidated balance sheets. Impairment losses on equity securities were recognized in investment related gains (losses) on the consolidated statements of income prior to January 1, 2018. Effective January 1, 2018, equity securities are no longer evaluated for impairment as all changes in fair value are recognized in net income. We estimate the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the estimated cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The techniques and assumptions for establishing the estimated cash flows vary depending on the type of security. A structured security’s cash flow estimates are based on security-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayments and structural support, including subordination and guarantees. A non-structured security’s cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using security-specific facts and circumstances including timing, security interests and loss severity. In periods after an OTTI is recognized on a fixed maturity security, we report the impaired security as if it had been purchased on the date it was impaired and continue to estimate the present value of the estimated cash flows of the security. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into net investment income over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. We impair a mortgage loan when it is probable we will not collect all amounts due under the agreement. We establish a general valuation allowance on mortgage loans based on loss history. Additionally, we establish a valuation allowance on individual loans based on expected losses from future dispositions or settlement, including foreclosures. We calculate the allowance based on how much the carrying value exceeds one of these values: • the present value of expected future cash flows discounted at the loan’s original effective interest rate; • the value of the loan’s collateral if it is in the process of foreclosure or otherwise collateral dependent; or • the loan’s fair value if the loan is being sold. We first apply any interest accrued or received on the net carrying amount of the impaired loan to the principal of the loan, and once the principal is repaid, we include amounts received in net investment income. We limit accrued interest income on impaired loans to 90 days of interest. Once accrued interest on the impaired loan is received, we recognize interest income on a cash basis. Loans deemed uncollectible or in foreclosure are charged off against the valuation allowances, and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in investment related gains (losses) on the consolidated statements of income. The cost of other invested assets is adjusted for impairments in value deemed to be other-than-temporary in the period in which the determination is made. These impairments are included within other-than-temporary impairment losses on the consolidated statements of income, and the cost basis of the investment securities is reduced accordingly. We do not change the revised cost basis for subsequent recoveries in value. Derivative Instruments —We invest in derivatives to hedge the risks experienced in our ongoing operations, such as equity, interest rate and cash flow risks, or for other risk management purposes, which primarily involve managing liability risks associated with our indexed annuity products and reinsurance agreements. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices or other underlying notional amounts. Derivative assets and liabilities are carried at fair value on the consolidated balance sheets. We elect to present any derivatives subject to master netting provisions as a gross asset or liability and gross of collateral. Disclosures regarding balance sheet presentation of derivatives subject to master netting agreements are discussed in Note 4 – Derivative Instruments . We may designate derivatives as cash flow or fair value hedges. Hedge Documentation and Hedge Effectiveness – To qualify for hedge accounting, at the inception of the hedging relationship, we formally document our designation of the hedge as a cash flow or fair value hedge and our risk management objective and strategy for undertaking the hedging transaction. In this documentation, we identify how the hedging instrument is expected to hedge the designated risks related to the hedged item, the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method which will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. For a cash flow hedge, all changes in the fair value of the hedging derivative are reported within AOCI beginning January 1, 2018, and the related gains or losses on the derivative are reclassified into the consolidated statements of income when the cash flows of the hedged item affect earnings. Prior to January 1, 2018, any portion deemed to be ineffective was reported in investment related gains (losses) on the consolidated statements of income each reporting period as effectiveness was assessed. For a fair value hedge, changes in the fair value of the hedging derivative and changes in the fair value of the hedged item related to the designated risk being hedged, are reported on the consolidated statements of income according to the nature of the risk being hedged. Additionally, changes in the fair value of amounts excluded from the assessment of effectiveness are recorded in earnings. We discontinue hedge accounting prospectively when: (1) we determine the derivative is no longer highly effective in offsetting changes in the estimated cash flows or fair value of a hedged item; (2) the derivative expires, is sold, terminated, or exercised; or (3) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued, the derivative continues to be carried on the consolidated balance sheets at fair value, with changes in fair value recognized in investment related gains (losses) on the consolidated statements of income. For a derivative not designated as a hedge, changes in the derivative’s fair value and any income received or paid on derivatives at the settlement date are included in investment related gains (losses) on the consolidated statements of income. Embedded Derivatives – We issue and reinsure products, primarily fixed indexed annuity products, or purchase investments that contain embedded derivatives. If we determine the embedded derivative has economic characteristics not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract and accounted for separately, unless the fair value option is elected on the host contract. Under the fair value option, bifurcation of the embedded derivative is not necessary as the entire contract is carried at fair value with all related gains and losses recognized in investment related gains (losses) on the consolidated statements of income. Embedded derivatives are carried on the consolidated balance sheets at fair value in the same line item as the host contract. Fixed indexed annuity and indexed universal life insurance contracts allow the policyholder to elect a fixed interest rate return or an equity market component for which interest credited is based on the performance of certain stock market indices. The equity market option is an embedded derivative, similar to a call option. The benefit reserve is equal to the sum of the fair value of the embedded derivative and the host (or guaranteed) component of the contracts. The fair value of the embedded derivatives is computed as the present value of benefits attributable to the excess of the projected policy contract values over the projected minimum guaranteed contract values. The projections of policy contract values are based on assumptions for future policy growth, which include assumptions for expected index credits on the next policy anniversary date, future equity option costs, volatility, interest rates and policyholder behavior. The projections of minimum guaranteed contract values include the same assumptions for policyholder behavior as were used to project policy contract values. The embedded derivative cash flows are discounted using a rate that reflects our own credit rating. The host contract is established at contract inception as the initial account value less the initial fair value of the embedded derivative and accreted over the policy’s life. The host contract accretion rate is updated each quarter so that the present value of actual and expected guaranteed cash flows is equal to the initial host value. Changes in the fair value of embedded derivatives associated with fixed indexed annuities and indexed universal life insurance contracts are included in interest sensitive contract benefits on the consolidated statements of income. Additionally, reinsurance agreements written on a funds withheld or modco basis contain embedded derivatives. The right to receive or obligation to pay the total return on the assets supporting the funds withheld at interest or funds withheld liability, respectively, represents a total return swap with a floating rate leg. The fair value of embedded derivatives on funds withheld and modco agreements is computed as the unrealized gain (loss) on the underlying assets and is included in the funds withheld at interest and funds withheld liability lines on the consolidated balance sheets for assumed and ceded agreements, respectively. The change in the fair value of the embedded derivatives is recorded in investment related gains (losses) on the consolidated statements of income. Assumed and ceded earnings from funds withheld at interest, funds withheld liability and changes in the fair value of embedded derivatives are reported in operating activities on the consolidated statements of cash flows. Contributions to and withdrawals from funds withheld at interest and funds withheld liability are reported in operating activities on the consolidated statements of cash flows. Variable Interest Entities —An entity that does not have sufficient equity to finance its activities without additional financial support, or in which the equity investors, as a group, do not have the characteristics typically afforded to common shareholders is a VIE. The determination as to whether an entity qualifies as a VIE depends on the facts and circumstances surrounding each entity and may require significant judgment. Our investment funds generally qualify as VIEs and are evaluated for consolidation under the VIE model. We are required to consolidate a VIE if we are the primary beneficiary, defined as the variable interest holder with both the power to direct the activities that most significantly impact the VIE’s economic performance and rights to receive benefits or obligations to absorb losses that could be potentially significant to the VIE. We determine whether we are the primary beneficiary of an entity based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose and our relative exposure to the related risks of the VIE. Since affiliates of Apollo Global Management, LLC (AGM and, together with its subsidiaries, Apollo), a related party, are the decision makers in certain of the investment funds, we and a member of our related party group may together have the characteristics of the primary beneficiary of an investment fund. In this situation, we have concluded we are not under common control, as defined by GAAP, with the related party, and therefore consolidate in the circumstances when substantially all of the activities of the VIE are conducted on our behalf. We reassess the VIE and primary beneficiary determinations on an ongoing basis. For entities that we do not consolidate but have significant influence over the entities’ operations, we record our investment under the equity method of accounting. If we do not consolidate and do not have significant influence, generally on investment funds in which we own a less than a 3% interest, we elect the fair value option. See Note 5 – Variable Interest Entities for discussion of our interest in entities that meet the definition of a VIE. Business Combinations and Goodwill —Business combination transactions are accounted for under the acquisition method. Accordingly, the purchase consideration is allocated to assets and liabilities based on their estimated fair value at the acquisition date. The consideration for the net assets acquired is determined prior to the assessment of the fair value of the net assets at the acquisition date. We have identified several intangible assets acquired in business combinations including VOBA, acquired distribution channels and state licenses. We value VOBA as described below under – Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired . We value distribution channels using the multi-period excess earnings method under the income approach and the state licenses using the market approach. Intangible assets related to distribution channels and state licenses are included in other assets on the consolidated balance sheets. Goodwill represents the excess of purchase consideration over the acquisition date fair value of net assets acquired and is included in the other assets on the consolidated balance sheets. Goodwill is not amortized but reviewed for impairment annually or more frequently if events occur or circumstances change indicating potential impairment has occurred. If the acquisition date fair value of the net assets acquired exceeds the purchase consideration in a business combination, a bargain purchase gain is recorded on the consolidated statements of income. Reinsurance —We assume and cede insurance and investment contracts under coinsurance, funds withheld and modco. We follow reinsurance accounting for transactions that provide indemnification against loss or liability relating to insurance risk (risk transfer). To meet risk transfer requirements, a reinsurance agreement must transfer insurance risk arising from uncertainties about both underwriting and timing risks. Cessions under reinsurance do not discharge our obligations as the primary insurer, unless the requirements of assumption reinsurance have been met. We generally have the right of offset on reinsurance contracts, but have elected to present reinsurance settlement amounts due to and from the Company on a gross basis. Assets and liabilities assumed or ceded under coinsurance, funds withheld, or modco are presented gross on the consolidated balance sheets. For investment contracts, the change in assumed and ceded reserves are presented net in interest sensitive contract benefits on the consolidated statements of income. For insurance contracts, the change in assumed and ceded reserves and benefits are presented net in future policy and other policy benefits on the consolidated statements of income. Assumed or ceded premiums are included in premiums on the consolidated statements of income. Accounting for reinsurance requires the use of assumptions, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. We attempt to minimize our counterparty credit risk through the structuring of the terms of our reinsurance agreements, including the use of trusts, and we monitor credit ratings of counterparties for signs of declining credit quality. When a ceding company does not report information on a timely basis, we record accruals based on the best available information at the time, which includes the reinsurance agreement terms and historical experience. We periodically compare actual and anticipated experience to the assumptions used to |
Financial Statement Revisions R
Financial Statement Revisions Revisions | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | 2. Financial Statement Revisions Our year end controls identified an understatement of our fixed index annuity liabilities for $140 million , with offsets of $62 million for DAC, rider reserves and taxes, for a net effect of $78 million . Recording this error in the fourth quarter of 2018 would have had a material effect on our results of operations for 2018. We have revised our consolidated financial statements, notes, and schedules for the years ended December 31, 2017 and 2016, as a result of correcting this error and other unrelated immaterial errors. We assessed the materiality of these errors individually and in the aggregate, and concluded these errors are not material to the previously reported consolidated financial statements as a whole. See Note 20 – Quarterly Results of Operations (Unaudited) for summarized quarterly effects of these revisions. The following represents the effects of the revisions on the consolidated balance sheet: December 31, 2017 (In millions) As Previously Reported Revisions As Adjusted Assets Investments AFS securities $ 61,012 $ (4 ) $ 61,008 Trading securities 2,196 (13 ) 2,183 Equity securities 790 13 803 Policy loans 530 12 542 Total investments 82,054 8 82,062 Investment in related parties – AFS securities 406 4 410 Reinsurance recoverable 4,972 360 5,332 Deferred acquisition costs, deferred sales inducements and value of business acquired 2,930 42 2,972 Total assets $ 99,747 $ 414 $ 100,161 Liabilities and Equity Liabilities Interest sensitive contract liabilities $ 67,708 $ 391 $ 68,099 Future policy benefits 17,507 50 17,557 Other liabilities 1,222 5 1,227 Total liabilities 90,539 446 90,985 Equity Retained earnings 4,321 (66 ) 4,255 Accumulated other comprehensive income 1,415 34 1,449 Total shareholders’ equity 9,208 (32 ) 9,176 Total liabilities and equity $ 99,747 $ 414 $ 100,161 The following represents the effects of the revisions on the consolidated statements of income: Years ended December 31, 2017 2016 (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Benefits and Expenses Interest sensitive contract benefits $ 2,826 $ 40 $ 2,866 $ 1,296 $ 47 $ 1,343 Future policy and other policy benefits 3,163 37 3,200 1,059 (29 ) 1,030 Amortization of deferred acquisition costs and value of business acquired 350 (6 ) 344 318 (14 ) 304 Total benefits and expenses 7,192 71 7,263 3,389 4 3,393 Income before income taxes 1,535 (71 ) 1,464 716 (4 ) 712 Income tax expense (benefit) 87 19 106 (52 ) (9 ) (61 ) Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Earnings per share Basic – All classes $ 7.41 $ (0.46 ) $ 6.95 $ 4.11 $ 0.03 $ 4.14 Diluted – Class A 7.37 (0.46 ) 6.91 4.02 0.02 4.04 Diluted – Class B 7.41 (0.46 ) 6.95 4.11 0.03 4.14 Diluted – Class M-1 7.41 (0.46 ) 6.95 0.20 — 0.20 Diluted – Class M-2 1 5.38 (0.33 ) 5.05 N/A N/A N/A Diluted – Class M-3 1 4.12 (0.26 ) 3.86 N/A N/A N/A Diluted – Class M-4 1 3.31 (0.21 ) 3.10 N/A N/A N/A N/A – Not applicable 1 Basic and diluted earnings per share for Class M-2, M-3 and M-4 were applicable only for the year ended December 31, 2017. See Note 13 – Earnings Per Share for further discussion. The following represents the effects of the revisions on the consolidated statements of comprehensive income: Years ended December 31, 2017 2016 (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Other comprehensive income, before tax Unrealized investment gains (losses) on available-for-sale securities 1,269 43 1,312 878 4 882 Other comprehensive income, before tax 1,187 43 1,230 863 4 867 Income tax expense related to other comprehensive income 326 8 334 259 1 260 Other comprehensive income 861 35 896 604 3 607 Comprehensive income $ 2,309 $ (55 ) $ 2,254 $ 1,372 $ 8 $ 1,380 We revised the consolidated statements of equity for the years ended December 31, 2017 and 2016, for the changes to net income and comprehensive income, as presented above. In addition, the balance of retained earnings was revised from $2,308 million to $2,327 million as of December 31, 2015, and the balance of accumulated other comprehensive loss was revised from $237 million to $241 million , as a result of revisions to periods prior to 2016. The following represents the effects of the revisions on the consolidated statements of cash flows: Years ended December 31, 2017 2016 (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 350 (6 ) 344 318 (14 ) 304 Changes in operating assets and liabilities: Interest sensitive contract liabilities 2,513 51 2,564 925 31 956 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 1,993 26 2,019 344 (13 ) 331 Other assets and liabilities 219 19 238 (33 ) (9 ) (42 ) Net cash provided by operating activities 3,170 — 3,170 1,199 — 1,199 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments Schedule [Abstract] | |
Investments | 3. Investments AFS Securities — The following table represents the amortized cost, gross unrealized gains and losses, fair value and OTTI in AOCI of our AFS investments by asset type: December 31, 2018 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI AFS securities U.S. government and agencies $ 57 $ — $ — $ 57 $ — U.S. state, municipal and political subdivisions 1,183 117 (7 ) 1,293 — Foreign governments 162 2 (3 ) 161 — Corporate 38,018 394 (1,315 ) 37,097 1 CLO 5,658 2 (299 ) 5,361 — ABS 4,915 53 (48 ) 4,920 — CMBS 2,390 27 (60 ) 2,357 7 RMBS 7,642 413 (36 ) 8,019 11 Total AFS securities 60,025 1,008 (1,768 ) 59,265 19 AFS securities – related party CLO 587 — (25 ) 562 — ABS 875 4 (4 ) 875 — Total AFS securities – related party 1,462 4 (29 ) 1,437 — Total AFS securities including related party $ 61,487 $ 1,012 $ (1,797 ) $ 60,702 $ 19 December 31, 2017 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI AFS securities U.S. government and agencies $ 63 $ 1 $ (2 ) $ 62 $ — U.S. state, municipal and political subdivisions 996 171 (2 ) 1,165 — Foreign governments 2,575 116 (8 ) 2,683 — Corporate 35,173 1,658 (171 ) 36,660 — CLO 5,039 53 (8 ) 5,084 — ABS 3,941 53 (27 ) 3,967 1 CMBS 1,994 48 (21 ) 2,021 1 RMBS 8,721 652 (7 ) 9,366 11 Total AFS securities 58,502 2,752 (246 ) 61,008 13 AFS securities – related party CLO 353 7 — 360 — ABS 50 — — 50 — Total AFS securities – related party 403 7 — 410 — Total AFS securities including related party $ 58,905 $ 2,759 $ (246 ) $ 61,418 $ 13 The amortized cost and fair value of AFS securities, including related party, are shown by contractual maturity below: December 31, 2018 (In millions) Amortized Cost Fair Value Due in one year or less $ 1,097 $ 1,095 Due after one year through five years 8,257 8,234 Due after five years through ten years 10,853 10,548 Due after ten years 19,213 18,731 CLO, ABS, CMBS and RMBS 20,605 20,657 Total AFS securities 60,025 59,265 AFS securities – related party, CLO and ABS 1,462 1,437 Total AFS securities including related party $ 61,487 $ 60,702 Actual maturities can differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Unrealized Losses on AFS Securities — The following summarizes the fair value and gross unrealized losses for AFS securities, including related party, aggregated by class of security and length of time the fair value has remained below amortized cost: December 31, 2018 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Fair Value Gross AFS securities U.S. government and agencies $ 32 $ — $ 2 $ — $ 34 $ — U.S. state, municipal and political subdivisions 139 (2 ) 82 (5 ) 221 (7 ) Foreign governments 97 (2 ) 15 (1 ) 112 (3 ) Corporate 20,213 (942 ) 4,118 (373 ) 24,331 (1,315 ) CLO 5,054 (297 ) 90 (2 ) 5,144 (299 ) ABS 1,336 (23 ) 506 (25 ) 1,842 (48 ) CMBS 932 (27 ) 497 (33 ) 1,429 (60 ) RMBS 1,417 (31 ) 140 (5 ) 1,557 (36 ) Total AFS securities 29,220 (1,324 ) 5,450 (444 ) 34,670 (1,768 ) AFS securities – related party CLO 534 (25 ) — — 534 (25 ) ABS 306 (2 ) 116 (2 ) 422 (4 ) Total AFS securities – related party 840 (27 ) 116 (2 ) 956 (29 ) Total AFS securities including related party $ 30,060 $ (1,351 ) $ 5,566 $ (446 ) $ 35,626 $ (1,797 ) December 31, 2017 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities U.S. government and agencies $ 34 $ (1 ) $ 9 $ (1 ) $ 43 $ (2 ) U.S. state, municipal and political subdivisions 50 (1 ) 39 (1 ) 89 (2 ) Foreign governments 435 (6 ) 76 (2 ) 511 (8 ) Corporate 3,992 (49 ) 2,457 (122 ) 6,449 (171 ) CLO 414 (2 ) 340 (6 ) 754 (8 ) ABS 515 (5 ) 549 (22 ) 1,064 (27 ) CMBS 460 (8 ) 179 (13 ) 639 (21 ) RMBS 506 (3 ) 210 (4 ) 716 (7 ) Total AFS securities 6,406 (75 ) 3,859 (171 ) 10,265 (246 ) AFS securities – related party CLO 29 — — — 29 — ABS 42 — — — 42 — Total AFS securities – related party 71 — — — 71 — Total AFS securities including related party $ 6,477 $ (75 ) $ 3,859 $ (171 ) $ 10,336 $ (246 ) As of December 31, 2018 , we held 4,320 AFS securities that were in an unrealized loss position. Of this total, 860 were in an unrealized loss position 12 months or more. As of December 31, 2018 , we held 40 related party AFS securities that were in an unrealized loss position. Of this total, seven were in an unrealized loss position 12 months or more. The unrealized losses on AFS securities can primarily be attributed to changes in market interest rates since acquisition. We did not recognize the unrealized losses in income as we intend to hold these securities and it is not more likely than not we will be required to sell a security before the recovery of its amortized cost. Other-Than-Temporary Impairments — For the year ended December 31, 2018 , we incurred $18 million of net OTTI, of which $13 million related to intent-to-sell impairments. These securities were impaired to fair value as of the impairment date. The remaining net OTTI of $5 million related to credit impairments where a portion was bifurcated in AOCI. Any credit loss impairments not bifurcated in AOCI are excluded from the rollforward below. The following table represents a rollforward of the cumulative amounts recognized on the consolidated statements of income for OTTI related to pre-tax credit loss impairments on AFS securities, for which a portion of the securities’ total OTTI was recognized in AOCI: Years ended December 31, (In millions) 2018 2017 2016 Beginning balance $ 14 $ 16 $ 22 Initial impairments – credit loss OTTI recognized on securities not previously impaired 3 17 8 Additional impairments – credit loss OTTI recognized on securities previously impaired 2 — 3 Reduction in impairments from securities sold, matured or repaid (9 ) (13 ) (9 ) Reduction for credit loss that no longer has a portion of the OTTI loss recognized in AOCI — (6 ) (8 ) Ending balance $ 10 $ 14 $ 16 Net Investment Income —Net investment income by asset class consists of the following: Years ended December 31, (In millions) 2018 2017 2016 AFS securities $ 2,855 $ 2,579 $ 2,293 Trading securities 200 200 236 Equity securities 12 14 11 Mortgage loans 457 371 355 Investment funds 231 211 178 Funds withheld at interest 492 148 82 Other 112 78 62 Investment revenue 4,359 3,601 3,217 Investment expenses (355 ) (332 ) (303 ) Net investment income $ 4,004 $ 3,269 $ 2,914 Investment Related Gains (Losses) —Investment related gains (losses) by asset class consists of the following: Years ended December 31, (In millions) 2018 2017 2016 AFS securities Gross realized gains on investment activity $ 165 $ 169 $ 138 Gross realized losses on investment activity (151 ) (72 ) (54 ) Net realized investment gains on AFS securities 14 97 84 Net recognized investment gains (losses) on trading securities (255 ) 29 (50 ) Net recognized investment gains (losses) on equity securities (19 ) 88 18 Derivative gains (losses) (1,099 ) 2,377 596 Other gains (losses) 35 (19 ) 4 Investment related gains (losses) $ (1,324 ) $ 2,572 $ 652 Proceeds from sales of AFS securities were $7,831 million , $6,023 million and $4,662 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The following table summarizes the change in unrealized gains (losses) on trading and equity securities, including related party and consolidated VIEs, we still held as of the respective period end: Years ended December 31, (In millions) 2018 2017 2016 Trading securities (143 ) 107 19 Trading securities – related party (25 ) (3 ) (10 ) VIE trading securities – related party — 4 — Equity securities (18 ) 32 19 VIE equity securities – related party 24 25 (78 ) Purchased Credit Impaired (PCI) Investments —The following table summarizes our PCI investments: December 31, 2018 2017 2018 2017 (In millions) Fixed maturity securities Mortgage loans Contractually required payments receivable $ 8,179 $ 9,690 $ 2,675 $ 1,140 Less: Cash flows expected to be collected 1 (7,195 ) (8,188 ) (2,628 ) (1,090 ) Non-accretable difference $ 984 $ 1,502 $ 47 $ 50 Cash flows expected to be collected 1 $ 7,195 $ 8,188 $ 2,628 $ 1,090 Less: Amortized cost (5,518 ) (6,168 ) (1,931 ) (817 ) Accretable difference $ 1,677 $ 2,020 $ 697 $ 273 Fair value $ 5,828 $ 6,703 $ 1,933 $ 844 Outstanding balance 6,773 8,026 2,210 946 1 Represents the undiscounted principal and interest cash flows expected. During the respective years ended December 31, we acquired PCI investments with the following amounts at the time of purchase: Fixed maturity securities Mortgage loans (In millions) 2018 2017 2018 2017 Contractually required payments receivable $ 623 $ 2,161 $ 1,625 $ 894 Cash flows expected to be collected 562 1,790 1,601 857 Fair value 454 1,428 1,178 633 The following table summarizes the activity for the accretable yield on PCI investments: Fixed maturity securities Mortgage loans (In millions) 2018 2017 2018 2017 Beginning balance at January 1 $ 2,020 $ 2,080 $ 273 $ 70 Purchases of PCI investments, net of sales 65 264 407 216 Accretion (405 ) (400 ) (48 ) (24 ) Net reclassification from (to) non-accretable difference (3 ) 76 65 11 Ending balance at December 31 $ 1,677 $ 2,020 $ 697 $ 273 Mortgage Loans, including related party —Mortgage loans, net of allowances, consists of the following: December 31, (In millions) 2018 2017 Commercial mortgage loans $ 7,217 $ 5,223 Commercial mortgage loans under development 80 24 Total commercial mortgage loans 7,297 5,247 Residential mortgage loans 3,334 986 Mortgage loans, net of allowances $ 10,631 $ 6,233 We primarily invest in commercial mortgage loans on income producing properties including office and retail buildings, hotels, industrial properties and apartments. We diversify the commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. We evaluate mortgage loans based on relevant current information to confirm if properties are performing at a consistent and acceptable level to secure the related debt. The distribution of commercial mortgage loans, including those under development, net of valuation allowances, by property type and geographic region, is as follows: December 31, 2018 2017 (In millions, except for percentages) Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total Property type Office building $ 2,221 30.5 % $ 1,187 22.6 % Retail 1,660 22.7 % 1,223 23.3 % Hotels 1,040 14.3 % 928 17.7 % Industrial 1,196 16.4 % 944 18.0 % Apartment 791 10.8 % 525 10.0 % Other commercial 389 5.3 % 440 8.4 % Total commercial mortgage loans $ 7,297 100.0 % $ 5,247 100.0 % U.S. Region East North Central $ 855 11.7 % $ 643 12.3 % East South Central 295 4.0 % 144 2.7 % Middle Atlantic 1,131 15.5 % 909 17.3 % Mountain 616 8.4 % 492 9.4 % New England 374 5.1 % 162 3.1 % Pacific 1,540 21.1 % 991 18.9 % South Atlantic 1,468 20.2 % 873 16.6 % West North Central 173 2.4 % 233 4.4 % West South Central 845 11.6 % 655 12.5 % Total U.S. Region 7,297 100.0 % 5,102 97.2 % International Region — — % 145 2.8 % Total commercial mortgage loans $ 7,297 100.0 % $ 5,247 100.0 % Our residential mortgage loan portfolio includes first lien residential mortgage loans collateralized by properties located in the U.S. As of December 31, 2018 , California , Florida and New York represented 30.3% , 16.3% and 7.7% , respectively, of the portfolio, and the remaining 45.7% represented all other states, with each individual state comprising less than 5% of the portfolio. As of December 31, 2017 , California , Florida and New York represented 34.3% , 15.6% and 6.0% , respectively, of the portfolio, and the remaining 44.1% represented all other states, with each individual state comprising less than 5% of the portfolio. Mortgage Loan Valuation Allowance — The assessment of mortgage loan impairments and valuation allowances is substantially the same for residential and commercial mortgage loans. The valuation allowance was $2 million as of December 31, 2018 and 2017 . We did not record any material activity in the valuation allowance during the years ended December 31, 2018 , 2017 or 2016 . Residential mortgage loans – The primary credit quality indicator of residential mortgage loans is loan performance. Nonperforming residential mortgage loans are 90 days or more past due and/or are in non-accrual status. As of December 31, 2018 and 2017 , $48 million and $28 million , respectively, of our residential mortgage loans were nonperforming. Commercial mortgage loans – As of December 31, 2018 and 2017 , none of our commercial loans were 30 days or more past due. Loan-to-value and debt service coverage ratios are measures we use to assess the risk and quality of commercial mortgage loans other than those under development. Loans under development are not evaluated using these ratios as the properties underlying these loans are generally not yet income-producing and the value of the underlying property significantly fluctuates based on the progress of construction. Therefore, the risk and quality of loans under development are evaluated based on the aging and geographical distribution of such loans as shown above. The loan-to-value ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A loan-to-value ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: December 31, (In millions) 2018 2017 Less than 50% $ 1,883 $ 1,798 50% to 60% 1,988 1,390 61% to 70% 2,394 1,691 71% to 80% 898 282 81% to 100% 54 62 Commercial mortgage loans $ 7,217 $ 5,223 The debt service coverage ratio, based upon the most recent financial statements, is expressed as a percentage of a property’s net operating income to its debt service payments. A debt service ratio of less than 1.0 indicates a property’s operations do not generate enough income to cover debt payments. The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: December 31, (In millions) 2018 2017 Greater than 1.20x $ 6,576 $ 4,742 1.00x – 1.20x 474 297 Less than 1.00x 167 184 Commercial mortgage loans $ 7,217 $ 5,223 Investment Funds —Our investment fund portfolio consists of funds that employ various strategies and include investments in real estate and other real assets, credit , equity, natural resources and hedge funds. Investment funds can meet the definition of VIEs, which are discussed further in Note 5 – Variable Interest Entities . Our investment funds do not specify timing of distributions on the funds’ underlying assets. The following summarizes our investment funds, including related party and those owned by consolidated VIEs: December 31, 2018 2017 (In millions, except for percentages and years) Carrying value Percent of total Carrying value Percent of total Investment funds Private equity $ 253 36.0 % $ 271 38.8 % Real estate and other real assets 231 32.8 % 161 23.0 % Natural resources 4 0.6 % 4 0.6 % Hedge funds 43 6.1 % 61 8.7 % Credit funds 172 24.5 % 202 28.9 % Total investment funds 703 100.0 % 699 100.0 % Investment funds – related parties Public equities 63 2.8 % — — % Private equity – A-A Mortgage 1 463 20.7 % 403 30.8 % Private equity – other 554 24.8 % 180 13.7 % Real estate and other real assets 651 29.2 % 297 22.7 % Natural resources 104 4.7 % 74 5.6 % Hedge funds 98 4.4 % 93 7.1 % Credit funds 299 13.4 % 263 20.1 % Total investment funds – related parties 2,232 100.0 % 1,310 100.0 % Investment funds owned by consolidated VIEs Private equity – MidCap 2 552 88.4 % 528 92.5 % Credit funds 1 0.2 % 21 3.7 % Real estate and other real assets 71 11.4 % 22 3.8 % Total investment funds owned by consolidated VIEs 624 100.0 % 571 100.0 % Total investment funds including related parties and funds owned by consolidated VIEs $ 3,559 $ 2,580 1 A-A Mortgage Opportunities, L.P. (A-A Mortgage) is a platform to originate residential mortgage loans and mortgage servicing rights. See further discussion on A-A Mortgage in Note 17 – Related Parties. 2 MidCap FinCo Limited (MidCap) is a commercial finance company investment held by our consolidated VIE. See further discussion on MidCap in Note 17 – Related Parties. Summarized Ownership of Investment Funds —The following is the aggregated summarized financial information of equity method investees, including those for which we elected the fair value option and would otherwise be accounted for as an equity method investment, and may be presented on a lag due to the availability of financial information from the investee: December 31, (In millions) 2018 2017 Assets $ 40,630 $ 22,777 Liabilities 24,241 7,518 Equity 16,389 15,259 Years ended December 31, (In millions) 2018 2017 2016 Net income $ 1,159 $ 1,587 $ 1,415 The following table presents the carrying value by ownership percentage of equity method investment funds, including related party investment funds and investment funds owned by consolidated VIEs: December 31, (In millions) 2018 2017 Ownership Percentage 100% $ 17 $ 35 50% – 99% 1,044 520 3% – 49% 1,617 1,301 Equity method investment funds $ 2,678 $ 1,856 The following table presents the carrying value by ownership percentage of investment funds where we elected the fair value option, including related party investment funds and investment funds owned by consolidated VIEs: December 31, (In millions) 2018 2017 Ownership Percentage 3% – 49% $ 687 $ 590 Less than 3% 194 134 Fair value option investment funds $ 881 $ 724 Non-Consolidated Securities and Investment Funds Fixed maturity securities – We invest in securitization entities as a debt holder or an investor in the residual interest of the securitization vehicle. These entities are deemed VIEs due to insufficient equity within the structure and lack of control by the equity investors over the activities that significantly impact the economics of the entity. In general, we are a debt investor within these entities and, as such, hold a variable interest; however, due to the debt holders’ lack of ability to control the decisions within the trust that significantly impact the entity, and the fact the debt holders are protected from losses due to the subordination by the equity tranche, the debt holders are not deemed the primary beneficiary. Securitization vehicles in which we hold the residual tranche are not consolidated because we do not unilaterally have substantive rights to remove the general partner, or when assessing related party interests, we are not under common control, as defined by GAAP, with the related party, nor are substantially all of the activities conducted on our behalf; therefore, we are not deemed the primary beneficiary. Debt investments and investments in the residual tranche of securitization entities are considered debt instruments and are held at fair value on the balance sheet and classified as AFS or trading. Investment funds – Investment funds include non-fixed income, alternative investments in the form of limited partnerships or similar legal structures. Equity securities – We invest in preferred equity securities issued by entities deemed to be VIEs due to insufficient equity within the structure. Our risk of loss associated with our non-consolidated investments depends on the investment. Investment funds, equity securities and trading securities are limited to the carrying value plus unfunded commitments. AFS securities are limited to amortized cost plus unfunded commitments. The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: December 31, 2018 2017 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 703 $ 1,329 $ 699 $ 1,111 Investment in related parties – investment funds 2,232 4,331 1,310 2,785 Assets of consolidated VIEs – investment funds 624 727 571 594 Investment in fixed maturity securities 21,188 21,139 21,018 20,274 Investment in related parties – fixed maturity securities 1,686 1,788 717 796 Investment in related parties – equity securities 120 120 — — Total non-consolidated investments $ 26,553 $ 29,434 $ 24,315 $ 25,560 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4. Derivative Instruments We use a variety of derivative instruments to manage risks, primarily equity, interest rate, credit, foreign currency and market volatility. See Note 1 – Business, Basis of Presentation and Significant Accounting Policies for a description of our accounting policies for derivatives and Note 6 – Fair Value for information about the fair value hierarchy for derivatives. The following table presents the notional amount and fair value of derivative instruments: December 31, 2018 2017 Notional Amount Fair Value Notional Amount Fair Value (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedges Foreign currency swaps 2,041 $ 83 $ 55 928 $ 1 $ 99 Interest rate swaps — — — 302 — — Foreign currency forwards 85 — 1 — — — Total derivatives designated as hedges 83 56 1 99 Derivatives not designated as hedges Equity options 49,821 942 11 31,460 2,500 19 Futures 4 9 3 1,134 7 — Total return swaps 62 — 3 114 5 — Foreign currency swaps 38 3 2 41 21 3 Interest rate swaps 326 — 1 385 — 2 Credit default swaps 10 — 4 10 — 5 Foreign currency forwards 646 6 5 1,139 17 6 Embedded derivatives Funds withheld including related party (53 ) (1 ) 312 22 Interest sensitive contract liabilities — 7,969 — 7,411 Total derivatives not designated as hedges 907 7,997 2,862 7,468 Total derivatives $ 990 $ 8,053 $ 2,863 $ 7,567 Derivatives Designated as Hedges Foreign currency swaps – We use foreign currency swaps to convert foreign currency denominated cash flows of an investment to U.S. dollars to reduce cash flow fluctuations due to changes in currency exchange rates. Certain of these swaps are designated and accounted for as cash flow hedges, which will expire by December 2045 . During the years ended December 31, 2018 , 2017 and 2016 , we had foreign currency swap gains of $146 million and losses of $105 million and $5 million , respectively, recorded in AOCI. There were no amounts reclassified to income and no amounts deemed ineffective for the years ended December 31, 2018 , 2017 or 2016 . As of December 31, 2018 , no amounts are expected to be reclassified to income within the next 12 months. Foreign currency forwards – We use foreign currency forward contracts to hedge certain exposures to foreign currency risk. The price is agreed upon at the time of the contract and payment is made at a specified future date. Certain of these forwards entered into during 2018 are designated and accounted for as fair value hedges. As of December 31, 2018 , the carrying amount of the hedged AFS securities – CLOs was $88 million , and the cumulative amount of fair value hedging adjustments included in the hedged AFS securities – CLOs included gains of $1 million . The gains and losses on derivatives and the related hedged items in fair value hedge relationships are recorded in investment related gains (losses) on the consolidated statements of income. The derivatives had losses of $1 million during the year ended December 31, 2018 , and the related hedged items had gains of $1 million during the year ended December 31, 2018 . Derivatives Not Designated as Hedges Equity options – We use equity indexed options to economically hedge fixed indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specified market index, primarily the S&P 500. To hedge against adverse changes in equity indices, we enter into contracts to buy equity indexed options. The contracts are net settled in cash based on differentials in the indices at the time of exercise and the strike price. Futures – Futures contracts are purchased to hedge the growth in interest credited to the customer as a direct result of increases in the related indices. We enter into exchange-traded futures with regulated futures commission clearing brokers who are members of a trading exchange. Under exchange-traded futures contracts, we agree to purchase a specified number of contracts with other parties and to post variation margin on a daily basis in an amount equal to the difference in the daily fair values of those contracts. Total return swaps – We purchase total rate of return swaps to gain exposure and benefit from a reference asset or index without ownership. Total rate of return swaps are contracts in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of the underlying asset or index, which includes both the income it generates and any capital gains. Interest rate swaps – We use interest rate swaps to reduce market risks from interest rate changes and to alter interest rate exposure arising from duration mismatches between assets and liabilities. With an interest rate swap, we agree with another party to exchange the difference between fixed-rate and floating-rate interest amounts tied to an agreed-upon notional principal amount at specified intervals. Certain of these swaps entered into during the fourth quarter of 2016 were designated as fair value hedges. These fair value hedges were dedesignated during the second quarter of 2018 and there was no material impact as a result. Credit default swaps – Credit default swaps provide a measure of protection against the default of an issuer or allow us to gain credit exposure to an issuer or traded index. We use credit default swaps coupled with a bond to synthetically create the characteristics of a reference bond. These transactions have a lower cost and are generally more liquid relative to the cash market. We receive a periodic premium for these transactions as compensation for accepting credit risk. Hedging credit risk involves buying protection for existing credit risk. The exposure resulting from the agreements, which is usually the notional amount, is equal to the maximum proceeds that must be paid by a counterparty for a defaulted security. If a credit event occurs on a reference entity, then a counterparty who sold protection is required to pay the buyer the trade notional amount less any recovery value of the security. Embedded derivatives – We have embedded derivatives which are required to be separated from their host contracts and reported as derivatives. Host contracts include reinsurance agreements structured on modco or funds withheld basis and indexed annuity products. The following is a summary of the gains (losses) related to derivatives not designated as hedges: Years ended December 31, (In millions) 2018 2017 2016 Equity options $ (877 ) $ 1,939 $ 325 Futures 2 (24 ) (19 ) Swaps (8 ) 27 18 Foreign currency forwards 16 28 (2 ) Embedded derivatives on funds withheld (232 ) 407 274 Amounts recognized in investment related gains (losses) (1,099 ) 2,377 596 Embedded derivatives in indexed annuity products 1 923 (1,744 ) (308 ) Total gains (losses) on derivatives not designated as hedges $ (176 ) $ 633 $ 288 1 Included in interest sensitive contract benefits. Credit Risk —We may be exposed to credit-related losses in the event of counterparty nonperformance on derivative financial instruments. Generally, the current credit exposure of our derivative contracts is the fair value at the reporting date less any collateral received from the counterparty. We manage credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties. Where possible, we maintain collateral arrangements and use master netting agreements that provide for a single net payment from one counterparty to another at each due date and upon termination. We have also established counterparty exposure limits, where possible, in order to evaluate if there is sufficient collateral to support the net exposure. Collateral arrangements typically require the posting of collateral in connection with its derivative instruments. Collateral agreements often contain posting thresholds, some of which may vary depending on the posting party’s financial strength ratings. Additionally, a decrease in our financial strength rating to a specified level can result in settlement of the derivative position. The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows: Gross amounts not offset on the consolidated balance sheets (In millions) Gross amount recognized 1 Financial instruments 2 Collateral received/pledged Net amount Off-balance sheet securities collateral 3 Net amount after securities collateral December 31, 2018 Derivative assets $ 1,043 $ (52 ) $ (969 ) $ 22 $ (4 ) $ 18 Derivative liabilities (85 ) 52 24 (9 ) — (9 ) December 31, 2017 Derivative assets $ 2,551 $ (59 ) $ (2,323 ) $ 169 $ (221 ) $ (52 ) Derivative liabilities (134 ) 59 63 (12 ) — (12 ) 1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated balance sheets. As of December 31, 2018 and 2017, amounts not subject to master netting or similar agreements were immaterial. 2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the consolidated balance sheets. 3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. Certain derivative instruments contain provisions for credit-related events, such as downgrades in our credit ratings or for a negative credit event of a credit default swap’s reference entity. If a credit event were to occur, we may be required to settle an outstanding liability. The following is a summary of our exposure to credit-related events: December 31, (In millions) 2018 2017 Fair value of derivative liabilities with credit related provisions $ 4 $ 5 Maximum exposure for credit default swaps 10 10 As of December 31, 2018 and 2017 , no additional collateral would be required if a default or termination event were to occur. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 5. Variable Interest Entities We consolidate the following investment funds as VIEs: • AAA Investments (Co-Invest VI), L.P. (CoInvest VI); • AAA Investments (Co-Invest VII), L.P. (CoInvest VII); • AAA Investments (Other), L.P. (CoInvest Other); • ALR Aircraft Investment Ireland Limited (ALR); and • Entities included under our agreement to purchase funds managed by Apollo entities (Strategic Partnership). See Note 17 – Related Parties for further discussion on the Strategic Partnership. We are the only limited partner or holder of profit participating notes in these investment funds and receive all of the economic benefits and losses, other than management fees and carried interest, as applicable, paid to the general partner in each entity, or a related entity, which are related parties. We do not have any voting rights as limited partner and, as the limited partner or holder of profit participating notes, do not solely satisfy the power criteria to direct the activities that significantly impact the economics of the VIE. However, the criteria for the primary beneficiary are satisfied by our related party group and, because substantially all of the activities are conducted on our behalf, we consolidate the investment funds. No arrangement exists requiring us to provide additional funding in excess of our committed capital investment, liquidity, or the funding of losses or an increase to our loss exposure in excess of our investment in the VIEs. We elected the fair value option for certain fixed maturity and equity securities, and investment funds, which are reported in the consolidated variable interest entity sections on the consolidated balance sheets. CoInvest VI, CoInvest VII and CoInvest Other were formed to make investments, including co-investments alongside private equity funds sponsored by Apollo. Investments held by CoInvest VI, CoInvest VII and CoInvest Other are related party investments because Apollo affiliates exercise significant influence over the management or operations of the investees. We received our interests in CoInvest VI, CoInvest VII and CoInvest Other as part of a contribution agreement in 2012 with AAA Guarantor – Athene, L.P. (AAA Investor) and its subsidiary, Apollo Life Re Ltd., in order to provide a capital base to support future acquisitions. During the first quarter of 2018, we invested in profit participating notes of ALR. ALR was formed to invest in a joint venture that provides airplane lease financing to a major commercial airline. We are the only investor in the profit participating notes and, as substantially all of the activities of ALR are conducted on our behalf, we are the primary beneficiary and consolidate ALR. During the fourth quarter of 2018, we dissolved NCL Athene LLC (NCL LLC) as we sold the investments held by NCL LLC. Previously a consolidated VIE, NCL LLC was formed to hold the investment in Norwegian Cruise Line Holdings Ltd. (NCLH) shares, which were originally held by CoInvest VI. NCL LLC was subject to the same management fees, selling restrictions with respect to shares of NCLH, and carried interest calculation as CoInvest VI. NCL LLC classified its NCLH shares as related party equity securities. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. Fair Value Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. We determine fair value based on the following fair value hierarchy: Level 1 – Unadjusted quoted prices for identical assets or liabilities in an active market. Level 2 – Quoted prices for inactive markets or valuation techniques that require observable direct or indirect inputs for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets or liabilities in active markets, • Observable inputs other than quoted market prices, and • Observable inputs derived principally from market data through correlation or other means. Level 3 – Prices or valuation techniques with unobservable inputs significant to the overall fair value estimate. These valuations use critical assumptions not readily available to market participants. Level 3 valuations are based on market standard valuation methodologies, including discounted cash flows, matrix pricing or other similar techniques. NAV – Investment funds are typically measured using NAV as a practical expedient in determining fair value and are not classified in the fair value hierarchy. The underlying investments of the investment funds may have significant unobservable inputs, which may include but are not limited to, comparable multiples and weighted average cost of capital rates applied in valuation models or a discounted cash flow model. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the instrument’s fair value measurement. We use a number of valuation sources to determine fair values. Valuation sources can include quoted market prices; third-party commercial pricing services; third-party brokers; industry-standard, vendor modeling software that uses market observable inputs; and other internal modeling techniques based on projected cash flows. We periodically review the assumptions and inputs of third-party commercial pricing services through internal valuation price variance reviews, comparisons to internal pricing models, back testing to recent trades, or monitoring trading volumes. The following represents the hierarchy for our assets and liabilities measured at fair value on a recurring basis: December 31, 2018 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities U.S. government and agencies $ 57 $ — $ 54 $ 3 $ — U.S. state, municipal and political subdivisions 1,293 — — 1,293 — Foreign governments 161 — — 161 — Corporate 37,097 — — 36,199 898 CLO 5,361 — — 5,254 107 ABS 4,920 — — 3,305 1,615 CMBS 2,357 — — 2,170 187 RMBS 8,019 — — 7,963 56 Total AFS securities 59,265 — 54 56,348 2,863 Trading securities U.S. government and agencies 5 — 3 2 — U.S. state, municipal and political subdivisions 126 — — 126 — Corporate 1,287 — — 1,287 — CLO 9 — — 8 1 ABS 87 — — 87 — CMBS 49 — — 49 — RMBS 386 — — 252 134 Total trading securities 1,949 — 3 1,811 135 Equity securities 216 — 40 173 3 Mortgage loans 32 — — — 32 Investment funds 182 153 — — 29 Funds withheld at interest – embedded derivative 57 — — — 57 Derivative assets 1,043 — 9 1,034 — Short-term investments 191 — 66 125 — Other investments 52 — — 52 — Cash and cash equivalents 2,911 — 2,911 — — Restricted cash 492 — 492 — — Investments in related parties AFS securities CLO 562 — — 562 — ABS 875 — — 547 328 Total AFS securities – related party 1,437 — — 1,109 328 Trading securities CLO 100 — — 22 78 ABS 149 — — — 149 Total trading securities – related party 249 — — 22 227 Equity securities 120 — — — 120 Investment funds 201 96 — — 105 Funds withheld at interest – embedded derivative (110 ) — — — (110 ) Reinsurance recoverable 1,676 — — — 1,676 Assets of consolidated VIEs Trading securities 35 — — — 35 Equity securities 50 — 37 — 13 Investment funds 567 552 — — 15 Cash and cash equivalents 2 — 2 — — Total assets measured at fair value $ 70,617 $ 801 $ 3,614 $ 60,674 $ 5,528 (Continued) December 31, 2018 (In millions) Total NAV Level 1 Level 2 Level 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ 7,969 $ — $ — $ — $ 7,969 Universal life benefits 932 — — — 932 Future policy benefits AmerUs Closed Block 1,443 — — — 1,443 ILICO Closed Block and life benefits 730 — — — 730 Derivative liabilities 85 — 3 78 4 Funds withheld liability – embedded derivative (1 ) — — (1 ) — Total liabilities measured at fair value $ 11,158 $ — $ 3 $ 77 $ 11,078 (Concluded) December 31, 2017 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities U.S. government and agencies $ 62 $ — $ 26 $ 36 $ — U.S. state, municipal and political subdivisions 1,165 — — 1,165 — Foreign governments 2,683 — — 2,683 — Corporate 36,660 — — 36,082 578 CLO 5,084 — — 5,020 64 ABS 3,967 — — 2,510 1,457 CMBS 2,021 — — 1,884 137 RMBS 9,366 — — 9,065 301 Total AFS securities 61,008 — 26 58,445 2,537 Trading securities U.S. government and agencies 3 — 3 — — U.S. state, municipal and political subdivisions 138 — — 121 17 Corporate 1,462 — — 1,462 — CLO 27 — — 10 17 ABS 94 — — 17 77 CMBS 51 — — 51 — RMBS 408 — — 66 342 Total trading securities 2,183 — 3 1,727 453 Equity securities 803 — 18 777 8 (Continued) December 31, 2017 (In millions) Total NAV Level 1 Level 2 Level 3 Mortgage loans 41 — — — 41 Investment funds 145 104 — — 41 Funds withheld at interest – embedded derivative 312 — — — 312 Derivative assets 2,551 — 7 2,544 — Short-term investments 201 — 40 161 — Cash and cash equivalents 4,888 — 4,888 — — Restricted cash 105 — 105 — — Investments in related parties AFS securities CLO 360 — — 360 — ABS 50 — — 46 4 Total AFS securities – related party 410 — — 406 4 Trading securities CLO 132 — — 27 105 ABS 175 — — 175 — Total trading securities – related party 307 — — 202 105 Investment funds 30 30 — — — Short-term investments 52 — — 52 — Reinsurance recoverable 1,824 — — — 1,824 Assets of consolidated VIEs Trading securities 48 — — — 48 Equity securities 240 — 212 — 28 Investment funds 549 528 — — 21 Cash and cash equivalents 4 — 4 — — Total assets measured at fair value $ 75,701 $ 662 $ 5,303 $ 64,314 $ 5,422 Liabilities Interest sensitive contract liabilities Embedded derivative $ 7,411 $ — $ — $ — $ 7,411 Universal life benefits 1,005 — — — 1,005 Unit-linked contracts 488 — — 488 — Future policy benefits AmerUs Closed Block 1,625 — — — 1,625 ILICO Closed Block and life benefits 803 — — — 803 Derivative liabilities 134 — — 129 5 Funds withheld liability – embedded derivative 22 — — 22 — Total liabilities measured at fair value $ 11,488 $ — $ — $ 639 $ 10,849 (Concluded) Fair Value Valuation Methods —We used the following valuation methods and assumptions to estimate fair value: AFS and trading securities – We obtain the fair value for most marketable securities without an active market from several commercial pricing services. These are classified as Level 2 assets. The pricing services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, trading activity, credit quality, issuer spreads, bids, offers and other reference data. This category typically includes U.S. and non-U.S. corporate bonds, U.S. agency and government guaranteed securities, CLO, ABS, CMBS and RMBS. We also have fixed maturity securities priced based on indicative broker quotes or by employing market accepted valuation models. For certain fixed maturity securities, the valuation model uses significant unobservable inputs and are included in Level 3 in our fair value hierarchy. Significant unobservable inputs used include: issue specific credit adjustments, material non-public financial information, estimation of future earnings and cash flows, default rate assumptions, liquidity assumptions and indicative quotes from market makers. These inputs are usually considered unobservable, as not all market participants have access to this data. We value privately placed fixed maturity securities based on the credit quality and duration of comparable marketable securities, which may be securities of another issuer with similar characteristics. In some instances, we use a matrix-based pricing model. These models consider the current level of risk-free interest rates, corporate spreads, credit quality of the issuer and cash flow characteristics of the security. We also consider additional factors such as net worth of the borrower, value of collateral, capital structure of the borrower, presence of guarantees and our evaluation of the borrower’s ability to compete in its relevant market. Privately placed fixed maturity securities are classified as Level 2 or 3. Equity securities – Fair values of publicly traded equity securities are based on quoted market prices and classified as Level 1. Other equity securities, typically private equities or equity securities not traded on an exchange, we value based on other sources, such as commercial pricing services or brokers and are classified as Level 2 or 3. Mortgage loans – Mortgage loans for which we have elected the fair value option or those held for sale are carried at fair value. We estimate fair value on a monthly basis using discounted cash flow analysis and rates being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. The discounted cash flow model uses unobservable inputs, including estimates of discount rates and loan prepayments. Mortgage loans are classified as Level 3. Investment funds – Certain investment funds for which we elected the fair value option are included in Level 3 and are priced based on market accepted valuation models. The valuation models use significant unobservable inputs, which include material non-public financial information, estimation of future distributable earnings and demographic assumptions. These inputs are usually considered unobservable, as not all market participants have access to this data. Funds withheld (embedded derivative) – We estimate the fair value of the embedded derivative based on the change in the fair value of the assets supporting the funds withheld payable under the combined coinsurance, modco and coinsurance funds withheld reinsurance agreements. As a result, the fair value of the embedded derivative is classified as Level 2 or 3 based on the valuation methods used for the assets held in trust supporting the reinsurance agreements. Derivatives – Derivative contracts can be exchange traded or over-the-counter. Exchange-traded derivatives typically fall within Level 1 of the fair value hierarchy depending on trading activity. Over-the-counter derivatives are valued using valuation models or an income approach using third-party broker valuations. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit curves, measures of volatility, prepayment rates and correlation of the inputs. We consider and incorporate counterparty credit risk in the valuation process through counterparty credit rating requirements and monitoring of overall exposure. We also evaluate and include our own nonperformance risk in valuing derivatives. The majority of our derivatives trade in liquid markets; therefore, we can verify model inputs and model selection does not involve significant management judgment. These are typically classified within Level 2 of the fair value hierarchy. Cash and cash equivalents, including restricted cash – The carrying amount for cash equals fair value. We estimate the fair value for cash equivalents based on quoted market prices. These assets are classified as Level 1. Interest sensitive contract liabilities (embedded derivative) – Embedded derivatives related to interest sensitive contract liabilities with fixed indexed annuity products are classified as Level 3. The valuations include significant unobservable inputs associated with economic assumptions and actuarial assumptions for policyholder behavior. Unit-linked contracts – Unit-linked contracts are valued based on the fair value of the investments supporting the contract. The underlying investments are trading securities comprised primarily of mutual funds. The valuations of these are based on quoted market prices for similar assets and are classified as Level 2, resulting in a corresponding classification for the unit-linked contracts. AmerUs Closed Block – We elected the fair value option for the future policy benefits liability in the AmerUs Closed Block. Our valuation technique is to set the fair value of policyholder liabilities equal to the fair value of assets. There is an additional component which captures the fair value of the open block’s obligations to the closed block business. This component is the present value of the projected release of required capital and future earnings before income taxes on required capital supporting the AmerUs Closed Block, discounted at a rate which represents a market participant’s required rate of return, less the initial required capital. Unobservable inputs include estimates for these items. The AmerUs Closed Block policyholder liabilities and any corresponding reinsurance recoverable are classified as Level 3. ILICO Closed Block – We elected the fair value option for the ILICO Closed Block. Our valuation technique is to set the fair value of policyholder liabilities equal to the fair value of assets. There is an additional component which captures the fair value of the open block’s obligations to the closed block business. This component uses the present value of future cash flows which include commissions, administrative expenses, reinsurance premiums and benefits, and an explicit cost of capital. The discount rate includes a margin to reflect the business and nonperformance risk. Unobservable inputs include estimates for these items. The ILICO Closed Block policyholder liabilities and corresponding reinsurance recoverable are classified as Level 3. Universal life liabilities and other life benefits – We elected the fair value option for certain blocks of universal and other life business ceded to Global Atlantic. We use a present value of liability cash flows. Unobservable inputs include estimates of mortality, persistency, expenses, premium payments and a risk margin used in the discount rates that reflects the riskiness of the business. These universal life policyholder liabilities and corresponding reinsurance recoverable are classified as Level 3. Fair Value Option — The following represents the gains (losses) recorded for instruments for which we have elected the fair value option, including related parties and consolidated VIEs: Years ended December 31, (In millions) 2018 2017 2016 Trading securities $ (255 ) $ 30 $ (51 ) Mortgage loans — (1 ) — Investment funds 37 35 54 Future policy benefits 182 (19 ) (25 ) Total gains (losses) $ (36 ) $ 45 $ (22 ) Gains and losses on trading securities are recorded in investment related gains (losses) on the consolidated statements of income. For fair valu e option mortgage loans, we record interest income in net investment income and subsequent changes in fair value in investment related gains (losses) on the consolidated statements of income. Gains and losses related to investment funds, including related party investment funds, are recorded in net investment income on the consolidated statements of income. We record the change in fair value of future policy benefits to future policy and other policy benefits on the consolidated statements of income. The following summarizes information for fair value option mortgage loans: December 31, (In millions) 2018 2017 Unpaid principal balance $ 30 $ 40 Mark to fair value 2 1 Fair value $ 32 $ 41 There were no fair value option mortgage loans 90 days or more past due as of December 31, 2018 and 2017 . Level 3 Financial Instruments — The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis Year ended December 31, 2018 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets AFS securities Corporate $ 578 $ (16 ) $ (6 ) $ 249 $ 97 $ (4 ) $ 898 $ — CLO 64 2 (2 ) 36 7 — 107 — ABS 1,457 8 (11 ) 252 — (91 ) 1,615 — CMBS 137 1 — 132 15 (98 ) 187 — RMBS 301 4 (11 ) 21 — (259 ) 56 — Trading securities U.S. state, municipal and political subdivisions 17 1 — — — (18 ) — 1 CLO 17 (9 ) — — — (7 ) 1 (6 ) ABS 77 (6 ) — — — (71 ) — (2 ) RMBS 342 (65 ) — — — (143 ) 134 5 Equity securities 8 2 — (7) — — 3 2 Mortgage loans 41 — — (9 ) — — 32 — Investment funds 41 (3 ) — (9 ) — — 29 (3 ) Funds withheld at interest – embedded derivative 312 (255 ) — — — — 57 — Investments in related parties AFS securities, ABS 4 — (2 ) 326 — — 328 — Trading securities CLO 105 (13 ) — (18 ) 25 (21 ) 78 (5 ) ABS — — — — 149 — 149 — Equity securities — — — 120 — — 120 — Investment funds — (3 ) — 108 — — 105 (3 ) Funds withheld at interest – embedded derivative — (110 ) — — — — (110 ) — Reinsurance recoverable 1,824 (148 ) — — — — 1,676 — Investments of consolidated VIEs Trading securities 48 — — (13 ) — — 35 — Equity securities 28 (12 ) — (3 ) — — 13 — Investment funds 21 (3 ) — (3 ) — — 15 — Total Level 3 assets $ 5,422 $ (625 ) $ (32 ) $ 1,182 $ 293 $ (712 ) $ 5,528 $ (11 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,411 ) $ 923 $ — $ (1,481 ) $ — $ — $ (7,969 ) $ — Universal life benefits (1,005 ) 73 — — — — (932 ) — Future policy benefits AmerUs Closed Block (1,625 ) 182 — — — — (1,443 ) — ILICO Closed Block and life benefits (803 ) 73 — — — — (730 ) — Derivative liabilities (5 ) 1 — — — — (4 ) 1 Total Level 3 liabilities $ (10,849 ) $ 1,252 $ — $ (1,481 ) $ — $ — $ (11,078 ) $ 1 1 Related to instruments held at end of period. Year ended December 31, 2017 Total realized and unrealized gains (losses) Transfers (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements In Out Ending balance Total gains (losses) included in earnings 1 Assets Fixed maturity AFS securities U.S. state, municipal and political subdivisions $ 5 $ 16 $ (1 ) $ (20 ) $ — $ — $ — $ — Foreign governments 14 — — — — (14 ) — — Corporate 370 13 15 177 29 (26 ) 578 — CLO 158 1 10 (31 ) 28 (102 ) 64 — ABS 1,156 26 29 163 93 (10 ) 1,457 — CMBS 152 1 (4 ) 28 51 (91 ) 137 — RMBS 17 1 1 2 289 (9 ) 301 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 43 (4 ) — (12 ) — (10 ) 17 1 ABS — — — — 77 — 77 — RMBS 96 (19 ) — 70 195 — 342 7 Equity securities 5 — — 3 — — 8 — Mortgage loans 44 (1 ) — (2 ) — — 41 (1 ) Investment funds — — — — 41 — 41 — Funds withheld at interest – embedded derivative 140 172 — — — — 312 — Investments in related parties AFS securities, ABS 60 — 1 (10 ) — (47 ) 4 — Trading securities, CLO 195 (8 ) — (55 ) — (27 ) 105 (5 ) Reinsurance recoverable 1,692 132 — — — — 1,824 — Investments of consolidated VIEs Trading securities 50 1 — (3 ) — — 48 1 Equity securities 43 (16 ) — 1 — — 28 (16 ) Investment funds 38 1 — (18 ) — — 21 1 Total Level 3 assets $ 4,295 $ 316 $ 51 $ 293 $ 803 $ (336 ) $ 5,422 $ (12 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (5,272 ) $ (1,744 ) $ — $ (395 ) $ — $ — $ (7,411 ) $ — Universal life benefits (883 ) (122 ) — — — — (1,005 ) — Future policy benefits AmerUs Closed Block (1,606 ) (19 ) — — — — (1,625 ) — ILICO Closed Block and life benefits (794 ) (9 ) — — — — (803 ) — Derivative liabilities (7 ) 2 — — — — (5 ) 2 Total Level 3 liabilities $ (8,562 ) $ (1,892 ) $ — $ (395 ) $ — $ — $ (10,849 ) $ 2 1 Related to instruments held at end of period. The following represents the gross components of purchases, issuances, sales and settlements, net, shown above: Year ended December 31, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities Corporate $ 351 $ — $ (29 ) $ (73 ) $ 249 CLO 67 — — (31 ) 36 ABS 599 — (35 ) (312 ) 252 CMBS 151 — (3 ) (16 ) 132 RMBS 56 — — (35 ) 21 Trading securities CLO 7 — (7 ) — — Equity securities 1 — (8) — (7 ) Mortgage loans — — — (9 ) (9 ) Investment funds — — — (9 ) (9 ) Investments in related parties AFS securities, ABS 326 — — — 326 Trading securities, CLO 30 — (48 ) — (18 ) Equity securities 120 — — — 120 Investment funds 108 — — — 108 Investments of consolidated VIEs Trading securities — — (13 ) — (13 ) Equity securities 1 — (4 ) — (3 ) Investment funds 14 — (17 ) — (3 ) Total Level 3 assets $ 1,831 $ — $ (164 ) $ (485 ) $ 1,182 Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (1,888 ) $ — $ 407 $ (1,481 ) Total Level 3 liabilities $ — $ (1,888 ) $ — $ 407 $ (1,481 ) Year ended December 31, 2017 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities U.S. state, municipal and political subdivisions $ — $ — $ — $ (20 ) $ (20 ) Corporate 228 — (36 ) (15 ) 177 CLO 15 — (2 ) (44 ) (31 ) ABS 577 — — (414 ) 163 CMBS 29 — — (1 ) 28 RMBS 4 — — (2 ) 2 Trading securities CLO 4 — (16 ) — (12 ) RMBS 70 — — — 70 Equity securities 3 — — — 3 Mortgage loans — — — (2 ) (2 ) Investments in related parties AFS securities, ABS 5 — — (15 ) (10 ) Trading securities, CLO — — (55 ) — (55 ) Investments of consolidated VIEs Trading securities — — (3 ) — (3 ) Equity securities 1 — — — 1 Investment funds 1 — (19 ) — (18 ) Total Level 3 assets $ 937 $ — $ (131 ) $ (513 ) $ 293 Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (600 ) $ — $ 205 $ (395 ) Total Level 3 liabilities $ — $ (600 ) $ — $ 205 $ (395 ) Significant Unobservable Inputs — Significant unobservable inputs occur when we could not obtain or corroborate the quantitative detail of the inputs. This applies to fixed maturity securities, equity securities, mortgage loans and certain derivatives, as well as embedded derivatives in liabilities. Additional significant unobservable inputs are described below. AFS and trading securities – For certain fixed maturity securities, internal models are used to calculate the fair value. We use a discounted cash flow approach. The discount rate is the significant unobservable input due to the determined credit spread being internally developed, illiquid, or as a result of other adjustments made to the base rate. The base rate represents a market comparable rate for securities with similar characteristics. As of December 31, 2018 , discounts ranged from 5% to 9% , and as of December 31, 2017 , discounts ranged from 2% to 6% . This excludes assets for which significant unobservable inputs are not developed internally, primarily consisting of broker quotes. Interest sensitive contract liabilities – embedded derivative – Significant unobservable inputs we use in the fixed indexed annuities embedded derivative of the interest sensitive contract liabilities valuation include: 1. Nonperformance risk – For contracts we issue, we use the credit spread, relative to the U.S. treasury curve based on our public credit rating as of the valuation date. This represents our credit risk for use in the estimate of the fair value of embedded derivatives. 2. Option budget – We assume future hedge costs in the derivative’s fair value estimate. The level of option budgets determines the future costs of the options and impacts future policyholder account value growth. 3. Policyholder behavior – We regularly review the lapse and withdrawal assumptions (surrender rate). These are based on our initial pricing assumptions updated for actual experience. Actual experience may be limited for recently issued products. The following summarizes the unobservable inputs for the embedded derivatives of fixed indexed annuities: December 31, 2018 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Input/range of Impact of an increase in the input on fair value Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 7,969 Option budget method Nonperformance risk 0.3 % – 1.5 % Decrease Option budget 0.7 % – 3.7 % Increase Surrender rate 3.6 % – 7.3 % Decrease December 31, 2017 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Input/range of Impact of an increase in the input on fair value Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 7,411 Option budget method Nonperformance risk 0.2 % – 1.2 % Decrease Option budget 0.7 % – 3.7 % Increase Surrender rate 1.5 % – 19.4 % Decrease Fair Value of Financial Instruments Not Carried at Fair Value — The following represents our financial instruments not carried at fair value on the consolidated balance sheets: December 31, 2018 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 10,308 $ 10,424 $ — $ — $ — $ 10,424 Investment funds 521 521 521 — — — Policy loans 488 488 — — 488 — Funds withheld at interest 14,966 14,966 — — — 14,966 Other investments 70 70 — — — 70 Investments in related parties Mortgage loans 291 290 — — — 290 Investment funds 2,031 2,031 2,031 — — — Funds withheld at interest 13,687 13,687 — — — 13,687 Other investments 386 361 — — — 361 Assets of consolidated VIEs Investment funds 57 57 57 — — — Total financial assets not carried at fair value $ 42,805 $ 42,895 $ 2,609 $ — $ 488 $ 39,798 Financial liabilities Interest sensitive contract liabilities $ 54,655 $ 51,655 $ — $ — $ — $ 51,655 Long-term debt 991 910 — — 910 — Funds withheld liability 722 722 — — 722 — Total financial liabilities not carried at fair value $ 56,368 $ 53,287 $ — $ — $ 1,632 $ 51,655 December 31, 2017 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 6,192 $ 6,342 $ — $ — $ — $ 6,342 Investment funds 554 554 554 — — — Policy loans 542 542 — — 542 — Funds withheld at interest 6,773 6,773 — — — 6,773 Other investments 133 133 — — 58 75 Investments in related parties Investment funds 1,280 1,280 1,280 — — — Other investments 238 259 — — — 259 Assets of consolidated VIEs Investment funds 22 22 22 — — — Total financial assets not carried at fair value $ 15,734 $ 15,905 $ 1,856 $ — $ 600 $ 13,449 Financial liabilities Interest sensitive contract liabilities $ 31,878 $ 31,656 $ — $ — $ — $ 31,656 Funds withheld liability 385 385 — — 385 — Total financial liabilities not carried at fair value $ 32,263 $ 32,041 $ — $ — $ 385 $ 31,656 We estimate the fair value for financial instruments not carried at fair value using the same methods and assumptions as those we carry at fair value. The financial instruments presented above are reported at carrying value on the consolidated balance sheets; however, in the case of policy loans and funds withheld at interest and liability, the carrying amount approximates fair value. Investment in related parties – Other investments – The fair value of related party other investments is determined using a discounted cash flow model using discount rates for similar investments. Interest sensitive contract liabilities – The carrying and fair value of interest sensitive contract liabilities above includes fixed indexed and traditional fixed annuities without mortality or morbidity risks, funding agreements and payout annuities without life contingencies. The embedded derivatives within fixed indexed annuities without mortality or morbidity risks are excluded, as they are carried at fair value. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates, adding a spread to reflect our nonperformance risk and subtracting a risk margin to reflect uncertainty inherent in the projected cash flows. Long-term debt – We obtain the fair value of long-term debt from commercial pricing services. These are classified as Level 2. The pricing services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, trading activity, credit quality, issuer spreads, bids, offers and other reference data. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Reinsurance | 7. Reinsurance The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Premiums Direct $ 2,772 $ 2,639 $ 448 Reinsurance assumed 1,001 21 20 Reinsurance ceded (405 ) (195 ) (228 ) Total premiums $ 3,368 $ 2,465 $ 240 Future policy and other policy benefits Direct $ 3,698 $ 3,476 $ 1,421 Reinsurance assumed 1,028 37 82 Reinsurance ceded (539 ) (313 ) (473 ) Total future policy and other policy benefits $ 4,187 $ 3,200 $ 1,030 Reinsurance typically provides for recapture rights on the part of the ceding company for certain events of default. Additionally, some agreements require us to place assets in trust accounts for the benefit of the ceding entity. The required minimum assets are equal to or greater than statutory reserves, as defined by the agreement, and were $5,719 million and $1,123 million as of December 31, 2018 and 2017 , respectively. Although we own the assets placed in trust, their use is restricted based on the trust agreement terms. If the statutory book value of the assets, or in certain cases fair value, in a trust declines because of impairments or other reasons, we may be required to contribute additional assets to the trust. In addition, the assets within a trust may be subject to a pledge in favor of the applicable reinsurance company. Reinsurance transactions Voya Financial, Inc. (Voya) – On June 1, 2018, we entered into coinsurance and modco agreements with Voya Insurance and Annuity Company (VIAC) to reinsure a block of fixed and fixed indexed annuities. VIAC is a related party pursuant to GAAP due to our minority equity investment in its holding company’s parent, VA Capital Company LLC (VA Capital), as discussed further in Note 17 – Related Parties . Additionally, we entered into modco agreements with ReliaStar Life Insurance Company (RLI), a subsidiary of Voya, to reinsure a block of fixed and fixed indexed annuities. The following summarizes these reinsurance transactions (collectively, Voya reinsurance transactions): VIAC RLI (In millions) Coinsurance Modco Modco Total Liabilities assumed $ 3,667 $ 14,911 $ 457 $ 19,035 Less: Assets received 3,478 14,332 445 18,255 Ceding commission (paid) received (86 ) (320 ) 12 (394 ) Net cost of reinsurance $ 275 $ 899 $ — $ 1,174 DAC $ 293 $ 999 $ 4 $ 1,296 Unearned revenue reserve 1 (8 ) (57 ) (4 ) (69 ) Deferred profit liability 2 (10 ) (43 ) — (53 ) Net cost of reinsurance $ 275 $ 899 $ — $ 1,174 1 Included within interest sensitive contract liabilities on the consolidated balance sheets. 2 Included within future policy benefits on the consolidated balance sheets. DAC and unearned revenue reserve balances are amortized over the life of the reinsurance agreements on a basis consistent with our DAC amortization policy. The deferred profit liability balance is amortized over the life of the reinsurance agreement on a constant relationship to the benefit reserves. The Lincoln National Life Insurance Company ( Lincoln) – On December 7, 2018, we entered into a modco agreement with Lincoln, effective as of October 1, 2018, to reinsure an 80% quota share block of fixed deferred and fixed indexed annuities. The following summarizes this reinsurance transaction: (In millions) Modco Liabilities assumed $ 7,878 Less: Assets received 7,663 Ceding commission (paid) received (266 ) Net cost of reinsurance $ 481 Net cost of reinsurance – DAC $ 481 Athora – During the fourth quarter of 2018, we entered into a coinsurance agreement with Athora Lebensversicherung AG (ALV) to reinsure endowment contracts and annuities. We then retroceded these endowment contracts and annuities through a modco agreement to Athora Life Re Ltd. (ARE). These transactions will serve as a model for future transactions for Athora within the European market. We will earn a commission of 0.2% of reserves on the retrocession to ARE. See Note 17 – Related Parties for further information on other Athora transactions. The following summarizes these reinsurance transactions: ALV ARE (In millions) Coinsurance Modco Total Liabilities assumed/funds withheld liability recorded $ 325 $ 337 $ 662 Less: Assets recorded 1 337 337 674 Deferred profit liability 2 $ (12 ) $ — $ (12 ) 1 ALV coinsurance assets recorded as receivable in other assets on the consolidated balance sheets, as the assets were not received prior to December 31, 2018. ARE modco assets recorded as reinsurance recoverable on the consolidated balance sheets. 2 Included within future policy and other policy benefits on the consolidated balance sheets. Global Atlantic – We have a 100% coinsurance and assumption agreement with Global Atlantic. The agreement ceded all existing open block life insurance business issued by Athene Annuity and Life Company (AAIA), with the exception of enhanced guarantee universal life insurance products. We also entered into a 100% coinsurance agreement with Global Atlantic to cede all policy liabilities of the ILICO Closed Block. The ILICO Closed Block consists primarily of participating whole life insurance policies. We also have an excess of loss arrangement with Global Atlantic to reimburse us for any payments required from our general assets to meet the contractual obligations of the AmerUs Closed Block not covered by existing reinsurance through Athene Re USA IV. The AmerUs Closed Block consists primarily of participating whole life insurance policies. Since all liabilities were covered by the existing reinsurance at close, no reinsurance premiums were ceded. The assets backing the AmerUs Closed Block are managed, on AAIA’s behalf, by Goldman Sachs Asset Management, an affiliate of Global Atlantic. We have novated certain open blocks of business ceded to Global Atlantic, in accordance with the terms of the coinsurance and assumption agreement. The below table summarizes the decreases in amounts on the consolidated balance sheets as a result of the novations. Novations during the year ended December 31, 2018 did not have a material effect on the consolidated balance sheets. (In millions) Year ended December 31, 2017 Interest sensitive contract liabilities $ 653 Future policy benefits 116 Policy loans 22 Reinsurance recoverable 747 As of December 31, 2018 and 2017 , Global Atlantic maintained a series of trust and custody accounts under the terms of these agreements with assets equal to or greater than a required aggregate statutory balance of $3,967 million and $3,350 million , respectively. Protective Life Insurance Company (Protective) – We reinsured substantially all of the existing life and health business of Athene Annuity & Life Assurance Company (AADE) to Protective under a coinsurance agreement in 2011. As of December 31, 2018 and 2017 , Protective maintained a trust for our benefit with assets having a fair value of $1,525 million and $1,688 million , respectively. Reinsurance Recoverables —The following summarizes our reinsurance recoverable from the following: December 31, (In millions) 2018 2017 Global Atlantic $ 3,166 $ 3,482 Protective 1,652 1,699 ARE 337 — Other 1 379 151 Reinsurance recoverable $ 5,534 $ 5,332 1 Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total recoverable. |
Deferred Acquisition Costs, Def
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired | 8. Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired The following represents a rollforward of DAC, DSI and VOBA: (In millions) DAC DSI VOBA Total Balance at December 31, 2015 $ 706 $ 320 $ 1,630 $ 2,656 Additions 601 200 — 801 Unlocking (12 ) (3 ) (23 ) (38 ) Amortization (113 ) (36 ) (156 ) (305 ) Impact of unrealized investment (gains) losses (37 ) (19 ) (99 ) (155 ) Balance at December 31, 2016 1,145 462 1,352 2,959 Additions 493 161 — 654 Unlocking 13 4 (1 ) 16 Amortization (194 ) (67 ) (162 ) (423 ) Impact of unrealized investment (gains) losses (82 ) (40 ) (112 ) (234 ) Balance at December 31, 2017 1,375 520 1,077 2,972 Additions 2,481 264 — 2,745 Unlocking 21 7 54 82 Amortization (108 ) (61 ) (141 ) (310 ) Impact of unrealized investment (gains) losses 152 69 197 418 Balance at December 31, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 The expected amortization of VOBA for the next five years is as follows: (In millions) Expected Amortization 2019 $ 73 2020 77 2021 72 2022 68 2023 68 |
Closed Block
Closed Block | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Closed Block Disclosure [Text Block] | 9. Closed Block We pay guaranteed benefits under all policies included in the Closed Blocks. In the event the performance of the Closed Blocks’ assets is insufficient to maintain dividend scales and interest credits, we may reduce the policyholder dividend scales. In the event dividends have been reduced to zero and the Closed Blocks’ assets remain insufficient to fund the Closed Blocks’ guaranteed benefits, we would use assets supporting open block policies or surplus to meet the contractual benefits of the Closed Blocks’ policyholders. The ILICO Closed Block has been ceded to Global Atlantic. Therefore, Global Atlantic would be required to provide funding for any asset insufficiency related to the ILICO Closed Block. Additionally, the AmerUs Closed Block has a letter of credit and tail risk reinsurance agreement in place that limits our exposure to potential asset insufficiency. We elected the fair value option for the AmerUs Closed Block. The fair value of liabilities of the AmerUs Closed Block was derived at election as the sum of the fair value of the AmerUs Closed Block assets plus our cost of capital in the AmerUs Closed Block. The cost of capital was then determined to be the present value of the projected release of required capital and future after tax earnings on required capital supporting the AmerUs Closed Block, discounted at a rate which represents a market participant’s required rate of return, less the initial required capital. At each reporting period, we record the fair value of the AmerUs Closed Block by adjusting the change in liabilities, exclusive of the cost of capital, to equal the change in assets. We do not record additional policyholder dividend obligations, as there are no future GAAP earnings available to the policyholders. The excess of the fair value of the liabilities over the fair value of the assets represents our cost of capital in the AmerUs Closed Block. The maximum amount of future earnings from the assets and liabilities of the AmerUs Closed Block is represented by the reduction in the cost of capital in future years based on the operations of the AmerUs Closed Block and recalculation of the cost of capital each reporting period. Summarized financial information of the AmerUs Closed Block is presented below. December 31, (In millions) 2018 2017 Liabilities Future policy benefits $ 1,443 $ 1,625 Other policy claims and benefits 14 19 Dividends payable to policyholders 89 92 Other liabilities — 15 Total liabilities 1,546 1,751 Assets Trading securities 1,228 1,377 Mortgage loans, net of allowances 32 41 Policy loans 154 168 Total investments 1,414 1,586 Cash and cash equivalents 31 48 Accrued investment income 41 36 Reinsurance recoverable 22 25 Other assets 2 — Total assets 1,510 1,695 Maximum future earnings to be recognized from AmerUs Closed Block $ 36 $ 56 The following represents the contribution from AmerUs Closed Block. Years ended December 31, (In millions) 2018 2017 2016 Revenues Premiums $ 48 $ 58 $ 24 Net investment income 77 79 84 Investment related gains (losses) (118 ) 61 42 Total revenues 7 198 150 Benefits and Expenses Future policy and other policy benefits (49 ) 144 107 Dividends to policyholders 36 51 40 Total benefits and expenses (13 ) 195 147 Contribution from AmerUs Closed Block before income taxes 20 3 3 Income tax expense (benefit) — (5 ) 3 Contribution from AmerUs Closed Block, net of income taxes $ 20 $ 8 $ — |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 10. Debt Credit Facility —In 2016, we entered into a five -year revolving credit agreement (Credit Facility) with Citibank, N.A., as administrative agent. The borrowing capacity under the Credit Facility is $1 billion . In connection with the Credit Facility, AHL and Athene USA guaranteed all of the obligations of AHL, ALRe, Athene Annuity Re Ltd. (AARe) and Athene USA under this facility, and ALRe and AARe guaranteed certain of the obligations of AHL and Athene USA under this facility. The Credit Facility contains various standard covenants with which we must comply, including the following: 1. Consolidated debt to capitalization ratio of not greater than 35% ; 2. Minimum consolidated net worth of no less than the sum of (a) $3.7 billion and (b) an amount equal to 50% of the net cash proceeds received in any equity issuances occurring after January 22, 2016; and 3. Restrictions on our ability to incur debt and liens and to declare or pay dividends, in each case with certain exceptions. As of December 31, 2018 and 2017 , we had no amounts outstanding under the Credit Facility and were in compliance with all covenants under this facility. Interest accrues on outstanding borrowings at the London Interbank Offered Rate (LIBOR) plus a margin or a base rate plus a margin, with the applicable margin varying based on AHL’s issuer credit rating. The Credit Facility has a commitment fee that is determined by reference to AHL’s issuer credit rating, and ranges from 0.15% to 0.50% of the unused commitment. As of December 31, 2018 and 2017 , the commitment fee was 0.225% of the unused commitment. Senior Notes —In the first quarter of 2018, AHL issued $1 billion of unsecured senior notes due in January 2028. The senior notes have a 4.125% coupon rate, payable semi-annually. The senior notes are callable at any time prior to October 12, 2027 by AHL, at a price equal to the greater of (1) 100% of the principal and any accrued and unpaid interest and (2) an amount equal to the sum of the present values of remaining scheduled payments, discounted from the scheduled payment date to the redemption date at the Treasury Rate (as defined in the prospectus supplement relating to the senior notes, dated January 9, 2018) plus 25 basis points, and any accrued and unpaid interest. Interest expense on long-term debt was $41 million for the year ended December 31, 2018 . |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Common Stock | 11. Common Stock We have six classes of common stock: Class A, Class B, Class M-1, Class M-2, Class M-3 and Class M-4. The Class M-1, Class M-2, Class M-3 and Class M-4 shares are collectively referred to as Class M shares. Class A shares collectively represent 55% of the total voting power of the Company. Class B shares collectively represent the remaining 45% of the total voting power of the Company, and are beneficially owned by shareholders who are members of the Apollo Group, as defined in our bye-laws. Class B shares can be converted to Class A shares on a one-to-one basis at any time upon notice to us. Class M shares are restricted, non-voting shares issued under equity incentive plans. Our bye-laws place certain restrictions on Class A shares such that (1) a holder of Class A shares, including its affiliates, cannot control greater than 9.9% of the total outstanding vote and if a holder of Class A shares were to control greater than 9.9% , then a holder’s voting power is automatically reduced to 9.9% and the other holders of Class A shares would vote the remainder on a prorated basis, (2) the total voting power held by members of our management and employees of the Apollo Group is limited to 3% and (3) Class A shares may be deemed non-voting when owned by a shareholder who owns Class B shares, has an equity interest in certain Apollo entities, or is a member of the Apollo Group. Repurchase Authorization In the fourth quarter of 2018, our board of directors approved a share repurchase program, which authorizes us to repurchase up to $250 million of Class A shares. We may repurchase shares in open market transactions, in privately negotiated transactions or otherwise. The size and timing of repurchases will depend on legal requirements, market and economic conditions and other factors, and are solely at our discretion. The program has no expiration date, but may be modified, suspended or terminated by the board at any time. We repurchased 2.5 million Class A shares for $100 million under this authorization during the year ended December 31, 2018. Other Share Activities 2018 • In the first quarter, a total of 21.9 million Class B shares were converted into Class A shares pursuant to a distribution of common shares from AP Alternative Assets, L.P. (AAA) to AAA unitholders. 2017 • In the fourth quarter, a total of 21.4 million Class B shares were converted into Class A shares pursuant to a distribution of common shares from AP Alternative Assets, L.P. (AAA) to AAA unitholders. • As a result of the lockup releases during the year, 1.3 million Class B shares were converted into Class A shares. • During the year, we completed two follow-on offerings of our Class A common shares. Shareholders sold 50.3 million existing Class A shares through the offerings. We did not sell any shares in the follow-on offerings. A total of 41.7 million Class B shares were converted into Class A shares on a one-for-one basis in order to participate in the follow-on offerings. 2016 • We issued 3.1 million Class A shares during the fourth quarter of 2016 from conversion of Class M-1, M-2, M-3 and M-4 shares and settlement of Class M-4 RSUs. All conversions were settled in shares net of the conversion price and, as a result, no proceeds were received from the conversions. • On December 14, 2016, we completed the initial public offering (IPO) of our Class A common shares. Shareholders sold 31.1 million existing Class A shares through the offering. We did not sell any shares in the IPO. A total of 24.2 million Class B shares were converted into Class A shares on a one-for-one basis in order to participate in the IPO. As of December 31, 2018 , we had 150 million shares of capital stock authorized which remain undesignated. The table below shows the changes in each class of shares issued and outstanding: Years ended December 31, (In millions) 2018 2017 2016 Class A Beginning balance 142.4 77.3 50.1 Issued shares 0.6 0.7 3.3 Forfeited shares — — — Repurchased shares (2.6 ) — (0.3 ) Converted from Class B shares 22.0 64.4 24.2 Ending balance 162.4 142.4 77.3 Class B Beginning balance 47.4 111.8 136.0 Converted to Class A shares (22.0 ) (64.4 ) (24.2 ) Ending balance 25.4 47.4 111.8 Class M-1 Beginning balance 3.4 3.5 5.2 Converted to Class A shares — (0.1 ) (1.1 ) Forfeited shares — — (0.3 ) Repurchased shares — — (0.3 ) Ending balance 3.4 3.4 3.5 Class M-2 Beginning balance 0.9 1.1 3.1 Converted to Class A shares (0.1 ) (0.2 ) (1.7 ) Forfeited shares — — (0.2 ) Repurchased shares — — (0.1 ) Ending balance 0.8 0.9 1.1 Class M-3 Beginning balance 1.1 1.3 3.1 Converted to Class A shares (0.1 ) (0.2 ) (1.5 ) Forfeited shares — — (0.2 ) Repurchased shares — — (0.1 ) Ending balance 1.0 1.1 1.3 Class M-4 Beginning balance 4.7 5.4 5.0 Issued shares — — 1.0 Converted to Class A shares (0.5 ) (0.2 ) (0.1 ) Forfeited shares — (0.1 ) (0.4 ) Repurchased shares (0.1 ) (0.4 ) (0.1 ) Ending balance 4.1 4.7 5.4 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. Stock-based Compensation We adopted share incentive plans in 2009, 2012 and 2014. The 2009 and 2012 share incentive plans were amended and restated in 2014 (2014 Modification), along with the adoption of the 2014 share incentive plan (2014 Plan). In 2016, we modified certain share agreements (2016 Modification) and adopted the 2016 share incentive plan (2016 Plan). With the adoption of the 2016 Plan, the 2009, 2012 and 2014 share incentive plans were frozen and no additional awards may be granted under those plans. The purpose of our s hare incentive plans is to provide an incentive to achieve long-term company goals and align the interests of our employees, our directors and AAM employees with those of our shareholders. See Note 17 – Related Parties regarding our relationship with AAM. Under the share incentive plans, we may issue nonqualified stock options, incentive stock options, rights to purchase shares, restricted shares, RSUs and other awards which may be settled in, or based upon, our common shares. The aggregate number of shares authorized for issuance under the 2016 Plan is 3.5 million Class A shares. Shares issued upon settlement of an award are newly issued shares. Through the share incentive plans, we have issued the following categories of stock-based compensation: long-term incentive plan (LTIP) awards and Class M awards. LTIP awards —We issued awards consisting of time and performance-based RSUs and time-based stock options for Class A shares. RSUs represent a contractual right to receive Class A shares and may be settled in shares or cash at our election. Stock options represent a right to purchase Class A shares at a specified exercise price. Vesting – Time-based RSUs and stock options vest in one-third increments on the first through third anniversaries of the vesting inception date. The performance-based RSUs have three -year cliff vesting based on meeting company-specific performance thresholds. Contractual terms – Stock options expire on the tenth anniversary of the date of grant. Stock Options – A rollforward of activity for the year ended December 31, 2018 for stock options is as follows: (In millions, except per share data) Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2018 0.8 $ 41.19 Granted 0.3 48.06 Exercised 0.0 33.95 Forfeited (0.1 ) 47.01 Outstanding at December 31, 2018 1.0 $ 43.34 Vested and expected to vest 1 at December 31, 2018 1.0 $ 43.34 $ 2 Exercisable at December 31, 2018 0.4 $ 38.58 $ 2 1 Expected to vest are unvested options for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition. The weighted average grant date fair value of stock options granted during the years ended December 31, 2018 , 2017 and 2016 was $9.43 , $9.44 and $5.83 , respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2018 and 2017 was not material. No options were exercised or exercisable during the year ended December 31, 2016 . Valuation Assumptions – We determine the fair value at grant date for stock options using the Black-Scholes option pricing model. The following represents the assumptions used for the fair value at grant date: Years ended December 31, Assumptions used 2018 2017 2016 Risk-free interest rate 2.4 % – 2.6% 1.5% 1.0% Expected dividend yield —% —% —% Expected volatility 25.0 % – 26.0% 25.0 % – 28.4% 25.0% Expected term (in years) 2.46 – 2.86 2.34 – 2.81 2.63 The risk-free interest rate is derived from U.S. Constant Maturity Treasury yield at the valuation date, with maturity corresponding to weighted-average expected term. The expected dividend yield is based on our historical and expected dividend payments, which have been zero to date. Absent sufficient historical experience of our shares being traded on a public market, we have estimated volatility of our share price based on the published historical volatilities of comparable publicly-traded companies over a period consistent with the expected life of the award being valued. The expected term represents the weighted average period of time that awards granted are expected to be outstanding as determined at the grant date of the award. RSUs – The following represents the activity of nonvested LTIP RSUs for the year ended December 31, 2018 : (In millions, except per share data) RSUs Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 0.5 $ 42.03 Granted 0.2 47.97 Vested (0.1 ) 41.84 Forfeited 0.0 41.41 Nonvested at December 31, 2018 0.6 $ 44.19 The fair value of the award is determined based on the fair value of our Class A shares on the grant date. The weighted average grant date fair value of LTIP RSUs granted during the years ended December 31, 2017 and 2016 was $51.28 and $33.95 , respectively. During the years ended December 31, 2018 and 2017 , the total intrinsic value of LTIP RSUs converted was $3 million and $2 million , respectively. As of December 31, 2016 , no LTIP RSUs were vested. Class M awards — We have issued Class M shares and RSUs concurrently with the timing of capital raises, in order to align management incentives with shareholder investments. Class M shares function similar to options in that they are exchangeable into Class A shares upon payment of a conversion price and other conditions being met. The settlement value of the RSUs is based upon the value of the Class A shares at the time of settlement after deducting the conversion price of the RSUs. RSUs may be settled either in cash or Class A shares at our election. A portion of the Class M shares and RSUs are subject to time vesting conditions (Tranche 1), and the remainder are subject to certain performance-based vesting conditions (Tranche 2). Vesting conditions are further described below. The nature and terms of the Class M shares are generally consistent across each class. In October 2015, we issued Class M-4 shares with a different Tranche 2 performance condition than the original Class M-4 award. These shares are referred to as Class M-4 Prime. This vesting condition and any other significant differences between classes are separately identified in the following discussion. Class M share vesting – Tranche 1 shares generally vest in 20% increments on the first through fifth anniversaries of the earlier of the date of grant or vesting inception date. Tranche 1 shares also automatically vest upon the sale of the Company or change in control, prior to the participant’s termination or within six months following a qualifying termination. Unvested Tranche 1 shares are forfeited upon a participant’s termination. Tranche 2 awards vest if certain performance hurdles are met, described as follows: • Class M-4 (excluding M-4 Prime) – The vesting performance hurdles for Class M-4 shares have been met and were based on the rate of return and realized cash received by certain holders of our shares (Relevant Investors), as defined in the incentive plan, upon sale of their shares or based on deemed sales by Relevant Investors. • Class M-4 Prime – The vesting performance hurdle is based on the attainment of specified Class A share prices following an IPO. Vesting will also occur upon a sale of the Company or change in control in which Class A Shares are valued at the respective hurdle share price. Any unvested Tranche 2 shares remaining as of the tenth anniversary of the grant date are forfeited. Although the Class M shares function similar to options, they are equity shares, and have dividend rights upon satisfaction of certain conditions and no expiration date once vested. Prior to vesting, if Class M shares are eligible for dividends, any dividends paid would accrue on the unvested M shares; however, if the M share is forfeited, the accrued dividend would also be forfeited. Conversion to Class A shares – Vested Class M shares are eligible for conversion to Class A shares subject to payment of the conversion price for each Class M share converted. A holder of vested Class M shares may elect to exchange vested shares for an equivalent number of Class A shares upon payment, in cash or shares, of the conversion price less the amount of any dividends paid by the Company on Class A shares subsequent to the granting of Class M shares. Following a conversion to Class A shares, shares can be sold subject to contractual transfer or legal restrictions, such as lockups, blackout periods or affiliate sale volume caps. 2016 Modification – On September 30, 2016, we modified Class M-1, M-2 and M-3 share agreements to vest all Tranche 2 performance-based shares. The compensation committee approved the modification given that vesting of the shares in the near future was probable. We also amended the conversion option, which previously allowed conversion of vested shares only subsequent to an IPO. Under the modified conversion terms, individuals with certain limited exceptions were able elect up to three conversion options including conversion at a specified date prior to an IPO, on the date of an IPO, or ratably each month for six months after an IPO. The modifications impacted 27 individuals. As a result of the modifications, we recorded an $83 million increase to additional paid-in capital, due to the reclassification of the Tranche 2 shares from liability awards to equity awards. We also recorded a $42 million charge to stock-based compensation expense and additional paid-in capital for the vesting of Tranche 2 shares, primarily related to the acceleration of previously unrecognized compensation expense. Valuation Assumptions for Class M Shares —The fair value of the Class M shares is determined using the Black-Scholes option pricing model, with application of a Monte-Carlo simulation to determine the value of the Tranche 2 Class M shares. No Tranche 2 Class M shares were granted during the years ended December 31, 2018 and 2017 . Grant date assumptions used for valuation of Class M share awards for the year ended December 31, 2016 were: Assumptions used Year ended December 31, 2016 Athene Class A share value $32.90 Risk-free interest rate 0.5 % – 1.8% Expected dividend yield —% Expected volatility 30.0% Expected term (in years) 3.00 The fair value of the Class A shares subsequent to our IPO is determined based on the publicly traded closing price on the New York Stock Exchange. During 2016, prior to our IPO, the fair value was determined based on a GAAP book value multiple approach. Under this approach, we used a comparable peer set of public companies and their share price to book value ratio, less applicable discounts for lack of marketability of AHL, in order to determine the AHL Class A share price. The expected term represents the weighted average period of time that awards granted are expected to be outstanding. The expected term is determined from the modification date, the grant date or the period end date, depending on the accounting treatment for each award. In addition, the Tranche 2 Class M share assumptions include an estimate of the probability of the vesting conditions being met. This assumption is developed by using a Monte-Carlo simulation to generate the possible future value of the Company’s equity at a liquidity event to determine the percentage of Tranche 2 Class M shares that vest for each simulated path. The fair value of the Tranche 2 Class M shares is then estimated by averaging the value for all simulated paths and discounting the results at the risk-free interest rate to the valuation date. The basis for determining the remaining assumptions is consistent with those discussed for LTIP awards above. Award activity for Class M Shares —A rollforward of award activity for the year ended December 31, 2018 of the Class M shares is as follows: Tranche 1 Tranche 2 Total (In millions, except per share data) Class M Shares Weighted Average Conversion Price Aggregate Intrinsic Value Class M Shares Weighted Average Conversion Price Aggregate Intrinsic Value Class M Shares Weighted Average Conversion Price Outstanding at January 1, 2018 3.9 $ 18.30 5.8 $ 19.19 9.7 $ 18.83 Converted (0.2 ) 21.42 (0.3 ) 22.86 (0.5 ) 22.37 Forfeited 0.0 23.62 — — 0.0 23.62 Repurchased 0.0 30.79 0.0 26.23 0.0 28.94 Outstanding at December 31, 2018 3.7 $ 17.97 5.5 $ 18.94 9.2 $ 18.55 Vested and expected to vest 1 at December 31, 2018 3.7 $ 17.97 $ 80 5.5 $ 18.94 $ 115 Convertible at December 31, 2018 3.0 $ 15.36 $ 72 4.3 $ 15.93 $ 102 1 Expected to vest are unvested shares for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition. The following represents the activity of nonvested Class M shares for the year ended December 31, 2018 : Tranche 1 Tranche 2 Total (In millions, except per share data) Class M Shares Weighted Average Grant Date Fair Value Class M Shares Weighted Average Grant Date Fair Value Class M Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 1.1 $ 7.97 1.4 $ 13.81 2.5 $ 11.29 Vested (0.4 ) 5.68 (0.2 ) 12.60 (0.6 ) 8.22 Forfeited 0.0 6.14 — — 0.0 6.14 Nonvested at December 31, 2018 0.7 $ 9.28 1.2 $ 14.03 1.9 $ 12.31 The weighted average grant date fair value of Class M share awards granted during the year ended December 31, 2016 was $10.43 . The total fair value of vested Tranche 1 Class M shares was $5 million , $16 million and $92 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The total fair value of vested Tranche 2 Class M shares was $3 million , $40 million and $122 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The total intrinsic value of M shares converted during the years ended December 31, 2018 , 2017 and 2016 was $11 million , $29 million and $117 million , respectively. Employee Stock Purchase Plan —Eligible employees may participate in our 2017 Employee Stock Purchase Plan (ESPP), which provides the opportunity to purchase our Class A shares at a discount from the market price through payroll deductions. Pursuant to the ESPP, employees are permitted to purchase shares at a price equal to 85% of the fair value of such shares as determined by reference to the closing price of our Class A shares on the New York Stock Exchange on the last day of the relevant purchase period. Under the ESPP we may make available for sale up to 3.8 million Class A shares over the term of the ESPP, which may extend for up to 10 years. The number of shares sold under the ESPP during the years ended December 31, 2018 and 2017 were not material. Compensation expense —Compensation expense is recognized based on the number of awards expected to vest, which represents the awards granted less actual forfeitures when they occur, if any. Class M shares with Tranche 1 vesting requirements are accounted for as equity awards and related compensation expense is recognized ratably over the vesting period. The expense for Tranche 1 shares issued to employees is calculated based on grant date fair value multiplied by the number of shares awarded. The expense for Tranche 1 shares issued to non-employees (i.e. AAM participants) is recognized initially at the grant date fair value multiplied by the number of shares. However, the fair value of the awards are revalued each reporting period through completion of counterparty performance to coincide with the fair value of the services provided by the non-employees. The result of the revaluation is recognized in the period in which the revaluation occurs. Employee and non-employee Tranche 2 shares, excluding M-4 Prime, are accounted for as liability awards. Compensation expense for all participants is remeasured each reporting period through settlement at the fair value of the awards, factoring in the probability of achieving the vesting targets described above. Upon vesting of Tranche 2 shares, the liability is reclassified to equity because the vesting condition which resulted in liability classification is no longer present, and is measured at fair value on the date of reclassification. Tranche 2 M-4 Prime shares are accounted for as equity awards with expense recognition having commenced upon completion of our IPO. Compensation expense is calculated based on the grant date fair value of such awards multiplied by the number of shares awarded. LTIP awards are accounted for as equity awards. Expense for time-based RSUs and options is recognized ratably over the vesting period based on the number of shares expected to vest. Expense for performance-based RSUs is further adjusted by the performance factor most likely to be achieved, as estimated by management at the end of the performance period. Components of stock compensation expense recorded on the consolidated statements of income are as follows: Years ended December 31, (In millions) 2018 2017 2016 Class M – Tranche 1 $ 3 $ 8 $ 11 Class M – Tranche 2 4 21 69 LTIP, ESPP and other equity awards 19 16 4 Stock-based compensation expense $ 26 $ 45 $ 84 As of December 31, 2018 , the Class M shares had unrecognized compensation cost of $5 million for Tranche 1 and $4 million for Tranche 2 and the cost is expected to be recognized over a weighted-average period of 1.0 years and 0.6 years , respectively. Unrecognized compensation cost of $16 million for LTIP awards is expected to be recognized over a weighted-average period of 1.0 years . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share The following represents our basic and diluted EPS calculations: Year ended December 31, 2018 (In millions, except per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 857 $ 157 $ 18 $ 5 $ 5 $ 11 Basic weighted average shares outstanding 160.5 29.3 3.4 0.8 1.0 2.1 Dilutive effect of stock compensation plans 0.6 — — — — 0.6 Diluted weighted average shares outstanding 161.1 29.3 3.4 0.8 1.0 2.7 Earnings per share Basic $ 5.34 $ 5.34 $ 5.34 $ 5.34 $ 5.34 $ 5.34 Diluted $ 5.32 $ 5.34 $ 5.34 $ 5.31 $ 5.31 $ 4.11 Year ended December 31, 2017 (In millions, except per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic $ 749 $ 567 $ 24 $ 4 $ 5 $ 9 Effect of stock compensation plans on allocated net income 18 — — — — — Net income – diluted $ 767 $ 567 $ 24 $ 4 $ 5 $ 9 Basic weighted average shares outstanding 107.7 81.6 3.4 0.6 0.7 1.3 Dilutive effect of stock compensation plans 3.3 — — 0.3 0.5 1.6 Diluted weighted average shares outstanding 111.0 81.6 3.4 0.9 1.2 2.9 Earnings per share Basic $ 6.95 $ 6.95 $ 6.95 $ 6.95 $ 6.95 $ 6.95 Diluted $ 6.91 $ 6.95 $ 6.95 $ 5.05 $ 3.86 $ 3.10 Year ended December 31, 2016 (In millions, except per share data) Class A Class B Class M-1 Net income – basic $ 216 $ 556 $ 1 Effect of stock compensation plans on allocated net income 1 — — Net income – diluted $ 217 $ 556 $ 1 Basic weighted average shares outstanding 52.1 134.5 0.2 Dilutive effect of stock compensation plans 1.4 — 4.2 Diluted weighted average shares outstanding 53.5 134.5 4.4 Earnings per share Basic $ 4.14 $ 4.14 $ 4.14 Diluted $ 4.04 $ 4.14 $ 0.20 We use the two-class method for allocating net income to each class of our common stock. Our Class M shares did not become eligible to participate in dividends until a return of investment (ROI) condition had been met for each class. Once eligible, each class of our common stock has equal dividend rights. In conjunction with our IPO in the fourth quarter of 2016, the ROI condition for Class M-1 was met. The ROI condition was met for Class M-2 on March 28, 2017, and for Class M-3 and Class M-4 on April 20, 2017. For purposes of calculating basic weighted average shares outstanding and the allocation of basic income, shares are deemed to be participating in earnings for only the portion of the period after the condition is met. For purposes of calculating diluted weighted average shares outstanding, shares are deemed dilutive as of the beginning of the period. Dilutive shares are calculated using the treasury stock method. For Class A shares, this method takes into account shares that can be settled into Class A shares, net of a conversion price. The diluted EPS calculations for Class A shares excluded the following shares, RSUs and options: Years ended December 31, (In millions) 2018 2017 2016 Antidilutive shares, RSUs and options excluded from diluted EPS calculation 34.7 50.9 113.5 Shares, RSUs and options excluded from diluted EPS calculation as a performance condition had not been met 0.2 1.4 2.5 Total shares, RSUs and options excluded from diluted EPS calculation 34.9 52.3 116.0 Note: Shares, RSUs and options are as of year end. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 14. Accumulated Other Comprehensive Income (Loss) The following is a detail of AOCI and changes in AOCI. Prior period balances include equity securities that were classified as AFS securities prior to the adoption of ASU 2016-01 . December 31, (In millions) 2018 2017 AFS securities $ (766 ) $ 2,577 DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities 154 (703 ) Noncredit component of OTTI losses on AFS securities (19 ) (13 ) Hedging instruments 51 (95 ) Pension adjustments (2 ) (5 ) Foreign currency translation adjustments (3 ) 8 Accumulated other comprehensive income (loss), before taxes (585 ) 1,769 Deferred income taxes 113 (320 ) Accumulated other comprehensive income (loss) $ (472 ) $ 1,449 Changes in AOCI are presented below: Years ended December 31, (In millions) 2018 2017 2016 Unrealized investment gains (losses) on AFS securities Unrealized investment gains (losses) on AFS securities $ (3,291 ) $ 1,680 $ 1,397 Change in DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustment 853 (293 ) (495 ) Less: Reclassification adjustment for gains (losses) realized in net income 1 4 75 20 Less: Income tax expense (benefit) (461 ) 355 262 Net unrealized investment gains (losses) on AFS securities (1,981 ) 957 620 Noncredit component of OTTI losses on AFS securities Noncredit component of OTTI losses on AFS securities (9 ) (5 ) (9 ) Less: Reclassification adjustment for losses realized in net income 1 (3 ) (9 ) (7 ) Less: Income tax expense (benefit) (1 ) 1 — Net noncredit component of OTTI losses on AFS securities (5 ) 3 (2 ) Unrealized gains (losses) on hedging instruments Unrealized gains (losses) on hedging instruments 146 (105 ) (5 ) Less: Income tax expense (benefit) 31 (22 ) (2 ) Net unrealized gains (losses) on hedging instruments 115 (83 ) (3 ) Pension adjustments 3 (1 ) — Foreign currency translation adjustments (11 ) 20 (8 ) Change in AOCI from comprehensive income (loss) (1,879 ) 896 607 Adoption of accounting standards (42 ) 187 — Change in AOCI $ (1,921 ) $ 1,083 $ 607 1 Recognized in investment related gains (losses) on the consolidated statements of income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Income tax expense consists of the following: Years ended December 31, (In millions) 2018 2017 2016 Current $ 78 $ 5 $ (33 ) Deferred 44 101 (28 ) Income tax expense (benefit) $ 122 $ 106 $ (61 ) Income tax expense was calculated based on the following components of income before income taxes: Years ended December 31, (In millions) 2018 2017 2016 Income before income taxes – Bermuda $ 641 $ 1,165 $ 566 Income before income taxes – Germany — 25 12 Income before income taxes – U.S. 534 274 134 Income before income taxes $ 1,175 $ 1,464 $ 712 The expected tax provision computed on pre-tax income at the weighted average tax rate has been calculated as the sum of the pre-tax income in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. Statutory tax rates of 0% and 21% have been used for Bermuda and the United States, respectively, for the year ended December 31, 2018 . Statutory tax rates of 0% , 31% and 35% have been used for Bermuda, Germany and the United States, respectively, for the years ended December 31, 2017 and 2016 . A reconciliation of the difference between the expected tax provision at the weighted average tax rate and income tax expense (benefit) is as follows: Years ended December 31, (In millions) 2018 2017 2016 Expected tax provision computed on pre-tax income at weighted average income tax rate $ 112 $ 104 $ 51 Increase (decrease) in income taxes resulting from: Deferred tax valuation allowance — (5 ) (116 ) Prior year true-up 11 8 1 Corporate owned life insurance (3 ) (8 ) (7 ) Stock compensation expense 1 5 5 Change in statutory tax rates — (7 ) — State taxes and other 1 9 5 Income tax expense (benefit) $ 122 $ 106 $ (61 ) Effective tax rate 10 % 7 % (9 )% Public Law no. 115-97, an Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (Tax Act) was enacted on December 22, 2017 and made key changes to the U.S. tax law, including the reduction of the U.S. statutory tax rate from 35% to 21% . As such, the December 31, 2017 deferred tax balances were remeasured to reflect the reduction in rate and the resulting decrease to the net deferred tax liability is included in change in statutory tax rates of the reconciliation above. During the third quarter of 2016, we identified a tax plan that allows us to use a significant portion of the U.S. non-life insurance companies’ net operating losses and other deductible temporary differences. As a result, we released the corresponding deferred tax valuation allowance of $102 million , as it is more likely than not that these attributes will be realized. Total income taxes were as follows: Years ended December 31, (In millions) 2018 2017 2016 Income tax expense (benefit) $ 122 $ 106 $ (61 ) Income tax expense (benefit) from OCI (431 ) 334 260 Total income taxes $ (309 ) $ 440 $ 199 Current income tax recoverable and deferred tax assets are included in other assets on the consolidated balance sheets, and current income tax payable and deferred tax liabilities are included in other liabilities on the consolidated balance sheets. Current and deferred income tax assets and liabilities were as follows: December 31, (In millions) 2018 2017 Current income tax recoverable $ 36 $ 29 Current income tax payable 33 9 Net current income tax recoverable $ 3 $ 20 Deferred tax assets $ 340 $ 3 Deferred tax liabilities — 46 Net deferred tax assets (liabilities) $ 340 $ (43 ) Deferred income tax assets and liabilities consisted of the following: December 31, (In millions) 2018 2017 1 Deferred tax assets Insurance liabilities $ 1,186 $ 1,402 Net unrealized losses on AFS 112 — Net operating and capital loss carryforwards 78 167 Tax credits — 6 Fixed assets 43 26 Employee benefits 24 37 Other 38 26 Total deferred tax assets 1,481 1,664 Valuation allowance 2 (52 ) (96 ) Deferred tax assets, after valuation allowance 1,429 1,568 Deferred tax liabilities Investments, including derivatives 296 781 Net unrealized gains on AFS — 325 DAC, DSI and VOBA 790 497 Other 3 8 Total deferred tax liabilities 1,089 1,611 Net deferred tax assets (liabilities) $ 340 $ (43 ) 1 Deferred tax balances were remeasured as of December 22, 2017 using the reduced U.S. statutory income tax rate as a result of the Tax Act. 2 A portion of the valuation allowance reduction was recorded in other comprehensive income as of December 31, 2017. As of December 31, 2018 , we have gross deferred tax assets associated with U.S. federal and state net operating losses of $308 million , which will begin to expire in 2022 . The valuation allowance consists of the following: December 31, (In millions) 2018 2017 U.S. federal and state net operating losses and other deferred tax assets $ 52 $ 46 Germany other deferred tax assets — 50 Total valuation allowance $ 52 $ 96 AHL and its Bermuda subsidiaries file protective U.S. income tax returns and its U.S. subsidiaries file income tax returns with the U.S. federal government and various U.S. state governments. AADE is not subject to U.S. federal and state examinations by tax authorities for years prior to 2011, while Athene Annuity & Life Assurance Company of New York (AANY) is not subject to examinations for years prior to 2015. The Internal Revenue Service is currently auditing the 2013 consolidated tax return filed by Athene USA Corporation, and is conducting a limited scope audit of the 2015 consolidated tax return filed by AADE. No material adverse proposed adjustments have been issued with respect to either exam. See discussion of tax examinations relating to Aviva USA and subsidiaries in Note 18 – Commitments and Contingencies . Under current Bermuda law, we are not required to pay any taxes in Bermuda on either income or capital gains. We have received an undertaking from the Bermuda Minister of Finance that, in the event of any such taxes being imposed, the Company will be exempted from taxation until the year 2035. Withholding taxes have not been provided on undistributed earnings of AHL’s U.S. subsidiaries as of December 31, 2018 . Although withholding taxes may apply in the event a dividend is paid by AHL’s U.S. subsidiaries, we have not accrued withholding taxes as we do not intend to remit these earnings. The cumulative amount potentially subject to withholding tax, if distributed, as well as the determination of the potential associated tax liability, is not practicable to compute. Any dividends remitted to AHL from ALRe are not subject to withholding tax. |
Statutory Requirements
Statutory Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Insurance Disclosure [Text Block] | 16. Statutory Requirements Our insurance and reinsurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate including Bermuda, all U.S. states and the District of Columbia. Certain regulations include restrictions that limit the dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the insurance regulatory authorities. The differences between financial statements prepared for insurance regulatory authorities and GAAP financial statements vary by jurisdiction. Bermuda statutory requirements —ALRe, AARe, and Acra Re II Ltd. (ACRA) are each licensed by the Bermuda Monetary Authority (BMA) as long-term insurers and are subject to the Insurance Act 1978, as amended (Bermuda Insurance Act) and regulations promulgated thereunder. The BMA implemented the Economic Balance Sheet (EBS) framework into the Bermuda Solvency Capital Requirement (BSCR), which was granted equivalence to the European Union’s Directive (2009/138/EC) (Solvency II). Under the Bermuda Insurance Act, long-term insurers are required to maintain minimum statutory capital and surplus to meet the minimum margin of solvency (MMS) and the Enhanced Capital Requirement (ECR). For our Class C reinsurer, ACRA, MMS is equal to the greater of $500,000 or 1.5% of the total statutory assets. For our Class E reinsurers, ALRe and AARe, MMS is equal to the greater of $8 million or 2% of the first $500 million of statutory assets plus 1.5% of statutory assets above $500 million . For each class, the ECR is calculated based on a risk-based capital model where risk factor charges are applied to the EBS. As of December 31, 2018 , our Bermuda subsidiaries were in excess of the minimum levels required. As of December 31, 2018 and 2017 , ALRe’s EBS capital and surplus was $12.0 billion and $7.7 billion , respectively, resulting in a BSCR ratio of 340% and 354% , respectively. Under the EBS framework, statutory financial statements are generally equivalent to GAAP financial statements, with the exception of permitted practices granted by the BMA. Our Bermuda subsidiaries have permission in the statutory financial statements to use amortized cost instead of fair value as the basis for certain investments. Additionally, our Bermuda subsidiaries use U.S. statutory reserving principles for the calculation of insurance reserves instead of GAAP, subject to the reserves being proved adequate based on cash flow testing. The following represents the effect of the permitted practices to the statutory financial statements: December 31, 2018 (In millions) ALRe AARe 1 ACRA Increase (decrease) to capital and surplus due to permitted practices $ 554 $ 202 $ (252 ) Increase (decrease) to statutory net income due to permitted practices (705 ) 179 (267 ) 1 AARe has permission to use amortized cost instead of fair value as the basis for certain investments but does not produce GAAP financial statements. The effect of the permitted practices to the AARe statutory financial statements reflects the impact of the difference between amortized cost and fair value for certain investments. Under the Bermuda Insurance Act, our Bermuda subsidiaries are prohibited from paying a dividend in an amount exceeding 25% of the prior year’s statutory capital and surplus, unless at least two members of the companies’ respective board of directors and its principal representative in Bermuda sign and submit to the BMA an affidavit attesting that a dividend in excess of this amount would not cause the subsidiary to fail to meet its relevant margins. In certain instances, the Bermuda subsidiary would also be required to provide prior notice to the BMA in advance of the payment of dividends. In the event that such an affidavit is submitted to the BMA, and further subject to meeting the MMS and ECR requirements, a Bermuda subsidiary is permitted to distribute up to the sum of 100% of statutory surplus and an amount less than 15% of statutory capital. Distributions in excess of this amount require the approval of the BMA. The following represents the maximum distribution our Bermuda subsidiaries would be permitted to remit to its parent without the need for prior approval: December 31, (In millions) 2018 2017 ALRe $ 5,942 $ 5,022 AARe 997 — ACRA — — U.S. statutory requirements —AHL’s regulated U.S. subsidiaries and the corresponding insurance regulatory authorities are as follows: Subsidiary Regulatory Authority AADE Delaware Department of Insurance AANY New York Department of Financial Services ALICNY New York Department of Financial Services AAIA Iowa Insurance Division Structured Annuity Reinsurance Company (STAR) Iowa Insurance Division Athene Re USA IV State of Vermont Department of Financial Regulation Each entity’s statutory statements are presented on the basis of accounting practices determined by the respective regulatory authority. The regulatory authority recognizes only statutory accounting practices prescribed or permitted by the corresponding state for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under insurance law. The maximum dividend these subsidiaries can pay to shareholders, without prior approval of the respective state insurance department, is subject to restrictions relating to statutory surplus or net gain from operations. The maximum dividend payment over a twelve-month period may not, without prior approval, be paid from a source other than earned surplus and may not exceed the greater of (1) the prior year’s net gain from operations or (2) 10% of policyholders’ surplus. Based on these restrictions, the maximum dividend AADE could pay to Athene USA absent regulatory approval was $154 million and $135 million as of December 31, 2018 and 2017 , respectively. Other requirements limit the amount that could be withdrawn from AADE and the maximum AADE could dividend while staying in compliance with these state regulations, which was $310 million and $103 million as of December 31, 2018 and 2017 , respectively. Any dividends from AHL’s other U.S. statutory entities in excess of the amounts allowed for AADE would not be able to be remitted to Athene USA without regulatory approval from the Delaware Department of Insurance. As of December 31, 2018 , our U.S. subsidiaries’ solvency, liquidity and risk-based capital amounts were significantly in excess of the minimum levels required. In some instances, the states of domicile of our U.S. subsidiaries have adopted prescribed accounting practices that differ from the required accounting outlined in National Association of Insurance Commissioners (NAIC) Statutory Accounting Principles (SAP). These subsidiaries also have certain accounting practices permitted by the states of domicile that differ from those found in NAIC SAP. These prescribed and permitted practices are described as follows: AAIA – Among the products issued by AAIA are indexed universal life insurance and fixed indexed annuities. These products allow a portion of the premium to earn interest based on certain indices, primarily the S&P 500. We purchase call options, futures and variance swaps to hedge the growth in interest credited to the customer as a direct result of increases in the related index. The Iowa Insurance Division allows an insurer to elect (1) to use an amortized cost method to account for certain derivative instruments, such as call options, purchased to hedge the growth in interest credited to the customer on indexed insurance products and (2) to use an indexed annuity reserve calculation methodology under which call options associated with the current index interest crediting term are valued at zero. AAIA has elected to apply this option to its over-the-counter call options and reserve liabilities. As a result, AAIA’s statutory surplus increased by $39 million and decreased by $66 million as of December 31, 2018 and 2017 , respectively. Athene Re USA IV – AAIA has ceded the AmerUs Closed Block to Athene Re USA IV on a 100% funds withheld basis. A permitted practice in the State of Vermont allows Athene Re USA IV to include as admitted assets the face amount of all issued and outstanding letters of credit used to fund its reinsurance obligations to AAIA in its statutory financial statements. If Athene Re USA IV had not followed this permitted practice, then it would not have exceeded authorized control level risk based capital requirements. As of December 31, 2018 and 2017 , the face amount of the letters of credit was $153 million . Statutory capital and surplus and net income (loss) —The following table presents, for each of our insurance subsidiaries, the statutory capital and surplus and the statutory net income (loss), based on the most recently filed statutory financial statements filed with insurance regulators: Statutory capital & surplus Statutory net income (loss) December 31, Years ended December 31, (In millions) 2018 2017 2018 2017 2016 ALRe $ 9,659 $ 6,972 $ 418 $ 828 $ 460 AARe 2,095 — 997 — — ACRA 393 — (287 ) — — AADE 1,544 1,348 18 24 71 AANY 282 268 6 29 1 ALICNY 70 76 (22 ) 6 10 AAIA 1,234 1,164 81 239 100 STAR 92 90 9 3 17 Athene Re USA IV 29 25 5 (3 ) (5 ) |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | 17. Related Parties Athene Asset Management Investment related expenses – Substantially all of our investments are managed by AAM, a subsidiary of AGM. AAM provides direct investment management, asset allocation, mergers and acquisition asset diligence and certain operational support services for our investment portfolio, including investment compliance, tax, legal and risk management support. As of December 31, 2018 , AAM directly managed $88,356 million of our investment portfolio assets, of which 84% are designated one or two (the two highest designations) by the NAIC. For the services it renders, AAM earns a fee on all assets managed in accounts owned by or related to us, including sub-advised assets, subject to certain limited exceptions. Additionally, AAM recharges the sub-advisory fees it incurs with respect to our sub-advised assets to us. Historically, AAM generally earned an annual fee of 0.40% of assets under management. In the second quarter of 2017, following shareholder approval of an amendment to our bye-laws, we entered into the Fifth Amended and Restated Fee Agreement (Revised Fee Agreement), retroactive to January 1, 2017. The Revised Fee Agreement amended certain fee arrangements we previously had in place with AAM to provide for, among other things, an annual fee of 0.30% (reduced from 0.40% ) on all assets that Apollo manages in accounts owned by us in the U.S. and Bermuda or in accounts supporting reinsurance ceded to our U.S. and Bermuda subsidiaries by third-party insurers (North American Accounts) in excess of $65,846 million (the level of assets in the North American Accounts as of December 31, 2016). The fee to be paid by us to AAM on the first $65,846 million of assets in the North American Accounts remains 0.40% per year, subject to certain discounts and exceptions. For certain assets which require specialized sourcing and underwriting capabilities, AAM has chosen to mandate sub-advisors rather than building out in-house capabilities. AAM has entered into Master Sub-Advisory Agreements (MSAAs) with certain Apollo affiliates to sub-advise AAM with respect to a portion of our assets, with the fees recharged to us, in addition to the gross fee paid to AAM as described above. The MSAAs cover services rendered by Apollo-affiliated sub-advisors relating to the following investments: December 31, (In millions, except for percentages) 2018 2017 AFS securities Foreign governments $ 153 $ 152 Corporate 3,398 2,934 CLO 5,703 5,166 ABS 663 681 CMBS 880 872 Trading securities 87 121 Equity securities 2 — Mortgage loans 3,507 2,232 Investment funds 157 26 Funds withheld at interest 4,126 1,737 Other investments 70 75 Total assets sub-advised by Apollo affiliates $ 18,746 $ 13,996 Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets 18 % 18 % AAM and certain other Apollo affiliates entered into addendums to the MSAAs in 2017, retroactive to January 1, 2017, pursuant to which, with limited exceptions, Apollo will earn 0.40% per year on all assets in the North American Accounts explicitly sub-advised by Apollo up to $10,000 million , 0.35% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $10,000 million up to $12,441 million (the level of fee-paying sub-advised assets in the North American Accounts at December 31, 2016), 0.40% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $12,441 million up to $16,000 million , and 0.35% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $16,000 million . Apollo Asset Management Europe We had an investment advisory agreement with Apollo Asset Management Europe (together with certain of its affiliates, AAME), also a subsidiary of AGM, for advisory services for all of Athora’s investment portfolio, with certain exceptions. Primarily excluded were assets held in German special investment funds managed or advised by Apollo or its affiliates, to the extent the entity received a management or advisory fee in connection with the fund. As compensation for the investment advisory services rendered, AAME received a fee of 0.10% per year on the assets it sub-advised. As of December 31, 2017, the total assets sub-advised by AAME were $4,153 million . Affiliates of AAME received an advisory fee of 0.35% per year on certain German special investment funds and our investment in a sub-fund of Apollo Capital Efficient Fund I (ACE fund), as well as a pro rata share of operating expenses up to 0.30% on the ACE fund. As of December 31, 2017 , the German special investment funds totaled $1,190 million , and the ACE fund totaled $97 million . The fees incurred for management of these funds are included in sub-advisory fees in the table below. Asset management and sub-advisory fees— The following summarizes the asset management fees and sub-advisory fees we have incurred related to AAM, AAME and other Apollo affiliates: Years ended December 31, (In millions) 2018 2017 2016 Asset management fees $ 290 $ 261 $ 229 Sub-advisory fees 59 57 66 The management and sub-advisory fees are included within net investment income on the consolidated statements of income. As of December 31, 2018 and 2017 , the management fees payable was $34 million and $28 million , respectively, and the sub-advisory fees payable was $20 million and $13 million , respectively. Both the management and sub-advisory fees payables are included in other liabilities on the consolidated balance sheets. Our bye-laws currently provide that we may not, and will cause our subsidiaries not to, terminate any IMA among us or any of our subsidiaries, on the one hand, and AAM, on the other hand, before any annual anniversary of October 31 (each such date, an IMA Termination Election Date) and any termination on an IMA Termination Election Date requires (i) the approval of two-thirds of our Independent Directors (as defined in the bye-laws) and (ii) prior written notice to AAM of such termination at least 30 days’ prior to an IMA Termination Election Date. If our Independent Directors make such election to terminate and notice of such termination is delivered, the termination will be effective on the second anniversary of the applicable IMA Termination Election Date (IMA Termination Effective Date). Notwithstanding the foregoing, (A) except as set forth in (B) below, our Independent Directors may only elect to terminate an IMA on an IMA Termination Election Date if two-thirds of our Independent Directors determine, in their sole discretion and acting in good faith, that either (i) there has been unsatisfactory long-term performance materially detrimental to us by AAM or (ii) the fees being charged by AAM are unfair and excessive compared to a comparable asset manager (provided, that in either case such Independent Directors must deliver notice of any such determination to AAM and AAM will have until the applicable IMA Termination Effective Date to address such concerns, and provided, further, that in the case of such a determination that the fees being charged by Apollo are unfair and excessive, Apollo has the right to lower its fees to match the fees of such comparable asset manager) and (B) upon the determination by two-thirds of our Independent Directors, we or our subsidiaries may also terminate an IMA with AAM as a result of either (i) a material violation of law relating to AAM’s advisory business, or (ii) AAM’s gross negligence, willful misconduct or reckless disregard of its obligations under the relevant agreement, and in either case, the delivery of written notice at least 30 days’ prior to such termination and such termination will be effective at the end of such 30-day period (the events described in the foregoing clauses (A) and (B) are referred to in more detail in our bye-laws as “AHL Cause”). We have a management investment committee, which includes members of our senior management and reports to the risk committee of our board of directors. The committee focuses on strategic decisions involving our investment portfolio, such as approving investment limits, new asset classes and our allocation strategy, reviewing large asset transactions, as well as monitoring our credit risk, and the management of our assets and liabilities. A significant voting interest in the Company is held by shareholders who are members of the Apollo Group, as defined in our bye-laws. Also, James Belardi, our Chief Executive Officer, is also an employee of AAM, receives substantial remuneration from acting as Chief Executive Officer of AAM, and owns a 5% profits interest in AAM. Additionally, six of the fifteen members of our board of directors are employees of or consultants to Apollo (including Mr. Belardi). In order to protect against potential conflicts of interest resulting from transactions into which we have entered and will continue to enter into with the Apollo Group, our bye-laws require us to maintain a conflicts committee comprised solely of three of our directors who are not officers or employees of any member of the Apollo Group. The conflicts committee reviews and approves material transactions between us and the Apollo Group, subject to certain exceptions. Other related party transactions A-A Mortgage – We have an equity method investment of $463 million and $403 million as of December 31, 2018 and 2017 , respectively, in A-A Mortgage, which has an investment in AmeriHome Mortgage Company, LLC (AmeriHome). We have a loan purchase agreement with AmeriHome. The agreement allows us to purchase residential mortgage loans which AmeriHome has purchased from correspondent sellers and pooled for sale in the secondary market. AmeriHome retains the servicing rights to the sold loans. We purchased $722 million , $57 million and $22 million of residential mortgage loans under this agreement during the years ended December 31, 2018 , 2017 and 2016 , respectively. Additionally, we purchased ABS securities issued by AmeriHome affiliates in the amount of $122 million during the year ended December 31, 2018 , which are included in related party AFS securities on the consolidated balances sheets. Previously, we had loans due from A-A Mortgage affiliates in the principal amount of $52 million as of December 31, 2017 , and these were included in related party short-term investments on the consolidated balance sheets. The loans were repaid in 2018 . We also have commitments to make additional equity investments in A-A Mortgage of $125 million as of December 31, 2018 . MidCap – CoInvest VII holds a significant investment in MidCap, which is included in investment funds of consolidated VIEs on the consolidated balance sheets. We have also advanced amounts under a subordinated debt facility to Midcap and, as of December 31, 2018 and 2017 , the principal balance was $245 million , which is included in other related party investments on the consolidated balance sheets. Our total investment in MidCap, including amounts advanced under credit facilities, totaled $791 million and $766 million as of December 31, 2018 and 2017 , respectively. Additionally, we purchased ABS and CLO securities issued by MidCap affiliates during the years ended December 31, 2018 , 2017 , and 2016 of $142 million , $88 million , and $4 million , respectively, which are included in related party AFS securities on the consolidated balance sheets. Athora – On January 1, 2018, in order to align our interests with those of Athora, in connection with the closing of the Athora Offering, we entered into a cooperation agreement with Athora, pursuant to which, among other things, (1) we have the right to reinsure approximately 20% of the spread business written or reinsured by any insurance or reinsurance company owned or acquired by Athora, (2) Athora’s insurance subsidiaries are required to purchase certain funding agreements and/or other spread instruments issued by our insurance subsidiaries, (3) we provide Athora with a right of first refusal to pursue acquisition and reinsurance transactions in Europe (other than the United Kingdom (UK)) and (4) Athora provides us and our subsidiaries with a right of first refusal to pursue acquisition and reinsurance transactions in North America and the UK. Our investment in Athora, which is included in related party investment funds on the consolidated balance sheets, was $105 million as of December 31, 2018 . During the fourth quarter of 2018, Athora called capital and we remitted $20 million to Athora as a result. However, as the capital call was not yet fully funded by other parties, Athora has not issued shares to us and other shareholders; therefore, we have recorded a receivable in other assets on the consolidated balance sheets for the capital funding. Additionally, as of December 31, 2018 , we had $166 million of funding agreements outstanding to Athora, which were issued to Athora prior to Closing . We also have commitments to make additional equity investments in Athora of $307 million as of December 31, 2018 . VA Capital and Venerable Holdings, Inc. (Venerable) – In connection with the Voya reinsurance transactions, we made a $75 million minority equity investment in VA Capital, which is included in investments in related parties – investment funds on the consolidated balance sheets and accounted for as an equity method investment. VA Capital is owned by a consortium of investors, led by affiliates of AGM, Crestview Partners and Reverence Capital Partners, and is the holding company of Venerable. Additionally, we provided Venerable with a $150 million , 15-year term loan, which is held at amortized cost and included in investment in related parties – other investments on the consolidated balance sheets. While management views the overall transactions with Voya and Venerable as favorable to us, the stated interest rate of 6.257% on the term loan to Venerable represents a below-market interest rate, and management considered such rate as part of its evaluation and pricing of the Voya reinsurance transactions. Venerable is the holding company of VIAC. Strategic Partnership – On October 24, 2018, we entered into an agreement pursuant to which we may invest up to $2.5 billion over three years in funds managed by Apollo entities. This arrangement is intended to permit us to invest across the Apollo alternatives platform into credit-oriented, strategic and other alternative investments in a manner and size that is consistent with our existing investment strategy. Fees for such investments payable by us to Apollo would be more favorable to us than market rates, and consistent with our existing alternative investments, investments made under the Strategic Partnership require approval of AAM and remain subject to our existing governance processes, including approval by our conflicts committee where applicable. During the fourth quarter of 2018, we invested $16 million under the Strategic Partnership and these investments are classified as investment funds of consolidated VIEs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Contingent Commitments —We had commitments to make investments, primarily capital contributions to investment funds, inclusive of related party commitments discussed previously, of $3,036 million a nd $2,358 million as of December 31, 2018 and 2017 , respectively. We expect most of our current commitments will be invested over the next five years; however, these commitments could become due any time upon counterparty request. Funding Agreements —We are a member of the Federal Home Loan Bank (FHLB) and, through membership, we have issued funding agreements to the FHLB in exchange for cash advances. As of December 31, 2018 and 2017 , we had $926 million and $573 million , respectively, of funding agreements outstanding with the FHLB. We are required to provide collateral in excess of the funding agreement amounts outstanding, considering any discounts to the securities posted and prepayment penalties. We have a funding agreement backed notes (FABN) program, which allows Athene Global Funding, a special-purpose, unaffiliated statutory trust, to offer up to $10 billion of its senior secured medium-term notes. Athene Global Funding uses the net proceeds from each sale to purchase one or more funding agreements from us. As of December 31, 2018 and 2017 , we had $2,700 million and $2,996 million , respectively, of FABN funding agreements outstanding. Pledged Assets and Funds in Trust (Restricted Assets)— The total restricted assets included on the consolidated balance sheets are as follows: December 31, (In millions) 2018 2017 AFS securities $ 5,439 $ 1,572 Trading securities 68 — Equity securities 2 36 Mortgage loans 1,830 914 Investment funds 53 20 Derivative assets 24 — Short-term investments 77 10 Other investments 47 — Restricted cash 492 105 Total restricted assets $ 8,032 $ 2,657 The restricted assets are primarily related to reinsurance trusts established in accordance with coinsurance agreements and the FHLB funding agreements described above. Letter of Credit —We have an unused letter of credit for $230 million as of December 31, 2018 . This letter of credit was issued for our reinsurance program and expires in two years. Litigation, Claims and Assessments Griffiths Matter – On July 27, 2015, John Griffiths, on behalf of himself and others similarly situated, filed a putative class action complaint against us in the United States District Court for the District of Massachusetts. An amended complaint was filed on December 18, 2015. The complaint asserted claims against AHL, AAIA and Athene London Assignment Corporation (Athene London), in addition to an Aviva defendant. AHL is a named defendant due to its purchase of Aviva USA, and AAIA and Athene London are named as successors to Aviva Life Insurance Company and Aviva London Assignment Corporation, respectively. The complaint alleged a putative class of all persons who are the beneficial owners of assets which were used to purchase structured settlement annuities that Aviva Life Insurance Company, Aviva London Assignment Corporation, and Aviva International Insurance Limited (collectively, the Aviva Entities) or their predecessors, as applicable, delivered to purchasers on or after April 1, 2003 that were backed by a capital maintenance agreement issued by Aviva International Insurance Limited or its predecessor (the CMA). The complaint alleged that the Aviva Entities sold structured settlement annuities to the public on the basis that such products were backed by the CMA, which was alleged to be a source of great financial strength. The complaint further alleged that the Aviva Entities used the CMA to enhance the sales volume and raise the price of the annuities. The complaint claimed that, as a result of Aviva USA’s sale to AHL, the CMA terminated. According to the complaint, no notice of this termination was provided to the owners of the structured settlement annuities. The complaint alleged that the termination of the CMA gave rise to claims for breach of contract, breach of fiduciary duty, promissory estoppel, and unjust enrichment. AHL and plaintiff agreed to a term sheet settlement on a class-wide basis. On November 8, 2018, the court dismissed the action pursuant to the settlement approval which required AHL to: (1) enter into a capital maintenance agreement with Athene London requiring AHL to provide capital to Athene London upon a missed structured settlement payment that is not timely cured and (2) pay a monetary amount that is immaterial to us. We have complied with the settlement. Internal Revenue Service (IRS) Matters – The IRS completed its examinations of the 2006 through 2010 and 2011 through 2012 Aviva USA tax years with Aviva USA agreeing to all proposed adjustments with two exceptions: (1) AAIA’s treatment of call options used to hedge fixed indexed annuity (FIA) liabilities and (2) the disallowance of offsetting tax deductions taken by AAIA and taxable income reported by the non-life subgroup with respect to unpaid independent marketing organization commissions. Athene USA filed suit in federal court contesting the IRS’s position after negotiations proved unsuccessful. We resolved this matter with the IRS through a Closing Agreement on Final Determination Covering Specific Matters (Form 906). The resolution did not have a material impact on our financial position or results of operations. The court dismissed the matter on December 17, 2018. Corporate-owned Life Insurance (COLI) Matter – In 2000 and 2001, two insurance companies which were subsequently merged into AAIA purchased from American General Life Insurance Company (American General) broad based variable COLI policies that, as of December 31, 2018 , had an asset value of $362 million , and is included in other assets on the consolidated balance sheets. In January 2012, the COLI policy administrator delivered to AAIA a supplement to the existing COLI policies and advised that American General and ZC Resource Investment Trust (ZC Trust) had unilaterally implemented changes set forth in the supplement that if effective, would: (1) potentially negatively impact the crediting rate for the policies and (2) change the exit and surrender protocols set forth in the policies. In March 2013, AAIA filed suit against American General, ZC Trust, and ZC Resource LLC in Chancery Court in Delaware, seeking, among other relief, a declaration that the changes set forth in the supplement were ineffectual and in breach of the parties’ agreement. The parties filed cross motions for judgment as a matter of law, and the court granted defendants’ motion and dismissed without prejudice on ripeness grounds. The issue that negatively impacts the crediting rate for one of the COLI policies has subsequently been triggered and on April 3, 2018, we filed suit against the same defendants in Chancery Court in Delaware seeking substantially similar relief, which the defendants have moved to dismiss. The Court heard oral arguments on February 13, 2019 and has taken the matter under advisement. If the supplement is ultimately deemed to be effective, the purported changes to the policies could impair AAIA’s ability to access the value of guarantees associated with the policies. The value of the guarantees included within the asset value reflected above is $187 million as of December 31, 2018 . Holzer Matter – On September 12, 2016, Jack Holzer and Mary Bruesh-Holzer filed suit in Jackson County, Missouri against several defendants, including AADE, as successor-in-interest to Business Men’s Assurance Company of America. Mr. Holzer allegedly sustained injuries due to asbestos exposure from 1966–1973 while working in an office building in Kansas City, Missouri, then owned by Business Men’s Assurance Company of America. Plaintiffs asserted strict liability and negligence claims against AADE. On February 26, 2018, an agreement was reached that resulted in the settlement of this matter. The settlement had no impact on our financial condition, results of operations or cash flows. Regulatory Matters – Our U.S. insurance subsidiaries have experienced increased service and administration complaints related to the conversion and administration of the block of life insurance business acquired in connection with our acquisition of Aviva USA and reinsured to affiliates of Global Atlantic. The life insurance policies included in this block have been and are currently being administered by AllianceOne Inc. (AllianceOne), a subsidiary of DXC Technology Company, which was retained by such Global Atlantic affiliates to provide services on such policies. AllianceOne also administers certain annuity policies that were on Aviva USA’s legacy policy administration systems that were also converted in connection with the acquisition of Aviva USA and have experienced similar service and administration issues. As a result of the difficulties experienced with respect to the administration of such policies, we have received notifications from several state regulators, including but not limited to the New York State Department of Financial Services (NYSDFS), the California Department of Insurance (CDI) and the Texas Department of Insurance, indicating, in each case, that the respective regulator planned to undertake a market conduct examination or enforcement proceeding of the applicable U.S. insurance subsidiary relating to the treatment of policyholders subject to our reinsurance agreements with affiliates of Global Atlantic and the conversion of such annuity policies, including the administration of such blocks by AllianceOne. On June 28, 2018 we entered into a consent order with the NYSDFS resolving that matter in a manner that, when considering the indemnification received from affiliates of Global Atlantic, did not have a material impact on our financial condition, results of operations or cash flows. In addition to the foregoing, we have received inquiries, and expect to continue to receive inquiries, from other regulatory authorities regarding the conversion matter. In addition to the examinations and proceedings initiated to date, it is possible that other regulators may pursue similar formal examinations, inquiries or enforcement proceedings and that any examinations, inquiries and/or enforcement proceedings may result in fines, administrative penalties and payments to policyholders. While we do not expect the amount of any such fines, penalties or payments arising from these matters to be material to our financial condition, results of operations or cash flows, it is possible that such amounts could be material. Pursuant to the terms of the reinsurance agreements between us and the relevant affiliates of Global Atlantic, the applicable affiliates of Global Atlantic have financial responsibility for the ceded life block and are subject to significant administrative service requirements, including compliance with applicable law. The agreements also provide for indemnification to us, including for administration issues. On January 23, 2019, we received a letter from the NYSDFS, with respect to a recent PRT transaction, which expressed concerns with our interpretation and reliance upon certain exemptions from licensing in New York in connection with certain activities performed by employees in our PRT channel, including specific activities performed within New York. We are currently in discussions with the NYSDFS to identify approaches to resolve its concerns. Reasonably possible losses, if any, cannot be estimated at this time. Caldera Matters – On May 3, 2018, AHL filed a writ commencing litigation in the Supreme Court of Bermuda against a former officer of AHL, a former director of AHL (who is also considered a former officer pursuant to Bermuda law), and Caldera Holdings, Ltd. (Caldera). AHL alleges in the writ, among other things, that the defendants breached various duties owed to AHL under Bermuda law by using AHL’s confidential information in their attempted acquisition of a company referred to in the litigation as Company A. AHL is seeking injunctive relief and damages. On May 3, 2018, following AHL’s filing of the writ in Bermuda described above, Caldera, Caldera Life Reinsurance Company, and Caldera Shareholder, L.P., commenced an action in the Supreme Court of the State of New York, County of New York, by filing a Summons with Notice against AHL, Apollo, certain affiliates of Apollo and Leon Black, a founder of Apollo. On July 12, 2018, plaintiffs filed a complaint alleging claims for tortious interference with prospective business relations, defamation, and unfair competition related to plaintiffs’ attempt to purchase Company A and seeking alleged damages of “no less than $1.5 billion .” AHL has moved to dismiss the complaint. On January 21, 2019, plaintiffs filed an amended complaint, which revised certain allegations about jurisdiction, venue and the merits of the plaintiffs’ claims. We intend to renew our motion to dismiss. We believe we have meritorious defenses to the claims and intend to vigorously defend the litigation. In light of the inherent uncertainties involved in this matter, reasonably possible losses, if any, cannot be estimated at this time. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 19. Segment Information We operate our core business strategies out of one reportable segment, Retirement Services . In addition to Retirement Services , we report certain other operations in Corporate and Other. Retirement Services — Retirement Services is comprised of our United States and Bermuda operations, which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to our policyholders. Retirement Services also has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one-year guarantee fixed deferred annuities, immediate annuities and institutional products from our reinsurance partners. In addition, our institutional operations, including funding agreements and pension risk transfer obligations, are included in our Retirement Services segment. Corporate and Other — Corporate and Other includes certain other operations related to our corporate activities and prior to January 1, 2018, included our former German operations, which were primarily comprised of participating long-duration savings products. Included in Corporate and Other are corporate allocated expenses, merger and acquisition costs, debt costs, certain integration and restructuring costs, certain stock-based compensation and intersegment eliminations. In Corporate and Other, we also hold capital in excess of the level of capital we hold in Retirement Services to support our operating strategy. See Note 1 – Business, Basis of Presentation and Significant Accounting Policies for discussion on the deconsolidation of our German operations in 2018. Financial Measures —Segment adjusted operating income and net investment earnings are internal measures used by the chief operating decision maker to evaluate and assess the results of our segments. Adjusted operating revenue is a component of adjusted operating income and excludes market volatility and adjustments for other non-operating activity. Our adjusted operating revenue equals our total revenue, adjusted to eliminate the impact of the following non-operating adjustments: • Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets; • Investment gains (losses), net of offsets; • VIE expenses and noncontrolling interest; and • Other adjustments to revenues. The table below reconciles segment adjusted operating revenues to total revenues presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 8,118 $ 5,960 $ 3,330 Corporate and Other 44 368 268 Non-operating adjustments Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets (1,020 ) 1,990 324 Investment gains (losses), net of offsets (515 ) 461 164 VIE expenses and noncontrolling interest 1 — 13 Other adjustments to revenues (85 ) (52 ) 6 Total revenues $ 6,543 $ 8,727 $ 4,105 Adjusted operating income is an internal measure used to evaluate our financial performance excluding market volatility and expenses related to integration, restructuring, stock compensation and certain other expenses. Our adjusted operating income equals net income adjusted to eliminate the impact of the following non-operating adjustments: • Investment gains (losses), net of offsets; • Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets; • Integration, restructuring and other non-operating expenses; • Stock-based compensation, excluding LTIP; and • Income tax (expense) benefit – non-operating. The table below reconciles segment adjusted operating income to net income presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 1,201 $ 1,038 $ 808 Corporate and other (61 ) 17 (49 ) Non-operating adjustments Investment gains (losses), net of offsets (274 ) 199 47 Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 242 230 67 Integration, restructuring and other non-operating expenses (22 ) (68 ) (22 ) Stock-based compensation, excluding LTIP (11 ) (33 ) (82 ) Income tax (expense) benefit – non-operating (22 ) (25 ) 4 Net income $ 1,053 $ 1,358 $ 773 Net investment earnings used to evaluate the performance of our segments is an internal measure that does not correspond to GAAP net investment income. Adjustments are made to GAAP net investment income to arrive at a net investment earnings measure that reflects the profitability of our core deferred annuities business. Accordingly, we adjust net investment income to include earnings from our consolidated VIEs and earnings on certain alternative investments (primarily CLOs) classified in investment related gains (losses) on the consolidated statements of income. Additionally, we adjust for impacts of reinsurance embedded derivatives on net investment income. The table below reconciles segment net investment earnings to net investment income presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 4,188 $ 3,241 $ 2,953 Corporate and Other 44 182 77 Adjustments to net investment income Reinsurance embedded derivative impacts (301 ) (191 ) (189 ) Net VIE earnings (37 ) (77 ) (1 ) Alternative income (gains) losses 34 20 39 Held for trading amortization 76 94 35 Net investment income $ 4,004 $ 3,269 $ 2,914 Adjusted operating income excludes the income tax impact of the taxable non-operating adjustments presented above. The income tax expense of non-operating income adjustments is comprised of the appropriate jurisdiction’s tax rate applied to the non-operating adjustments subject to income tax, as well as the amount recorded for the change in the U.S. statutory rate resulting from the recently enacted Tax Act. The table below reconciles segment provision for income taxes – operating to income tax expense presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 100 $ 83 $ (53 ) Corporate and Other — (2 ) (4 ) Income tax (expense) benefit – non-operating 22 25 (4 ) Income tax expense (benefit) $ 122 $ 106 $ (61 ) The following represents total assets by segment: December 31, (In millions) 2018 2017 Retirement Services $ 123,498 $ 91,749 Corporate and Other 2,007 8,412 Total assets $ 125,505 $ 100,161 We market annuity products, primarily fixed rate and fixed indexed annuities. Deposits, which are generally not included in revenues on the consolidated statements of income, and premiums collected are as follows: Years ended December 31, (In millions) 2018 2017 2016 Fixed indexed annuities $ 29,973 $ 5,480 $ 5,322 Fixed rate annuities 5,501 873 3,565 Payouts without life contingencies 535 106 107 Funding agreements 650 3,054 — Life and other deposits 4 33 24 Total deposits 36,663 9,546 9,018 Payouts with life contingencies 3,314 2,211 21 Life and other premiums 54 254 219 Total premiums 3,368 2,465 240 Total premiums and deposits, net of ceded $ 40,031 $ 12,011 $ 9,258 Deposits and premiums collected by the geographical location are as follows: Years ended December 31, (In millions) 2018 2017 2016 United States $ 16,369 $ 11,156 $ 5,617 Bermuda 23,662 652 3,429 Germany — 203 212 Total premiums and deposits, net of ceded $ 40,031 $ 12,011 $ 9,258 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | 20. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations for the years ended December 31, 2018 and 2017 are summarized in the table below, as adjusted for revisions discussed further in Note 2 – Financial Statement Revisions : Three months ended March 31 June 30 September 30 December 31 (In millions, except per share data) Prior Reported Revision As Adjusted Prior Reported Revision As Adjusted Prior Reported Revision As Adjusted Prior Reported Revision As Adjusted 2018 Total revenues $ 1,011 $ — $ 1,011 $ 1,797 $ 5 $ 1,802 $ 2,588 $ (12 ) $ 2,576 N/A N/A $ 1,154 Total benefits and expenses 684 5 689 1,467 14 1,481 1,882 15 1,897 N/A N/A 1,301 Net income (loss) 268 9 277 264 (7 ) 257 640 (17 ) 623 N/A N/A (104 ) Earnings (loss) per share Basic – All classes $ 1.36 $ 0.04 $ 1.40 $ 1.34 $ (0.04 ) $ 1.30 $ 3.24 $ (0.08 ) $ 3.16 N/A N/A $ (0.53 ) Diluted – Class A 1.36 0.04 1.40 1.33 (0.03 ) 1.30 3.23 (0.08 ) 3.15 N/A N/A (0.53 ) Diluted – Class B 1.36 0.04 1.40 1.34 (0.04 ) 1.30 3.24 (0.08 ) 3.16 N/A N/A (0.53 ) Diluted – Class M-1 1.36 0.04 1.40 1.34 (0.04 ) 1.30 3.24 (0.08 ) 3.16 N/A N/A (0.53 ) Diluted – Class M-2 1.34 0.05 1.39 1.33 (0.04 ) 1.29 3.24 (0.08 ) 3.16 N/A N/A (0.53 ) Diluted – Class M-3 1.33 0.05 1.38 1.34 (0.04 ) 1.30 3.24 (0.08 ) 3.16 N/A N/A (0.53 ) Diluted – Class M-4 0.94 0.03 0.97 1.04 (0.02 ) 1.02 2.49 (0.07 ) 2.42 N/A N/A (0.53 ) 2017 Total revenues $ 1,619 $ — $ 1,619 $ 1,763 $ — $ 1,763 $ 1,473 $ — $ 1,473 $ 3,872 $ — $ 3,872 Total benefits and expenses 1,213 9 1,222 1,426 24 1,450 1,179 27 1,206 3,374 11 3,385 Net income 384 (7 ) 377 326 (28 ) 298 274 (30 ) 244 464 (25 ) 439 Earnings per share Basic – All classes 1 $ 2.00 $ (0.04 ) $ 1.96 $ 1.66 $ (0.14 ) $ 1.52 $ 1.40 $ (0.15 ) $ 1.25 $ 2.36 $ (0.13 ) $ 2.23 Diluted – Class A 1.92 (0.03 ) 1.89 1.65 (0.14 ) 1.51 1.39 (0.15 ) 1.24 2.35 (0.13 ) 2.22 Diluted – Class B 2.00 (0.04 ) 1.96 1.66 (0.14 ) 1.52 1.40 (0.15 ) 1.25 2.36 (0.13 ) 2.23 Diluted – Class M-1 2.00 (0.04 ) 1.96 1.66 (0.14 ) 1.52 1.40 (0.15 ) 1.25 2.36 (0.13 ) 2.23 Diluted – Class M-2 0.08 — 0.08 1.64 (0.15 ) 1.49 1.39 (0.15 ) 1.24 2.34 (0.13 ) 2.21 Diluted – Class M-3 1 N/A N/A N/A 1.00 (0.09 ) 0.91 1.07 (0.12 ) 0.95 2.10 (0.11 ) 1.99 Diluted – Class M-4 1 N/A N/A N/A 0.76 (0.07 ) 0.69 0.79 (0.09 ) 0.70 1.49 (0.08 ) 1.41 N/A – Not applicable. 1 Class M-3 and Class M-4 were eligible to participate in dividends beginning in the three months ended June 30, 2017. Prior to being eligible to participate in dividends, no earnings were attributable to those classes. See Note 13 – Earnings Per Share for further discussion. The tables below represent the effects of the revisions discussed in Note 2 – Financial Statement Revisions to the previously filed condensed consolidated statements of income, comprehensive income (loss), and cash flows in Quarterly Reports on Form 10-Q. The condensed consolidated statements of equity were adjusted only for the effects of net income and comprehensive income (loss) as shown below. The following represents the effects of the revisions on the condensed consolidated statements of income: Three months ended March 31, 2018 (In millions, except per share data) Previously Reported Revisions Adjusted Benefits and Expenses Interest sensitive contract benefits $ 19 $ 12 $ 31 Amortization of deferred acquisition costs and value of business acquired 89 (7 ) 82 Total benefits and expenses 684 5 689 Income before income taxes 327 (5 ) 322 Income tax expense (benefit) 59 (14 ) 45 Net income $ 268 $ 9 $ 277 Earnings per share Basic – All classes $ 1.36 $ 0.04 $ 1.40 Diluted – Class A 1.36 0.04 1.40 Diluted – Class B 1.36 0.04 1.40 Diluted – Class M-1 1.36 0.04 1.40 Diluted – Class M-2 1.34 0.05 1.39 Diluted – Class M-3 1.33 0.05 1.38 Diluted – Class M-4 0.94 0.03 0.97 June 30, 2018 Three months ended Six months ended (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Revenues Premiums $ 726 $ 5 $ 731 $ 1,004 $ 5 $ 1,009 Total revenues 1,797 5 1,802 2,808 5 2,813 Benefits and Expenses Interest sensitive contract benefits 332 10 342 351 22 373 Future policy and other policy benefits 857 7 864 1,258 7 1,265 Amortization of deferred acquisition costs and value of business acquired 92 (3 ) 89 181 (10 ) 171 Total benefits and expenses 1,467 14 1,481 2,151 19 2,170 Income before income taxes 330 (9 ) 321 657 (14 ) 643 Income tax expense (benefit) 66 (2 ) 64 125 (16 ) 109 Net income $ 264 $ (7 ) $ 257 $ 532 $ 2 $ 534 Earnings per share Basic – All classes $ 1.34 $ (0.04 ) $ 1.30 $ 2.70 $ 0.01 $ 2.71 Diluted – Class A 1.33 (0.03 ) 1.30 2.69 0.01 2.70 Diluted – Class B 1.34 (0.04 ) 1.30 2.70 0.01 2.71 Diluted – Class M-1 1.34 (0.04 ) 1.30 2.70 0.01 2.71 Diluted – Class M-2 1.33 (0.04 ) 1.29 2.67 0.01 2.68 Diluted – Class M-3 1.34 (0.04 ) 1.30 2.67 0.01 2.68 Diluted – Class M-4 1.04 (0.02 ) 1.02 1.98 — 1.98 September 30, 2018 Three months ended Nine months ended (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Revenues Premiums $ 531 $ (5 ) $ 526 $ 1,535 $ — $ 1,535 Investment related gains (losses) 823 (7 ) 816 585 (7 ) 578 Total revenues 2,588 (12 ) 2,576 5,396 (7 ) 5,389 Benefits and Expenses Interest sensitive contract benefits 741 1 742 1,092 23 1,115 Future policy and other policy benefits 920 8 928 2,178 15 2,193 Amortization of deferred acquisition costs and value of business acquired 30 6 36 211 (4 ) 207 Total benefits and expenses 1,882 15 1,897 4,033 34 4,067 Income before income taxes 706 (27 ) 679 1,363 (41 ) 1,322 Income tax expense (benefit) 66 (10 ) 56 191 (26 ) 165 Net income $ 640 $ (17 ) $ 623 $ 1,172 $ (15 ) $ 1,157 Earnings per share Basic – Classes A, B, M-1, M-2, M-3 and M-4 $ 3.24 $ (0.08 ) $ 3.16 $ 5.94 $ (0.08 ) $ 5.86 Diluted – Class A 3.23 (0.08 ) 3.15 5.92 (0.07 ) 5.85 Diluted – Class B 3.24 (0.08 ) 3.16 5.94 (0.08 ) 5.86 Diluted – Class M-1 3.24 (0.08 ) 3.16 5.94 (0.08 ) 5.86 Diluted – Class M-2 3.24 (0.08 ) 3.16 5.90 (0.07 ) 5.83 Diluted – Class M-3 3.24 (0.08 ) 3.16 5.90 (0.07 ) 5.83 Diluted – Class M-4 2.49 (0.07 ) 2.42 4.42 (0.06 ) 4.36 The following represents the effects of the revisions on the condensed consolidated statements of comprehensive income (loss): Three months ended March 31, 2018 (In millions) As Previously Reported Revisions As Adjusted Net income $ 268 $ 9 $ 277 Other comprehensive income (loss), before tax Unrealized investment gains (losses) on available-for-sale securities (910 ) 19 (891 ) Other comprehensive income (loss), before tax (971 ) 19 (952 ) Income tax expense (benefit) related to other comprehensive income (183 ) 4 (179 ) Other comprehensive income (loss) (788 ) 15 (773 ) Comprehensive income (loss) $ (520 ) $ 24 $ (496 ) June 30, 2018 Three months ended Six months ended (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 264 $ (7 ) $ 257 $ 532 $ 2 $ 534 Other comprehensive loss, before tax Unrealized investment gains (losses) on available-for-sale securities (667 ) (35 ) (702 ) (1,577 ) (16 ) (1,593 ) Other comprehensive loss, before tax (568 ) (35 ) (603 ) (1,539 ) (16 ) (1,555 ) Income tax benefit related to other comprehensive loss (109 ) (7 ) (116 ) (292 ) (3 ) (295 ) Other comprehensive loss (459 ) (28 ) (487 ) (1,247 ) (13 ) (1,260 ) Comprehensive loss $ (195 ) $ (35 ) $ (230 ) $ (715 ) $ (11 ) $ (726 ) September 30, 2018 Three months ended Nine months ended (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 640 $ (17 ) $ 623 $ 1,172 $ (15 ) $ 1,157 Other comprehensive loss, before tax Unrealized investment gains (losses) on available-for-sale securities (103 ) (37 ) (140 ) (1,680 ) (53 ) (1,733 ) Other comprehensive loss, before tax (100 ) (37 ) (137 ) (1,639 ) (53 ) (1,692 ) Income tax benefit related to other comprehensive loss (17 ) (6 ) (23 ) (309 ) (9 ) (318 ) Other comprehensive loss (83 ) (31 ) (114 ) (1,330 ) (44 ) (1,374 ) Comprehensive income (loss) $ 557 $ (48 ) $ 509 $ (158 ) $ (59 ) $ (217 ) The following represents the effects of the revisions on the condensed consolidated statements of cash flows: Three months ended March 31, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 268 $ 9 $ 277 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 89 (7 ) 82 Changes in operating assets and liabilities: Interest sensitive contract liabilities (201 ) 12 (189 ) Other assets and liabilities 84 (14 ) 70 Net cash provided by operating activities 573 — 573 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 31 (7 ) 24 Purchases of: Available-for-sale securities (5,914 ) 7 (5,907 ) Net cash used in investing activities (2,884 ) — (2,884 ) Six months ended June 30, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 532 $ 2 $ 534 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 181 (10 ) 171 Policy acquisition costs deferred (311 ) 7 (304 ) Changes in operating assets and liabilities: Interest sensitive contract liabilities 7 27 34 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 352 (90 ) 262 Other assets and liabilities 139 (28 ) 111 Net cash provided by operating activities 519 (92 ) 427 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 288 (7 ) 281 Short-term investments 220 (59 ) 161 Purchases of: Available-for-sale securities (8,953 ) 99 (8,854 ) Trading securities (81 ) 64 (17 ) Investment funds (654 ) (64 ) (718 ) Short-term investments (429 ) 59 (370 ) Net cash used in investing activities (3,904 ) 92 (3,812 ) Supplementary information Non-cash transactions Investments received from pension risk transfer premiums $ — $ 92 $ 92 Nine months ended September 30, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 1,172 $ (15 ) $ 1,157 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 211 (4 ) 207 Changes in operating assets and liabilities: Interest sensitive contract liabilities 562 29 591 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 1,080 (83 ) 997 Funds withheld assets and liabilities (239 ) 7 (232 ) Other assets and liabilities 103 (26 ) 77 Net cash provided by operating activities 1,235 (92 ) 1,143 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 327 (7 ) 320 Purchases of: Available-for-sale securities (12,128 ) 99 (12,029 ) Net cash used in investing activities (6,146 ) 92 (6,054 ) Supplementary information Non-cash transactions Investments received from pension risk transfer premiums $ — $ 92 $ 92 |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other Than Investments in Related Parties (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Text Block] | December 31, 2018 (In millions) Cost or Amortized Cost Fair Value Amount Shown on Consolidated Balance Sheet AFS securities U.S government and agencies $ 57 $ 57 $ 57 U.S. state, municipal and political subdivisions 1,183 1,293 1,293 Foreign governments 162 161 161 Public utilities 5,219 5,140 5,140 Redeemable preferred stock 100 96 96 Other corporate 32,699 31,861 31,861 CLO 5,658 5,361 5,361 ABS 4,915 4,920 4,920 CMBS 2,390 2,357 2,357 RMBS 7,642 8,019 8,019 Trading securities 1,949 1,949 1,949 Total fixed maturity securities 61,974 61,214 61,214 Equity securities Public utilities — 1 1 Industrial, miscellaneous and all other common stock 55 51 51 Nonredeemable preferred stocks 169 164 164 Total equity securities 224 216 216 Mortgage loans, net of allowances 10,338 10,340 Investment funds 596 703 Policy loans 488 488 Funds withheld at interest 15,023 15,023 Derivative assets 2,331 1,043 Short-term investments 191 191 Other investments 122 122 Total investments $ 91,287 $ 89,340 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant Condensed Financial Information of Parent (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | 1. Basis of Presentation The accompanying condensed financial statements of Athene Holding Ltd. (AHL) should be read in conjunction with the consolidated financial statements and notes of AHL and its subsidiaries (consolidated financial statements). For purposes of these condensed financial statements, AHL’s wholly owned and majority owned subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in subsidiaries are recorded on the condensed balance sheets. The income from subsidiaries is reported on a net basis as equity earnings of subsidiaries on the condensed statements of income. 2. Revisions As discussed in Note 2 – Financial Statement Revisions to the consolidated financial statements, we made revisions as a result of correcting immaterial misstatements. The revisions related to AHL’s subsidiaries; therefore, these condensed statements are adjusted in a manner consistent with those disclosed in Note 2 – Financial Statement Revisions for comprehensive income and equity, with the offset equity recorded to investments in subsidiaries. The net income impact of these revisions was adjusted to equity earnings of subsidiaries on the condensed statements of income . 3. Intercompany Transactions Unsecured Revolving Notes Receivable — AHL has unsecured revolving notes receivable from subsidiaries Athene USA Corporation (Athene USA) and Athene Life Re Ltd. (ALRe). The unsecured revolving notes receivable from Athene USA has a borrowing capacity of $250 million and an outstanding balance of $0 million and $16 million as of December 31, 2018 and 2017 , respectively. Interest accrues at the U.S. short-term applicable federal rate per year, and the balance is due on June 1, 2020 , or earlier at AHL’s request. The unsecured revolving notes receivable from ALRe has a borrowing capacity of $250 million and had no outstanding balance as of December 31, 2018 and 2017 . Interest accrues at a fixed rate of 1.25% and has a maturity date of June 1, 2020 , or earlier at AHL’s request. In February 2019, the revolving notes receivable agreement was amended to increase the borrowing capacity to $1 billion and to extend the maturity date to March 31, 2024. See Note 1 – Business, Basis of Presentation and Significant Accounting Policies to the consolidated financial statements for further information regarding the deconsolidation of Athora Holding Ltd. (Athora). AHL deconsolidated Athora effective January 1, 2018. The unsecured revolving notes receivable from Athora had a borrowing capacity of €25 million and an outstanding balance of $29 million as of December 31, 2017. Interest accrued at the U.S. short-term applicable federal rate per year, and the balance was due upon deconsolidation. In conjunction with the Athora deconsolidation, the outstanding balance was repaid to AHL in the first quarter of 2018. Unsecured Revolving Note Payable — In addition to the unsecured revolving notes receivable described above, AHL has an unsecured revolving note payable with ALRe, which permits AHL to borrow up to $250 million with a fixed interest rate of 1.25% and a maturity date of June 1, 2020 . As of December 31, 2018 and 2017 , the revolving note payable had an outstanding balance of $105 million and $0 million , respectively. In February 2019, the revolving note payable agreement was amended to increase the borrowing capacity to $1 billion and to extend the maturity date to March 31, 2024. Funds in Trust (Restricted Assets)— AHL has agreed to maintain the authorized control level risk-based capital (RBC) of its subsidiary, Athene Life Insurance Company of New York (ALICNY), at an amount not less than 450%. As a result, AHL has established a separate backstop trust account with a fair value of $37 million and $39 million as of December 31, 2018 and 2017 , respectively, consisting of available-for-sale investments and cash. If ALICNY’s authorized control level RBC falls below 450%, the funds in the backstop trust account would be used to replenish ALICNY’s authorized control level RBC to at least 450%. 4. Debt and Guarantees AHL has guaranteed certain of the obligations of Athene USA, ALRe, and Athene Annuity Re Ltd. in connection with its revolving credit facility. Additionally, AHL issued senior notes in the first quarter of 2018. See Note 10 – Debt to the consolidated financial statements for further discussion on the credit facility and senior notes. AHL has entered into capital maintenance agreements with each of its material U.S. insurance subsidiaries, pursuant to which AHL agrees to provide capital to the subsidiary to the extent that the capital of the subsidiary falls below a specified threshold as set with the applicable subsidiary’s domestic regulator. In addition, on December 17, 2018, AHL entered into a capital maintenance agreement with its indirect subsidiary Athene London Assignment Corporation (Athene London) pursuant to which AHL agreed to contribute cash, cash equivalents, marketable securities, or other liquid assets so as to maintain capital in Athene London to ensure that it has the necessary funds to timely satisfy any obligations it has under any assumed settlement agreement. AHL does not anticipate making any capital infusions in Athene London pursuant to the capital maintenance agreement. 5. Dividends, Return of Capital and Capital Contributions ALRe paid a dividend of $50 million to AHL during the year ended December 31, 2018 . In addition, AHL contributed $898 million to subsidiaries during the year ended December 31, 2018 . There were no dividends or return of capital received from subsidiaries during the years ended December 31, 2017 or 2016 . See Note 16 – Statutory Requirements to the consolidated financial statements for additional information on subsidiary dividend restrictions. In February 2019, ALRe’s board of directors approved dividend payments to AHL of up to $750 million . |
Business, Basis of Presentati_2
Business, Basis of Presentation, and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | We have compensation plans under which stock-based awards may be granted to our employees and directors and employees of Athene Asset Management, L.P. (AAM) as described in Note 12 – Stock-based Compensation . We recognize the fair value of stock-based compensation over a participant’s requisite service period through a charge to compensation expense and a corresponding entry to equity or a liability based on vesting criteria and other pertinent terms of the awards. Stock-based awards are accounted for as equity awards in instances where the awards’ vesting is linked to a market, performance or service condition. Equity awards are generally expensed based on the grant date fair value. Stock-based awards are accounted for as liabilities in instances where the awards’ vesting is linked to a factor other than a market, performance or service condition. Liability awards are remeasured each reporting period until settlement. In the event of an award modification, we recognize any additional value arising from the modification as compensation cost and determine whether the modified award should be accounted for prospectively as an equity or liability award. |
Policyholders' Dividend [Policy Text Block] | Participating policies entitle the policyholders to receive dividends based on actual interest, mortality, morbidity and expense experience for the year. Dividends are distributed to the policyholders through annual or terminal dividends which the board of directors of the applicable insurance subsidiary approves. As of December 31, 2018 and 2017 , 10% and 26% , respectively, of life policies, inclusive of ceded policies, were participating, and the related liability is recorded in dividends payable to policyholders on the consolidated balance sheets. Premiums related to participating policies represented 26% , 52% and 45% of total life insurance direct premiums and deposits for the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2017, all of the non-separate account unit-linked policies were paying dividends, and the related liability was recorded in dividends payable to policyholders on the consolidated balance sheets for our previously consolidated German subsidiaries. There were no material deposits related to non-separate account unit-linked policies paying dividends for the years ended December 31, 2017 and 2016. Non-separate account unit-linked policies represented an insignificant percentage of our interest sensitive contracts in force as of December 31, 2017. Policyholder dividend liabilities are recorded in dividends payable to policyholders on the consolidated balance sheets and policyholder dividends are recorded in dividends to policyholders on the consolidated statements of income. For participating policies issued by our previously consolidated German subsidiaries, dividends payable to policyholders includes an adjustment to recognize timing differences between GAAP and local statutory earnings that reverse and enter into future calculations of dividends to policyholders. Except for changes due to unrealized gains or losses on AFS securities, the change in this adjustment is recorded in dividends to policyholders on the consolidated statements of income. Changes in this adjustment due to unrealized gains or losses on AFS securities are recorded in OCI. |
Other Policy Claims and Benefits, Policy [Policy Text Block] | Other policy claims and benefits include amounts payable relating to in course of settlements (ICOS) and incurred but not reported (IBNR) liabilities associated with interest sensitive contract liabilities and future policy benefits. For traditional life and universal life policies, ICOS claim liabilities are established when we are notified of the death of the policyholder but the claim has not been paid as of the reporting date. For immediate annuities and supplemental contracts, ICOS claim liabilities are established to accrue suspended benefit payments between the date of notification of death and the date of verification of death. We determine IBNR claim liabilities using studies of past experience. The time that elapses from the death or claim date to when the claim is reported to us can vary significantly by product type, but generally ranges between one to six months for life business. We estimate IBNR claims on an undiscounted basis, using actuarial estimates of historical claims expense, adjusted for current trends and conditions. These estimates are continually reviewed and the ultimate liability may vary significantly from the amount recognized. |
Closed Block Accounting Policy [Policy Text Block] | Two closed blocks of policies were established in connection with the reorganization of two predecessor subsidiaries from mutual companies to stock companies, collectively referred to as the Closed Blocks, and individually referred to as the AmerUs Life Insurance Company (AmerUs) closed block (AmerUs Closed Block) and the Indianapolis Life Insurance Company (ILICO) closed block (ILICO Closed Block). Insurance policies which had a dividend scale in effect as of each closed block establishment date were included in the respective closed block. The Closed Blocks were designed to give reasonable assurance to owners of insurance policies included therein that, after the reorganization, assets would be available to maintain the dividend scales and interest credits in effect prior to the reorganization, if the experience underlying such scales and crediting continued. The assets, including related revenue, allocated to the Closed Blocks will accrue solely to the benefit of the policyholders included in the Closed Blocks until they no longer exist. A policyholder dividend obligation is required to be established for earnings in the Closed Blocks that are not available to the shareholders. |
Interest Sensitive Contract Liabilities, Policy [Policy Text Block] | life-type policies and investment contracts include fixed indexed and traditional fixed annuities in the accumulation phase, funding agreements, universal life insurance, fixed indexed universal life insurance, unit-linked contracts and immediate annuities without significant mortality risk (which includes pension risk transfer (PRT) annuities without life contingencies). We carry liabilities for fixed annuities, universal life insurance, unit-linked contracts and funding agreements at the account balances without reduction for potential surrender or withdrawal charges, except for a block of universal life business ceded to Global Atlantic Financial Group Limited (together with its subsidiaries, Global Atlantic) which we carry at fair value. Liabilities for immediate annuities without significant mortality risk are calculated as the present value of future liability cash flows and policy maintenance expenses discounted at contractual interest rates. For a discussion regarding our indexed products, refer above to the embedded derivative discussion. Changes in the interest sensitive contract liabilities, excluding deposits and withdrawals, are recorded in interest sensitive contract benefits or product charges on the consolidated statements of income. Interest sensitive contract liabilities are not reduced for amounts ceded under reinsurance agreements which are reported as reinsurance recoverable on the consolidated balance sheets. |
Business Combinations Policy [Policy Text Block] | Business combination transactions are accounted for under the acquisition method. Accordingly, the purchase consideration is allocated to assets and liabilities based on their estimated fair value at the acquisition date. The consideration for the net assets acquired is determined prior to the assessment of the fair value of the net assets at the acquisition date. We have identified several intangible assets acquired in business combinations including VOBA, acquired distribution channels and state licenses. We value VOBA as described below under – Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired . We value distribution channels using the multi-period excess earnings method under the income approach and the state licenses using the market approach. Intangible assets related to distribution channels and state licenses are included in other assets on the consolidated balance sheets. |
Derivatives, Policy [Policy Text Block] | We invest in derivatives to hedge the risks experienced in our ongoing operations, such as equity, interest rate and cash flow risks, or for other risk management purposes, which primarily involve managing liability risks associated with our indexed annuity products and reinsurance agreements. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices or other underlying notional amounts. Derivative assets and liabilities are carried at fair value on the consolidated balance sheets. We elect to present any derivatives subject to master netting provisions as a gross asset or liability and gross of collateral. Disclosures regarding balance sheet presentation of derivatives subject to master netting agreements are discussed in Note 4 – Derivative Instruments . We may designate derivatives as cash flow or fair value hedges. Hedge Documentation and Hedge Effectiveness – To qualify for hedge accounting, at the inception of the hedging relationship, we formally document our designation of the hedge as a cash flow or fair value hedge and our risk management objective and strategy for undertaking the hedging transaction. In this documentation, we identify how the hedging instrument is expected to hedge the designated risks related to the hedged item, the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method which will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. For a cash flow hedge, all changes in the fair value of the hedging derivative are reported within AOCI beginning January 1, 2018, and the related gains or losses on the derivative are reclassified into the consolidated statements of income when the cash flows of the hedged item affect earnings. Prior to January 1, 2018, any portion deemed to be ineffective was reported in investment related gains (losses) on the consolidated statements of income each reporting period as effectiveness was assessed. For a fair value hedge, changes in the fair value of the hedging derivative and changes in the fair value of the hedged item related to the designated risk being hedged, are reported on the consolidated statements of income according to the nature of the risk being hedged. Additionally, changes in the fair value of amounts excluded from the assessment of effectiveness are recorded in earnings. We discontinue hedge accounting prospectively when: (1) we determine the derivative is no longer highly effective in offsetting changes in the estimated cash flows or fair value of a hedged item; (2) the derivative expires, is sold, terminated, or exercised; or (3) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued, the derivative continues to be carried on the consolidated balance sheets at fair value, with changes in fair value recognized in investment related gains (losses) on the consolidated statements of income. For a derivative not designated as a hedge, changes in the derivative’s fair value and any income received or paid on derivatives at the settlement date are included in investment related gains (losses) on the consolidated statements of income. Embedded Derivatives – We issue and reinsure products, primarily fixed indexed annuity products, or purchase investments that contain embedded derivatives. If we determine the embedded derivative has economic characteristics not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract and accounted for separately, unless the fair value option is elected on the host contract. Under the fair value option, bifurcation of the embedded derivative is not necessary as the entire contract is carried at fair value with all related gains and losses recognized in investment related gains (losses) on the consolidated statements of income. Embedded derivatives are carried on the consolidated balance sheets at fair value in the same line item as the host contract. Fixed indexed annuity and indexed universal life insurance contracts allow the policyholder to elect a fixed interest rate return or an equity market component for which interest credited is based on the performance of certain stock market indices. The equity market option is an embedded derivative, similar to a call option. The benefit reserve is equal to the sum of the fair value of the embedded derivative and the host (or guaranteed) component of the contracts. The fair value of the embedded derivatives is computed as the present value of benefits attributable to the excess of the projected policy contract values over the projected minimum guaranteed contract values. The projections of policy contract values are based on assumptions for future policy growth, which include assumptions for expected index credits on the next policy anniversary date, future equity option costs, volatility, interest rates and policyholder behavior. The projections of minimum guaranteed contract values include the same assumptions for policyholder behavior as were used to project policy contract values. The embedded derivative cash flows are discounted using a rate that reflects our own credit rating. The host contract is established at contract inception as the initial account value less the initial fair value of the embedded derivative and accreted over the policy’s life. The host contract accretion rate is updated each quarter so that the present value of actual and expected guaranteed cash flows is equal to the initial host value. Changes in the fair value of embedded derivatives associated with fixed indexed annuities and indexed universal life insurance contracts are included in interest sensitive contract benefits on the consolidated statements of income. Additionally, reinsurance agreements written on a funds withheld or modco basis contain embedded derivatives. The right to receive or obligation to pay the total return on the assets supporting the funds withheld at interest or funds withheld liability, respectively, represents a total return swap with a floating rate leg. The fair value of embedded derivatives on funds withheld and modco agreements is computed as the unrealized gain (loss) on the underlying assets and is included in the funds withheld at interest and funds withheld liability lines on the consolidated balance sheets for assumed and ceded agreements, respectively. The change in the fair value of the embedded derivatives is recorded in investment related gains (losses) on the consolidated statements of income. Assumed and ceded earnings from funds withheld at interest, funds withheld liability and changes in the fair value of embedded derivatives are reported in operating activities on the consolidated statements of cash flows. Contributions to and withdrawals from funds withheld at interest and funds withheld liability are reported in operating activities on the consolidated statements of cash flows. |
Basis of Presentation | |
Use of Estimates | We have prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual experience could materially differ from these estimates and assumptions. Our principal estimates impact: • fair value of investments; • impairment of investments and valuation allowances; • derivatives valuation, including embedded derivatives; • deferred acquisition costs (DAC), deferred sales inducements (DSI) and value of business acquired (VOBA); • future policy benefit reserves; • valuation allowances on deferred tax assets; and • stock-based compensation. Additional details around these principal estimates and assumptions are discussed in the significant accounting policies that follow and the related footnote disclosures. |
Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Adopted Accounting Pronouncements Revenue Recognition (ASU 2017-13, ASU 2016-20, ASU 2016-12, ASU 2016-11, ASU 2016-10, ASU 2016-08, ASU 2015-14 and ASU 2014-09) These updates are based on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. These updates replace all general and most industry-specific revenue recognition guidance, excluding insurance contracts, leases, financial instruments and guarantees, which have been scoped out of these updates. Since the guidance does not apply to revenue on contracts accounted for under the financial instruments or insurance contracts standards, only a portion of our revenues are impacted by this guidance. We adopted these updates on a modified retrospective basis effective January 1, 2018. The adoptions did not have a material effect on our consolidated financial statements. Derivatives and Hedging – Targeted Improvements (ASU 2017-12) The amendments in this update contain improvements to the financial reporting of hedging relationships that more closely reflect the economic results of an entity’s risk management activities in its financial statements. Additionally, the amendments in this update make certain targeted improvements to simplify the application of hedge accounting. We early adopted this update effective January 1, 2018, and the adoption did not have a material effect on our consolidated financial statements. Gains and Losses from the Derecognition of Nonfinancial Assets (ASU 2017-05) The amendments in this update clarify the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. We adopted this update on a modified retrospective basis effective January 1, 2018. The adoption did not have a material effect on our consolidated financial statements. Statement of Cash Flows – Restricted Cash (ASU 2016-18) This update requires amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the consolidated statements of cash flows. We adopted this update effective January 1, 2018, and have changed the presentation on the consolidated statements of cash flows as required by this update. Income Taxes – Intra-Entity Transfers (ASU 2016-16) This update requires the immediate recognition of current and deferred income tax effects of intra-entity transfers of assets, other than inventory. Prior to adoption, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. We adopted this update effective January 1, 2018. Upon adoption, we recognized a cumulative-effect decrease to beginning retained earnings of $3 million . Statement of Cash Flows (ASU 2016-15) This update provides specific guidance to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. The update also clarifies the application of the predominance principle when cash receipts and cash payments have aspects of more than one class of cash flows. We adopted this update effective January 1, 2018, and the adoption did not have a material effect on our consolidated financial statements. Financial Instruments – Recognition and Measurement (ASU 2016-01) This update changes the accounting for certain equity investments, the presentation of changes in the fair value of liabilities measured under the fair value option due to instrument-specific credit risk, and certain disclosures. For liabilities measured under the fair value option, changes in fair value attributable to instrument-specific credit risk will no longer affect net income, but will be recognized separately in OCI. Additionally, this update requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. Prior to the effective date of this update, changes in fair value related to AFS equity securities were recognized in OCI. We adopted this update effective January 1, 2018. Upon adoption, we recognized a cumulative-effect increase to beginning retained earnings of $42 million and a corresponding decrease to AOCI. Additionally, we combined the presentation of AFS and trading equity securities on the consolidated balance sheets for all periods presented. Recently Issued Accounting Pronouncements Leases (ASU 2018-20, ASU 2018-11, ASU 2018-10, ASU 2018-01, ASU 2017-13 and ASU 2016-02) These updates are intended to increase transparency and comparability for lease transactions. ASU 2016-02 requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with an original term longer than twelve months and disclose key information about leasing arrangements. Lessor accounting is largely unchanged. The updates are effective January 1, 2019. ASU 2016-02 required the adoption on a modified retrospective basis. However, with the issuance of ASU 2018-11, we have the option to recognize the cumulative effect as an adjustment to the opening balance of retained earnings in the year of adoption, while continuing to present all prior periods under the previous lease guidance. These updates provide optional practical expedients in transition. We have reviewed our existing lease contracts and determined that on January 1, 2019, we will record a lease liability and right-of-use asset related to office space, copiers, reserved areas and equipment at data centers, and other agreements. We will continue to present all prior periods under the previous lease guidance. We will elect the “package of practical expedients,” which permits us to maintain our prior conclusions about lease identification, classification and initial direct costs. We will also elect the short-term lease exception, which allows us to exclude contracts with a lease term of 12 months or less, including any reasonably certain renewal options, from consideration under the new guidance. This update will not have a material effect on our consolidated financial statements. Financial Instruments – Credit Losses (ASU 2018-19 and ASU 2016-13) This update is designed to reduce complexity by limiting the number of credit impairment models used for different assets. The model will result in accelerated credit loss recognition on assets held at amortized cost, which includes our commercial and residential mortgage investments. The identification of credit-deteriorated securities will include all assets that have experienced a more-than-insignificant deterioration in credit since origination. Additionally, any changes in the expected cash flows of credit-deteriorated securities will be recognized immediately in the income statement. AFS fixed maturity securities are not in scope of the new credit loss model, but will undergo targeted improvements to the current reporting model including the establishment of a valuation allowance for credit losses versus the current direct write down approach. We will be required to adopt this update effective January 1, 2020. We are currently evaluating the impact of this guidance on our consolidated financial statements. Collaborative Arrangements (ASU 2018-18) The amendments in this update provide guidance on whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, providing comparability in the presentation of revenue for certain transactions. The update is effective January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Consolidation (ASU 2018-17) The amendments in this update expand certain discussions in the VIE guidance, including considerations necessary for determining when a decision-making fee is a variable interest. We will be required to adopt this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The update is effective January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Derivatives and Hedging (ASU 2018-16) The amendments in this update allow entities to use the Overnight Index Swap rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the previously acceptable rates. We will be required to adopt this update prospectively for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. This update is effective January 1, 2019. We do not expect the adoption of this update will have a material effect on our consolidated financial statements. Cloud Computing Arrangements (ASU 2018-15) The amendments in this update align the requirements for capitalizing implementation costs incurred in a cloud computing service arrangement with the requirements for capitalizing implementation costs incurred for internal-use software. We will be required to adopt this update on January 1, 2020, and we can elect to adopt this update either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Fair Value Measurement – Disclosure Requirements (ASU 2018-13) The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. We will be required to adopt this update on January 1, 2020, and depending on the specific amendment will be required to adopt prospectively or retrospectively. We early adopted the removal and modification of certain disclosures as permitted. We are currently evaluating the impact of the remaining guidance on our consolidated financial statements. Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12) This update amends four key areas pertaining to the accounting and disclosures for long-duration insurance and investment contracts. • The update requires cash flow assumptions used to measure the liability for future policy benefits to be updated at least annually and no longer allows a provision for adverse deviation. The remeasurement of the liability associated with the update of assumptions is required to be recognized in net income. Loss recognition testing is eliminated for traditional and limited-payment contracts. The update also requires the discount rate utilized in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting date. The change in liability due to changes in the discount rate is to be recognized in other comprehensive income. • The update simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs are required to be written off for unexpected contract terminations but are not subject to impairment testing. • The update requires certain contract features meeting the definition of market risk benefits to be measured at fair value. Among the features included in this definition are the guaranteed lifetime withdrawal benefits (GLWB) and guaranteed minimum death benefit (GMDB) riders attached to the Company’s annuity products. The change in fair value of the market risk benefits is to be recognized in net income, excluding the portion attributable to changes in instrument-specific credit risk which is recognized in other comprehensive income. • The update also introduces disclosure requirements around the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs. This includes disaggregated rollforwards of these balances and information about significant inputs, judgments, assumptions and methods used in their measurement. We will be required to adopt this update effective January 1, 2021. Certain provisions of the update are required to be adopted on a fully retrospective basis, while others may be adopted on a modified retrospective basis. Early adoption is permitted effective January 1, 2019. We are currently evaluating the impact of this guidance on our consolidated financial statements. Stock Compensation – Nonemployee Share-Based Payments (ASU 2018-07) The amendments in this update simplify the accounting for share-based payments to nonemployees by aligning with the accounting for share-based payments to employees, with certain exceptions. We will be required to adopt this update on a modified retrospective basis effective January 1, 2019. This update will not have a material effect on our consolidated financial statements. Intangibles – Simplifying the Test for Goodwill Impairment (ASU 2017-04) The amendments in this update simplify the subsequent measurement of goodwill by eliminating the comparison of the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill to determine the goodwill impairment loss. With the adoption of this guidance, a goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. We will be required to adopt this update prospectively effective January 1, 2020. Early adoption is permitted. We do not expect the adoption of this update will have a material effect on our consolidated financial statements. |
Consolidation, Policy [Policy Text Block] | Our consolidated financial statements include our wholly owned subsidiaries, investees we control and any variable interest entities (VIEs) where we are the primary beneficiary. Investments in entities that we do not control, but have the ability to exercise significant influence over operating and financing decisions, other than investments for which we have elected the fair value option, are accounted for under the equity method. Intercompany balances and transactions have been eliminated. For entities that are consolidated, but not 100% owned, we allocate a portion of the income or loss and corresponding equity to the owners other than the Company. We include the aggregate of the income or loss and corresponding equity that is not owned by the Company in noncontrolling interests in the consolidated financial statements. We report investments in related parties and assets and liabilities of consolidated VIEs separately, as further described in the accounting policies that follow. We have prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual experience could materially differ from these estimates and assumptions. Our principal estimates impact: • fair value of investments; • impairment of investments and valuation allowances; • derivatives valuation, including embedded derivatives; • deferred acquisition costs (DAC), deferred sales inducements (DSI) and value of business acquired (VOBA); • future policy benefit reserves; • valuation allowances on deferred tax assets; and • stock-based compensation. Additional details around these principal estimates and assumptions are discussed in the significant accounting policies that follow and the related footnote disclosures. Deconsolidation – AGER Bermuda Holding Ltd. and its subsidiaries, now known as Athora Holding Ltd. (Athora), was our consolidated subsidiary for the years ended December 31, 2017 and 2016. In April 2017, Athora entered into subscription agreements pursuant to which Athora secured commitments to purchase new common shares in Athora (Athora Offering). |
Investment, Policy [Policy Text Block] | Fixed Maturity Securities – Fixed maturity securities includes bonds, collateralized loan obligations (CLO), asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and redeemable preferred stock. We classify fixed maturity securities as available-for-sale (AFS) or trading at the time of purchase and subsequently carry them at fair value. Fair value hierarchy and valuation methodologies are discussed in Note 6 – Fair Value . Classification is dependent on a variety of factors including our expected holding period, election of the fair value option and asset and liability matching. AFS Securities – Unrealized gains and losses on AFS securities, net of tax and adjustments to DAC, DSI, VOBA and future policy benefits, if applicable, are generally reflected in accumulated other comprehensive income (loss) (AOCI) on the consolidated balance sheets. Unrealized gains or losses relating to identified risks within AFS securities in fair value hedging relationships are reflected in investment related gains (losses) on the consolidated statements of income. Trading Securities – We elected the fair value option for certain fixed maturity securities. These fixed maturity securities are classified as trading, with changes to fair value included in investment related gains (losses) on the consolidated statements of income. Although the securities are classified as trading, the trading activity related to these investments is primarily focused on asset and liability matching activities and is not intended to be an income strategy based on active trading. As such, the activity related to these investments on the consolidated statements of cash flows is classified as investing activities. Trading securities includes mutual funds supporting unit-linked investment contracts. We generally record security transactions on a trade date basis, with any unsettled trades recorded in other assets or other liabilities on the consolidated balance sheets. Equity Securities – Equity securities includes common stock, mutual funds and non-redeemable preferred stock. Equity securities are carried at fair value with subsequent changes in fair value recognized in net income effective January 1, 2018. Prior to January 1, 2018, the accounting for subsequent changes in the fair value of an equity security was dependent on its classification as AFS or trading as discussed previously. Purchased Credit Impaired (PCI) Investments – We purchase certain structured securities, primarily RMBS, and re-performing mortgage loans having experienced deterioration in credit quality since their issuance which meet the definition of PCI investments. We determined, based on our expectations as to the timing and amount of cash flows expected to be received, that it was probable at acquisition that we would not collect all contractually required payments, including both principal and interest, while also considering the effects of any prepayments for these PCI investments. Based on these assumptions, the difference between the undiscounted expected future cash flows of the PCI investment and the recorded investment represents the initial accretable yield, which is accreted into investment income, net of related expenses, over its remaining life on a level-yield basis. The difference between the contractually required payments on the PCI investment and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. Over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, the accretable yield and the non-accretable difference can change. PCI investments are presented on the consolidated financial statements consistent with AFS securities or mortgage loans depending on the underlying investment. Quarterly, we evaluate the undiscounted expected future cash flows associated with PCI investments based on updates to key assumptions. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI investments will change the accretable yield prospectively. Declines in undiscounted expected future cash flows due to further credit deterioration, as well as changes in the expected timing of the cash flows, can result in the recognition of an other-than-temporary impairment (OTTI) charge for PCI securities or a valuation allowance for PCI loans. Significant increases in undiscounted expected future cash flows are recognized prospectively as an adjustment to the accretable yield. Mortgage Loans – Mortgage loans are primarily stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on its contractual interest rate. We record amortization of premiums and discounts using the effective yield method and contractual cash flows on the underlying loan. We accrue interest on loans until it is probable we will not receive interest or the loan is 90 days past due. Interest income, amortization of premiums and discounts, and prepayment fees are reported in net investment income on the consolidated statements of income. We have also elected the fair value option on a portion of our mortgage loans. Investment Funds – We invest in certain non-fixed income, alternative investments in the form of limited partnerships or similar legal structures (investment funds). For investment funds in which we have determined we are not the primary beneficiary, and therefore not required to consolidate, we typically record these investments using the equity method of accounting, where the cost is recorded as an investment in the fund, or we have elected the fair value option. Adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by net asset value (NAV) in the investment fund financial statements, which can be on a lag of up to three months when investee information is not received in a timely manner. We record our proportionate share of investment fund income within net investment income on the consolidated statements of income. Contributions paid or distributions received by us are recorded directly to the investment fund balance as an increase to carrying value or as a return of capital, thus reducing our carrying value. Policy Loans – Policy loans are funds provided to policyholders in return for a claim on the policy’s account value. The funds provided are limited to a specified percentage of the account balance. The majority of policy loans do not have a stated maturity and the balances and accrued interest are repaid with proceeds from the policy account balance. Policy loans are reported at the unpaid principal balance. Interest income is recorded as earned using the contract interest rate and is reported in net investment income on the consolidated statements of income. Funds Withheld at Interest – Funds withheld at interest represents a receivable for amounts contractually withheld by ceding companies in accordance with funds withheld coinsurance (funds withheld) and modified coinsurance (modco) reinsurance agreements in which we act as reinsurer. Generally, assets equal to statutory reserves are withheld and legally owned by the ceding company, and any excess or shortfall is settled periodically. The underlying agreements contain embedded derivatives as discussed below. Real Estate – Real estate investments are stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset, which is typically 40 years , and is included in net investment income on the consolidated statements of income. We periodically review our real estate investments for impairment and test for recoverability when events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. We recognize an impairment to fair value if the carrying amount of a property exceeds the expected undiscounted cash flows. Real estate investments for which we have committed to a plan to sell within one year and are actively marketing are classified as held for sale. Real estate held for sale is stated at the lower of depreciated cost as of the date we committed to a plan to sell or estimated fair value less expected disposition costs. Short-term Investments – Short-term investments consists of financial instruments with maturities of greater than three months but less than twelve months when purchased. Short-term debt securities are accounted for as trading or AFS consistent with our policies for those investments. Short-term loans are carried at amortized cost. Fair values are determined consistent with methodologies described in Note 6 – Fair Value for the respective investment type. Investment Income – We recognize investment income as it accrues or is legally due, net of investment management and custody fees. Investment income on fixed maturity securities includes coupon interest, as well as the amortization of any premium and the accretion of any discount. Investment income on equity securities represents dividend income and preferred coupons interest. Realized gains and losses on sales of investments are included in investment related gains (losses) on the consolidated statements of income. Realized gains and losses on investments sold are determined based on a first-in first-out method. Other-Than-Temporary Impairment – We identify securities that could potentially have impairments that are other-than-temporary by monitoring market events for changes in market interest rates, credit issues, changes in business climate, management changes, litigation, government actions and other similar factors. Indicators of impairment may include changes in the issuers’ credit ratings and outlook, frequency of late payments, pricing levels, key financial ratios, financial statements, revenue forecasts and cash flow projections. We review securities on a case-by-case basis to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. We consider relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary. Relevant facts and circumstances include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in fair value; (3) the issuer’s financial position and access to capital; and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not that we will be required to sell the security before the recovery of its cost or amortized cost which, in some cases, may extend to maturity and for equity securities prior to January 1, 2018, our ability and intent to hold the security for a period of time that allows for the recovery in value. To the extent we determine that a security is other-than-temporarily impaired, an impairment loss is recognized. The recognition of impairment losses on fixed maturity securities is dependent upon the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its cost or amortized cost, less any recorded credit loss, we recognize a loss in other-than-temporary impairment losses on the consolidated statements of income for the difference between cost or amortized cost and fair value. If neither of these two conditions exists, then the recognition of the loss is bifurcated and we recognize the credit loss portion in other-than-temporary impairment losses on the consolidated statements of income and the non-credit loss portion in AOCI on the consolidated balance sheets. Impairment losses on equity securities were recognized in investment related gains (losses) on the consolidated statements of income prior to January 1, 2018. Effective January 1, 2018, equity securities are no longer evaluated for impairment as all changes in fair value are recognized in net income. We estimate the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the estimated cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The techniques and assumptions for establishing the estimated cash flows vary depending on the type of security. A structured security’s cash flow estimates are based on security-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayments and structural support, including subordination and guarantees. A non-structured security’s cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using security-specific facts and circumstances including timing, security interests and loss severity. In periods after an OTTI is recognized on a fixed maturity security, we report the impaired security as if it had been purchased on the date it was impaired and continue to estimate the present value of the estimated cash flows of the security. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into net investment income over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. We impair a mortgage loan when it is probable we will not collect all amounts due under the agreement. We establish a general valuation allowance on mortgage loans based on loss history. Additionally, we establish a valuation allowance on individual loans based on expected losses from future dispositions or settlement, including foreclosures. We calculate the allowance based on how much the carrying value exceeds one of these values: • the present value of expected future cash flows discounted at the loan’s original effective interest rate; • the value of the loan’s collateral if it is in the process of foreclosure or otherwise collateral dependent; or • the loan’s fair value if the loan is being sold. We first apply any interest accrued or received on the net carrying amount of the impaired loan to the principal of the loan, and once the principal is repaid, we include amounts received in net investment income. We limit accrued interest income on impaired loans to 90 days of interest. Once accrued interest on the impaired loan is received, we recognize interest income on a cash basis. Loans deemed uncollectible or in foreclosure are charged off against the valuation allowances, and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in investment related gains (losses) on the consolidated statements of income. The cost of other invested assets is adjusted for impairments in value deemed to be other-than-temporary in the period in which the determination is made. These impairments are included within other-than-temporary impairment losses on the consolidated statements of income, and the cost basis of the investment securities is reduced accordingly. We do not change the revised cost basis for subsequent recoveries in value. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | An entity that does not have sufficient equity to finance its activities without additional financial support, or in which the equity investors, as a group, do not have the characteristics typically afforded to common shareholders is a VIE. The determination as to whether an entity qualifies as a VIE depends on the facts and circumstances surrounding each entity and may require significant judgment. Our investment funds generally qualify as VIEs and are evaluated for consolidation under the VIE model. We are required to consolidate a VIE if we are the primary beneficiary, defined as the variable interest holder with both the power to direct the activities that most significantly impact the VIE’s economic performance and rights to receive benefits or obligations to absorb losses that could be potentially significant to the VIE. We determine whether we are the primary beneficiary of an entity based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose and our relative exposure to the related risks of the VIE. Since affiliates of Apollo Global Management, LLC (AGM and, together with its subsidiaries, Apollo), a related party, are the decision makers in certain of the investment funds, we and a member of our related party group may together have the characteristics of the primary beneficiary of an investment fund. In this situation, we have concluded we are not under common control, as defined by GAAP, with the related party, and therefore consolidate in the circumstances when substantially all of the activities of the VIE are conducted on our behalf. We reassess the VIE and primary beneficiary determinations on an ongoing basis. For entities that we do not consolidate but have significant influence over the entities’ operations, we record our investment under the equity method of accounting. If we do not consolidate and do not have significant influence, generally on investment funds in which we own a less than a 3% interest, we elect the fair value option. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill represents the excess of purchase consideration over the acquisition date fair value of net assets acquired and is included in the other assets on the consolidated balance sheets. Goodwill is not amortized but reviewed for impairment annually or more frequently if events occur or circumstances change indicating potential impairment has occurred. If the acquisition date fair value of the net assets acquired exceeds the purchase consideration in a business combination, a bargain purchase gain is recorded on the consolidated statements of income. |
Reinsurance Accounting Policy [Policy Text Block] | We assume and cede insurance and investment contracts under coinsurance, funds withheld and modco. We follow reinsurance accounting for transactions that provide indemnification against loss or liability relating to insurance risk (risk transfer). To meet risk transfer requirements, a reinsurance agreement must transfer insurance risk arising from uncertainties about both underwriting and timing risks. Cessions under reinsurance do not discharge our obligations as the primary insurer, unless the requirements of assumption reinsurance have been met. We generally have the right of offset on reinsurance contracts, but have elected to present reinsurance settlement amounts due to and from the Company on a gross basis. Assets and liabilities assumed or ceded under coinsurance, funds withheld, or modco are presented gross on the consolidated balance sheets. For investment contracts, the change in assumed and ceded reserves are presented net in interest sensitive contract benefits on the consolidated statements of income. For insurance contracts, the change in assumed and ceded reserves and benefits are presented net in future policy and other policy benefits on the consolidated statements of income. Assumed or ceded premiums are included in premiums on the consolidated statements of income. Accounting for reinsurance requires the use of assumptions, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. We attempt to minimize our counterparty credit risk through the structuring of the terms of our reinsurance agreements, including the use of trusts, and we monitor credit ratings of counterparties for signs of declining credit quality. When a ceding company does not report information on a timely basis, we record accruals based on the best available information at the time, which includes the reinsurance agreement terms and historical experience. We periodically compare actual and anticipated experience to the assumptions used to establish reinsurance assets and liabilities. See Note 7 – Reinsurance for more information. Funds Withheld and ModCo – For business assumed or ceded on a funds withheld or modco basis, a funds withheld segregated portfolio, comprised of invested assets and other assets is maintained by the ceding entity, which is sufficient to support the current balance of statutory reserves. The fair value of the funds withheld is recorded as a funds withheld asset or liability and any excess or shortfall in relation to statutory reserves is settled periodically. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents include deposits and short-term highly liquid investments with a maturity of less than 90 days from the date of acquisition. Amounts included are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash primarily consists of cash and cash equivalents held in funds in trust as part of certain coinsurance agreements to secure statutory reserves and liabilities of the coinsured parties. Restricted cash is reported separately on the consolidated balance sheets, but is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the consolidated statements of cash flows. |
Investments in Related Parties, Policy [Policy Text Block] | Investments in related parties and associated earnings, other comprehensive income and cash flows are separately identified on the consolidated financial statements and accounted for consistently with the policies described above for each category of investment. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Costs related directly to the successful acquisition of new, or renewal of, insurance or investment contracts are deferred to the extent they are recoverable from future premiums or gross profits. These costs consist of commissions and policy issuance costs, as well as sales inducements credited to policyholder account balances, and are included in deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated balance sheets. We perform periodic tests, including at issuance, to determine if the deferred costs are recoverable. If we determine that the deferred costs are not recoverable, we record a cumulative charge to the current period. Deferred costs related to universal life-type policies and investment contracts with significant revenue streams from sources other than investment of the policyholder funds are amortized over the lives of the policies, based upon the proportion of current period gross profits to the present value of gross profits to be earned over the life of the policies. Gross profits include investment spread margins, surrender charge income, policy administration, changes in the guaranteed lifetime withdrawal benefit (GLWB) and guaranteed minimum death benefit (GMDB) reserves and realized gains and losses on investments. Current period gross profits for fixed indexed annuities also include the change in fair value of both freestanding and embedded derivatives. Estimates of the future gross profits and margins are based on assumptions using accepted actuarial methods related to policyholder behavior and mortality, yields on investments supporting the liabilities, future interest credited amounts (including indexed related credited amounts on fixed indexed annuity products), surrender and other policy changes as applicable, and the level of expenses necessary to maintain the policies over their expected lives. Each reporting period, we update estimated gross profits with actual gross profits as part of the amortization process and adjust the DAC and DSI balances due to the other comprehensive income (OCI) effects of unrealized investment gains and losses on AFS securities. We also periodically revise the key assumptions used in the amortization calculation, which results in revisions to the estimated future gross profits. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made. Deferred costs related to investment contracts without significant revenue streams from sources other than investment of the policyholder funds are amortized using the effective interest method. The effective interest method amortizes the deferred costs by discounting the future liability cash flows at a break-even rate. The break-even rate is solved such that the present value of future liability cash flows is equal to the net liability at the inception of the contract. |
Sales Inducements to Contract Holders, Policy [Policy Text Block] | Costs related directly to the successful acquisition of new, or renewal of, insurance or investment contracts are deferred to the extent they are recoverable from future premiums or gross profits. These costs consist of commissions and policy issuance costs, as well as sales inducements credited to policyholder account balances, and are included in deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated balance sheets. We perform periodic tests, including at issuance, to determine if the deferred costs are recoverable. If we determine that the deferred costs are not recoverable, we record a cumulative charge to the current period. Deferred costs related to universal life-type policies and investment contracts with significant revenue streams from sources other than investment of the policyholder funds are amortized over the lives of the policies, based upon the proportion of current period gross profits to the present value of gross profits to be earned over the life of the policies. Gross profits include investment spread margins, surrender charge income, policy administration, changes in the guaranteed lifetime withdrawal benefit (GLWB) and guaranteed minimum death benefit (GMDB) reserves and realized gains and losses on investments. Current period gross profits for fixed indexed annuities also include the change in fair value of both freestanding and embedded derivatives. Estimates of the future gross profits and margins are based on assumptions using accepted actuarial methods related to policyholder behavior and mortality, yields on investments supporting the liabilities, future interest credited amounts (including indexed related credited amounts on fixed indexed annuity products), surrender and other policy changes as applicable, and the level of expenses necessary to maintain the policies over their expected lives. Each reporting period, we update estimated gross profits with actual gross profits as part of the amortization process and adjust the DAC and DSI balances due to the other comprehensive income (OCI) effects of unrealized investment gains and losses on AFS securities. We also periodically revise the key assumptions used in the amortization calculation, which results in revisions to the estimated future gross profits. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made. Deferred costs related to investment contracts without significant revenue streams from sources other than investment of the policyholder funds are amortized using the effective interest method. The effective interest method amortizes the deferred costs by discounting the future liability cash flows at a break-even rate. The break-even rate is solved such that the present value of future liability cash flows is equal to the net liability at the inception of the contract. |
Present Value of Future Insurance Profits, Policy [Policy Text Block] | We establish VOBA for blocks of insurance contracts acquired through the acquisition of insurance entities. We record the fair value of the liabilities assumed in two components: reserves and VOBA. Reserves are established using our best estimate assumptions consistent with the policies described below for future policy benefits and interest sensitive contract liabilities. VOBA is the difference between the fair value of the liabilities and the reserves. VOBA can be either positive or negative. Any negative VOBA is recorded to the same financial statement line on the consolidated balance sheets as the associated reserves. Positive VOBA is recorded in deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated balance sheets. We perform periodic tests to determine if the VOBA remains recoverable. If we determine that VOBA is not recoverable, we record a cumulative charge to the current period. VOBA associated with investment contracts without significant revenue streams from sources other than investment of the policyholder funds is amortized using the effective interest method. VOBA associated with immediate annuity contracts classified as long duration contracts is amortized at a constant rate in relation to net policyholder liabilities. For universal life-type policies and investment contracts with significant revenue streams from sources other than investment of policyholder funds, VOBA is amortized in relation to the present value of estimated gross profits using methods consistent with those used to amortize DAC and DSI. Negative VOBA is amortized at a constant rate in relation to applicable net policyholder liabilities. |
Future Policy Benefits Liability, Policy [Policy Text Block] | We issue contracts classified as long-duration, which includes endowments, term and whole life, accident and health, disability, and deferred and immediate annuities with life contingencies (which includes PRT annuities with life contingencies). Liabilities for non-participating long-duration contracts are established using accepted actuarial valuation methods which require the use of assumptions related to expenses, investment yields, mortality, morbidity and persistency, with a provision for adverse deviation, at the date of issue or acquisition. As of December 31, 2018 , the reserve investment yield assumptions for non-participating contracts range from 3.31% to 5.44% and are specific to our expected earned rate on the asset portfolio supporting the reserves. Liabilities for participating long-duration contracts were established using accepted actuarial valuation methods, which required the use of guaranteed interest and mortality assumptions. Participating long-duration contracts resulted from our previously consolidated German subsidiaries. We base other key assumptions, such as mortality and morbidity, on industry standard data adjusted to align with actual company experience, if necessary. For long-duration contracts, the assumptions are locked in at contract inception and only modified if we deem the reserves to be inadequate. We periodically review actual and anticipated experience compared to the assumptions used to establish policy benefits. If the net GAAP liability (gross reserves less DAC, DSI and VOBA) is less than the gross premium liability, impairment is deemed to have occurred, and the DAC, DSI and VOBA asset balances are reduced until the net GAAP liability is equal to the gross premium liability. If the DAC, DSI and VOBA asset balances are completely written off and the net GAAP liability is still less than the gross premium liability, then an additional liability is recorded to arrive at the gross premium liability. We issue and reinsure deferred annuity contracts which contain GLWB and GMDB riders. We establish future policy benefits for GLWB and GMDB by estimating the expected value of withdrawal and death benefits in excess of the projected account balance. We recognize the excess proportionally over the accumulation period based on total actual and expected assessments. The methods we use to estimate the liabilities have assumptions about policyholder behavior, which includes lapses, withdrawals and use of benefit riders; mortality; and market conditions affecting the account balance growth. Future policy benefits includes liabilities for no-lapse guarantees on universal life insurance and fixed indexed universal life insurance. We establish future policy benefits for no-lapse guarantees by estimating the expected value of death benefits paid after policyholder account balances have been exhausted. We recognize these benefits proportionally over the life of the contracts based on total expected assessments. The methods we use to estimate the liabilities have assumptions about policyholder behavior, mortality and market conditions affecting the account balance growth. For the liabilities associated with GLWB and GMDB riders and no-lapse guarantees, each reporting period, we update expected excess benefits and assessments with actual excess benefits and assessments and adjust the liability balances due to the OCI effects of unrealized investment gains and losses on AFS securities. We also periodically revise the key assumptions used in the calculation of the liabilities which results in revisions to the expected excess benefits and assessments. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made. Changes in future policy benefits other than the adjustment for the OCI effects of unrealized investment gains and losses on AFS securities, are recorded in future policy and other policy benefits on the consolidated statements of income. Future policy benefits are not reduced for amounts ceded under reinsurance agreements which are reported as reinsurance recoverable on the consolidated balance sheets. |
Earnings Per Share, Policy [Policy Text Block] | We compute basic earnings per share (EPS) by dividing unrounded net income available to Athene Holding Ltd. shareholders by the weighted average number of common shares eligible for earnings and outstanding for the period. As a result, it may not be possible to recalculate EPS as presented in our consolidated financial statements. Diluted earnings per share includes the effect of all potentially dilutive instruments, such as common shares, options and restricted stock units (RSUs), outstanding during the period. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | The accounts of foreign-based subsidiaries and equity method investments are measured using their functional currency. Revenue and expenses of these subsidiaries are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. For the equity method investments, our proportionate share of the investee’s income is translated into United States dollars at the average exchange rate for the period and our investment is translated using the exchange rate as of the end of the reporting period. The resulting translation adjustments are included in equity as a component of AOCI. Gains or losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in net income. |
Revenue Recognition, Policy [Policy Text Block] | Revenues for universal life-type policies and investment contracts, including surrender and market value adjustments, costs of insurance, policy administration, GMDB, GLWB and no-lapse guarantee charges, are earned when assessed against policyholder account balances during the period. Interest credited to policyholder account balances and the change in fair value of embedded derivatives within fixed indexed annuity contracts is included in interest sensitive contract benefits on the consolidated statements of income. Premiums for long-duration contracts, including products with fixed and guaranteed premiums and benefits, are recognized as revenue when due from policyholders. When premiums are due over a significantly shorter period than the period over which benefits are provided, such as immediate annuities with life contingencies (which includes PRT annuities), any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is generally deferred and recognized into revenue in a constant relationship to the benefit reserves. All insurance related revenue is reported net of reinsurance ceded. |
Income Tax, Policy [Policy Text Block] | We compute income taxes using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial statement carrying amounts and the tax basis of our assets and liabilities using estimated tax rates expected to be in effect for the year in which the differences are expected to reverse. Such temporary differences are primarily due to the tax basis of reserves, DAC, unrealized investment gains/losses, reinsurance related differences, embedded derivatives and net operating loss carryforwards. Changes in deferred income tax assets and liabilities associated with components of OCI are recorded directly to OCI. We evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that it is more likely than not that some portion of the tax benefit will not be realized. We adjust the valuation allowance if, based on our evaluation, there is a change in the amount of deferred income tax assets that are deemed more-likely-than-not to be realized. Changes in deferred tax assets and liabilities attributable to changes in enacted income tax rates are recorded through net income in the period of enactment. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of our position. For those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize any income tax interest and penalties in income tax expense. |
Financial Statement Revisions_2
Financial Statement Revisions Revisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following represents the effects of the revisions on the consolidated statements of comprehensive income: Years ended December 31, 2017 2016 (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Other comprehensive income, before tax Unrealized investment gains (losses) on available-for-sale securities 1,269 43 1,312 878 4 882 Other comprehensive income, before tax 1,187 43 1,230 863 4 867 Income tax expense related to other comprehensive income 326 8 334 259 1 260 Other comprehensive income 861 35 896 604 3 607 Comprehensive income $ 2,309 $ (55 ) $ 2,254 $ 1,372 $ 8 $ 1,380 The following represents the effects of the revisions on the consolidated statements of cash flows: Years ended December 31, 2017 2016 (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 350 (6 ) 344 318 (14 ) 304 Changes in operating assets and liabilities: Interest sensitive contract liabilities 2,513 51 2,564 925 31 956 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 1,993 26 2,019 344 (13 ) 331 Other assets and liabilities 219 19 238 (33 ) (9 ) (42 ) Net cash provided by operating activities 3,170 — 3,170 1,199 — 1,199 The following represents the effects of the revisions on the consolidated balance sheet: December 31, 2017 (In millions) As Previously Reported Revisions As Adjusted Assets Investments AFS securities $ 61,012 $ (4 ) $ 61,008 Trading securities 2,196 (13 ) 2,183 Equity securities 790 13 803 Policy loans 530 12 542 Total investments 82,054 8 82,062 Investment in related parties – AFS securities 406 4 410 Reinsurance recoverable 4,972 360 5,332 Deferred acquisition costs, deferred sales inducements and value of business acquired 2,930 42 2,972 Total assets $ 99,747 $ 414 $ 100,161 Liabilities and Equity Liabilities Interest sensitive contract liabilities $ 67,708 $ 391 $ 68,099 Future policy benefits 17,507 50 17,557 Other liabilities 1,222 5 1,227 Total liabilities 90,539 446 90,985 Equity Retained earnings 4,321 (66 ) 4,255 Accumulated other comprehensive income 1,415 34 1,449 Total shareholders’ equity 9,208 (32 ) 9,176 Total liabilities and equity $ 99,747 $ 414 $ 100,161 The following represents the effects of the revisions on the consolidated statements of income: Years ended December 31, 2017 2016 (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Benefits and Expenses Interest sensitive contract benefits $ 2,826 $ 40 $ 2,866 $ 1,296 $ 47 $ 1,343 Future policy and other policy benefits 3,163 37 3,200 1,059 (29 ) 1,030 Amortization of deferred acquisition costs and value of business acquired 350 (6 ) 344 318 (14 ) 304 Total benefits and expenses 7,192 71 7,263 3,389 4 3,393 Income before income taxes 1,535 (71 ) 1,464 716 (4 ) 712 Income tax expense (benefit) 87 19 106 (52 ) (9 ) (61 ) Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Earnings per share Basic – All classes $ 7.41 $ (0.46 ) $ 6.95 $ 4.11 $ 0.03 $ 4.14 Diluted – Class A 7.37 (0.46 ) 6.91 4.02 0.02 4.04 Diluted – Class B 7.41 (0.46 ) 6.95 4.11 0.03 4.14 Diluted – Class M-1 7.41 (0.46 ) 6.95 0.20 — 0.20 Diluted – Class M-2 1 5.38 (0.33 ) 5.05 N/A N/A N/A Diluted – Class M-3 1 4.12 (0.26 ) 3.86 N/A N/A N/A Diluted – Class M-4 1 3.31 (0.21 ) 3.10 N/A N/A N/A N/A – Not applicable 1 Basic and diluted earnings per share for Class M-2, M-3 and M-4 were applicable only for the year ended December 31, 2017. See Note 13 – Earnings Per Share for further discussion. The following represents the effects of the revisions on the condensed consolidated statements of cash flows: Three months ended March 31, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 268 $ 9 $ 277 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 89 (7 ) 82 Changes in operating assets and liabilities: Interest sensitive contract liabilities (201 ) 12 (189 ) Other assets and liabilities 84 (14 ) 70 Net cash provided by operating activities 573 — 573 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 31 (7 ) 24 Purchases of: Available-for-sale securities (5,914 ) 7 (5,907 ) Net cash used in investing activities (2,884 ) — (2,884 ) Six months ended June 30, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 532 $ 2 $ 534 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 181 (10 ) 171 Policy acquisition costs deferred (311 ) 7 (304 ) Changes in operating assets and liabilities: Interest sensitive contract liabilities 7 27 34 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 352 (90 ) 262 Other assets and liabilities 139 (28 ) 111 Net cash provided by operating activities 519 (92 ) 427 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 288 (7 ) 281 Short-term investments 220 (59 ) 161 Purchases of: Available-for-sale securities (8,953 ) 99 (8,854 ) Trading securities (81 ) 64 (17 ) Investment funds (654 ) (64 ) (718 ) Short-term investments (429 ) 59 (370 ) Net cash used in investing activities (3,904 ) 92 (3,812 ) Supplementary information Non-cash transactions Investments received from pension risk transfer premiums $ — $ 92 $ 92 Nine months ended September 30, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 1,172 $ (15 ) $ 1,157 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 211 (4 ) 207 Changes in operating assets and liabilities: Interest sensitive contract liabilities 562 29 591 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 1,080 (83 ) 997 Funds withheld assets and liabilities (239 ) 7 (232 ) Other assets and liabilities 103 (26 ) 77 Net cash provided by operating activities 1,235 (92 ) 1,143 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 327 (7 ) 320 Purchases of: Available-for-sale securities (12,128 ) 99 (12,029 ) Net cash used in investing activities (6,146 ) 92 (6,054 ) Supplementary information Non-cash transactions Investments received from pension risk transfer premiums $ — $ 92 $ 92 The following represents the effects of the revisions on the condensed consolidated statements of comprehensive income (loss): Three months ended March 31, 2018 (In millions) As Previously Reported Revisions As Adjusted Net income $ 268 $ 9 $ 277 Other comprehensive income (loss), before tax Unrealized investment gains (losses) on available-for-sale securities (910 ) 19 (891 ) Other comprehensive income (loss), before tax (971 ) 19 (952 ) Income tax expense (benefit) related to other comprehensive income (183 ) 4 (179 ) Other comprehensive income (loss) (788 ) 15 (773 ) Comprehensive income (loss) $ (520 ) $ 24 $ (496 ) June 30, 2018 Three months ended Six months ended (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 264 $ (7 ) $ 257 $ 532 $ 2 $ 534 Other comprehensive loss, before tax Unrealized investment gains (losses) on available-for-sale securities (667 ) (35 ) (702 ) (1,577 ) (16 ) (1,593 ) Other comprehensive loss, before tax (568 ) (35 ) (603 ) (1,539 ) (16 ) (1,555 ) Income tax benefit related to other comprehensive loss (109 ) (7 ) (116 ) (292 ) (3 ) (295 ) Other comprehensive loss (459 ) (28 ) (487 ) (1,247 ) (13 ) (1,260 ) Comprehensive loss $ (195 ) $ (35 ) $ (230 ) $ (715 ) $ (11 ) $ (726 ) September 30, 2018 Three months ended Nine months ended (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 640 $ (17 ) $ 623 $ 1,172 $ (15 ) $ 1,157 Other comprehensive loss, before tax Unrealized investment gains (losses) on available-for-sale securities (103 ) (37 ) (140 ) (1,680 ) (53 ) (1,733 ) Other comprehensive loss, before tax (100 ) (37 ) (137 ) (1,639 ) (53 ) (1,692 ) Income tax benefit related to other comprehensive loss (17 ) (6 ) (23 ) (309 ) (9 ) (318 ) Other comprehensive loss (83 ) (31 ) (114 ) (1,330 ) (44 ) (1,374 ) Comprehensive income (loss) $ 557 $ (48 ) $ 509 $ (158 ) $ (59 ) $ (217 ) The following represents the effects of the revisions on the condensed consolidated statements of income: Three months ended March 31, 2018 (In millions, except per share data) Previously Reported Revisions Adjusted Benefits and Expenses Interest sensitive contract benefits $ 19 $ 12 $ 31 Amortization of deferred acquisition costs and value of business acquired 89 (7 ) 82 Total benefits and expenses 684 5 689 Income before income taxes 327 (5 ) 322 Income tax expense (benefit) 59 (14 ) 45 Net income $ 268 $ 9 $ 277 Earnings per share Basic – All classes $ 1.36 $ 0.04 $ 1.40 Diluted – Class A 1.36 0.04 1.40 Diluted – Class B 1.36 0.04 1.40 Diluted – Class M-1 1.36 0.04 1.40 Diluted – Class M-2 1.34 0.05 1.39 Diluted – Class M-3 1.33 0.05 1.38 Diluted – Class M-4 0.94 0.03 0.97 June 30, 2018 Three months ended Six months ended (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Revenues Premiums $ 726 $ 5 $ 731 $ 1,004 $ 5 $ 1,009 Total revenues 1,797 5 1,802 2,808 5 2,813 Benefits and Expenses Interest sensitive contract benefits 332 10 342 351 22 373 Future policy and other policy benefits 857 7 864 1,258 7 1,265 Amortization of deferred acquisition costs and value of business acquired 92 (3 ) 89 181 (10 ) 171 Total benefits and expenses 1,467 14 1,481 2,151 19 2,170 Income before income taxes 330 (9 ) 321 657 (14 ) 643 Income tax expense (benefit) 66 (2 ) 64 125 (16 ) 109 Net income $ 264 $ (7 ) $ 257 $ 532 $ 2 $ 534 Earnings per share Basic – All classes $ 1.34 $ (0.04 ) $ 1.30 $ 2.70 $ 0.01 $ 2.71 Diluted – Class A 1.33 (0.03 ) 1.30 2.69 0.01 2.70 Diluted – Class B 1.34 (0.04 ) 1.30 2.70 0.01 2.71 Diluted – Class M-1 1.34 (0.04 ) 1.30 2.70 0.01 2.71 Diluted – Class M-2 1.33 (0.04 ) 1.29 2.67 0.01 2.68 Diluted – Class M-3 1.34 (0.04 ) 1.30 2.67 0.01 2.68 Diluted – Class M-4 1.04 (0.02 ) 1.02 1.98 — 1.98 September 30, 2018 Three months ended Nine months ended (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Revenues Premiums $ 531 $ (5 ) $ 526 $ 1,535 $ — $ 1,535 Investment related gains (losses) 823 (7 ) 816 585 (7 ) 578 Total revenues 2,588 (12 ) 2,576 5,396 (7 ) 5,389 Benefits and Expenses Interest sensitive contract benefits 741 1 742 1,092 23 1,115 Future policy and other policy benefits 920 8 928 2,178 15 2,193 Amortization of deferred acquisition costs and value of business acquired 30 6 36 211 (4 ) 207 Total benefits and expenses 1,882 15 1,897 4,033 34 4,067 Income before income taxes 706 (27 ) 679 1,363 (41 ) 1,322 Income tax expense (benefit) 66 (10 ) 56 191 (26 ) 165 Net income $ 640 $ (17 ) $ 623 $ 1,172 $ (15 ) $ 1,157 Earnings per share Basic – Classes A, B, M-1, M-2, M-3 and M-4 $ 3.24 $ (0.08 ) $ 3.16 $ 5.94 $ (0.08 ) $ 5.86 Diluted – Class A 3.23 (0.08 ) 3.15 5.92 (0.07 ) 5.85 Diluted – Class B 3.24 (0.08 ) 3.16 5.94 (0.08 ) 5.86 Diluted – Class M-1 3.24 (0.08 ) 3.16 5.94 (0.08 ) 5.86 Diluted – Class M-2 3.24 (0.08 ) 3.16 5.90 (0.07 ) 5.83 Diluted – Class M-3 3.24 (0.08 ) 3.16 5.90 (0.07 ) 5.83 Diluted – Class M-4 2.49 (0.07 ) 2.42 4.42 (0.06 ) 4.36 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Schedule [Abstract] | |
Available-for-sale Securities | December 31, 2018 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI AFS securities U.S. government and agencies $ 57 $ — $ — $ 57 $ — U.S. state, municipal and political subdivisions 1,183 117 (7 ) 1,293 — Foreign governments 162 2 (3 ) 161 — Corporate 38,018 394 (1,315 ) 37,097 1 CLO 5,658 2 (299 ) 5,361 — ABS 4,915 53 (48 ) 4,920 — CMBS 2,390 27 (60 ) 2,357 7 RMBS 7,642 413 (36 ) 8,019 11 Total AFS securities 60,025 1,008 (1,768 ) 59,265 19 AFS securities – related party CLO 587 — (25 ) 562 — ABS 875 4 (4 ) 875 — Total AFS securities – related party 1,462 4 (29 ) 1,437 — Total AFS securities including related party $ 61,487 $ 1,012 $ (1,797 ) $ 60,702 $ 19 December 31, 2017 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI AFS securities U.S. government and agencies $ 63 $ 1 $ (2 ) $ 62 $ — U.S. state, municipal and political subdivisions 996 171 (2 ) 1,165 — Foreign governments 2,575 116 (8 ) 2,683 — Corporate 35,173 1,658 (171 ) 36,660 — CLO 5,039 53 (8 ) 5,084 — ABS 3,941 53 (27 ) 3,967 1 CMBS 1,994 48 (21 ) 2,021 1 RMBS 8,721 652 (7 ) 9,366 11 Total AFS securities 58,502 2,752 (246 ) 61,008 13 AFS securities – related party CLO 353 7 — 360 — ABS 50 — — 50 — Total AFS securities – related party 403 7 — 410 — Total AFS securities including related party $ 58,905 $ 2,759 $ (246 ) $ 61,418 $ 13 |
Available-for-sale Securities by Contractual Maturity | The amortized cost and fair value of AFS securities, including related party, are shown by contractual maturity below: December 31, 2018 (In millions) Amortized Cost Fair Value Due in one year or less $ 1,097 $ 1,095 Due after one year through five years 8,257 8,234 Due after five years through ten years 10,853 10,548 Due after ten years 19,213 18,731 CLO, ABS, CMBS and RMBS 20,605 20,657 Total AFS securities 60,025 59,265 AFS securities – related party, CLO and ABS 1,462 1,437 Total AFS securities including related party $ 61,487 $ 60,702 |
Fair Values and Unrealized Losses on Available-for-sale Securities | The following summarizes the fair value and gross unrealized losses for AFS securities, including related party, aggregated by class of security and length of time the fair value has remained below amortized cost: December 31, 2018 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Fair Value Gross AFS securities U.S. government and agencies $ 32 $ — $ 2 $ — $ 34 $ — U.S. state, municipal and political subdivisions 139 (2 ) 82 (5 ) 221 (7 ) Foreign governments 97 (2 ) 15 (1 ) 112 (3 ) Corporate 20,213 (942 ) 4,118 (373 ) 24,331 (1,315 ) CLO 5,054 (297 ) 90 (2 ) 5,144 (299 ) ABS 1,336 (23 ) 506 (25 ) 1,842 (48 ) CMBS 932 (27 ) 497 (33 ) 1,429 (60 ) RMBS 1,417 (31 ) 140 (5 ) 1,557 (36 ) Total AFS securities 29,220 (1,324 ) 5,450 (444 ) 34,670 (1,768 ) AFS securities – related party CLO 534 (25 ) — — 534 (25 ) ABS 306 (2 ) 116 (2 ) 422 (4 ) Total AFS securities – related party 840 (27 ) 116 (2 ) 956 (29 ) Total AFS securities including related party $ 30,060 $ (1,351 ) $ 5,566 $ (446 ) $ 35,626 $ (1,797 ) December 31, 2017 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities U.S. government and agencies $ 34 $ (1 ) $ 9 $ (1 ) $ 43 $ (2 ) U.S. state, municipal and political subdivisions 50 (1 ) 39 (1 ) 89 (2 ) Foreign governments 435 (6 ) 76 (2 ) 511 (8 ) Corporate 3,992 (49 ) 2,457 (122 ) 6,449 (171 ) CLO 414 (2 ) 340 (6 ) 754 (8 ) ABS 515 (5 ) 549 (22 ) 1,064 (27 ) CMBS 460 (8 ) 179 (13 ) 639 (21 ) RMBS 506 (3 ) 210 (4 ) 716 (7 ) Total AFS securities 6,406 (75 ) 3,859 (171 ) 10,265 (246 ) AFS securities – related party CLO 29 — — — 29 — ABS 42 — — — 42 — Total AFS securities – related party 71 — — — 71 — Total AFS securities including related party $ 6,477 $ (75 ) $ 3,859 $ (171 ) $ 10,336 $ (246 ) |
Other-than-temporary Impairments on Available-for-sale Securities | The following table represents a rollforward of the cumulative amounts recognized on the consolidated statements of income for OTTI related to pre-tax credit loss impairments on AFS securities, for which a portion of the securities’ total OTTI was recognized in AOCI: Years ended December 31, (In millions) 2018 2017 2016 Beginning balance $ 14 $ 16 $ 22 Initial impairments – credit loss OTTI recognized on securities not previously impaired 3 17 8 Additional impairments – credit loss OTTI recognized on securities previously impaired 2 — 3 Reduction in impairments from securities sold, matured or repaid (9 ) (13 ) (9 ) Reduction for credit loss that no longer has a portion of the OTTI loss recognized in AOCI — (6 ) (8 ) Ending balance $ 10 $ 14 $ 16 |
Net Investment Income | Net investment income by asset class consists of the following: Years ended December 31, (In millions) 2018 2017 2016 AFS securities $ 2,855 $ 2,579 $ 2,293 Trading securities 200 200 236 Equity securities 12 14 11 Mortgage loans 457 371 355 Investment funds 231 211 178 Funds withheld at interest 492 148 82 Other 112 78 62 Investment revenue 4,359 3,601 3,217 Investment expenses (355 ) (332 ) (303 ) Net investment income $ 4,004 $ 3,269 $ 2,914 |
Investment Related Gains (Losses) | Investment related gains (losses) by asset class consists of the following: Years ended December 31, (In millions) 2018 2017 2016 AFS securities Gross realized gains on investment activity $ 165 $ 169 $ 138 Gross realized losses on investment activity (151 ) (72 ) (54 ) Net realized investment gains on AFS securities 14 97 84 Net recognized investment gains (losses) on trading securities (255 ) 29 (50 ) Net recognized investment gains (losses) on equity securities (19 ) 88 18 Derivative gains (losses) (1,099 ) 2,377 596 Other gains (losses) 35 (19 ) 4 Investment related gains (losses) $ (1,324 ) $ 2,572 $ 652 |
Unrealized Gain (Loss) on Investments | The following table summarizes the change in unrealized gains (losses) on trading and equity securities, including related party and consolidated VIEs, we still held as of the respective period end: Years ended December 31, (In millions) 2018 2017 2016 Trading securities (143 ) 107 19 Trading securities – related party (25 ) (3 ) (10 ) VIE trading securities – related party — 4 — Equity securities (18 ) 32 19 VIE equity securities – related party 24 25 (78 ) |
Purchased Credit Impaired (PCI) Investments | Years ended December 31, (In millions) 2018 2017 2016 Trading securities (143 ) 107 19 Trading securities – related party (25 ) (3 ) (10 ) VIE trading securities – related party — 4 — Equity securities (18 ) 32 19 VIE equity securities – related party 24 25 (78 ) Purchased Credit Impaired (PCI) Investments —The following table summarizes our PCI investments: December 31, 2018 2017 2018 2017 (In millions) Fixed maturity securities Mortgage loans Contractually required payments receivable $ 8,179 $ 9,690 $ 2,675 $ 1,140 Less: Cash flows expected to be collected 1 (7,195 ) (8,188 ) (2,628 ) (1,090 ) Non-accretable difference $ 984 $ 1,502 $ 47 $ 50 Cash flows expected to be collected 1 $ 7,195 $ 8,188 $ 2,628 $ 1,090 Less: Amortized cost (5,518 ) (6,168 ) (1,931 ) (817 ) Accretable difference $ 1,677 $ 2,020 $ 697 $ 273 Fair value $ 5,828 $ 6,703 $ 1,933 $ 844 Outstanding balance 6,773 8,026 2,210 946 1 Represents the undiscounted principal and interest cash flows expected. During the respective years ended December 31, we acquired PCI investments with the following amounts at the time of purchase: Fixed maturity securities Mortgage loans (In millions) 2018 2017 2018 2017 Contractually required payments receivable $ 623 $ 2,161 $ 1,625 $ 894 Cash flows expected to be collected 562 1,790 1,601 857 Fair value 454 1,428 1,178 633 The following table summarizes the activity for the accretable yield on PCI investments: Fixed maturity securities Mortgage loans (In millions) 2018 2017 2018 2017 Beginning balance at January 1 $ 2,020 $ 2,080 $ 273 $ 70 Purchases of PCI investments, net of sales 65 264 407 216 Accretion (405 ) (400 ) (48 ) (24 ) Net reclassification from (to) non-accretable difference (3 ) 76 65 11 Ending balance at December 31 $ 1,677 $ 2,020 $ 697 $ 273 |
Mortgage Loans, Net | Mortgage loans, net of allowances, consists of the following: December 31, (In millions) 2018 2017 Commercial mortgage loans $ 7,217 $ 5,223 Commercial mortgage loans under development 80 24 Total commercial mortgage loans 7,297 5,247 Residential mortgage loans 3,334 986 Mortgage loans, net of allowances $ 10,631 $ 6,233 The distribution of commercial mortgage loans, including those under development, net of valuation allowances, by property type and geographic region, is as follows: December 31, 2018 2017 (In millions, except for percentages) Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total Property type Office building $ 2,221 30.5 % $ 1,187 22.6 % Retail 1,660 22.7 % 1,223 23.3 % Hotels 1,040 14.3 % 928 17.7 % Industrial 1,196 16.4 % 944 18.0 % Apartment 791 10.8 % 525 10.0 % Other commercial 389 5.3 % 440 8.4 % Total commercial mortgage loans $ 7,297 100.0 % $ 5,247 100.0 % U.S. Region East North Central $ 855 11.7 % $ 643 12.3 % East South Central 295 4.0 % 144 2.7 % Middle Atlantic 1,131 15.5 % 909 17.3 % Mountain 616 8.4 % 492 9.4 % New England 374 5.1 % 162 3.1 % Pacific 1,540 21.1 % 991 18.9 % South Atlantic 1,468 20.2 % 873 16.6 % West North Central 173 2.4 % 233 4.4 % West South Central 845 11.6 % 655 12.5 % Total U.S. Region 7,297 100.0 % 5,102 97.2 % International Region — — % 145 2.8 % Total commercial mortgage loans $ 7,297 100.0 % $ 5,247 100.0 % |
Credit Quality Indicators of the Commercial Mortgage Portfolio | The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: December 31, (In millions) 2018 2017 Less than 50% $ 1,883 $ 1,798 50% to 60% 1,988 1,390 61% to 70% 2,394 1,691 71% to 80% 898 282 81% to 100% 54 62 Commercial mortgage loans $ 7,217 $ 5,223 The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: December 31, (In millions) 2018 2017 Greater than 1.20x $ 6,576 $ 4,742 1.00x – 1.20x 474 297 Less than 1.00x 167 184 Commercial mortgage loans $ 7,217 $ 5,223 |
Summary of Investment Funds | The following table presents the carrying value by ownership percentage of equity method investment funds, including related party investment funds and investment funds owned by consolidated VIEs: December 31, (In millions) 2018 2017 Ownership Percentage 100% $ 17 $ 35 50% – 99% 1,044 520 3% – 49% 1,617 1,301 Equity method investment funds $ 2,678 $ 1,856 The following table presents the carrying value by ownership percentage of investment funds where we elected the fair value option, including related party investment funds and investment funds owned by consolidated VIEs: December 31, (In millions) 2018 2017 Ownership Percentage 3% – 49% $ 687 $ 590 Less than 3% 194 134 Fair value option investment funds $ 881 $ 724 The following is the aggregated summarized financial information of equity method investees, including those for which we elected the fair value option and would otherwise be accounted for as an equity method investment, and may be presented on a lag due to the availability of financial information from the investee: December 31, (In millions) 2018 2017 Assets $ 40,630 $ 22,777 Liabilities 24,241 7,518 Equity 16,389 15,259 Years ended December 31, (In millions) 2018 2017 2016 Net income $ 1,159 $ 1,587 $ 1,415 The following summarizes our investment funds, including related party and those owned by consolidated VIEs: December 31, 2018 2017 (In millions, except for percentages and years) Carrying value Percent of total Carrying value Percent of total Investment funds Private equity $ 253 36.0 % $ 271 38.8 % Real estate and other real assets 231 32.8 % 161 23.0 % Natural resources 4 0.6 % 4 0.6 % Hedge funds 43 6.1 % 61 8.7 % Credit funds 172 24.5 % 202 28.9 % Total investment funds 703 100.0 % 699 100.0 % Investment funds – related parties Public equities 63 2.8 % — — % Private equity – A-A Mortgage 1 463 20.7 % 403 30.8 % Private equity – other 554 24.8 % 180 13.7 % Real estate and other real assets 651 29.2 % 297 22.7 % Natural resources 104 4.7 % 74 5.6 % Hedge funds 98 4.4 % 93 7.1 % Credit funds 299 13.4 % 263 20.1 % Total investment funds – related parties 2,232 100.0 % 1,310 100.0 % Investment funds owned by consolidated VIEs Private equity – MidCap 2 552 88.4 % 528 92.5 % Credit funds 1 0.2 % 21 3.7 % Real estate and other real assets 71 11.4 % 22 3.8 % Total investment funds owned by consolidated VIEs 624 100.0 % 571 100.0 % Total investment funds including related parties and funds owned by consolidated VIEs $ 3,559 $ 2,580 1 A-A Mortgage Opportunities, L.P. (A-A Mortgage) is a platform to originate residential mortgage loans and mortgage servicing rights. See further discussion on A-A Mortgage in Note 17 – Related Parties. 2 MidCap FinCo Limited (MidCap) is a commercial finance company investment held by our consolidated VIE. See further discussion on MidCap in Note 17 – Related Parties. |
Schedule of Variable Interest Entities | The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: December 31, 2018 2017 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 703 $ 1,329 $ 699 $ 1,111 Investment in related parties – investment funds 2,232 4,331 1,310 2,785 Assets of consolidated VIEs – investment funds 624 727 571 594 Investment in fixed maturity securities 21,188 21,139 21,018 20,274 Investment in related parties – fixed maturity securities 1,686 1,788 717 796 Investment in related parties – equity securities 120 120 — — Total non-consolidated investments $ 26,553 $ 29,434 $ 24,315 $ 25,560 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount and Fair Value of Derivative Instruments | The following table presents the notional amount and fair value of derivative instruments: December 31, 2018 2017 Notional Amount Fair Value Notional Amount Fair Value (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedges Foreign currency swaps 2,041 $ 83 $ 55 928 $ 1 $ 99 Interest rate swaps — — — 302 — — Foreign currency forwards 85 — 1 — — — Total derivatives designated as hedges 83 56 1 99 Derivatives not designated as hedges Equity options 49,821 942 11 31,460 2,500 19 Futures 4 9 3 1,134 7 — Total return swaps 62 — 3 114 5 — Foreign currency swaps 38 3 2 41 21 3 Interest rate swaps 326 — 1 385 — 2 Credit default swaps 10 — 4 10 — 5 Foreign currency forwards 646 6 5 1,139 17 6 Embedded derivatives Funds withheld including related party (53 ) (1 ) 312 22 Interest sensitive contract liabilities — 7,969 — 7,411 Total derivatives not designated as hedges 907 7,997 2,862 7,468 Total derivatives $ 990 $ 8,053 $ 2,863 $ 7,567 |
Gains (Losses) Related to Derivatives Not Designated as Hedges | The following is a summary of the gains (losses) related to derivatives not designated as hedges: Years ended December 31, (In millions) 2018 2017 2016 Equity options $ (877 ) $ 1,939 $ 325 Futures 2 (24 ) (19 ) Swaps (8 ) 27 18 Foreign currency forwards 16 28 (2 ) Embedded derivatives on funds withheld (232 ) 407 274 Amounts recognized in investment related gains (losses) (1,099 ) 2,377 596 Embedded derivatives in indexed annuity products 1 923 (1,744 ) (308 ) Total gains (losses) on derivatives not designated as hedges $ (176 ) $ 633 $ 288 1 Included in interest sensitive contract benefits. |
Estimated Fair Value of Net Derivative and Other Financial Assets | The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows: Gross amounts not offset on the consolidated balance sheets (In millions) Gross amount recognized 1 Financial instruments 2 Collateral received/pledged Net amount Off-balance sheet securities collateral 3 Net amount after securities collateral December 31, 2018 Derivative assets $ 1,043 $ (52 ) $ (969 ) $ 22 $ (4 ) $ 18 Derivative liabilities (85 ) 52 24 (9 ) — (9 ) December 31, 2017 Derivative assets $ 2,551 $ (59 ) $ (2,323 ) $ 169 $ (221 ) $ (52 ) Derivative liabilities (134 ) 59 63 (12 ) — (12 ) 1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated balance sheets. As of December 31, 2018 and 2017, amounts not subject to master netting or similar agreements were immaterial. 2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the consolidated balance sheets. 3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. |
Estimated Fair Value of Net Derivative and Other Financial Liabilities | The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows: Gross amounts not offset on the consolidated balance sheets (In millions) Gross amount recognized 1 Financial instruments 2 Collateral received/pledged Net amount Off-balance sheet securities collateral 3 Net amount after securities collateral December 31, 2018 Derivative assets $ 1,043 $ (52 ) $ (969 ) $ 22 $ (4 ) $ 18 Derivative liabilities (85 ) 52 24 (9 ) — (9 ) December 31, 2017 Derivative assets $ 2,551 $ (59 ) $ (2,323 ) $ 169 $ (221 ) $ (52 ) Derivative liabilities (134 ) 59 63 (12 ) — (12 ) 1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated balance sheets. As of December 31, 2018 and 2017, amounts not subject to master netting or similar agreements were immaterial. 2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the consolidated balance sheets. 3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: December 31, 2018 2017 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 703 $ 1,329 $ 699 $ 1,111 Investment in related parties – investment funds 2,232 4,331 1,310 2,785 Assets of consolidated VIEs – investment funds 624 727 571 594 Investment in fixed maturity securities 21,188 21,139 21,018 20,274 Investment in related parties – fixed maturity securities 1,686 1,788 717 796 Investment in related parties – equity securities 120 120 — — Total non-consolidated investments $ 26,553 $ 29,434 $ 24,315 $ 25,560 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following represents the hierarchy for our assets and liabilities measured at fair value on a recurring basis: December 31, 2018 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities U.S. government and agencies $ 57 $ — $ 54 $ 3 $ — U.S. state, municipal and political subdivisions 1,293 — — 1,293 — Foreign governments 161 — — 161 — Corporate 37,097 — — 36,199 898 CLO 5,361 — — 5,254 107 ABS 4,920 — — 3,305 1,615 CMBS 2,357 — — 2,170 187 RMBS 8,019 — — 7,963 56 Total AFS securities 59,265 — 54 56,348 2,863 Trading securities U.S. government and agencies 5 — 3 2 — U.S. state, municipal and political subdivisions 126 — — 126 — Corporate 1,287 — — 1,287 — CLO 9 — — 8 1 ABS 87 — — 87 — CMBS 49 — — 49 — RMBS 386 — — 252 134 Total trading securities 1,949 — 3 1,811 135 Equity securities 216 — 40 173 3 Mortgage loans 32 — — — 32 Investment funds 182 153 — — 29 Funds withheld at interest – embedded derivative 57 — — — 57 Derivative assets 1,043 — 9 1,034 — Short-term investments 191 — 66 125 — Other investments 52 — — 52 — Cash and cash equivalents 2,911 — 2,911 — — Restricted cash 492 — 492 — — Investments in related parties AFS securities CLO 562 — — 562 — ABS 875 — — 547 328 Total AFS securities – related party 1,437 — — 1,109 328 Trading securities CLO 100 — — 22 78 ABS 149 — — — 149 Total trading securities – related party 249 — — 22 227 Equity securities 120 — — — 120 Investment funds 201 96 — — 105 Funds withheld at interest – embedded derivative (110 ) — — — (110 ) Reinsurance recoverable 1,676 — — — 1,676 Assets of consolidated VIEs Trading securities 35 — — — 35 Equity securities 50 — 37 — 13 Investment funds 567 552 — — 15 Cash and cash equivalents 2 — 2 — — Total assets measured at fair value $ 70,617 $ 801 $ 3,614 $ 60,674 $ 5,528 (Continued) December 31, 2018 (In millions) Total NAV Level 1 Level 2 Level 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ 7,969 $ — $ — $ — $ 7,969 Universal life benefits 932 — — — 932 Future policy benefits AmerUs Closed Block 1,443 — — — 1,443 ILICO Closed Block and life benefits 730 — — — 730 Derivative liabilities 85 — 3 78 4 Funds withheld liability – embedded derivative (1 ) — — (1 ) — Total liabilities measured at fair value $ 11,158 $ — $ 3 $ 77 $ 11,078 (Concluded) December 31, 2017 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities U.S. government and agencies $ 62 $ — $ 26 $ 36 $ — U.S. state, municipal and political subdivisions 1,165 — — 1,165 — Foreign governments 2,683 — — 2,683 — Corporate 36,660 — — 36,082 578 CLO 5,084 — — 5,020 64 ABS 3,967 — — 2,510 1,457 CMBS 2,021 — — 1,884 137 RMBS 9,366 — — 9,065 301 Total AFS securities 61,008 — 26 58,445 2,537 Trading securities U.S. government and agencies 3 — 3 — — U.S. state, municipal and political subdivisions 138 — — 121 17 Corporate 1,462 — — 1,462 — CLO 27 — — 10 17 ABS 94 — — 17 77 CMBS 51 — — 51 — RMBS 408 — — 66 342 Total trading securities 2,183 — 3 1,727 453 Equity securities 803 — 18 777 8 (Continued) December 31, 2017 (In millions) Total NAV Level 1 Level 2 Level 3 Mortgage loans 41 — — — 41 Investment funds 145 104 — — 41 Funds withheld at interest – embedded derivative 312 — — — 312 Derivative assets 2,551 — 7 2,544 — Short-term investments 201 — 40 161 — Cash and cash equivalents 4,888 — 4,888 — — Restricted cash 105 — 105 — — Investments in related parties AFS securities CLO 360 — — 360 — ABS 50 — — 46 4 Total AFS securities – related party 410 — — 406 4 Trading securities CLO 132 — — 27 105 ABS 175 — — 175 — Total trading securities – related party 307 — — 202 105 Investment funds 30 30 — — — Short-term investments 52 — — 52 — Reinsurance recoverable 1,824 — — — 1,824 Assets of consolidated VIEs Trading securities 48 — — — 48 Equity securities 240 — 212 — 28 Investment funds 549 528 — — 21 Cash and cash equivalents 4 — 4 — — Total assets measured at fair value $ 75,701 $ 662 $ 5,303 $ 64,314 $ 5,422 Liabilities Interest sensitive contract liabilities Embedded derivative $ 7,411 $ — $ — $ — $ 7,411 Universal life benefits 1,005 — — — 1,005 Unit-linked contracts 488 — — 488 — Future policy benefits AmerUs Closed Block 1,625 — — — 1,625 ILICO Closed Block and life benefits 803 — — — 803 Derivative liabilities 134 — — 129 5 Funds withheld liability – embedded derivative 22 — — 22 — Total liabilities measured at fair value $ 11,488 $ — $ — $ 639 $ 10,849 (Concluded) |
Summary of Fair Value Option | The following summarizes information for fair value option mortgage loans: December 31, (In millions) 2018 2017 Unpaid principal balance $ 30 $ 40 Mark to fair value 2 1 Fair value $ 32 $ 41 The following represents the gains (losses) recorded for instruments for which we have elected the fair value option, including related parties and consolidated VIEs: Years ended December 31, (In millions) 2018 2017 2016 Trading securities $ (255 ) $ 30 $ (51 ) Mortgage loans — (1 ) — Investment funds 37 35 54 Future policy benefits 182 (19 ) (25 ) Total gains (losses) $ (36 ) $ 45 $ (22 ) |
Reconciliation of Level 3 Assets Measured on a Recurring Basis | The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis Year ended December 31, 2018 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets AFS securities Corporate $ 578 $ (16 ) $ (6 ) $ 249 $ 97 $ (4 ) $ 898 $ — CLO 64 2 (2 ) 36 7 — 107 — ABS 1,457 8 (11 ) 252 — (91 ) 1,615 — CMBS 137 1 — 132 15 (98 ) 187 — RMBS 301 4 (11 ) 21 — (259 ) 56 — Trading securities U.S. state, municipal and political subdivisions 17 1 — — — (18 ) — 1 CLO 17 (9 ) — — — (7 ) 1 (6 ) ABS 77 (6 ) — — — (71 ) — (2 ) RMBS 342 (65 ) — — — (143 ) 134 5 Equity securities 8 2 — (7) — — 3 2 Mortgage loans 41 — — (9 ) — — 32 — Investment funds 41 (3 ) — (9 ) — — 29 (3 ) Funds withheld at interest – embedded derivative 312 (255 ) — — — — 57 — Investments in related parties AFS securities, ABS 4 — (2 ) 326 — — 328 — Trading securities CLO 105 (13 ) — (18 ) 25 (21 ) 78 (5 ) ABS — — — — 149 — 149 — Equity securities — — — 120 — — 120 — Investment funds — (3 ) — 108 — — 105 (3 ) Funds withheld at interest – embedded derivative — (110 ) — — — — (110 ) — Reinsurance recoverable 1,824 (148 ) — — — — 1,676 — Investments of consolidated VIEs Trading securities 48 — — (13 ) — — 35 — Equity securities 28 (12 ) — (3 ) — — 13 — Investment funds 21 (3 ) — (3 ) — — 15 — Total Level 3 assets $ 5,422 $ (625 ) $ (32 ) $ 1,182 $ 293 $ (712 ) $ 5,528 $ (11 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,411 ) $ 923 $ — $ (1,481 ) $ — $ — $ (7,969 ) $ — Universal life benefits (1,005 ) 73 — — — — (932 ) — Future policy benefits AmerUs Closed Block (1,625 ) 182 — — — — (1,443 ) — ILICO Closed Block and life benefits (803 ) 73 — — — — (730 ) — Derivative liabilities (5 ) 1 — — — — (4 ) 1 Total Level 3 liabilities $ (10,849 ) $ 1,252 $ — $ (1,481 ) $ — $ — $ (11,078 ) $ 1 1 Related to instruments held at end of period. Year ended December 31, 2017 Total realized and unrealized gains (losses) Transfers (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements In Out Ending balance Total gains (losses) included in earnings 1 Assets Fixed maturity AFS securities U.S. state, municipal and political subdivisions $ 5 $ 16 $ (1 ) $ (20 ) $ — $ — $ — $ — Foreign governments 14 — — — — (14 ) — — Corporate 370 13 15 177 29 (26 ) 578 — CLO 158 1 10 (31 ) 28 (102 ) 64 — ABS 1,156 26 29 163 93 (10 ) 1,457 — CMBS 152 1 (4 ) 28 51 (91 ) 137 — RMBS 17 1 1 2 289 (9 ) 301 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 43 (4 ) — (12 ) — (10 ) 17 1 ABS — — — — 77 — 77 — RMBS 96 (19 ) — 70 195 — 342 7 Equity securities 5 — — 3 — — 8 — Mortgage loans 44 (1 ) — (2 ) — — 41 (1 ) Investment funds — — — — 41 — 41 — Funds withheld at interest – embedded derivative 140 172 — — — — 312 — Investments in related parties AFS securities, ABS 60 — 1 (10 ) — (47 ) 4 — Trading securities, CLO 195 (8 ) — (55 ) — (27 ) 105 (5 ) Reinsurance recoverable 1,692 132 — — — — 1,824 — Investments of consolidated VIEs Trading securities 50 1 — (3 ) — — 48 1 Equity securities 43 (16 ) — 1 — — 28 (16 ) Investment funds 38 1 — (18 ) — — 21 1 Total Level 3 assets $ 4,295 $ 316 $ 51 $ 293 $ 803 $ (336 ) $ 5,422 $ (12 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (5,272 ) $ (1,744 ) $ — $ (395 ) $ — $ — $ (7,411 ) $ — Universal life benefits (883 ) (122 ) — — — — (1,005 ) — Future policy benefits AmerUs Closed Block (1,606 ) (19 ) — — — — (1,625 ) — ILICO Closed Block and life benefits (794 ) (9 ) — — — — (803 ) — Derivative liabilities (7 ) 2 — — — — (5 ) 2 Total Level 3 liabilities $ (8,562 ) $ (1,892 ) $ — $ (395 ) $ — $ — $ (10,849 ) $ 2 1 Related to instruments held at end of period. The following represents the gross components of purchases, issuances, sales and settlements, net, shown above: Year ended December 31, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities Corporate $ 351 $ — $ (29 ) $ (73 ) $ 249 CLO 67 — — (31 ) 36 ABS 599 — (35 ) (312 ) 252 CMBS 151 — (3 ) (16 ) 132 RMBS 56 — — (35 ) 21 Trading securities CLO 7 — (7 ) — — Equity securities 1 — (8) — (7 ) Mortgage loans — — — (9 ) (9 ) Investment funds — — — (9 ) (9 ) Investments in related parties AFS securities, ABS 326 — — — 326 Trading securities, CLO 30 — (48 ) — (18 ) Equity securities 120 — — — 120 Investment funds 108 — — — 108 Investments of consolidated VIEs Trading securities — — (13 ) — (13 ) Equity securities 1 — (4 ) — (3 ) Investment funds 14 — (17 ) — (3 ) Total Level 3 assets $ 1,831 $ — $ (164 ) $ (485 ) $ 1,182 Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (1,888 ) $ — $ 407 $ (1,481 ) Total Level 3 liabilities $ — $ (1,888 ) $ — $ 407 $ (1,481 ) |
Reconciliation of Level 3 Liabilities Measured on a Recurring Basis | The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis Year ended December 31, 2018 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets AFS securities Corporate $ 578 $ (16 ) $ (6 ) $ 249 $ 97 $ (4 ) $ 898 $ — CLO 64 2 (2 ) 36 7 — 107 — ABS 1,457 8 (11 ) 252 — (91 ) 1,615 — CMBS 137 1 — 132 15 (98 ) 187 — RMBS 301 4 (11 ) 21 — (259 ) 56 — Trading securities U.S. state, municipal and political subdivisions 17 1 — — — (18 ) — 1 CLO 17 (9 ) — — — (7 ) 1 (6 ) ABS 77 (6 ) — — — (71 ) — (2 ) RMBS 342 (65 ) — — — (143 ) 134 5 Equity securities 8 2 — (7) — — 3 2 Mortgage loans 41 — — (9 ) — — 32 — Investment funds 41 (3 ) — (9 ) — — 29 (3 ) Funds withheld at interest – embedded derivative 312 (255 ) — — — — 57 — Investments in related parties AFS securities, ABS 4 — (2 ) 326 — — 328 — Trading securities CLO 105 (13 ) — (18 ) 25 (21 ) 78 (5 ) ABS — — — — 149 — 149 — Equity securities — — — 120 — — 120 — Investment funds — (3 ) — 108 — — 105 (3 ) Funds withheld at interest – embedded derivative — (110 ) — — — — (110 ) — Reinsurance recoverable 1,824 (148 ) — — — — 1,676 — Investments of consolidated VIEs Trading securities 48 — — (13 ) — — 35 — Equity securities 28 (12 ) — (3 ) — — 13 — Investment funds 21 (3 ) — (3 ) — — 15 — Total Level 3 assets $ 5,422 $ (625 ) $ (32 ) $ 1,182 $ 293 $ (712 ) $ 5,528 $ (11 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,411 ) $ 923 $ — $ (1,481 ) $ — $ — $ (7,969 ) $ — Universal life benefits (1,005 ) 73 — — — — (932 ) — Future policy benefits AmerUs Closed Block (1,625 ) 182 — — — — (1,443 ) — ILICO Closed Block and life benefits (803 ) 73 — — — — (730 ) — Derivative liabilities (5 ) 1 — — — — (4 ) 1 Total Level 3 liabilities $ (10,849 ) $ 1,252 $ — $ (1,481 ) $ — $ — $ (11,078 ) $ 1 1 Related to instruments held at end of period. Year ended December 31, 2017 Total realized and unrealized gains (losses) Transfers (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements In Out Ending balance Total gains (losses) included in earnings 1 Assets Fixed maturity AFS securities U.S. state, municipal and political subdivisions $ 5 $ 16 $ (1 ) $ (20 ) $ — $ — $ — $ — Foreign governments 14 — — — — (14 ) — — Corporate 370 13 15 177 29 (26 ) 578 — CLO 158 1 10 (31 ) 28 (102 ) 64 — ABS 1,156 26 29 163 93 (10 ) 1,457 — CMBS 152 1 (4 ) 28 51 (91 ) 137 — RMBS 17 1 1 2 289 (9 ) 301 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 43 (4 ) — (12 ) — (10 ) 17 1 ABS — — — — 77 — 77 — RMBS 96 (19 ) — 70 195 — 342 7 Equity securities 5 — — 3 — — 8 — Mortgage loans 44 (1 ) — (2 ) — — 41 (1 ) Investment funds — — — — 41 — 41 — Funds withheld at interest – embedded derivative 140 172 — — — — 312 — Investments in related parties AFS securities, ABS 60 — 1 (10 ) — (47 ) 4 — Trading securities, CLO 195 (8 ) — (55 ) — (27 ) 105 (5 ) Reinsurance recoverable 1,692 132 — — — — 1,824 — Investments of consolidated VIEs Trading securities 50 1 — (3 ) — — 48 1 Equity securities 43 (16 ) — 1 — — 28 (16 ) Investment funds 38 1 — (18 ) — — 21 1 Total Level 3 assets $ 4,295 $ 316 $ 51 $ 293 $ 803 $ (336 ) $ 5,422 $ (12 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (5,272 ) $ (1,744 ) $ — $ (395 ) $ — $ — $ (7,411 ) $ — Universal life benefits (883 ) (122 ) — — — — (1,005 ) — Future policy benefits AmerUs Closed Block (1,606 ) (19 ) — — — — (1,625 ) — ILICO Closed Block and life benefits (794 ) (9 ) — — — — (803 ) — Derivative liabilities (7 ) 2 — — — — (5 ) 2 Total Level 3 liabilities $ (8,562 ) $ (1,892 ) $ — $ (395 ) $ — $ — $ (10,849 ) $ 2 1 Related to instruments held at end of period. The following represents the gross components of purchases, issuances, sales and settlements, net, shown above: Year ended December 31, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities Corporate $ 351 $ — $ (29 ) $ (73 ) $ 249 CLO 67 — — (31 ) 36 ABS 599 — (35 ) (312 ) 252 CMBS 151 — (3 ) (16 ) 132 RMBS 56 — — (35 ) 21 Trading securities CLO 7 — (7 ) — — Equity securities 1 — (8) — (7 ) Mortgage loans — — — (9 ) (9 ) Investment funds — — — (9 ) (9 ) Investments in related parties AFS securities, ABS 326 — — — 326 Trading securities, CLO 30 — (48 ) — (18 ) Equity securities 120 — — — 120 Investment funds 108 — — — 108 Investments of consolidated VIEs Trading securities — — (13 ) — (13 ) Equity securities 1 — (4 ) — (3 ) Investment funds 14 — (17 ) — (3 ) Total Level 3 assets $ 1,831 $ — $ (164 ) $ (485 ) $ 1,182 Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (1,888 ) $ — $ 407 $ (1,481 ) Total Level 3 liabilities $ — $ (1,888 ) $ — $ 407 $ (1,481 ) |
Gross Components of Purchases, Sales, Issuances and Settlements, net | Year ended December 31, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities Corporate $ 351 $ — $ (29 ) $ (73 ) $ 249 CLO 67 — — (31 ) 36 ABS 599 — (35 ) (312 ) 252 CMBS 151 — (3 ) (16 ) 132 RMBS 56 — — (35 ) 21 Trading securities CLO 7 — (7 ) — — Equity securities 1 — (8) — (7 ) Mortgage loans — — — (9 ) (9 ) Investment funds — — — (9 ) (9 ) Investments in related parties AFS securities, ABS 326 — — — 326 Trading securities, CLO 30 — (48 ) — (18 ) Equity securities 120 — — — 120 Investment funds 108 — — — 108 Investments of consolidated VIEs Trading securities — — (13 ) — (13 ) Equity securities 1 — (4 ) — (3 ) Investment funds 14 — (17 ) — (3 ) Total Level 3 assets $ 1,831 $ — $ (164 ) $ (485 ) $ 1,182 Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (1,888 ) $ — $ 407 $ (1,481 ) Total Level 3 liabilities $ — $ (1,888 ) $ — $ 407 $ (1,481 ) Year ended December 31, 2017 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities U.S. state, municipal and political subdivisions $ — $ — $ — $ (20 ) $ (20 ) Corporate 228 — (36 ) (15 ) 177 CLO 15 — (2 ) (44 ) (31 ) ABS 577 — — (414 ) 163 CMBS 29 — — (1 ) 28 RMBS 4 — — (2 ) 2 Trading securities CLO 4 — (16 ) — (12 ) RMBS 70 — — — 70 Equity securities 3 — — — 3 Mortgage loans — — — (2 ) (2 ) Investments in related parties AFS securities, ABS 5 — — (15 ) (10 ) Trading securities, CLO — — (55 ) — (55 ) Investments of consolidated VIEs Trading securities — — (3 ) — (3 ) Equity securities 1 — — — 1 Investment funds 1 — (19 ) — (18 ) Total Level 3 assets $ 937 $ — $ (131 ) $ (513 ) $ 293 Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (600 ) $ — $ 205 $ (395 ) Total Level 3 liabilities $ — $ (600 ) $ — $ 205 $ (395 ) |
Summary of the Unobservable Inputs for the Embedded Derivative of Fixed Indexed Annuities | The following summarizes the unobservable inputs for the embedded derivatives of fixed indexed annuities: December 31, 2018 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Input/range of Impact of an increase in the input on fair value Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 7,969 Option budget method Nonperformance risk 0.3 % – 1.5 % Decrease Option budget 0.7 % – 3.7 % Increase Surrender rate 3.6 % – 7.3 % Decrease December 31, 2017 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Input/range of Impact of an increase in the input on fair value Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 7,411 Option budget method Nonperformance risk 0.2 % – 1.2 % Decrease Option budget 0.7 % – 3.7 % Increase Surrender rate 1.5 % – 19.4 % Decrease |
Summary of Financial Instruments Not Carried at Fair Value on the Balance Sheet | The following represents our financial instruments not carried at fair value on the consolidated balance sheets: December 31, 2018 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 10,308 $ 10,424 $ — $ — $ — $ 10,424 Investment funds 521 521 521 — — — Policy loans 488 488 — — 488 — Funds withheld at interest 14,966 14,966 — — — 14,966 Other investments 70 70 — — — 70 Investments in related parties Mortgage loans 291 290 — — — 290 Investment funds 2,031 2,031 2,031 — — — Funds withheld at interest 13,687 13,687 — — — 13,687 Other investments 386 361 — — — 361 Assets of consolidated VIEs Investment funds 57 57 57 — — — Total financial assets not carried at fair value $ 42,805 $ 42,895 $ 2,609 $ — $ 488 $ 39,798 Financial liabilities Interest sensitive contract liabilities $ 54,655 $ 51,655 $ — $ — $ — $ 51,655 Long-term debt 991 910 — — 910 — Funds withheld liability 722 722 — — 722 — Total financial liabilities not carried at fair value $ 56,368 $ 53,287 $ — $ — $ 1,632 $ 51,655 December 31, 2017 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 6,192 $ 6,342 $ — $ — $ — $ 6,342 Investment funds 554 554 554 — — — Policy loans 542 542 — — 542 — Funds withheld at interest 6,773 6,773 — — — 6,773 Other investments 133 133 — — 58 75 Investments in related parties Investment funds 1,280 1,280 1,280 — — — Other investments 238 259 — — — 259 Assets of consolidated VIEs Investment funds 22 22 22 — — — Total financial assets not carried at fair value $ 15,734 $ 15,905 $ 1,856 $ — $ 600 $ 13,449 Financial liabilities Interest sensitive contract liabilities $ 31,878 $ 31,656 $ — $ — $ — $ 31,656 Funds withheld liability 385 385 — — 385 — Total financial liabilities not carried at fair value $ 32,263 $ 32,041 $ — $ — $ 385 $ 31,656 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Effects of Reinsurance [Line Items] | |
Ceded Credit Risk [Table Text Block] | The following summarizes our reinsurance recoverable from the following: December 31, (In millions) 2018 2017 Global Atlantic $ 3,166 $ 3,482 Protective 1,652 1,699 ARE 337 — Other 1 379 151 Reinsurance recoverable $ 5,534 $ 5,332 1 Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total recoverable. |
Schedule of Novated Balances [Table Text Block] | The below table summarizes the decreases in amounts on the consolidated balance sheets as a result of the novations. Novations during the year ended December 31, 2018 did not have a material effect on the consolidated balance sheets. (In millions) Year ended December 31, 2017 Interest sensitive contract liabilities $ 653 Future policy benefits 116 Policy loans 22 Reinsurance recoverable 747 |
Effects of Reinsurance [Table Text Block] | The following summarizes this reinsurance transaction: (In millions) Modco Liabilities assumed $ 7,878 Less: Assets received 7,663 Ceding commission (paid) received (266 ) Net cost of reinsurance $ 481 Net cost of reinsurance – DAC $ 481 The following summarizes these reinsurance transactions (collectively, Voya reinsurance transactions): VIAC RLI (In millions) Coinsurance Modco Modco Total Liabilities assumed $ 3,667 $ 14,911 $ 457 $ 19,035 Less: Assets received 3,478 14,332 445 18,255 Ceding commission (paid) received (86 ) (320 ) 12 (394 ) Net cost of reinsurance $ 275 $ 899 $ — $ 1,174 DAC $ 293 $ 999 $ 4 $ 1,296 Unearned revenue reserve 1 (8 ) (57 ) (4 ) (69 ) Deferred profit liability 2 (10 ) (43 ) — (53 ) Net cost of reinsurance $ 275 $ 899 $ — $ 1,174 1 Included within interest sensitive contract liabilities on the consolidated balance sheets. 2 Included within future policy benefits on the consolidated balance sheets. The following summarizes these reinsurance transactions: ALV ARE (In millions) Coinsurance Modco Total Liabilities assumed/funds withheld liability recorded $ 325 $ 337 $ 662 Less: Assets recorded 1 337 337 674 Deferred profit liability 2 $ (12 ) $ — $ (12 ) 1 ALV coinsurance assets recorded as receivable in other assets on the consolidated balance sheets, as the assets were not received prior to December 31, 2018. ARE modco assets recorded as reinsurance recoverable on the consolidated balance sheets. 2 Included within future policy and other policy benefits on the consolidated balance sheets. The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Premiums Direct $ 2,772 $ 2,639 $ 448 Reinsurance assumed 1,001 21 20 Reinsurance ceded (405 ) (195 ) (228 ) Total premiums $ 3,368 $ 2,465 $ 240 Future policy and other policy benefits Direct $ 3,698 $ 3,476 $ 1,421 Reinsurance assumed 1,028 37 82 Reinsurance ceded (539 ) (313 ) (473 ) Total future policy and other policy benefits $ 4,187 $ 3,200 $ 1,030 |
Deferred Acquisition Costs, D_2
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Deferred Acquisition Costs | The following represents a rollforward of DAC, DSI and VOBA: (In millions) DAC DSI VOBA Total Balance at December 31, 2015 $ 706 $ 320 $ 1,630 $ 2,656 Additions 601 200 — 801 Unlocking (12 ) (3 ) (23 ) (38 ) Amortization (113 ) (36 ) (156 ) (305 ) Impact of unrealized investment (gains) losses (37 ) (19 ) (99 ) (155 ) Balance at December 31, 2016 1,145 462 1,352 2,959 Additions 493 161 — 654 Unlocking 13 4 (1 ) 16 Amortization (194 ) (67 ) (162 ) (423 ) Impact of unrealized investment (gains) losses (82 ) (40 ) (112 ) (234 ) Balance at December 31, 2017 1,375 520 1,077 2,972 Additions 2,481 264 — 2,745 Unlocking 21 7 54 82 Amortization (108 ) (61 ) (141 ) (310 ) Impact of unrealized investment (gains) losses 152 69 197 418 Balance at December 31, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 The expected amortization of VOBA for the next five years is as follows: (In millions) Expected Amortization 2019 $ 73 2020 77 2021 72 2022 68 2023 68 |
Deferred Sales Inducements | The following represents a rollforward of DAC, DSI and VOBA: (In millions) DAC DSI VOBA Total Balance at December 31, 2015 $ 706 $ 320 $ 1,630 $ 2,656 Additions 601 200 — 801 Unlocking (12 ) (3 ) (23 ) (38 ) Amortization (113 ) (36 ) (156 ) (305 ) Impact of unrealized investment (gains) losses (37 ) (19 ) (99 ) (155 ) Balance at December 31, 2016 1,145 462 1,352 2,959 Additions 493 161 — 654 Unlocking 13 4 (1 ) 16 Amortization (194 ) (67 ) (162 ) (423 ) Impact of unrealized investment (gains) losses (82 ) (40 ) (112 ) (234 ) Balance at December 31, 2017 1,375 520 1,077 2,972 Additions 2,481 264 — 2,745 Unlocking 21 7 54 82 Amortization (108 ) (61 ) (141 ) (310 ) Impact of unrealized investment (gains) losses 152 69 197 418 Balance at December 31, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 The expected amortization of VOBA for the next five years is as follows: (In millions) Expected Amortization 2019 $ 73 2020 77 2021 72 2022 68 2023 68 |
Closed Block (Tables)
Closed Block (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Schedule of Closed Block Assets and Liabilities [Table Text Block] | Summarized financial information of the AmerUs Closed Block is presented below. December 31, (In millions) 2018 2017 Liabilities Future policy benefits $ 1,443 $ 1,625 Other policy claims and benefits 14 19 Dividends payable to policyholders 89 92 Other liabilities — 15 Total liabilities 1,546 1,751 Assets Trading securities 1,228 1,377 Mortgage loans, net of allowances 32 41 Policy loans 154 168 Total investments 1,414 1,586 Cash and cash equivalents 31 48 Accrued investment income 41 36 Reinsurance recoverable 22 25 Other assets 2 — Total assets 1,510 1,695 Maximum future earnings to be recognized from AmerUs Closed Block $ 36 $ 56 |
Closed Block Operations, Net Results [Table Text Block] | The following represents the contribution from AmerUs Closed Block. Years ended December 31, (In millions) 2018 2017 2016 Revenues Premiums $ 48 $ 58 $ 24 Net investment income 77 79 84 Investment related gains (losses) (118 ) 61 42 Total revenues 7 198 150 Benefits and Expenses Future policy and other policy benefits (49 ) 144 107 Dividends to policyholders 36 51 40 Total benefits and expenses (13 ) 195 147 Contribution from AmerUs Closed Block before income taxes 20 3 3 Income tax expense (benefit) — (5 ) 3 Contribution from AmerUs Closed Block, net of income taxes $ 20 $ 8 $ — |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Stock by Class [Table Text Block] | The table below shows the changes in each class of shares issued and outstanding: Years ended December 31, (In millions) 2018 2017 2016 Class A Beginning balance 142.4 77.3 50.1 Issued shares 0.6 0.7 3.3 Forfeited shares — — — Repurchased shares (2.6 ) — (0.3 ) Converted from Class B shares 22.0 64.4 24.2 Ending balance 162.4 142.4 77.3 Class B Beginning balance 47.4 111.8 136.0 Converted to Class A shares (22.0 ) (64.4 ) (24.2 ) Ending balance 25.4 47.4 111.8 Class M-1 Beginning balance 3.4 3.5 5.2 Converted to Class A shares — (0.1 ) (1.1 ) Forfeited shares — — (0.3 ) Repurchased shares — — (0.3 ) Ending balance 3.4 3.4 3.5 Class M-2 Beginning balance 0.9 1.1 3.1 Converted to Class A shares (0.1 ) (0.2 ) (1.7 ) Forfeited shares — — (0.2 ) Repurchased shares — — (0.1 ) Ending balance 0.8 0.9 1.1 Class M-3 Beginning balance 1.1 1.3 3.1 Converted to Class A shares (0.1 ) (0.2 ) (1.5 ) Forfeited shares — — (0.2 ) Repurchased shares — — (0.1 ) Ending balance 1.0 1.1 1.3 Class M-4 Beginning balance 4.7 5.4 5.0 Issued shares — — 1.0 Converted to Class A shares (0.5 ) (0.2 ) (0.1 ) Forfeited shares — (0.1 ) (0.4 ) Repurchased shares (0.1 ) (0.4 ) (0.1 ) Ending balance 4.1 4.7 5.4 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Award Activity | Stock Options – A rollforward of activity for the year ended December 31, 2018 for stock options is as follows: (In millions, except per share data) Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2018 0.8 $ 41.19 Granted 0.3 48.06 Exercised 0.0 33.95 Forfeited (0.1 ) 47.01 Outstanding at December 31, 2018 1.0 $ 43.34 Vested and expected to vest 1 at December 31, 2018 1.0 $ 43.34 $ 2 Exercisable at December 31, 2018 0.4 $ 38.58 $ 2 1 Expected to vest are unvested options for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition. |
Valuation Assumptions | Valuation Assumptions for Class M Shares —The fair value of the Class M shares is determined using the Black-Scholes option pricing model, with application of a Monte-Carlo simulation to determine the value of the Tranche 2 Class M shares. No Tranche 2 Class M shares were granted during the years ended December 31, 2018 and 2017 . Grant date assumptions used for valuation of Class M share awards for the year ended December 31, 2016 were: Assumptions used Year ended December 31, 2016 Athene Class A share value $32.90 Risk-free interest rate 0.5 % – 1.8% Expected dividend yield —% Expected volatility 30.0% Expected term (in years) 3.00 Valuation Assumptions – We determine the fair value at grant date for stock options using the Black-Scholes option pricing model. The following represents the assumptions used for the fair value at grant date: Years ended December 31, Assumptions used 2018 2017 2016 Risk-free interest rate 2.4 % – 2.6% 1.5% 1.0% Expected dividend yield —% —% —% Expected volatility 25.0 % – 26.0% 25.0 % – 28.4% 25.0% Expected term (in years) 2.46 – 2.86 2.34 – 2.81 2.63 |
LTIP RSUs Nonvested Award Activity | RSUs – The following represents the activity of nonvested LTIP RSUs for the year ended December 31, 2018 : (In millions, except per share data) RSUs Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 0.5 $ 42.03 Granted 0.2 47.97 Vested (0.1 ) 41.84 Forfeited 0.0 41.41 Nonvested at December 31, 2018 0.6 $ 44.19 |
M Share Award Activity | Award activity for Class M Shares —A rollforward of award activity for the year ended December 31, 2018 of the Class M shares is as follows: Tranche 1 Tranche 2 Total (In millions, except per share data) Class M Shares Weighted Average Conversion Price Aggregate Intrinsic Value Class M Shares Weighted Average Conversion Price Aggregate Intrinsic Value Class M Shares Weighted Average Conversion Price Outstanding at January 1, 2018 3.9 $ 18.30 5.8 $ 19.19 9.7 $ 18.83 Converted (0.2 ) 21.42 (0.3 ) 22.86 (0.5 ) 22.37 Forfeited 0.0 23.62 — — 0.0 23.62 Repurchased 0.0 30.79 0.0 26.23 0.0 28.94 Outstanding at December 31, 2018 3.7 $ 17.97 5.5 $ 18.94 9.2 $ 18.55 Vested and expected to vest 1 at December 31, 2018 3.7 $ 17.97 $ 80 5.5 $ 18.94 $ 115 Convertible at December 31, 2018 3.0 $ 15.36 $ 72 4.3 $ 15.93 $ 102 1 Expected to vest are unvested shares for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition. |
Nonvested Share Activity | The following represents the activity of nonvested Class M shares for the year ended December 31, 2018 : Tranche 1 Tranche 2 Total (In millions, except per share data) Class M Shares Weighted Average Grant Date Fair Value Class M Shares Weighted Average Grant Date Fair Value Class M Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 1.1 $ 7.97 1.4 $ 13.81 2.5 $ 11.29 Vested (0.4 ) 5.68 (0.2 ) 12.60 (0.6 ) 8.22 Forfeited 0.0 6.14 — — 0.0 6.14 Nonvested at December 31, 2018 0.7 $ 9.28 1.2 $ 14.03 1.9 $ 12.31 |
Stock-based Compensation Expense | Components of stock compensation expense recorded on the consolidated statements of income are as follows: Years ended December 31, (In millions) 2018 2017 2016 Class M – Tranche 1 $ 3 $ 8 $ 11 Class M – Tranche 2 4 21 69 LTIP, ESPP and other equity awards 19 16 4 Stock-based compensation expense $ 26 $ 45 $ 84 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following represents our basic and diluted EPS calculations: Year ended December 31, 2018 (In millions, except per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 857 $ 157 $ 18 $ 5 $ 5 $ 11 Basic weighted average shares outstanding 160.5 29.3 3.4 0.8 1.0 2.1 Dilutive effect of stock compensation plans 0.6 — — — — 0.6 Diluted weighted average shares outstanding 161.1 29.3 3.4 0.8 1.0 2.7 Earnings per share Basic $ 5.34 $ 5.34 $ 5.34 $ 5.34 $ 5.34 $ 5.34 Diluted $ 5.32 $ 5.34 $ 5.34 $ 5.31 $ 5.31 $ 4.11 Year ended December 31, 2017 (In millions, except per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic $ 749 $ 567 $ 24 $ 4 $ 5 $ 9 Effect of stock compensation plans on allocated net income 18 — — — — — Net income – diluted $ 767 $ 567 $ 24 $ 4 $ 5 $ 9 Basic weighted average shares outstanding 107.7 81.6 3.4 0.6 0.7 1.3 Dilutive effect of stock compensation plans 3.3 — — 0.3 0.5 1.6 Diluted weighted average shares outstanding 111.0 81.6 3.4 0.9 1.2 2.9 Earnings per share Basic $ 6.95 $ 6.95 $ 6.95 $ 6.95 $ 6.95 $ 6.95 Diluted $ 6.91 $ 6.95 $ 6.95 $ 5.05 $ 3.86 $ 3.10 Year ended December 31, 2016 (In millions, except per share data) Class A Class B Class M-1 Net income – basic $ 216 $ 556 $ 1 Effect of stock compensation plans on allocated net income 1 — — Net income – diluted $ 217 $ 556 $ 1 Basic weighted average shares outstanding 52.1 134.5 0.2 Dilutive effect of stock compensation plans 1.4 — 4.2 Diluted weighted average shares outstanding 53.5 134.5 4.4 Earnings per share Basic $ 4.14 $ 4.14 $ 4.14 Diluted $ 4.04 $ 4.14 $ 0.20 |
Shares Excluded from Dilutive Earnings Per Share | The diluted EPS calculations for Class A shares excluded the following shares, RSUs and options: Years ended December 31, (In millions) 2018 2017 2016 Antidilutive shares, RSUs and options excluded from diluted EPS calculation 34.7 50.9 113.5 Shares, RSUs and options excluded from diluted EPS calculation as a performance condition had not been met 0.2 1.4 2.5 Total shares, RSUs and options excluded from diluted EPS calculation 34.9 52.3 116.0 Note: Shares, RSUs and options are as of year end. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | The following is a detail of AOCI and changes in AOCI. Prior period balances include equity securities that were classified as AFS securities prior to the adoption of ASU 2016-01 . December 31, (In millions) 2018 2017 AFS securities $ (766 ) $ 2,577 DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities 154 (703 ) Noncredit component of OTTI losses on AFS securities (19 ) (13 ) Hedging instruments 51 (95 ) Pension adjustments (2 ) (5 ) Foreign currency translation adjustments (3 ) 8 Accumulated other comprehensive income (loss), before taxes (585 ) 1,769 Deferred income taxes 113 (320 ) Accumulated other comprehensive income (loss) $ (472 ) $ 1,449 Changes in AOCI are presented below: Years ended December 31, (In millions) 2018 2017 2016 Unrealized investment gains (losses) on AFS securities Unrealized investment gains (losses) on AFS securities $ (3,291 ) $ 1,680 $ 1,397 Change in DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustment 853 (293 ) (495 ) Less: Reclassification adjustment for gains (losses) realized in net income 1 4 75 20 Less: Income tax expense (benefit) (461 ) 355 262 Net unrealized investment gains (losses) on AFS securities (1,981 ) 957 620 Noncredit component of OTTI losses on AFS securities Noncredit component of OTTI losses on AFS securities (9 ) (5 ) (9 ) Less: Reclassification adjustment for losses realized in net income 1 (3 ) (9 ) (7 ) Less: Income tax expense (benefit) (1 ) 1 — Net noncredit component of OTTI losses on AFS securities (5 ) 3 (2 ) Unrealized gains (losses) on hedging instruments Unrealized gains (losses) on hedging instruments 146 (105 ) (5 ) Less: Income tax expense (benefit) 31 (22 ) (2 ) Net unrealized gains (losses) on hedging instruments 115 (83 ) (3 ) Pension adjustments 3 (1 ) — Foreign currency translation adjustments (11 ) 20 (8 ) Change in AOCI from comprehensive income (loss) (1,879 ) 896 607 Adoption of accounting standards (42 ) 187 — Change in AOCI $ (1,921 ) $ 1,083 $ 607 1 Recognized in investment related gains (losses) on the consolidated statements of income. |
Income Taxes Income Tax Expense
Income Taxes Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | Income tax expense consists of the following: Years ended December 31, (In millions) 2018 2017 2016 Current $ 78 $ 5 $ (33 ) Deferred 44 101 (28 ) Income tax expense (benefit) $ 122 $ 106 $ (61 ) Total income taxes were as follows: Years ended December 31, (In millions) 2018 2017 2016 Income tax expense (benefit) $ 122 $ 106 $ (61 ) Income tax expense (benefit) from OCI (431 ) 334 260 Total income taxes $ (309 ) $ 440 $ 199 |
Schedule of Income before Income Tax | Income tax expense was calculated based on the following components of income before income taxes: Years ended December 31, (In millions) 2018 2017 2016 Income before income taxes – Bermuda $ 641 $ 1,165 $ 566 Income before income taxes – Germany — 25 12 Income before income taxes – U.S. 534 274 134 Income before income taxes $ 1,175 $ 1,464 $ 712 |
Schedule of Effective Income Tax Rate Reconciliation | The expected tax provision computed on pre-tax income at the weighted average tax rate has been calculated as the sum of the pre-tax income in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. Statutory tax rates of 0% and 21% have been used for Bermuda and the United States, respectively, for the year ended December 31, 2018 . Statutory tax rates of 0% , 31% and 35% have been used for Bermuda, Germany and the United States, respectively, for the years ended December 31, 2017 and 2016 . A reconciliation of the difference between the expected tax provision at the weighted average tax rate and income tax expense (benefit) is as follows: Years ended December 31, (In millions) 2018 2017 2016 Expected tax provision computed on pre-tax income at weighted average income tax rate $ 112 $ 104 $ 51 Increase (decrease) in income taxes resulting from: Deferred tax valuation allowance — (5 ) (116 ) Prior year true-up 11 8 1 Corporate owned life insurance (3 ) (8 ) (7 ) Stock compensation expense 1 5 5 Change in statutory tax rates — (7 ) — State taxes and other 1 9 5 Income tax expense (benefit) $ 122 $ 106 $ (61 ) Effective tax rate 10 % 7 % (9 )% |
Schedule of Gross Current and Deferred Tax Assets and Liabilities | Current income tax recoverable and deferred tax assets are included in other assets on the consolidated balance sheets, and current income tax payable and deferred tax liabilities are included in other liabilities on the consolidated balance sheets. Current and deferred income tax assets and liabilities were as follows: December 31, (In millions) 2018 2017 Current income tax recoverable $ 36 $ 29 Current income tax payable 33 9 Net current income tax recoverable $ 3 $ 20 Deferred tax assets $ 340 $ 3 Deferred tax liabilities — 46 Net deferred tax assets (liabilities) $ 340 $ (43 ) |
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities consisted of the following: December 31, (In millions) 2018 2017 1 Deferred tax assets Insurance liabilities $ 1,186 $ 1,402 Net unrealized losses on AFS 112 — Net operating and capital loss carryforwards 78 167 Tax credits — 6 Fixed assets 43 26 Employee benefits 24 37 Other 38 26 Total deferred tax assets 1,481 1,664 Valuation allowance 2 (52 ) (96 ) Deferred tax assets, after valuation allowance 1,429 1,568 Deferred tax liabilities Investments, including derivatives 296 781 Net unrealized gains on AFS — 325 DAC, DSI and VOBA 790 497 Other 3 8 Total deferred tax liabilities 1,089 1,611 Net deferred tax assets (liabilities) $ 340 $ (43 ) 1 Deferred tax balances were remeasured as of December 22, 2017 using the reduced U.S. statutory income tax rate as a result of the Tax Act. 2 A portion of the valuation allowance reduction was recorded in other comprehensive income as of December 31, 2017. |
Summary of Valuation Allowance | The valuation allowance consists of the following: December 31, (In millions) 2018 2017 U.S. federal and state net operating losses and other deferred tax assets $ 52 $ 46 Germany other deferred tax assets — 50 Total valuation allowance $ 52 $ 96 |
Statutory Requirements (Tables)
Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure [Table Text Block] | The following represents the effect of the permitted practices to the statutory financial statements: December 31, 2018 (In millions) ALRe AARe 1 ACRA Increase (decrease) to capital and surplus due to permitted practices $ 554 $ 202 $ (252 ) Increase (decrease) to statutory net income due to permitted practices (705 ) 179 (267 ) 1 AARe has permission to use amortized cost instead of fair value as the basis for certain investments but does not produce GAAP financial statements. The effect of the permitted practices to the AARe statutory financial statements reflects the impact of the difference between amortized cost and fair value for certain investments. The following represents the maximum distribution our Bermuda subsidiaries would be permitted to remit to its parent without the need for prior approval: December 31, (In millions) 2018 2017 ALRe $ 5,942 $ 5,022 AARe 997 — ACRA — — Statutory capital and surplus and net income (loss) —The following table presents, for each of our insurance subsidiaries, the statutory capital and surplus and the statutory net income (loss), based on the most recently filed statutory financial statements filed with insurance regulators: Statutory capital & surplus Statutory net income (loss) December 31, Years ended December 31, (In millions) 2018 2017 2018 2017 2016 ALRe $ 9,659 $ 6,972 $ 418 $ 828 $ 460 AARe 2,095 — 997 — — ACRA 393 — (287 ) — — AADE 1,544 1,348 18 24 71 AANY 282 268 6 29 1 ALICNY 70 76 (22 ) 6 10 AAIA 1,234 1,164 81 239 100 STAR 92 90 9 3 17 Athene Re USA IV 29 25 5 (3 ) (5 ) |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following summarizes the asset management fees and sub-advisory fees we have incurred related to AAM, AAME and other Apollo affiliates: Years ended December 31, (In millions) 2018 2017 2016 Asset management fees $ 290 $ 261 $ 229 Sub-advisory fees 59 57 66 December 31, (In millions, except for percentages) 2018 2017 AFS securities Foreign governments $ 153 $ 152 Corporate 3,398 2,934 CLO 5,703 5,166 ABS 663 681 CMBS 880 872 Trading securities 87 121 Equity securities 2 — Mortgage loans 3,507 2,232 Investment funds 157 26 Funds withheld at interest 4,126 1,737 Other investments 70 75 Total assets sub-advised by Apollo affiliates $ 18,746 $ 13,996 Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets 18 % 18 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Restricted Pledged Assets and Funds in Trust | The total restricted assets included on the consolidated balance sheets are as follows: December 31, (In millions) 2018 2017 AFS securities $ 5,439 $ 1,572 Trading securities 68 — Equity securities 2 36 Mortgage loans 1,830 914 Investment funds 53 20 Derivative assets 24 — Short-term investments 77 10 Other investments 47 — Restricted cash 492 105 Total restricted assets $ 8,032 $ 2,657 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Operating Revenues to Consolidation | The table below reconciles segment adjusted operating revenues to total revenues presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 8,118 $ 5,960 $ 3,330 Corporate and Other 44 368 268 Non-operating adjustments Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets (1,020 ) 1,990 324 Investment gains (losses), net of offsets (515 ) 461 164 VIE expenses and noncontrolling interest 1 — 13 Other adjustments to revenues (85 ) (52 ) 6 Total revenues $ 6,543 $ 8,727 $ 4,105 |
Reconciliation of Segment Operating Income to Consolidation | The table below reconciles segment adjusted operating income to net income presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 1,201 $ 1,038 $ 808 Corporate and other (61 ) 17 (49 ) Non-operating adjustments Investment gains (losses), net of offsets (274 ) 199 47 Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 242 230 67 Integration, restructuring and other non-operating expenses (22 ) (68 ) (22 ) Stock-based compensation, excluding LTIP (11 ) (33 ) (82 ) Income tax (expense) benefit – non-operating (22 ) (25 ) 4 Net income $ 1,053 $ 1,358 $ 773 |
Reconciliation of Segment Net Investment Income | The table below reconciles segment provision for income taxes – operating to income tax expense presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 100 $ 83 $ (53 ) Corporate and Other — (2 ) (4 ) Income tax (expense) benefit – non-operating 22 25 (4 ) Income tax expense (benefit) $ 122 $ 106 $ (61 ) The table below reconciles segment provision for income taxes – operating to income tax expense presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 100 $ 83 $ (53 ) Corporate and Other — (2 ) (4 ) Income tax (expense) benefit – non-operating 22 25 (4 ) Income tax expense (benefit) $ 122 $ 106 $ (61 ) The table below reconciles segment net investment earnings to net investment income presented on the consolidated statements of income: Years ended December 31, (In millions) 2018 2017 2016 Retirement Services $ 4,188 $ 3,241 $ 2,953 Corporate and Other 44 182 77 Adjustments to net investment income Reinsurance embedded derivative impacts (301 ) (191 ) (189 ) Net VIE earnings (37 ) (77 ) (1 ) Alternative income (gains) losses 34 20 39 Held for trading amortization 76 94 35 Net investment income $ 4,004 $ 3,269 $ 2,914 |
Total Assets by Segment | The following represents total assets by segment: December 31, (In millions) 2018 2017 Retirement Services $ 123,498 $ 91,749 Corporate and Other 2,007 8,412 Total assets $ 125,505 $ 100,161 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The unaudited quarterly results of operations for the years ended December 31, 2018 and 2017 are summarized in the table below, as adjusted for revisions discussed further in Note 2 – Financial Statement Revisions : Three months ended March 31 June 30 September 30 December 31 (In millions, except per share data) Prior Reported Revision As Adjusted Prior Reported Revision As Adjusted Prior Reported Revision As Adjusted Prior Reported Revision As Adjusted 2018 Total revenues $ 1,011 $ — $ 1,011 $ 1,797 $ 5 $ 1,802 $ 2,588 $ (12 ) $ 2,576 N/A N/A $ 1,154 Total benefits and expenses 684 5 689 1,467 14 1,481 1,882 15 1,897 N/A N/A 1,301 Net income (loss) 268 9 277 264 (7 ) 257 640 (17 ) 623 N/A N/A (104 ) Earnings (loss) per share Basic – All classes $ 1.36 $ 0.04 $ 1.40 $ 1.34 $ (0.04 ) $ 1.30 $ 3.24 $ (0.08 ) $ 3.16 N/A N/A $ (0.53 ) Diluted – Class A 1.36 0.04 1.40 1.33 (0.03 ) 1.30 3.23 (0.08 ) 3.15 N/A N/A (0.53 ) Diluted – Class B 1.36 0.04 1.40 1.34 (0.04 ) 1.30 3.24 (0.08 ) 3.16 N/A N/A (0.53 ) Diluted – Class M-1 1.36 0.04 1.40 1.34 (0.04 ) 1.30 3.24 (0.08 ) 3.16 N/A N/A (0.53 ) Diluted – Class M-2 1.34 0.05 1.39 1.33 (0.04 ) 1.29 3.24 (0.08 ) 3.16 N/A N/A (0.53 ) Diluted – Class M-3 1.33 0.05 1.38 1.34 (0.04 ) 1.30 3.24 (0.08 ) 3.16 N/A N/A (0.53 ) Diluted – Class M-4 0.94 0.03 0.97 1.04 (0.02 ) 1.02 2.49 (0.07 ) 2.42 N/A N/A (0.53 ) 2017 Total revenues $ 1,619 $ — $ 1,619 $ 1,763 $ — $ 1,763 $ 1,473 $ — $ 1,473 $ 3,872 $ — $ 3,872 Total benefits and expenses 1,213 9 1,222 1,426 24 1,450 1,179 27 1,206 3,374 11 3,385 Net income 384 (7 ) 377 326 (28 ) 298 274 (30 ) 244 464 (25 ) 439 Earnings per share Basic – All classes 1 $ 2.00 $ (0.04 ) $ 1.96 $ 1.66 $ (0.14 ) $ 1.52 $ 1.40 $ (0.15 ) $ 1.25 $ 2.36 $ (0.13 ) $ 2.23 Diluted – Class A 1.92 (0.03 ) 1.89 1.65 (0.14 ) 1.51 1.39 (0.15 ) 1.24 2.35 (0.13 ) 2.22 Diluted – Class B 2.00 (0.04 ) 1.96 1.66 (0.14 ) 1.52 1.40 (0.15 ) 1.25 2.36 (0.13 ) 2.23 Diluted – Class M-1 2.00 (0.04 ) 1.96 1.66 (0.14 ) 1.52 1.40 (0.15 ) 1.25 2.36 (0.13 ) 2.23 Diluted – Class M-2 0.08 — 0.08 1.64 (0.15 ) 1.49 1.39 (0.15 ) 1.24 2.34 (0.13 ) 2.21 Diluted – Class M-3 1 N/A N/A N/A 1.00 (0.09 ) 0.91 1.07 (0.12 ) 0.95 2.10 (0.11 ) 1.99 Diluted – Class M-4 1 N/A N/A N/A 0.76 (0.07 ) 0.69 0.79 (0.09 ) 0.70 1.49 (0.08 ) 1.41 N/A – Not applicable. 1 Class M-3 and Class M-4 were eligible to participate in dividends beginning in the three months ended June 30, 2017. Prior to being eligible to participate in dividends, no earnings were attributable to those classes. See Note 13 – Earnings Per Share for further discussion. |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following represents the effects of the revisions on the consolidated statements of comprehensive income: Years ended December 31, 2017 2016 (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Other comprehensive income, before tax Unrealized investment gains (losses) on available-for-sale securities 1,269 43 1,312 878 4 882 Other comprehensive income, before tax 1,187 43 1,230 863 4 867 Income tax expense related to other comprehensive income 326 8 334 259 1 260 Other comprehensive income 861 35 896 604 3 607 Comprehensive income $ 2,309 $ (55 ) $ 2,254 $ 1,372 $ 8 $ 1,380 The following represents the effects of the revisions on the consolidated statements of cash flows: Years ended December 31, 2017 2016 (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 350 (6 ) 344 318 (14 ) 304 Changes in operating assets and liabilities: Interest sensitive contract liabilities 2,513 51 2,564 925 31 956 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 1,993 26 2,019 344 (13 ) 331 Other assets and liabilities 219 19 238 (33 ) (9 ) (42 ) Net cash provided by operating activities 3,170 — 3,170 1,199 — 1,199 The following represents the effects of the revisions on the consolidated balance sheet: December 31, 2017 (In millions) As Previously Reported Revisions As Adjusted Assets Investments AFS securities $ 61,012 $ (4 ) $ 61,008 Trading securities 2,196 (13 ) 2,183 Equity securities 790 13 803 Policy loans 530 12 542 Total investments 82,054 8 82,062 Investment in related parties – AFS securities 406 4 410 Reinsurance recoverable 4,972 360 5,332 Deferred acquisition costs, deferred sales inducements and value of business acquired 2,930 42 2,972 Total assets $ 99,747 $ 414 $ 100,161 Liabilities and Equity Liabilities Interest sensitive contract liabilities $ 67,708 $ 391 $ 68,099 Future policy benefits 17,507 50 17,557 Other liabilities 1,222 5 1,227 Total liabilities 90,539 446 90,985 Equity Retained earnings 4,321 (66 ) 4,255 Accumulated other comprehensive income 1,415 34 1,449 Total shareholders’ equity 9,208 (32 ) 9,176 Total liabilities and equity $ 99,747 $ 414 $ 100,161 The following represents the effects of the revisions on the consolidated statements of income: Years ended December 31, 2017 2016 (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Benefits and Expenses Interest sensitive contract benefits $ 2,826 $ 40 $ 2,866 $ 1,296 $ 47 $ 1,343 Future policy and other policy benefits 3,163 37 3,200 1,059 (29 ) 1,030 Amortization of deferred acquisition costs and value of business acquired 350 (6 ) 344 318 (14 ) 304 Total benefits and expenses 7,192 71 7,263 3,389 4 3,393 Income before income taxes 1,535 (71 ) 1,464 716 (4 ) 712 Income tax expense (benefit) 87 19 106 (52 ) (9 ) (61 ) Net income $ 1,448 $ (90 ) $ 1,358 $ 768 $ 5 $ 773 Earnings per share Basic – All classes $ 7.41 $ (0.46 ) $ 6.95 $ 4.11 $ 0.03 $ 4.14 Diluted – Class A 7.37 (0.46 ) 6.91 4.02 0.02 4.04 Diluted – Class B 7.41 (0.46 ) 6.95 4.11 0.03 4.14 Diluted – Class M-1 7.41 (0.46 ) 6.95 0.20 — 0.20 Diluted – Class M-2 1 5.38 (0.33 ) 5.05 N/A N/A N/A Diluted – Class M-3 1 4.12 (0.26 ) 3.86 N/A N/A N/A Diluted – Class M-4 1 3.31 (0.21 ) 3.10 N/A N/A N/A N/A – Not applicable 1 Basic and diluted earnings per share for Class M-2, M-3 and M-4 were applicable only for the year ended December 31, 2017. See Note 13 – Earnings Per Share for further discussion. The following represents the effects of the revisions on the condensed consolidated statements of cash flows: Three months ended March 31, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 268 $ 9 $ 277 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 89 (7 ) 82 Changes in operating assets and liabilities: Interest sensitive contract liabilities (201 ) 12 (189 ) Other assets and liabilities 84 (14 ) 70 Net cash provided by operating activities 573 — 573 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 31 (7 ) 24 Purchases of: Available-for-sale securities (5,914 ) 7 (5,907 ) Net cash used in investing activities (2,884 ) — (2,884 ) Six months ended June 30, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 532 $ 2 $ 534 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 181 (10 ) 171 Policy acquisition costs deferred (311 ) 7 (304 ) Changes in operating assets and liabilities: Interest sensitive contract liabilities 7 27 34 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 352 (90 ) 262 Other assets and liabilities 139 (28 ) 111 Net cash provided by operating activities 519 (92 ) 427 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 288 (7 ) 281 Short-term investments 220 (59 ) 161 Purchases of: Available-for-sale securities (8,953 ) 99 (8,854 ) Trading securities (81 ) 64 (17 ) Investment funds (654 ) (64 ) (718 ) Short-term investments (429 ) 59 (370 ) Net cash used in investing activities (3,904 ) 92 (3,812 ) Supplementary information Non-cash transactions Investments received from pension risk transfer premiums $ — $ 92 $ 92 Nine months ended September 30, 2018 (In millions) As Previously Reported Revisions As Adjusted Cash flows from operating activities Net income $ 1,172 $ (15 ) $ 1,157 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and value of business acquired 211 (4 ) 207 Changes in operating assets and liabilities: Interest sensitive contract liabilities 562 29 591 Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable 1,080 (83 ) 997 Funds withheld assets and liabilities (239 ) 7 (232 ) Other assets and liabilities 103 (26 ) 77 Net cash provided by operating activities 1,235 (92 ) 1,143 Cash flows from investing activities Sales, maturities and repayments of: Trading securities 327 (7 ) 320 Purchases of: Available-for-sale securities (12,128 ) 99 (12,029 ) Net cash used in investing activities (6,146 ) 92 (6,054 ) Supplementary information Non-cash transactions Investments received from pension risk transfer premiums $ — $ 92 $ 92 The following represents the effects of the revisions on the condensed consolidated statements of comprehensive income (loss): Three months ended March 31, 2018 (In millions) As Previously Reported Revisions As Adjusted Net income $ 268 $ 9 $ 277 Other comprehensive income (loss), before tax Unrealized investment gains (losses) on available-for-sale securities (910 ) 19 (891 ) Other comprehensive income (loss), before tax (971 ) 19 (952 ) Income tax expense (benefit) related to other comprehensive income (183 ) 4 (179 ) Other comprehensive income (loss) (788 ) 15 (773 ) Comprehensive income (loss) $ (520 ) $ 24 $ (496 ) June 30, 2018 Three months ended Six months ended (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 264 $ (7 ) $ 257 $ 532 $ 2 $ 534 Other comprehensive loss, before tax Unrealized investment gains (losses) on available-for-sale securities (667 ) (35 ) (702 ) (1,577 ) (16 ) (1,593 ) Other comprehensive loss, before tax (568 ) (35 ) (603 ) (1,539 ) (16 ) (1,555 ) Income tax benefit related to other comprehensive loss (109 ) (7 ) (116 ) (292 ) (3 ) (295 ) Other comprehensive loss (459 ) (28 ) (487 ) (1,247 ) (13 ) (1,260 ) Comprehensive loss $ (195 ) $ (35 ) $ (230 ) $ (715 ) $ (11 ) $ (726 ) September 30, 2018 Three months ended Nine months ended (In millions) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Net income $ 640 $ (17 ) $ 623 $ 1,172 $ (15 ) $ 1,157 Other comprehensive loss, before tax Unrealized investment gains (losses) on available-for-sale securities (103 ) (37 ) (140 ) (1,680 ) (53 ) (1,733 ) Other comprehensive loss, before tax (100 ) (37 ) (137 ) (1,639 ) (53 ) (1,692 ) Income tax benefit related to other comprehensive loss (17 ) (6 ) (23 ) (309 ) (9 ) (318 ) Other comprehensive loss (83 ) (31 ) (114 ) (1,330 ) (44 ) (1,374 ) Comprehensive income (loss) $ 557 $ (48 ) $ 509 $ (158 ) $ (59 ) $ (217 ) The following represents the effects of the revisions on the condensed consolidated statements of income: Three months ended March 31, 2018 (In millions, except per share data) Previously Reported Revisions Adjusted Benefits and Expenses Interest sensitive contract benefits $ 19 $ 12 $ 31 Amortization of deferred acquisition costs and value of business acquired 89 (7 ) 82 Total benefits and expenses 684 5 689 Income before income taxes 327 (5 ) 322 Income tax expense (benefit) 59 (14 ) 45 Net income $ 268 $ 9 $ 277 Earnings per share Basic – All classes $ 1.36 $ 0.04 $ 1.40 Diluted – Class A 1.36 0.04 1.40 Diluted – Class B 1.36 0.04 1.40 Diluted – Class M-1 1.36 0.04 1.40 Diluted – Class M-2 1.34 0.05 1.39 Diluted – Class M-3 1.33 0.05 1.38 Diluted – Class M-4 0.94 0.03 0.97 June 30, 2018 Three months ended Six months ended (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Revenues Premiums $ 726 $ 5 $ 731 $ 1,004 $ 5 $ 1,009 Total revenues 1,797 5 1,802 2,808 5 2,813 Benefits and Expenses Interest sensitive contract benefits 332 10 342 351 22 373 Future policy and other policy benefits 857 7 864 1,258 7 1,265 Amortization of deferred acquisition costs and value of business acquired 92 (3 ) 89 181 (10 ) 171 Total benefits and expenses 1,467 14 1,481 2,151 19 2,170 Income before income taxes 330 (9 ) 321 657 (14 ) 643 Income tax expense (benefit) 66 (2 ) 64 125 (16 ) 109 Net income $ 264 $ (7 ) $ 257 $ 532 $ 2 $ 534 Earnings per share Basic – All classes $ 1.34 $ (0.04 ) $ 1.30 $ 2.70 $ 0.01 $ 2.71 Diluted – Class A 1.33 (0.03 ) 1.30 2.69 0.01 2.70 Diluted – Class B 1.34 (0.04 ) 1.30 2.70 0.01 2.71 Diluted – Class M-1 1.34 (0.04 ) 1.30 2.70 0.01 2.71 Diluted – Class M-2 1.33 (0.04 ) 1.29 2.67 0.01 2.68 Diluted – Class M-3 1.34 (0.04 ) 1.30 2.67 0.01 2.68 Diluted – Class M-4 1.04 (0.02 ) 1.02 1.98 — 1.98 September 30, 2018 Three months ended Nine months ended (In millions, except per share data) As Previously Reported Revisions As Adjusted As Previously Reported Revisions As Adjusted Revenues Premiums $ 531 $ (5 ) $ 526 $ 1,535 $ — $ 1,535 Investment related gains (losses) 823 (7 ) 816 585 (7 ) 578 Total revenues 2,588 (12 ) 2,576 5,396 (7 ) 5,389 Benefits and Expenses Interest sensitive contract benefits 741 1 742 1,092 23 1,115 Future policy and other policy benefits 920 8 928 2,178 15 2,193 Amortization of deferred acquisition costs and value of business acquired 30 6 36 211 (4 ) 207 Total benefits and expenses 1,882 15 1,897 4,033 34 4,067 Income before income taxes 706 (27 ) 679 1,363 (41 ) 1,322 Income tax expense (benefit) 66 (10 ) 56 191 (26 ) 165 Net income $ 640 $ (17 ) $ 623 $ 1,172 $ (15 ) $ 1,157 Earnings per share Basic – Classes A, B, M-1, M-2, M-3 and M-4 $ 3.24 $ (0.08 ) $ 3.16 $ 5.94 $ (0.08 ) $ 5.86 Diluted – Class A 3.23 (0.08 ) 3.15 5.92 (0.07 ) 5.85 Diluted – Class B 3.24 (0.08 ) 3.16 5.94 (0.08 ) 5.86 Diluted – Class M-1 3.24 (0.08 ) 3.16 5.94 (0.08 ) 5.86 Diluted – Class M-2 3.24 (0.08 ) 3.16 5.90 (0.07 ) 5.83 Diluted – Class M-3 3.24 (0.08 ) 3.16 5.90 (0.07 ) 5.83 Diluted – Class M-4 2.49 (0.07 ) 2.42 4.42 (0.06 ) 4.36 |
Business, Basis of Presentati_3
Business, Basis of Presentation, and Significant Accounting Policies Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Jan. 01, 2018USD ($) | |
Accounting Policies [Abstract] | ||||
Number of Days Interest is Past Due for Nonaccrual Status | 90 days | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 40 years | |||
Maximum Period Interest is Accrued | 90 days | |||
Variable Interest Entity, Qualitative or Quantitative Information, Election of Fair Value Option, Ownership Percentage | 3.00% | |||
Closed Block, Number of Predecessor Entities Reorganized | 2 | |||
Significant Accounting Policies [Line Items] | ||||
Number of Closed Block Policies | 2 | |||
Reclassification of taxes | $ (3) | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Reclassification of taxes | $ 187 | |||
Retained earnings | ||||
Significant Accounting Policies [Line Items] | ||||
Reclassification of taxes | $ (187) | 39 | ||
Nonparticipating Life Insurance Policy | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Liability for Future Policy Benefits, Interest Rate | 3.31% | |||
Nonparticipating Life Insurance Policy | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Liability for Future Policy Benefits, Interest Rate | 5.44% | |||
Life Insurance Product Line | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of Participating Policies Paying Dividends | 10.00% | 26.00% | ||
Participating Insurance, Percentage of Premium Income | 26.00% | 52.00% | 45.00% | |
Life Insurance Product Line | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Period for Liability Reporting | 1 month | |||
Life Insurance Product Line | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Period for Liability Reporting | 6 months | |||
Accounting Standards Update 2016-01 [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Reclassification of taxes | (42) | |||
Accounting Standards Update 2016-01 [Member] | Retained earnings | ||||
Significant Accounting Policies [Line Items] | ||||
Reclassification of taxes | 42 | |||
Accounting Standards Update 2016-16 [Member] | Retained earnings | ||||
Significant Accounting Policies [Line Items] | ||||
Reclassification of taxes | (3) | |||
Accounting Standards Update 2016-16 [Member] | Other Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Reclassification of taxes | $ 3 |
Financial Statement Revisions -
Financial Statement Revisions - Revisions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Reinsurance recoverable | $ 5,534 | $ 5,332 | $ 5,534 | $ 5,332 | ||||||||||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,907 | 2,972 | 5,907 | 2,972 | $ 2,959 | $ 2,656 | ||||||||||
Assets | 125,505 | 100,161 | 125,505 | 100,161 | ||||||||||||
Liabilities | 117,229 | 90,985 | 117,229 | 90,985 | ||||||||||||
Retained earnings | 5,286 | 4,255 | 5,286 | 4,255 | ||||||||||||
Accumulated other comprehensive income (loss) | (472) | 1,449 | (472) | 1,449 | ||||||||||||
Shareholders' equity | 8,276 | 9,176 | 8,276 | 9,176 | 6,882 | 5,368 | ||||||||||
Liabilities and Equity | 125,505 | 100,161 | 125,505 | 100,161 | ||||||||||||
Future policy and other policy benefits | 4,187 | 3,200 | 1,030 | |||||||||||||
Benefits, Losses and Expenses | 1,301 | $ 1,897 | $ 1,481 | $ 689 | 3,385 | $ 1,206 | $ 1,450 | $ 1,222 | $ 2,170 | $ 4,067 | 5,368 | 7,263 | 3,393 | |||
Income before income taxes | 679 | 321 | 322 | 643 | 1,322 | 1,175 | 1,464 | 712 | ||||||||
Income tax expense (benefit) | 56 | 64 | 45 | 109 | 165 | 122 | 106 | (61) | ||||||||
Net income | 623 | 257 | 277 | 534 | 1,157 | 1,053 | 1,358 | 773 | ||||||||
Unrealized investment gains (losses) on available-for-sale securities | (140) | (702) | (891) | (1,593) | (1,733) | (2,442) | 1,312 | 882 | ||||||||
Other Comprehensive Income (Loss), before Tax | (137) | (603) | (952) | (1,555) | (1,692) | (2,310) | 1,230 | 867 | ||||||||
Income tax expense (benefit) related to other comprehensive income | (23) | (116) | (179) | (295) | (318) | (431) | 334 | 260 | ||||||||
Other comprehensive loss | (114) | (487) | (773) | (1,260) | (1,374) | (1,879) | 896 | 607 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 509 | (230) | (496) | (726) | (217) | (826) | 2,254 | 1,380 | ||||||||
Net cash provided by operating activities | 573 | 427 | 1,143 | 2,874 | 3,170 | 1,199 | ||||||||||
Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Assets | 99,747 | 99,747 | ||||||||||||||
Liabilities | 90,539 | 90,539 | ||||||||||||||
Retained earnings | 4,321 | 4,321 | ||||||||||||||
Accumulated other comprehensive income (loss) | 1,415 | 1,415 | ||||||||||||||
Shareholders' equity | 9,208 | 9,208 | ||||||||||||||
Liabilities and Equity | 99,747 | 99,747 | ||||||||||||||
Benefits, Losses and Expenses | 1,882 | 1,467 | 684 | 3,374 | 1,179 | 1,426 | 1,213 | 2,151 | 4,033 | 7,192 | 3,389 | |||||
Income before income taxes | 706 | 330 | 327 | 657 | 1,363 | 1,535 | 716 | |||||||||
Income tax expense (benefit) | 66 | 66 | 59 | 125 | 191 | 87 | (52) | |||||||||
Net income | 640 | 264 | 268 | 532 | 1,172 | 1,448 | 768 | |||||||||
Unrealized investment gains (losses) on available-for-sale securities | (103) | (667) | (910) | (1,577) | (1,680) | 1,269 | 878 | |||||||||
Other Comprehensive Income (Loss), before Tax | (100) | (568) | (971) | (1,539) | (1,639) | 1,187 | 863 | |||||||||
Income tax expense (benefit) related to other comprehensive income | (17) | (109) | (183) | (292) | (309) | 326 | 259 | |||||||||
Other comprehensive loss | (83) | (459) | (788) | (1,247) | (1,330) | 861 | 604 | |||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 557 | (195) | (520) | (715) | (158) | 2,309 | 1,372 | |||||||||
Net cash provided by operating activities | 573 | 519 | 1,235 | 3,170 | 1,199 | |||||||||||
Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Assets | 414 | 414 | ||||||||||||||
Liabilities | 446 | 446 | ||||||||||||||
Retained earnings | (66) | (66) | ||||||||||||||
Accumulated other comprehensive income (loss) | 34 | 34 | ||||||||||||||
Shareholders' equity | (32) | (32) | ||||||||||||||
Liabilities and Equity | 414 | 414 | ||||||||||||||
Benefits, Losses and Expenses | 15 | 14 | 5 | 11 | $ 27 | $ 24 | $ 9 | 19 | 34 | 71 | 4 | |||||
Income before income taxes | (27) | (9) | (5) | (14) | (41) | (71) | (4) | |||||||||
Income tax expense (benefit) | (10) | (2) | (14) | (16) | (26) | 19 | (9) | |||||||||
Net income | (17) | (7) | 9 | 2 | (15) | (90) | 5 | |||||||||
Unrealized investment gains (losses) on available-for-sale securities | (37) | (35) | 19 | (16) | (53) | 43 | 4 | |||||||||
Other Comprehensive Income (Loss), before Tax | (37) | (35) | 19 | (16) | (53) | 43 | 4 | |||||||||
Income tax expense (benefit) related to other comprehensive income | (6) | (7) | 4 | (3) | (9) | 8 | 1 | |||||||||
Other comprehensive loss | (31) | (28) | 15 | (13) | (44) | 35 | 3 | |||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (48) | (35) | 24 | (11) | (59) | (55) | 8 | |||||||||
Net cash provided by operating activities | 0 | (92) | (92) | 0 | 0 | |||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
AFS securities | 60,702 | 61,418 | 60,702 | 61,418 | ||||||||||||
Reinsurance recoverable | 5,534 | 5,332 | 5,534 | 5,332 | ||||||||||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,907 | 2,972 | 5,907 | 2,972 | ||||||||||||
Interest sensitive contract liabilities | 96,610 | 68,099 | 96,610 | 68,099 | ||||||||||||
Future policy benefits | 16,704 | 17,557 | 16,704 | 17,557 | ||||||||||||
Other Liabilities | 888 | 1,227 | 888 | 1,227 | ||||||||||||
Interest Sensitive Contract Benefits Expense | 742 | 342 | 31 | 373 | 1,115 | 290 | 2,866 | 1,343 | ||||||||
Future policy and other policy benefits | 928 | 864 | 1,265 | 2,193 | 4,187 | 3,200 | 1,030 | |||||||||
Amortization of deferred acquisition costs and value of business acquired | 36 | 89 | 82 | 171 | 207 | 174 | 344 | 304 | ||||||||
Interest sensitive contract liabilities | (189) | 34 | 591 | (365) | 2,564 | 956 | ||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 262 | 997 | 2,457 | 2,019 | 331 | |||||||||||
Other assets and liabilities | 70 | 111 | 77 | (266) | 238 | (42) | ||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Reinsurance recoverable | 4,972 | 4,972 | ||||||||||||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 2,930 | 2,930 | ||||||||||||||
Interest sensitive contract liabilities | 67,708 | 67,708 | ||||||||||||||
Future policy benefits | 17,507 | 17,507 | ||||||||||||||
Other Liabilities | 1,222 | 1,222 | ||||||||||||||
Interest Sensitive Contract Benefits Expense | 741 | 332 | 19 | 351 | 1,092 | 2,826 | 1,296 | |||||||||
Future policy and other policy benefits | 920 | 857 | 1,258 | 2,178 | 3,163 | 1,059 | ||||||||||
Amortization of deferred acquisition costs and value of business acquired | 30 | 92 | 89 | 181 | 211 | 350 | 318 | |||||||||
Interest sensitive contract liabilities | (201) | 7 | 562 | 2,513 | 925 | |||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 352 | 1,080 | 1,993 | 344 | ||||||||||||
Other assets and liabilities | 84 | 139 | 103 | 219 | (33) | |||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Reinsurance recoverable | 360 | 360 | ||||||||||||||
Deferred acquisition costs, deferred sales inducements and value of business acquired | 42 | 42 | ||||||||||||||
Interest sensitive contract liabilities | 391 | 391 | ||||||||||||||
Future policy benefits | 50 | 50 | ||||||||||||||
Other Liabilities | 5 | 5 | ||||||||||||||
Interest Sensitive Contract Benefits Expense | 1 | 10 | 12 | 22 | 23 | 40 | 47 | |||||||||
Future policy and other policy benefits | 8 | 7 | 7 | 15 | 37 | (29) | ||||||||||
Amortization of deferred acquisition costs and value of business acquired | $ 6 | $ (3) | (7) | (10) | (4) | (6) | (14) | |||||||||
Interest sensitive contract liabilities | 12 | 27 | 29 | 51 | 31 | |||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | (90) | (83) | 26 | (13) | ||||||||||||
Other assets and liabilities | $ (14) | $ (28) | $ (26) | 19 | (9) | |||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
AFS securities | 59,265 | 61,008 | 59,265 | 61,008 | ||||||||||||
Trading securities | 1,949 | 2,183 | 1,949 | 2,183 | ||||||||||||
Equity securities | 216 | 803 | 216 | 803 | ||||||||||||
Policy loans | 488 | 542 | 488 | 542 | ||||||||||||
Investments | 89,340 | 82,062 | 89,340 | 82,062 | ||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
AFS securities | 61,012 | 61,012 | ||||||||||||||
Trading securities | 2,196 | 2,196 | ||||||||||||||
Equity securities | 790 | 790 | ||||||||||||||
Policy loans | 530 | 530 | ||||||||||||||
Investments | 82,054 | 82,054 | ||||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
AFS securities | (4) | (4) | ||||||||||||||
Trading securities | (13) | (13) | ||||||||||||||
Equity securities | 13 | 13 | ||||||||||||||
Policy loans | 12 | 12 | ||||||||||||||
Investments | 8 | 8 | ||||||||||||||
Related Party | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Accumulated other comprehensive income (loss) | (25) | 48 | (25) | 48 | ||||||||||||
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
AFS securities | 1,437 | 410 | 1,437 | 410 | ||||||||||||
Trading securities | 249 | 307 | 249 | 307 | ||||||||||||
Equity securities | 120 | 0 | 120 | 0 | ||||||||||||
Reinsurance recoverable | 344 | 0 | 344 | 0 | ||||||||||||
Interest sensitive contract liabilities | 16,850 | 0 | 16,850 | 0 | ||||||||||||
Future policy benefits | 1,259 | 0 | 1,259 | 0 | ||||||||||||
Other Liabilities | $ 59 | 64 | 59 | 64 | ||||||||||||
Interest Sensitive Contract Benefits Expense | 63 | 0 | 0 | |||||||||||||
Future policy and other policy benefits | 707 | 0 | 0 | |||||||||||||
Interest sensitive contract liabilities | 30 | 0 | 0 | |||||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | $ 109 | 0 | $ 0 | |||||||||||||
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
AFS securities | 406 | 406 | ||||||||||||||
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
AFS securities | $ 4 | $ 4 | ||||||||||||||
Common Class A | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | $ (0.53) | $ 3.16 | $ 1.30 | $ 1.40 | $ 2.23 | $ 1.25 | $ 1.52 | $ 1.96 | $ 2.71 | $ 5.86 | $ 5.34 | $ 6.95 | $ 4.14 | |||
Diluted (in USD per share) | (0.53) | 3.15 | 1.30 | 1.40 | 2.22 | 1.24 | 1.51 | 1.89 | 2.70 | 5.85 | 5.32 | 6.91 | 4.04 | |||
Common Class A | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | 2.70 | 5.94 | 7.41 | 4.11 | |||||
Diluted (in USD per share) | 3.23 | 1.33 | 1.36 | 2.35 | 1.39 | 1.65 | 1.92 | 2.69 | 5.92 | 7.37 | 4.02 | |||||
Common Class A | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | 0.01 | (0.08) | (0.46) | 0.03 | |||||
Diluted (in USD per share) | (0.08) | (0.03) | 0.04 | (0.13) | (0.15) | (0.14) | (0.03) | 0.01 | (0.07) | (0.46) | 0.02 | |||||
Common Class B | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 5.34 | 6.95 | 4.14 | |||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 2.71 | 5.86 | 5.34 | 6.95 | 4.14 | |||
Common Class B | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | |||||||||
Diluted (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | 2.70 | 5.94 | 7.41 | 4.11 | |||||
Common Class B | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | |||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | 0.01 | (0.08) | (0.46) | 0.03 | |||||
Common Class M-1 | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 5.34 | 6.95 | 4.14 | |||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 2.71 | 5.86 | 5.34 | 6.95 | 0.20 | |||
Common Class M-1 | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | |||||||||
Diluted (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | 2.70 | 5.94 | 7.41 | 0.20 | |||||
Common Class M-1 | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | |||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | 0.01 | (0.08) | (0.46) | $ 0 | |||||
Common Class M-2 | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 5.34 | [1] | 6.95 | [1] | ||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.29 | 1.39 | 2.21 | 1.24 | 1.49 | 0.08 | 2.68 | 5.83 | 5.31 | [1] | 5.05 | |||
Common Class M-2 | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | |||||||||
Diluted (in USD per share) | 3.24 | 1.33 | 1.34 | 2.34 | 1.39 | 1.64 | 0.08 | 2.67 | 5.90 | 5.38 | ||||||
Common Class M-2 | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | |||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.05 | (0.13) | (0.15) | (0.15) | $ 0 | 0.01 | (0.07) | (0.33) | ||||||
Common Class M-3 | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 5.34 | [1] | 6.95 | [1] | |||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.38 | 1.99 | 0.95 | 0.91 | 2.68 | 5.83 | 5.31 | [1] | 3.86 | ||||
Common Class M-3 | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | ||||||||||
Diluted (in USD per share) | 3.24 | 1.34 | 1.33 | 2.10 | 1.07 | 1 | 2.67 | 5.90 | 4.12 | |||||||
Common Class M-3 | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | ||||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.05 | (0.11) | (0.12) | (0.09) | 0.01 | (0.07) | (0.26) | |||||||
Common Class M-4 | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 5.34 | [1] | 6.95 | [1] | |||||
Diluted (in USD per share) | $ (0.53) | 2.42 | 1.02 | 0.97 | 1.41 | 0.70 | 0.69 | 1.98 | 4.36 | $ 4.11 | [1] | 3.10 | ||||
Common Class M-4 | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | ||||||||||
Diluted (in USD per share) | 2.49 | 1.04 | 0.94 | 1.49 | 0.79 | 0.76 | 1.98 | 4.42 | 3.31 | |||||||
Common Class M-4 | Revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | ||||||||||
Diluted (in USD per share) | $ (0.07) | $ (0.02) | $ 0.03 | $ (0.08) | $ (0.09) | $ (0.07) | $ 0 | $ (0.06) | $ (0.21) | |||||||
Retained earnings | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Shareholders' equity | $ 5,286 | $ 4,255 | $ 5,286 | $ 4,255 | $ 3,094 | 2,327 | ||||||||||
Net income | 1,053 | 1,358 | 773 | |||||||||||||
Retained earnings | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Shareholders' equity | 2,308 | |||||||||||||||
Accumulated other comprehensive income (loss) | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Shareholders' equity | $ (472) | $ 1,449 | (472) | 1,449 | 366 | (241) | ||||||||||
Other comprehensive loss | (1,879) | $ 896 | $ 607 | |||||||||||||
Accumulated other comprehensive income (loss) | Previously reported | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Shareholders' equity | $ 237 | |||||||||||||||
Understatement of interest sensitive contract liabilities [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 140 | |||||||||||||||
Offsets to error [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 62 | |||||||||||||||
Understatement of net income [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 78 | |||||||||||||||
[1] | Basic and diluted earnings per share for Class M-2, M-3 and M-4 were applicable only for the years ended December 31, 2018 and 2017. See Note 13 – Earnings Per Share for further discussion. |
Investments - Schedule of AFS S
Investments - Schedule of AFS Securities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ (585) | $ 1,769 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 60,025 | 58,502 |
Gross Unrealized Gains | 1,008 | 2,752 |
Gross Unrealized Losses | 1,768 | 246 |
AFS securities | 59,265 | 61,008 |
OTTI in AOCI | 19 | 13 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 57 | 63 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 2 |
AFS securities | 57 | 62 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,183 | 996 |
Gross Unrealized Gains | 117 | 171 |
Gross Unrealized Losses | 7 | 2 |
AFS securities | 1,293 | 1,165 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 162 | 2,575 |
Gross Unrealized Gains | 2 | 116 |
Gross Unrealized Losses | 3 | 8 |
AFS securities | 161 | 2,683 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 38,018 | 35,173 |
Gross Unrealized Gains | 394 | 1,658 |
Gross Unrealized Losses | 1,315 | 171 |
AFS securities | 37,097 | 36,660 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,658 | 5,039 |
Gross Unrealized Gains | 2 | 53 |
Gross Unrealized Losses | 299 | 8 |
AFS securities | 5,361 | 5,084 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,915 | 3,941 |
Gross Unrealized Gains | 53 | 53 |
Gross Unrealized Losses | 48 | 27 |
AFS securities | 4,920 | 3,967 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,390 | 1,994 |
Gross Unrealized Gains | 27 | 48 |
Gross Unrealized Losses | 60 | 21 |
AFS securities | 2,357 | 2,021 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,642 | 8,721 |
Gross Unrealized Gains | 413 | 652 |
Gross Unrealized Losses | 36 | 7 |
AFS securities | 8,019 | 9,366 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 61,487 | 58,905 |
Gross Unrealized Gains | 1,012 | 2,759 |
Gross Unrealized Losses | 1,797 | 246 |
AFS securities | 60,702 | 61,418 |
OTTI in AOCI | 19 | 13 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,462 | 403 |
Gross Unrealized Gains | 4 | 7 |
Gross Unrealized Losses | 29 | 0 |
AFS securities | 1,437 | 410 |
OTTI in AOCI | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 587 | 353 |
Gross Unrealized Gains | 0 | 7 |
Gross Unrealized Losses | 25 | 0 |
AFS securities | 562 | 360 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 875 | 50 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | 4 | 0 |
AFS securities | 875 | 50 |
Noncredit component of OTTI losses on AFS securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (19) | (13) |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 1 | 0 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 1 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 7 | 1 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 11 | 11 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
Noncredit component of OTTI losses on AFS securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ 0 | $ 0 |
Investments - Maturities of AFS
Investments - Maturities of AFS Securities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Amortized Cost | ||
Due in one year or less | $ 1,097 | |
Due after one year through five years | 8,257 | |
Due after five years through ten years | 10,853 | |
Due after ten years | 19,213 | |
CLO, ABS, CMBS and RMBS | 20,605 | |
Amortized Cost | 60,025 | $ 58,502 |
Fair Value | ||
Due in one year or less | 1,095 | |
Due after one year through five years | 8,234 | |
Due after five years through ten years | 10,548 | |
Due after ten years | 18,731 | |
CLO, ABS, CMBS and RMBS | 20,657 | |
Total AFS securities | 59,265 | 61,008 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Amortized Cost | ||
Amortized Cost | 61,487 | 58,905 |
Fair Value | ||
Total AFS securities | 60,702 | 61,418 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Amortized Cost | ||
CLO, ABS, CMBS and RMBS | 1,462 | |
Amortized Cost | 1,462 | 403 |
Fair Value | ||
CLO, ABS, CMBS and RMBS | 1,437 | |
Total AFS securities | $ 1,437 | $ 410 |
Investments - Unrealized Losses
Investments - Unrealized Losses on AFS Securities (Details) $ in Millions | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Nonperforming mortgage loans | $ 48 | $ 28 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 4,320 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 860 | |
Fair Value | ||
Total | $ 34,670 | 10,265 |
Gross Unrealized Losses | ||
Less than 12 months | (1,324) | (75) |
12 months or more | (444) | (171) |
Total | (1,768) | (246) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 29,220 | 6,406 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 5,450 | 3,859 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Fair Value | ||
Total | 34 | 43 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | (1) |
12 months or more | 0 | (1) |
Total | 0 | (2) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 32 | 34 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2 | 9 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Fair Value | ||
Total | 221 | 89 |
Gross Unrealized Losses | ||
Less than 12 months | (2) | (1) |
12 months or more | (5) | (1) |
Total | (7) | (2) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 139 | 50 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 82 | 39 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Fair Value | ||
Total | 112 | 511 |
Gross Unrealized Losses | ||
Less than 12 months | (2) | (6) |
12 months or more | (1) | (2) |
Total | (3) | (8) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 97 | 435 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 15 | 76 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Fair Value | ||
Total | 24,331 | 6,449 |
Gross Unrealized Losses | ||
Less than 12 months | (942) | (49) |
12 months or more | (373) | (122) |
Total | (1,315) | (171) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 20,213 | 3,992 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 4,118 | 2,457 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Fair Value | ||
Total | 5,144 | 754 |
Gross Unrealized Losses | ||
Less than 12 months | (297) | (2) |
12 months or more | (2) | (6) |
Total | (299) | (8) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 5,054 | 414 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 90 | 340 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Fair Value | ||
Total | 1,842 | 1,064 |
Gross Unrealized Losses | ||
Less than 12 months | (23) | (5) |
12 months or more | (25) | (22) |
Total | (48) | (27) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 1,336 | 515 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 506 | 549 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Fair Value | ||
Total | 1,429 | 639 |
Gross Unrealized Losses | ||
Less than 12 months | (27) | (8) |
12 months or more | (33) | (13) |
Total | (60) | (21) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 932 | 460 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 497 | 179 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Fair Value | ||
Total | 1,557 | 716 |
Gross Unrealized Losses | ||
Less than 12 months | (31) | (3) |
12 months or more | (5) | (4) |
Total | (36) | (7) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 1,417 | 506 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 140 | 210 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value | ||
Total | 35,626 | 10,336 |
Gross Unrealized Losses | ||
Less than 12 months | (1,351) | (75) |
12 months or more | (446) | (171) |
Total | (1,797) | (246) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 30,060 | 6,477 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 5,566 | 3,859 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 40 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 7 | |
Fair Value | ||
Total | $ 956 | 71 |
Gross Unrealized Losses | ||
Less than 12 months | (27) | 0 |
12 months or more | (2) | 0 |
Total | (29) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 840 | 71 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 116 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Fair Value | ||
Total | 534 | 29 |
Gross Unrealized Losses | ||
Less than 12 months | (25) | 0 |
12 months or more | 0 | 0 |
Total | (25) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 534 | 29 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Fair Value | ||
Total | 422 | 42 |
Gross Unrealized Losses | ||
Less than 12 months | (2) | 0 |
12 months or more | (2) | 0 |
Total | (4) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 306 | 42 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 116 | $ 0 |
Investments - OTTI AFS Securiti
Investments - OTTI AFS Securities (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Net other-than-temporary impairment losses | $ 18 | $ 33 | $ 30 |
Net other-than-temporary-impairment, Portion Recognized in Earnings, Net Intent to Sell | 13 | ||
Other-than-Temporary-Impairment, Investments, Portion Recognized in Earnings, Net Credit Related | 5 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Beginning balance | 14 | 16 | 22 |
Initial impairments – credit loss OTTI recognized on securities not previously impaired | 3 | 17 | 8 |
Additional impairments – credit loss OTTI recognized on securities previously impaired | 2 | 0 | 3 |
Reduction in impairments from securities sold, matured or repaid | (9) | (13) | (9) |
Ending balance | 10 | 14 | 16 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Change in Status | $ 0 | $ (6) | $ (8) |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Income [Line Items] | |||
Net investment income | $ 4,004 | $ 3,269 | $ 2,914 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Net Investment Income [Line Items] | |||
Investment revenue | 4,359 | 3,601 | 3,217 |
Investment expenses | (355) | (332) | (303) |
Net investment income | 4,004 | 3,269 | 2,914 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | |||
Net Investment Income [Line Items] | |||
Investment revenue | 2,855 | 2,579 | 2,293 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | |||
Net Investment Income [Line Items] | |||
Investment revenue | 200 | 200 | 236 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | |||
Net Investment Income [Line Items] | |||
Investment revenue | 12 | 14 | 11 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage loans, net of allowances | |||
Net Investment Income [Line Items] | |||
Investment revenue | 457 | 371 | 355 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | |||
Net Investment Income [Line Items] | |||
Investment revenue | 231 | 211 | 178 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Funds withheld at interest | |||
Net Investment Income [Line Items] | |||
Investment revenue | 492 | 148 | 82 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Other | |||
Net Investment Income [Line Items] | |||
Investment revenue | $ 112 | $ 78 | $ 62 |
Investments - Investment Relate
Investments - Investment Related Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Gain (Loss) on Securities [Line Items] | |||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 7,831 | $ 6,023 | |
AFS securities | |||
Gross realized gains on investment activity | 165 | 169 | $ 138 |
Gross realized losses on investment activity | (151) | (72) | (54) |
Net realized investment gains on AFS securities | 14 | 97 | 84 |
Net recognized investment gains (losses) on trading securities | (255) | 29 | (50) |
Net recognized investment gains (losses) on equity securities | (19) | 88 | 18 |
Derivative gains (losses) | (1,099) | 2,377 | 596 |
Other gains (losses) | 35 | (19) | 4 |
Investment related gains (losses) | (1,324) | 2,572 | 652 |
Proceeds from sale of available-for-sale securities | 4,662 | ||
Debt Securities, Trading, Unrealized Gain (Loss) | (143) | 107 | 19 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | (18) | 32 | 19 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | |||
AFS securities | |||
Debt Securities, Trading, Unrealized Gain (Loss) | (25) | (3) | (10) |
Variable Interest Entities | Related Party | |||
AFS securities | |||
Debt Securities, Trading, Unrealized Gain (Loss) | 0 | 4 | 0 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 24 | $ 25 | $ (78) |
Investments - Purchase Credit I
Investments - Purchase Credit Impaired (PCI) Investments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturity securities | |||
Contractually required payments receivable | $ 8,179 | $ 9,690 | |
Expected cash flows | 7,195 | 8,188 | |
Less: Amortized cost | (5,518) | (6,168) | |
Accretable difference | 1,677 | 2,020 | $ 2,080 |
Fair value | 5,828 | 6,703 | |
Outstanding balance | 6,773 | 8,026 | |
Mortgage loans | |||
Contractually required payments receivable | 2,675 | 1,140 | |
Expected cash flows | 2,628 | 1,090 | |
Carrying value | 1,931 | 817 | |
Accretable difference | 697 | 273 | $ 70 |
Fair value | 1,933 | 844 | |
Outstanding balance | 2,210 | 946 | |
Fixed Maturities | |||
Certain Loans Acquired in Transfer, Period End Summary [Line Items] | |||
Non-accretable difference | 984 | 1,502 | |
Mortgages loans | |||
Certain Loans Acquired in Transfer, Period End Summary [Line Items] | |||
Non-accretable difference | $ 47 | $ 50 |
Investments - PCI Securities Ac
Investments - PCI Securities Acquired During the Period (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed maturity securities | ||
Contractually required payments receivable | $ 623 | $ 2,161 |
Cash flows expected to be collected | 562 | 1,790 |
Fair value | 454 | 1,428 |
Mortgage loans | ||
Contractually required payments receivable | 1,625 | 894 |
Cash flows expected to be collected | 1,601 | 857 |
Fair value | $ 1,178 | $ 633 |
Investments - PCI Securities _2
Investments - PCI Securities Accretable Yield (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed Maturity Securities Accretable Yield Activity | ||
Beginning balance at January 1 | $ 2,020 | $ 2,080 |
Purchases of PCI investments, net of sales | 65 | 264 |
Accretion | (405) | (400) |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | 76 | |
Ending balance at December 31 | 1,677 | 2,020 |
Mortgage Loans Accretable Yield Activity | ||
Beginning balance at January 1 | 273 | 70 |
Purchases of PCI investments, net of sales | 407 | 216 |
Accretion | (48) | (24) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications (to) from Nonaccretable Difference | 65 | 11 |
Ending balance at December 31 | 697 | $ 273 |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Reclassifications to Nonaccretable Difference | $ 3 |
Investments - Mortgage Loans, N
Investments - Mortgage Loans, Net (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 10,631 | $ 6,233 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 7,297 | 5,247 |
Commercial mortgage loans | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 7,217 | 5,223 |
Commercial mortgage loans | Commercial mortgage loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 80 | 24 |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 3,334 | $ 986 |
Investments - Mortgage Loans,_2
Investments - Mortgage Loans, Net by Property Type and Geographic Region (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 10,631 | $ 6,233 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 7,297 | $ 5,247 |
Commercial mortgage loans | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 100.00% | 100.00% |
Commercial mortgage loans | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 100.00% | 100.00% |
Commercial mortgage loans | Total U.S. Region | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 7,297 | $ 5,102 |
Commercial mortgage loans | Total U.S. Region | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 100.00% | 97.20% |
Commercial mortgage loans | East North Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 855 | $ 643 |
Commercial mortgage loans | East North Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 11.70% | 12.30% |
Commercial mortgage loans | East South Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 295 | $ 144 |
Commercial mortgage loans | East South Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 4.00% | 2.70% |
Commercial mortgage loans | Middle Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,131 | $ 909 |
Commercial mortgage loans | Middle Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 15.50% | 17.30% |
Commercial mortgage loans | Mountain | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 616 | $ 492 |
Commercial mortgage loans | Mountain | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 8.40% | 9.40% |
Commercial mortgage loans | New England | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 374 | $ 162 |
Commercial mortgage loans | New England | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 5.10% | 3.10% |
Commercial mortgage loans | Pacific | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,540 | $ 991 |
Commercial mortgage loans | Pacific | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 21.10% | 18.90% |
Commercial mortgage loans | South Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,468 | $ 873 |
Commercial mortgage loans | South Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 20.20% | 16.60% |
Commercial mortgage loans | West North Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 173 | $ 233 |
Commercial mortgage loans | West North Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 2.40% | 4.40% |
Commercial mortgage loans | West South Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 845 | $ 655 |
Commercial mortgage loans | West South Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 11.60% | 12.50% |
Commercial mortgage loans | International Region | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 0 | $ 145 |
Commercial mortgage loans | International Region | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 0.00% | 2.80% |
Commercial mortgage loans | Hotels | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,040 | $ 928 |
Commercial mortgage loans | Hotels | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 14.30% | 17.70% |
Commercial mortgage loans | Retail | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,660 | $ 1,223 |
Commercial mortgage loans | Retail | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 22.70% | 23.30% |
Commercial mortgage loans | Office building | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 2,221 | $ 1,187 |
Commercial mortgage loans | Office building | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 30.50% | 22.60% |
Commercial mortgage loans | Industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,196 | $ 944 |
Commercial mortgage loans | Industrial | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 16.40% | 18.00% |
Commercial mortgage loans | Apartment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 791 | $ 525 |
Commercial mortgage loans | Apartment | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 10.80% | 10.00% |
Commercial mortgage loans | Other commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 389 | $ 440 |
Commercial mortgage loans | Other commercial | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 5.30% | 8.40% |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 3,334 | $ 986 |
Residential mortgage loans | California | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 30.30% | 34.30% |
Residential mortgage loans | Florida | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 16.30% | 15.60% |
Residential mortgage loans | New York | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 7.70% | 6.00% |
Residential mortgage loans | Other U.S. States | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 45.70% | 44.10% |
Investments - Mortgage Loans,_3
Investments - Mortgage Loans, Net Past Due (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments Schedule [Abstract] | ||
Mortgage loan valuation allowance | $ 2 | $ 2 |
Nonperforming mortgage loans | 48 | 28 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Mortgage loans, net of allowances | 10,631 | 6,233 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current (less than 30 days past due) | 7,297 | 5,247 |
Mortgage loans, net of allowances | $ 7,297 | $ 5,247 |
Investments - Mortgage Loans, L
Investments - Mortgage Loans, Loan to Value Ratio (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | $ 10,631 | $ 6,233 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 7,297 | 5,247 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 7,217 | 5,223 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 50% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,883 | 1,798 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 50% to 60% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,988 | 1,390 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 61% to 70% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 2,394 | 1,691 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 71% to 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 898 | 282 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 81% to 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | $ 54 | $ 62 |
Investments - Mortgage Loans, D
Investments - Mortgage Loans, Debt Service Coverage Ratio (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 10,631 | $ 6,233 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 7,297 | 5,247 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 7,217 | 5,223 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Greater than 1.20x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 6,576 | 4,742 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 1.00x – 1.20x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 474 | 297 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 1.00x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 167 | $ 184 |
Investments - Investment Funds
Investments - Investment Funds Summary (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 3,559 | $ 2,580 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 703 | $ 699 |
Carrying Amount, Assets, Percent of Total | 100.00% | 100.00% |
Private Equity Funds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 253 | $ 271 |
Carrying Amount, Assets, Percent of Total | 36.00% | 38.80% |
Real Estate Funds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 231 | $ 161 |
Carrying Amount, Assets, Percent of Total | 32.80% | 23.00% |
Commodities Investment [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 4 | $ 4 |
Carrying Amount, Assets, Percent of Total | 0.60% | 0.60% |
Hedge Funds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 43 | $ 61 |
Carrying Amount, Assets, Percent of Total | 6.10% | 8.70% |
Credit Funds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 172 | $ 202 |
Carrying Amount, Assets, Percent of Total | 24.50% | 28.90% |
Equity securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 63 | $ 0 |
Carrying Amount, Assets, Percent of Total | 2.80% | 0.00% |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 2,232 | $ 1,310 |
Carrying Amount, Assets, Percent of Total | 100.00% | 100.00% |
Related Party | Private Equity, Other [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 554 | $ 180 |
Carrying Amount, Assets, Percent of Total | 24.80% | 13.70% |
Related Party | Real Estate Funds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 651 | $ 297 |
Carrying Amount, Assets, Percent of Total | 29.20% | 22.70% |
Related Party | Commodities Investment [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 104 | $ 74 |
Carrying Amount, Assets, Percent of Total | 4.70% | 5.60% |
Related Party | Hedge Funds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 98 | $ 93 |
Carrying Amount, Assets, Percent of Total | 4.40% | 7.10% |
Related Party | Credit Funds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 299 | $ 263 |
Carrying Amount, Assets, Percent of Total | 13.40% | 20.10% |
A-A Mortgage | Related Party | Private Equity Funds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 463 | $ 403 |
Carrying Amount, Assets, Percent of Total | 20.70% | 30.80% |
Variable Interest Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 624 | $ 571 |
Carrying Amount, Assets, Percent of Total | 100.00% | 100.00% |
Variable Interest Entities | Real Estate Funds [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 71 | $ 22 |
Carrying Amount, Assets, Percent of Total | 11.40% | 3.80% |
Variable Interest Entities | Credit Funds [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 1 | $ 21 |
Carrying Amount, Assets, Percent of Total | 0.20% | 3.70% |
Variable Interest Entities | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 583 | $ 571 |
Variable Interest Entities | MidCap | Private Equity Funds [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 552 | $ 528 |
Carrying Amount, Assets, Percent of Total | 88.40% | 92.50% |
Investments - Equity Method Inv
Investments - Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Assets | $ 40,630 | $ 22,777 | |
Liabilities | 24,241 | 7,518 | |
Equity | 16,389 | 15,259 | |
Net income | $ 1,159 | $ 1,587 | $ 1,415 |
Investments - Equity Method I_2
Investments - Equity Method Investment Ownership (Details) - Investment funds - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Fair Value, Option, Fair Value Carrying Amount, Assets | $ 881 | $ 724 |
Equity Method Investments | 2,678 | 1,856 |
Ownership Percentage, One Hundred Percent [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 17 | 35 |
Ownership Percentage, Greater than Three Percent and Less than or Equal to Forty Nine Percent [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair Value, Option, Fair Value Carrying Amount, Assets | 687 | 590 |
Equity Method Investments | 1,617 | 1,301 |
Ownership Percentage, Greater than or Equal to Fifty Percentage and Less than or Equal to Ninety Nine Percent [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 1,044 | 520 |
Ownership Percentage, Less than Three Percent [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair Value, Option, Fair Value Carrying Amount, Assets | $ 194 | $ 134 |
Investments - Summary of Maximu
Investments - Summary of Maximum Loss Exposure (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 29,434 | $ 25,560 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 26,553 | 24,315 |
Investment funds | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 727 | 594 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 624 | 571 |
Investment funds | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 1,329 | 1,111 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 703 | 699 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Investment funds | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 4,331 | 2,785 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 2,232 | 1,310 |
Fixed Maturity Securities | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 21,139 | 20,274 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 21,188 | 21,018 |
Fixed Maturity Securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 1,788 | 796 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 1,686 | 717 |
Equity securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 120 | 0 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 120 | $ 0 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Notional and Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Total derivative assets, including embedded derivatives, fair value | $ 990 | $ 2,863 |
Total derivative liabilities, including embedded derivatives, fair value | 8,053 | 7,567 |
Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 83 | 1 |
Derivative liabilities, fair value | 56 | 99 |
Derivatives designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 2,041 | 928 |
Derivative assets, fair value | 83 | 1 |
Derivative liabilities, fair value | 55 | 99 |
Derivatives designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 302 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 0 | 0 |
Derivatives designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 85 | 0 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 1 | 0 |
Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Total derivative assets, including embedded derivatives, fair value | 907 | 2,862 |
Total derivative liabilities, including embedded derivatives, fair value | 7,997 | 7,468 |
Derivatives not designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 38 | 41 |
Derivative assets, fair value | 3 | 21 |
Derivative liabilities, fair value | 2 | 3 |
Derivatives not designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 326 | 385 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 1 | 2 |
Derivatives not designated as hedges | Equity options | ||
Derivative [Line Items] | ||
Notional Amount | 49,821 | 31,460 |
Derivative assets, fair value | 942 | 2,500 |
Derivative liabilities, fair value | 11 | 19 |
Derivatives not designated as hedges | Futures | ||
Derivative [Line Items] | ||
Notional Amount | 4 | 1,134 |
Derivative assets, fair value | 9 | 7 |
Derivative liabilities, fair value | 3 | 0 |
Derivatives not designated as hedges | Total return swaps | ||
Derivative [Line Items] | ||
Notional Amount | 62 | 114 |
Derivative assets, fair value | 0 | 5 |
Derivative liabilities, fair value | 3 | 0 |
Derivatives not designated as hedges | Credit default swaps | ||
Derivative [Line Items] | ||
Notional Amount | 10 | 10 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 4 | 5 |
Derivatives not designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 646 | 1,139 |
Derivative assets, fair value | 6 | 17 |
Derivative liabilities, fair value | 5 | 6 |
Derivatives not designated as hedges | Embedded derivatives | Funds withheld including related party | ||
Derivative [Line Items] | ||
Embedded derivative assets, fair value | 312 | |
Embedded derivative liabilities, fair value | 22 | |
Derivatives not designated as hedges | Embedded derivatives | Interest sensitive contract liabilities | ||
Derivative [Line Items] | ||
Embedded derivative assets, fair value | 0 | 0 |
Embedded derivative liabilities, fair value | $ 7,969 | $ 7,411 |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) on Derivatives Not Designated as Hedging (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Total gains (losses) on derivatives not designated as hedges | $ (176) | $ 633 | $ 288 |
Investment related gains (losses) | |||
Derivative [Line Items] | |||
Total gains (losses) on derivatives not designated as hedges | (1,099) | 2,377 | 596 |
Investment related gains (losses) | Equity options | |||
Derivative [Line Items] | |||
Total gains (losses) on derivatives not designated as hedges | (877) | 1,939 | 325 |
Investment related gains (losses) | Futures | |||
Derivative [Line Items] | |||
Total gains (losses) on derivatives not designated as hedges | 2 | (24) | (19) |
Investment related gains (losses) | Swap | |||
Derivative [Line Items] | |||
Total gains (losses) on derivatives not designated as hedges | (8) | 27 | 18 |
Investment related gains (losses) | Foreign currency forwards | |||
Derivative [Line Items] | |||
Total gains (losses) on derivatives not designated as hedges | 16 | 28 | (2) |
Investment related gains (losses) | Embedded derivatives | |||
Derivative [Line Items] | |||
Total gains (losses) on derivatives not designated as hedges | (232) | 407 | 274 |
Interest sensitive contract benefits | Embedded derivatives | |||
Derivative [Line Items] | |||
Total gains (losses) on derivatives not designated as hedges | $ 923 | $ (1,744) | $ (308) |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Derivative Assets | ||
Gross amount recognized | $ 1,043 | $ 2,551 |
Gross amounts not offset on the consolidated balance sheets, financial instruments | (52) | (59) |
Gross amounts not offset on the consolidated balance sheets, collateral received/pledged | (969) | (2,323) |
Net amount | 22 | 169 |
Off-balance sheet securities collateral | (4) | (221) |
Net amount after securities collateral | 18 | (52) |
Offsetting Derivative Liabilities | ||
Gross amount recognized | (85) | (134) |
Gross amounts not offset on the consolidated balance sheets, financial instruments | 52 | 59 |
Gross amounts not offset on the consolidated balance sheets, collateral received/pledged | 24 | 63 |
Net amount | (9) | (12) |
Off-balance sheet securities collateral | 0 | 0 |
Net amount after securities collateral | $ (9) | $ (12) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Credit Risk Derivative Liabilities, at Fair Value | $ 4,000,000 | $ 5,000,000 | |
Credit Derivative, Maximum Exposure, Undiscounted | 10,000,000 | 10,000,000 | |
Additional Collateral, Aggregate Fair Value | 0 | 0 | |
Cash flow hedges | Derivatives designated as hedges | Foreign currency swaps | |||
Derivative [Line Items] | |||
Foreign currency swap gains (losses) | 146,000,000 | (105,000,000) | $ (5,000,000) |
Foreign currency swap gain (loss) reclassified to income | 0 | 0 | 0 |
Gain (loss) on cash flow hedge ineffectiveness | 0 | $ 0 | $ 0 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 0 | ||
Fair Value Hedging [Member] | Derivatives designated as hedges | Foreign currency forwards | |||
Derivative [Line Items] | |||
Derivative, Amount of Hedged Item | 88,000,000 | ||
Fair Value Hedging Adjustment, Hedged Item | 1,000,000 | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (1,000,000) | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ 1,000,000 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Mortgage loans | $ 10,631 | $ 6,233 |
Restricted cash | 492 | 105 |
Reinsurance recoverable | 5,534 | 5,332 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Assets | ||
AFS securities | 60,702 | 61,418 |
Reinsurance recoverable | 5,534 | 5,332 |
Liabilities | ||
Interest sensitive contract liabilities | 96,610 | 68,099 |
Future policy benefits | 16,704 | 17,557 |
Derivative liabilities | 85 | 134 |
Funds withheld liability | 721 | 407 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
AFS securities | 1,437 | 410 |
Trading securities | 249 | 307 |
Equity securities | 120 | 0 |
Mortgage loans | 291 | 0 |
Funds withheld at interest | 13,577 | 0 |
Short-term investments | 0 | 52 |
Other investments | 386 | 238 |
Reinsurance recoverable | 344 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 16,850 | 0 |
Future policy benefits | 1,259 | 0 |
Funds withheld liability | 337 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Related Party | ||
Assets | ||
AFS securities | 562 | 360 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Related Party | ||
Assets | ||
AFS securities | 875 | 50 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ||
Assets | ||
Investment funds | 801 | 662 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ||
Assets | ||
AFS securities | 54 | 26 |
Trading securities | 3 | 3 |
Equity securities | 40 | 18 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 9 | 7 |
Short-term investments | 66 | 40 |
Other investments | 0 | |
Cash and cash equivalents | 2,911 | 4,888 |
Restricted cash | 492 | 105 |
Reinsurance recoverable | 0 | 0 |
Total assets not carried at fair value | 3,614 | 5,303 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities measured at fair value | 3 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Related Party | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Equity securities | 0 | |
Investment funds | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 3 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | U.S. government and agencies | ||
Assets | ||
AFS securities | 54 | 26 |
Trading securities | 3 | 3 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | U.S. state, municipal and political subdivisions | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Foreign governments | ||
Assets | ||
AFS securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Corporate | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CLO | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CLO | Related Party | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ABS | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ABS | Related Party | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CMBS | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | RMBS | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ||
Assets | ||
AFS securities | 56,348 | 58,445 |
Trading securities | 1,811 | 1,727 |
Equity securities | 173 | 777 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 1,034 | 2,544 |
Short-term investments | 125 | 161 |
Other investments | 52 | |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 0 | 0 |
Total assets not carried at fair value | 60,674 | 64,314 |
Liabilities | ||
Derivative liabilities | (1) | 129 |
Total liabilities measured at fair value | 77 | 639 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Related Party | ||
Assets | ||
AFS securities | 1,109 | 406 |
Trading securities | 22 | 202 |
Equity securities | 0 | |
Investment funds | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 488 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 78 | 22 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | U.S. government and agencies | ||
Assets | ||
AFS securities | 3 | 36 |
Trading securities | 2 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | U.S. state, municipal and political subdivisions | ||
Assets | ||
AFS securities | 1,293 | 1,165 |
Trading securities | 126 | 121 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Foreign governments | ||
Assets | ||
AFS securities | 161 | 2,683 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Corporate | ||
Assets | ||
AFS securities | 36,199 | 36,082 |
Trading securities | 1,287 | 1,462 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CLO | ||
Assets | ||
AFS securities | 5,254 | 5,020 |
Trading securities | 8 | 10 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CLO | Related Party | ||
Assets | ||
AFS securities | 562 | 360 |
Trading securities | 22 | 27 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ABS | ||
Assets | ||
AFS securities | 3,305 | 2,510 |
Trading securities | 87 | 17 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ABS | Related Party | ||
Assets | ||
AFS securities | 547 | 46 |
Trading securities | 0 | 175 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CMBS | ||
Assets | ||
AFS securities | 2,170 | 1,884 |
Trading securities | 49 | 51 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | RMBS | ||
Assets | ||
AFS securities | 7,963 | 9,065 |
Trading securities | 252 | 66 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ||
Assets | ||
AFS securities | 2,863 | 2,537 |
Trading securities | 135 | 453 |
Equity securities | 3 | 8 |
Mortgage loans | 32 | 41 |
Investment funds | 29 | 41 |
Derivative assets | 0 | 0 |
Short-term investments | 0 | 0 |
Other investments | 0 | |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 1,676 | 1,824 |
Total assets not carried at fair value | 5,528 | 5,422 |
Liabilities | ||
Derivative liabilities | 0 | 5 |
Total liabilities measured at fair value | 11,078 | 10,849 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Related Party | ||
Assets | ||
AFS securities | 328 | 4 |
Trading securities | 227 | 105 |
Equity securities | 120 | |
Investment funds | 105 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 932 | 1,005 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,443 | 1,625 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 730 | 803 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 57 | 312 |
Liabilities | ||
Interest sensitive contract liabilities | 7,969 | 7,411 |
Funds withheld liability | 4 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | (110) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | U.S. government and agencies | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | U.S. state, municipal and political subdivisions | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 0 | 17 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Foreign governments | ||
Assets | ||
AFS securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Corporate | ||
Assets | ||
AFS securities | 898 | 578 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CLO | ||
Assets | ||
AFS securities | 107 | 64 |
Trading securities | 1 | 17 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CLO | Related Party | ||
Assets | ||
AFS securities | 0 | 0 |
Trading securities | 78 | 105 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ABS | ||
Assets | ||
AFS securities | 1,615 | 1,457 |
Trading securities | 0 | 77 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ABS | Related Party | ||
Assets | ||
AFS securities | 328 | 4 |
Trading securities | 149 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CMBS | ||
Assets | ||
AFS securities | 187 | 137 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | RMBS | ||
Assets | ||
AFS securities | 56 | 301 |
Trading securities | 134 | 342 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | NAV | ||
Assets | ||
Investment funds | 153 | 104 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | NAV | Related Party | ||
Assets | ||
Investment funds | 96 | 30 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Assets | ||
Mortgage loans | 10,424 | 6,342 |
Investment funds | 521 | 554 |
Funds withheld at interest | 14,966 | 6,773 |
Other investments | 70 | 133 |
Total assets not carried at fair value | 42,895 | 15,905 |
Liabilities | ||
Interest sensitive contract liabilities | 51,655 | 31,656 |
Funds withheld liability | 722 | 385 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Mortgage loans | 290 | |
Investment funds | 2,031 | 1,280 |
Funds withheld at interest | 13,687 | |
Other investments | 361 | 259 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Total assets not carried at fair value | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 1 | Related Party | ||
Assets | ||
Mortgage loans | 0 | |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | |
Other investments | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 58 |
Total assets not carried at fair value | 488 | 600 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 722 | 385 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Related Party | ||
Assets | ||
Mortgage loans | 0 | |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | |
Other investments | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | ||
Assets | ||
Mortgage loans | 10,424 | 6,342 |
Investment funds | 0 | 0 |
Funds withheld at interest | 14,966 | 6,773 |
Other investments | 70 | 75 |
Total assets not carried at fair value | 39,798 | 13,449 |
Liabilities | ||
Interest sensitive contract liabilities | 51,655 | 31,656 |
Funds withheld liability | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Related Party | ||
Assets | ||
Mortgage loans | 290 | |
Investment funds | 0 | 0 |
Funds withheld at interest | 13,687 | |
Other investments | 361 | 259 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | ||
Assets | ||
Investment funds | 521 | 554 |
Total assets not carried at fair value | 2,609 | 1,856 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | Related Party | ||
Assets | ||
Investment funds | 2,031 | 1,280 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ||
Assets | ||
AFS securities | 59,265 | 61,008 |
Trading securities | 1,949 | 2,183 |
Equity securities | 216 | 803 |
Mortgage loans | 32 | 41 |
Investment funds | 182 | 145 |
Derivative assets | 1,043 | 2,551 |
Short-term investments | 191 | 201 |
Other investments | 52 | |
Cash and cash equivalents | 2,911 | 4,888 |
Restricted cash | 492 | 105 |
Reinsurance recoverable | 1,676 | 1,824 |
Total assets not carried at fair value | 70,617 | 75,701 |
Liabilities | ||
Interest sensitive contract liabilities | 8,901 | 8,904 |
Future policy benefits | 2,173 | 2,428 |
Derivative liabilities | 85 | 134 |
Funds withheld liability | (1) | 22 |
Total liabilities measured at fair value | 11,158 | 11,488 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Related Party | ||
Assets | ||
AFS securities | 1,437 | 410 |
Trading securities | 249 | 307 |
Equity securities | 120 | |
Investment funds | 201 | 30 |
Funds withheld at interest | (110) | 0 |
Short-term investments | 52 | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 932 | 1,005 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 488 | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,443 | 1,625 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 730 | 803 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 57 | 312 |
Liabilities | ||
Interest sensitive contract liabilities | 7,969 | 7,411 |
Funds withheld liability | (1) | 22 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | (110) | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | U.S. government and agencies | ||
Assets | ||
AFS securities | 57 | 62 |
Trading securities | 5 | 3 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | U.S. state, municipal and political subdivisions | ||
Assets | ||
AFS securities | 1,293 | 1,165 |
Trading securities | 126 | 138 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Foreign governments | ||
Assets | ||
AFS securities | 161 | 2,683 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Corporate | ||
Assets | ||
AFS securities | 37,097 | 36,660 |
Trading securities | 1,287 | 1,462 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CLO | ||
Assets | ||
AFS securities | 5,361 | 5,084 |
Trading securities | 9 | 27 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CLO | Related Party | ||
Assets | ||
AFS securities | 562 | 360 |
Trading securities | 100 | 132 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ABS | ||
Assets | ||
AFS securities | 4,920 | 3,967 |
Trading securities | 87 | 94 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ABS | Related Party | ||
Assets | ||
AFS securities | 875 | 50 |
Trading securities | 149 | 175 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CMBS | ||
Assets | ||
AFS securities | 2,357 | 2,021 |
Trading securities | 49 | 51 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | RMBS | ||
Assets | ||
AFS securities | 8,019 | 9,366 |
Trading securities | 386 | 408 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Related Party | ||
Assets | ||
Short-term investments | 0 | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Related Party | ||
Assets | ||
Short-term investments | 52 | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Related Party | ||
Assets | ||
Short-term investments | 0 | |
Funds withheld at interest | Derivatives not designated as hedges | Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | (53) | |
Liabilities | ||
Funds withheld liability | (1) | |
Variable Interest Entities | Related Party | ||
Assets | ||
Trading securities | 35 | 48 |
Equity securities | 50 | 240 |
Variable Interest Entities | Recurring | Level 1 | ||
Assets | ||
Trading securities | 0 | |
Equity securities | 212 | |
Investment funds | 0 | 0 |
Cash and cash equivalents | 2 | 4 |
Variable Interest Entities | Recurring | Level 1 | Related Party | ||
Assets | ||
Trading securities | 0 | |
Equity securities | 37 | |
Variable Interest Entities | Recurring | Level 2 | ||
Assets | ||
Trading securities | 0 | |
Equity securities | 0 | |
Investment funds | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Variable Interest Entities | Recurring | Level 2 | Related Party | ||
Assets | ||
Trading securities | 0 | |
Equity securities | 0 | |
Variable Interest Entities | Recurring | Level 3 | ||
Assets | ||
Trading securities | 35 | 48 |
Equity securities | 28 | |
Investment funds | 15 | 21 |
Cash and cash equivalents | 0 | 0 |
Variable Interest Entities | Recurring | Level 3 | Related Party | ||
Assets | ||
Equity securities | 13 | |
Variable Interest Entities | Recurring | NAV | ||
Assets | ||
Investment funds | 528 | |
Variable Interest Entities | Recurring | NAV | Related Party | ||
Assets | ||
Investment funds | 552 | |
Variable Interest Entities | Fair Value | Related Party | ||
Assets | ||
Investment funds | 57 | 22 |
Variable Interest Entities | Fair Value | Level 1 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Fair Value | Level 2 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Fair Value | Level 3 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Fair Value | NAV | Related Party | ||
Assets | ||
Investment funds | 57 | 22 |
Variable Interest Entities | Fair Value | Recurring | ||
Assets | ||
Cash and cash equivalents | 2 | 4 |
Variable Interest Entities | Fair Value | Recurring | Related Party | ||
Assets | ||
Trading securities | 35 | 48 |
Equity securities | 50 | 240 |
Investment funds | $ 567 | $ 549 |
Fair Value - Fair Value Option
Fair Value - Fair Value Option (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | $ (36) | $ 45 | $ (22) |
Mortgage loans | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | 0 | (1) | 0 |
Unpaid principal balance | 30 | 40 | |
Mark to fair value | 2 | 1 | |
Fair value | 32 | 41 | |
Investment Income [Member] | Investment funds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | 37 | 35 | 54 |
Investment related gains (losses) | Trading securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | (255) | 30 | (51) |
Future policy benefits | Insurance Contract, Rights and Obligations [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | $ 182 | $ (19) | $ (25) |
Fair Value - Reconciliation of
Fair Value - Reconciliation of Level 3 Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 5,422 | $ 4,295 |
Total realized and unrealized gains (losses) included in income | (625) | 316 |
Total realized and unrealized gains (losses), Included in OCI | (32) | 51 |
Purchases, (Sales), Issuances, (Settlements) | 1,182 | 293 |
Transfer In | 293 | 803 |
Transfers (Out) | (712) | (336) |
Ending Balance | 5,528 | 5,422 |
Total gains (losses) included in earnings | (11) | (12) |
Beginning Balance | (10,849) | (8,562) |
Total realized and unrealized gains (losses), Included in income | 1,252 | (1,892) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (1,481) | (395) |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | (11,078) | (10,849) |
Total gains (losses) included in earnings | 1 | 2 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Purchases, (Sales), Issuances, (Settlements) | (10) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 8 | 5 |
Total realized and unrealized gains (losses) included in income | 2 | 0 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (7) | 3 |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | 3 | 8 |
Total gains (losses) included in earnings | 2 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | |
Total realized and unrealized gains (losses) included in income | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 120 | |
Transfer In | 0 | |
Transfers (Out) | 0 | |
Ending Balance | 120 | 0 |
Total gains (losses) included in earnings | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | U.S. state, municipal and political subdivisions | AFS securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | 5 |
Total realized and unrealized gains (losses) included in income | 16 | |
Total realized and unrealized gains (losses), Included in OCI | (1) | |
Purchases, (Sales), Issuances, (Settlements) | (20) | |
Transfer In | 0 | |
Transfers (Out) | 0 | |
Ending Balance | 0 | |
Total gains (losses) included in earnings | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | U.S. state, municipal and political subdivisions | Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 17 | 17 |
Total realized and unrealized gains (losses) included in income | 1 | 0 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Transfer In | 0 | 0 |
Transfers (Out) | (18) | 0 |
Ending Balance | 0 | 17 |
Total gains (losses) included in earnings | 1 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Foreign governments | AFS securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | 14 |
Total realized and unrealized gains (losses) included in income | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 0 | |
Transfer In | 0 | |
Transfers (Out) | (14) | |
Ending Balance | 0 | |
Total gains (losses) included in earnings | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Corporate | AFS securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 578 | 370 |
Total realized and unrealized gains (losses) included in income | (16) | 13 |
Total realized and unrealized gains (losses), Included in OCI | (6) | 15 |
Purchases, (Sales), Issuances, (Settlements) | 249 | 177 |
Transfer In | 97 | 29 |
Transfers (Out) | (4) | (26) |
Ending Balance | 898 | 578 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | AFS securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 64 | 158 |
Total realized and unrealized gains (losses) included in income | 2 | 1 |
Total realized and unrealized gains (losses), Included in OCI | (2) | 10 |
Purchases, (Sales), Issuances, (Settlements) | 36 | (31) |
Transfer In | 7 | 28 |
Transfers (Out) | 0 | (102) |
Ending Balance | 107 | 64 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 17 | 43 |
Total realized and unrealized gains (losses) included in income | (9) | (4) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | (12) |
Transfer In | 0 | 0 |
Transfers (Out) | (7) | (10) |
Ending Balance | 1 | 17 |
Total gains (losses) included in earnings | (6) | 1 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Trading securities | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 105 | 195 |
Total realized and unrealized gains (losses) included in income | (13) | (8) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (18) | (55) |
Transfer In | 25 | 0 |
Transfers (Out) | (21) | (27) |
Ending Balance | 78 | 105 |
Total gains (losses) included in earnings | (5) | (5) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | AFS securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,457 | 1,156 |
Total realized and unrealized gains (losses) included in income | 8 | 26 |
Total realized and unrealized gains (losses), Included in OCI | (11) | 29 |
Purchases, (Sales), Issuances, (Settlements) | 252 | 163 |
Transfer In | 0 | 93 |
Transfers (Out) | (91) | (10) |
Ending Balance | 1,615 | 1,457 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | AFS securities | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 4 | 60 |
Total realized and unrealized gains (losses) included in income | 0 | 0 |
Total realized and unrealized gains (losses), Included in OCI | (2) | 1 |
Purchases, (Sales), Issuances, (Settlements) | 326 | (10) |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | (47) |
Ending Balance | 328 | 4 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 77 | 0 |
Total realized and unrealized gains (losses) included in income | (6) | 0 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Transfer In | 0 | 77 |
Transfers (Out) | (71) | 0 |
Ending Balance | 0 | 77 |
Total gains (losses) included in earnings | (2) | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Trading securities | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | |
Total realized and unrealized gains (losses) included in income | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 0 | |
Transfer In | 149 | |
Transfers (Out) | 0 | |
Ending Balance | 149 | 0 |
Total gains (losses) included in earnings | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CMBS | AFS securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 137 | 152 |
Total realized and unrealized gains (losses) included in income | 1 | 1 |
Total realized and unrealized gains (losses), Included in OCI | 0 | (4) |
Purchases, (Sales), Issuances, (Settlements) | 132 | 28 |
Transfer In | 15 | 51 |
Transfers (Out) | (98) | (91) |
Ending Balance | 187 | 137 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | RMBS | AFS securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 301 | 17 |
Total realized and unrealized gains (losses) included in income | 4 | 1 |
Total realized and unrealized gains (losses), Included in OCI | (11) | 1 |
Purchases, (Sales), Issuances, (Settlements) | 21 | 2 |
Transfer In | 0 | 289 |
Transfers (Out) | (259) | (9) |
Ending Balance | 56 | 301 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | RMBS | Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 342 | 96 |
Total realized and unrealized gains (losses) included in income | (65) | (19) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 70 |
Transfer In | 0 | 195 |
Transfers (Out) | (143) | 0 |
Ending Balance | 134 | 342 |
Total gains (losses) included in earnings | 5 | 7 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 41 | 0 |
Total realized and unrealized gains (losses) included in income | (3) | 0 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (9) | 0 |
Transfer In | 0 | 41 |
Transfers (Out) | 0 | 0 |
Ending Balance | 29 | 41 |
Total gains (losses) included in earnings | (3) | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | |
Total realized and unrealized gains (losses) included in income | (3) | |
Total realized and unrealized gains (losses), Included in OCI | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 108 | |
Transfer In | 0 | |
Transfers (Out) | 0 | |
Ending Balance | 105 | 0 |
Total gains (losses) included in earnings | (3) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 41 | 44 |
Total realized and unrealized gains (losses) included in income | 0 | (1) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (9) | (2) |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | 32 | 41 |
Total gains (losses) included in earnings | 0 | (1) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Reinsurance recoverable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,824 | 1,692 |
Total realized and unrealized gains (losses) included in income | (148) | 132 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | 1,676 | 1,824 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | Funds withheld at interest | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 312 | 140 |
Total realized and unrealized gains (losses) included in income | (255) | 172 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | 57 | 312 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | Funds withheld at interest | Related Party | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | |
Total realized and unrealized gains (losses) included in income | (110) | |
Total realized and unrealized gains (losses), Included in OCI | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 0 | |
Transfer In | 0 | |
Transfers (Out) | 0 | |
Ending Balance | (110) | 0 |
Total gains (losses) included in earnings | 0 | |
Interest sensitive contract liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Universal life | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (1,005) | (883) |
Total realized and unrealized gains (losses), Included in income | 73 | (122) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | (932) | (1,005) |
Total gains (losses) included in earnings | 0 | 0 |
Interest sensitive contract liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (7,411) | (5,272) |
Total realized and unrealized gains (losses), Included in income | 923 | (1,744) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (1,481) | (395) |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | (7,969) | (7,411) |
Total gains (losses) included in earnings | 0 | 0 |
Future policy benefits | Consolidated Entity Excluding Variable Interest Entities (VIE) | AmerUs Closed Block | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (1,625) | (1,606) |
Total realized and unrealized gains (losses), Included in income | 182 | (19) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | (1,443) | (1,625) |
Total gains (losses) included in earnings | 0 | 0 |
Future policy benefits | Consolidated Entity Excluding Variable Interest Entities (VIE) | ILICO Closed Block and life benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (803) | (794) |
Total realized and unrealized gains (losses), Included in income | 73 | (9) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | (730) | (803) |
Total gains (losses) included in earnings | 0 | 0 |
Derivative liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (5) | (7) |
Total realized and unrealized gains (losses), Included in income | 1 | 2 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 |
Transfers In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | (4) | (5) |
Total gains (losses) included in earnings | 1 | 2 |
Variable Interest Entities | Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 48 | 50 |
Total realized and unrealized gains (losses) included in income | 0 | 1 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (13) | (3) |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | 35 | 48 |
Total gains (losses) included in earnings | 0 | 1 |
Variable Interest Entities | Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 28 | 43 |
Total realized and unrealized gains (losses) included in income | (12) | (16) |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (3) | 1 |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | 13 | 28 |
Total gains (losses) included in earnings | 0 | (16) |
Variable Interest Entities | Investment funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 21 | 38 |
Total realized and unrealized gains (losses) included in income | (3) | 1 |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (3) | (18) |
Transfer In | 0 | 0 |
Transfers (Out) | 0 | 0 |
Ending Balance | 15 | 21 |
Total gains (losses) included in earnings | $ 0 | $ 1 |
Fair Value - Gross Components o
Fair Value - Gross Components of Purchases, Sales, Issuances and Settlements, net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | $ 1,831 | $ 937 |
Sales | (164) | (131) |
Settlements | (485) | (513) |
Purchases, (Sales), Issuances, (Settlements) | 1,182 | 293 |
Purchases | 0 | 0 |
Issuances | (1,888) | (600) |
Sales | 0 | 0 |
Settlements | 407 | 205 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (1,481) | (395) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 5 | |
Sales | 0 | |
Settlements | (15) | |
Purchases, (Sales), Issuances, (Settlements) | (10) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 1 | 3 |
Sales | (8) | 0 |
Purchases, (Sales), Issuances, (Settlements) | (7) | 3 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 120 | |
Purchases, (Sales), Issuances, (Settlements) | 120 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Settlements | (9) | |
Purchases, (Sales), Issuances, (Settlements) | (9) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 108 | |
Purchases, (Sales), Issuances, (Settlements) | 108 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | U.S. state, municipal and political subdivisions | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | 0 | |
Settlements | (20) | |
Purchases, (Sales), Issuances, (Settlements) | (20) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | U.S. state, municipal and political subdivisions | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Foreign governments | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Corporate | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 351 | 228 |
Sales | (29) | (36) |
Settlements | (73) | (15) |
Purchases, (Sales), Issuances, (Settlements) | 249 | 177 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 67 | 15 |
Sales | 0 | (2) |
Settlements | (31) | (44) |
Purchases, (Sales), Issuances, (Settlements) | 36 | (31) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 7 | 4 |
Sales | (7) | (16) |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | (12) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Trading securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 30 | 0 |
Sales | (48) | (55) |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (18) | (55) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 599 | 577 |
Sales | (35) | 0 |
Settlements | (312) | (414) |
Purchases, (Sales), Issuances, (Settlements) | 252 | 163 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | AFS securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 326 | |
Sales | 0 | |
Settlements | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 326 | (10) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Trading securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | RMBS | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 56 | 4 |
Sales | 0 | |
Settlements | (35) | (2) |
Purchases, (Sales), Issuances, (Settlements) | 21 | 2 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | RMBS | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 70 | |
Sales | 0 | |
Settlements | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 0 | 70 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CMBS | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 151 | 29 |
Sales | (3) | 0 |
Settlements | (16) | (1) |
Purchases, (Sales), Issuances, (Settlements) | 132 | 28 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Settlements | (9) | (2) |
Purchases, (Sales), Issuances, (Settlements) | (9) | (2) |
Interest sensitive contract liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | 0 |
Issuances | (1,888) | (600) |
Sales | 0 | 0 |
Settlements | 407 | 205 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (1,481) | (395) |
Variable Interest Entities | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | 0 |
Sales | (13) | (3) |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (13) | (3) |
Variable Interest Entities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 1 | 1 |
Sales | (4) | 0 |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (3) | 1 |
Variable Interest Entities | Investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 14 | 1 |
Sales | (17) | (19) |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | $ (3) | $ (18) |
Fair Value - Summary of Unobser
Fair Value - Summary of Unobservable Inputs for the Embedded Derivatives of Interest Sensitive Contract Liabilities (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Interest sensitive contract liabilities | Embedded derivatives | Level 3 | ||
Fair Value Unobservable Inputs | ||
Total liabilities measured at fair value | $ 7,969 | $ 7,411 |
Nonperformance risk | Minimum | ||
Fair Value Unobservable Inputs | ||
Embedded Derivative Liability, Measurement Input | 0.003 | 0.002 |
Nonperformance risk | Maximum | ||
Fair Value Unobservable Inputs | ||
Embedded Derivative Liability, Measurement Input | 0.015 | 0.012 |
Option budget | Minimum | ||
Fair Value Unobservable Inputs | ||
Embedded Derivative Liability, Measurement Input | 0.007 | 0.007 |
Option budget | Maximum | ||
Fair Value Unobservable Inputs | ||
Embedded Derivative Liability, Measurement Input | 0.037 | 0.037 |
Surrender rate | Minimum | ||
Fair Value Unobservable Inputs | ||
Embedded Derivative Liability, Measurement Input | 0.036 | 0.015 |
Surrender rate | Maximum | ||
Fair Value Unobservable Inputs | ||
Embedded Derivative Liability, Measurement Input | 0.073 | 0.194 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Mortgage loans | $ 10,631 | $ 6,233 |
Investment funds | 3,559 | 2,580 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 991 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 96,610 | 68,099 |
Funds withheld liability | 721 | 407 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 991 | |
Assets | ||
Mortgage loans | 10,308 | 6,192 |
Investment funds | 521 | 554 |
Policy loans | 488 | 542 |
Funds withheld at interest | 14,966 | 6,773 |
Other investments | 70 | 133 |
Total assets not carried at fair value | 42,805 | 15,734 |
Liabilities | ||
Interest sensitive contract liabilities | 54,655 | 31,878 |
Funds withheld liability | 722 | 385 |
Total liabilities not carried at fair value | 56,368 | 32,263 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 910 | |
Assets | ||
Mortgage loans | 10,424 | 6,342 |
Investment funds | 521 | 554 |
Policy loans | 488 | 542 |
Funds withheld at interest | 14,966 | 6,773 |
Other investments | 70 | 133 |
Total assets not carried at fair value | 42,895 | 15,905 |
Liabilities | ||
Interest sensitive contract liabilities | 51,655 | 31,656 |
Funds withheld liability | 722 | 385 |
Total liabilities not carried at fair value | 53,287 | 32,041 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | Fair Value | ||
Assets | ||
Investment funds | 521 | 554 |
Total assets not carried at fair value | 2,609 | 1,856 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | |
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Policy loans | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Total assets not carried at fair value | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 0 | 0 |
Total liabilities not carried at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 910 | |
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Policy loans | 488 | 542 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 58 |
Total assets not carried at fair value | 488 | 600 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 722 | 385 |
Total liabilities not carried at fair value | 1,632 | 385 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | |
Assets | ||
Mortgage loans | 10,424 | 6,342 |
Investment funds | 0 | 0 |
Policy loans | 0 | 0 |
Funds withheld at interest | 14,966 | 6,773 |
Other investments | 70 | 75 |
Total assets not carried at fair value | 39,798 | 13,449 |
Liabilities | ||
Interest sensitive contract liabilities | 51,655 | 31,656 |
Funds withheld liability | 0 | 0 |
Total liabilities not carried at fair value | 51,655 | 31,656 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Mortgage loans | 291 | 0 |
Investment funds | 2,232 | 1,310 |
Funds withheld at interest | 13,577 | 0 |
Other investments | 386 | 238 |
Short-term investments | 0 | 52 |
Liabilities | ||
Interest sensitive contract liabilities | 16,850 | 0 |
Funds withheld liability | 337 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Carrying Value | ||
Assets | ||
Mortgage loans | 291 | |
Investment funds | 2,031 | 1,280 |
Funds withheld at interest | 13,687 | |
Other investments | 386 | 238 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Fair Value | ||
Assets | ||
Mortgage loans | 290 | |
Investment funds | 2,031 | 1,280 |
Funds withheld at interest | 13,687 | |
Other investments | 361 | 259 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | NAV | Fair Value | ||
Assets | ||
Investment funds | 2,031 | 1,280 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 1 | Fair Value | ||
Assets | ||
Mortgage loans | 0 | |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | |
Other investments | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 2 | Fair Value | ||
Assets | ||
Mortgage loans | 0 | |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | |
Other investments | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 3 | Fair Value | ||
Assets | ||
Mortgage loans | 290 | |
Investment funds | 0 | 0 |
Funds withheld at interest | 13,687 | |
Other investments | 361 | 259 |
Variable Interest Entities | ||
Assets | ||
Investment funds | 624 | 571 |
Variable Interest Entities | Related Party | ||
Assets | ||
Investment funds | 583 | 571 |
Variable Interest Entities | Related Party | Carrying Value | ||
Assets | ||
Investment funds | 57 | 22 |
Variable Interest Entities | Related Party | Fair Value | ||
Assets | ||
Investment funds | 57 | 22 |
Variable Interest Entities | Related Party | NAV | Fair Value | ||
Assets | ||
Investment funds | 57 | 22 |
Variable Interest Entities | Related Party | Level 1 | Fair Value | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Related Party | Level 2 | Fair Value | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Related Party | Level 3 | Fair Value | ||
Assets | ||
Investment funds | $ 0 | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Mortgage loans | ||
Fair Value Measurement Inputs | ||
Fair value option, loans, 90 days or more past due | $ 0 | $ 0 |
Discount rate | Minimum | ||
Fair Value Measurement Inputs | ||
Debt Securities, Available-for-sale, Measurement Input | 0.05 | 0.02 |
Discount rate | Maximum | ||
Fair Value Measurement Inputs | ||
Debt Securities, Available-for-sale, Measurement Input | 0.09 | 0.06 |
Reinsurance Reinsurance - Premi
Reinsurance Reinsurance - Premiums and future policy benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Reinsurance Effect on the Statements of Income [Abstract] | |||
Direct Premiums Earned | $ 2,772 | $ 2,639 | $ 448 |
Assumed Premiums Earned | 1,001 | 21 | 20 |
Ceded Premiums Earned | (405) | (195) | (228) |
Premiums | 3,368 | 2,465 | 240 |
Policyholder Benefits and Claims Incurred, Direct | 3,698 | 3,476 | 1,421 |
Policyholder Benefits and Claims Incurred, Assumed | 1,028 | 37 | 82 |
Policyholder Benefits and Claims Incurred, Ceded | (539) | (313) | (473) |
Future policy and other policy benefits | $ 4,187 | $ 3,200 | $ 1,030 |
Reinsurance Reinsurance - Trans
Reinsurance Reinsurance - Transactions (Details) - USD ($) $ in Millions | Jun. 01, 2018 | Dec. 31, 2018 | Oct. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Effects of Reinsurance [Line Items] | ||||||
Liabilities | $ 117,229 | $ 90,985 | ||||
Deferred Policy Acquisition Costs | 3,921 | 1,375 | $ 1,145 | $ 706 | ||
Assets | 125,505 | $ 100,161 | ||||
Reinsurance Agreement [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Liabilities | $ 19,035 | |||||
Deferred Policy Acquisition Costs | 1,296 | |||||
Assets | 18,255 | |||||
Reinsurance Agreement Payments | (394) | |||||
Net Cost of Reinsurance | 1,174 | |||||
Interest sensitive contract liabilities | 69 | |||||
Future policy benefits | (53) | |||||
Voya Insurance and Annuity Company [Member] | Modified Coinsurance [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Liabilities | $ 7,878 | |||||
Deferred Policy Acquisition Costs | 481 | |||||
Assets | 7,663 | |||||
Reinsurance Agreement Payments | (266) | |||||
Net Cost of Reinsurance | $ 481 | |||||
ReliaStar Life Insurance Company [Member] | Modified Coinsurance [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Liabilities | 457 | |||||
Deferred Policy Acquisition Costs | 4 | |||||
Assets | 445 | |||||
Reinsurance Agreement Payments | 12 | |||||
Net Cost of Reinsurance | 0 | |||||
Interest sensitive contract liabilities | 4 | |||||
Future policy benefits | 0 | |||||
Related Party | Coinsurance [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Assets | 674 | |||||
Future policy benefits | (12) | |||||
Related Party | Reinsurance Agreement [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Liabilities | 662 | |||||
Related Party | Voya Insurance and Annuity Company [Member] | Coinsurance [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Liabilities | 325 | |||||
Assets | 337 | |||||
Future policy benefits | (12) | |||||
Related Party | Athora Life Re Ltd. [Member] | Modified Coinsurance [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Liabilities | 337 | |||||
Assets | $ 337 | |||||
Related Party | Voya Insurance and Annuity Company [Member] | Coinsurance [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Liabilities | 3,667 | |||||
Deferred Policy Acquisition Costs | 293 | |||||
Assets | 3,478 | |||||
Reinsurance Agreement Payments | (86) | |||||
Net Cost of Reinsurance | 275 | |||||
Interest sensitive contract liabilities | 8 | |||||
Future policy benefits | (10) | |||||
Related Party | Voya Insurance and Annuity Company [Member] | Modified Coinsurance [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Liabilities | 14,911 | |||||
Deferred Policy Acquisition Costs | 999 | |||||
Assets | 14,332 | |||||
Reinsurance Agreement Payments | (320) | |||||
Net Cost of Reinsurance | 899 | |||||
Interest sensitive contract liabilities | 57 | |||||
Future policy benefits | $ (43) |
Reinsurance Schedule of Novated
Reinsurance Schedule of Novated Balances (Details) - Global Atlantic $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Schedule of Novated Balances [Line Items] | |
Decrease to interest sensitive contract liabilities | $ 653 |
Decrease to future policy benefits | 116 |
Decrease to policy loans | 22 |
Decrease to reinsurance recoverable | $ 747 |
Reinsurance Ceded Credit Risk (
Reinsurance Ceded Credit Risk (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | $ 5,534 | $ 5,332 |
Global Atlantic | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | 3,166 | 3,482 |
Protective Life [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | 1,652 | 1,699 |
Athora Life Re Ltd. [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | 337 | 0 |
Other Reinsurer [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable | $ 379 | $ 151 |
Reinsurance Narrative (Details)
Reinsurance Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Protective Life [Member] | ||
Effects of Reinsurance [Line Items] | ||
Assets Held-in-trust | $ 1,525 | $ 1,688 |
Minimum | ||
Effects of Reinsurance [Line Items] | ||
Assets Held-in-trust | 5,719 | 1,123 |
Minimum | Global Atlantic | ||
Effects of Reinsurance [Line Items] | ||
Assets Held-in-trust | $ 3,967 | $ 3,350 |
Deferred Acquisition Costs, D_3
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired - Roll Forward of DAC, DSI, and VOBA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DAC | |||
Beginning balance | $ 1,375 | $ 1,145 | $ 706 |
Additions | 2,481 | 493 | 601 |
Unlocking | 21 | 13 | (12) |
Amortization | (108) | (194) | (113) |
Impact of unrealized investment (gains) losses | 152 | (82) | (37) |
Ending balance | 3,921 | 1,375 | 1,145 |
DSI | |||
Beginning balance | 520 | 462 | 320 |
Additions | 264 | 161 | 200 |
Unlocking | 7 | 4 | (3) |
Amortization | (61) | (67) | (36) |
Impact of unrealized investment (gains) losses | 69 | (40) | (19) |
Ending balance | 799 | 520 | 462 |
VOBA | |||
Beginning balance | 1,077 | 1,352 | 1,630 |
Additions | 0 | 0 | 0 |
Unlocking | 54 | (1) | (23) |
Amortization | (141) | (162) | (156) |
Impact of unrealized investment (gains) losses | 197 | (112) | (99) |
Ending balance | 1,187 | 1,077 | 1,352 |
Total | |||
Beginning balance | 2,972 | 2,959 | 2,656 |
Additions | 2,745 | 654 | 801 |
Unlocking | 82 | 16 | (38) |
Amortization | (310) | (423) | (305) |
Impact of unrealized investment (gains) losses | 418 | (234) | (155) |
Ending balance | $ 5,907 | $ 2,972 | $ 2,959 |
Deferred Acquisition Costs, D_4
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired Expected Amortization of VOBA (Details) $ in Millions | Dec. 31, 2018USD ($) |
Insurance [Abstract] | |
Present Value of Future Insurance Profits, Amortization Expense, Year One | $ 73 |
Present Value of Future Insurance Profits, Amortization Expense, Year Two | 77 |
Present Value of Future Insurance Profits, Amortization Expense, Year Three | 72 |
Present Value of Future Insurance Profits, Amortization Expense, Year Four | 68 |
Present Value of Future Insurance Profits, Amortization Expense, Year Five | $ 68 |
Closed Block Schedule of Closed
Closed Block Schedule of Closed Block Assets and Liabilities (Details) - AmerUs Closed Block - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Closed Block [Line Items] | ||
Closed Block Liabilities, Future Policy Benefits and Policyholder Account Balances | $ 1,443 | $ 1,625 |
Closed Block Liabilities, Other Policyholder Funds | 14 | 19 |
Closed Block Liabilities, Policyholder Dividends Payable | 89 | 92 |
Closed Block Liabilities, Other Closed Block Liabilities | 0 | 15 |
Closed Block Liabilities | 1,546 | 1,751 |
Assets Designated to Closed Block, Trading Securities, Debt | 1,228 | 1,377 |
Assets Designated to Closed Block, Mortgage Loans on Real Estate | 32 | 41 |
Assets Designated to Closed Block, Policy Loans | 154 | 168 |
Assets Designated to Closed Block, Investments | 1,414 | 1,586 |
Assets Designated to Closed Block, Cash and Cash Equivalents | 31 | 48 |
Assets Designated to Closed Block, Accrued Investment Income | 41 | 36 |
Assets Designated to Closed Block, Reinsurance Recoverable | 22 | 25 |
Assets Designated to Closed Block, Other Closed Block Assets | 2 | 0 |
Assets Designated to Closed Block | 1,510 | 1,695 |
Excess of Reported Closed Block Liabilities over Assets Designated to Closed Block | $ 36 | $ 56 |
Closed Block Results of Operati
Closed Block Results of Operations (Details) - AmerUs Closed Block - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Closed Block [Line Items] | |||
Closed Block Operations, Premiums | $ 48 | $ 58 | $ 24 |
Closed Block Operations, Net Investment Income | 77 | 79 | 84 |
Closed Block Operations, Realized Investment Gains (Losses) | (118) | 61 | 42 |
Closed Block Operations, Revenue | 7 | 198 | 150 |
Closed Block Operations, Policyholder Benefits | (49) | 144 | 107 |
Closed Block Operations, Policyholder Dividends | 36 | 51 | 40 |
Closed Block Operations, Benefits and Expense | (13) | 195 | 147 |
Closed Block Operations, Results before Income Taxes | 20 | 3 | 3 |
Closed Block Operations, Income Taxes | 0 | (5) | 3 |
Closed Block Operations, Net Results | $ 20 | $ 8 | $ 0 |
Debt (Details)
Debt (Details) - Revolving Credit Facility $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | ||
Debt Instrument, Term | 5 years | |
Maximum borrowing capacity | $ 1,000 | $ 1,000 |
Line of Credit Facility, Covenant Terms, Maximum Consolidated Debt to Capitalization Ratio | 35.00% | |
Line of Credit Facility, Covenant Terms, Consolidated Net Worth Requirement, Amount | 3,700 | $ 3,700 |
Line of Credit Facility, Covenant Terms, Consolidated Net Worth Requirement, Percentage of Cash Received from Subsequent Equity Issuances | 50.00% | |
Long-term Line of Credit | $ 0 | $ 0 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.225% | |
Minimum | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% |
Debt Senior Note Issuance (Deta
Debt Senior Note Issuance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Jan. 09, 2018 | |
Line of Credit Facility [Line Items] | ||
Interest Expense, Long-term Debt | $ 41 | |
Senior Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.125% |
Common Stock Schedule of Stock
Common Stock Schedule of Stock by Class (Details) - shares | Dec. 14, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Common stock outstanding (in shares) | 77,300,000 | 162,400,000 | 142,400,000 | 77,300,000 | 50,100,000 | |
Stock Issued During Period, Shares, New Issues | 3,100,000 | 600,000 | 700,000 | 3,300,000 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 0 | 0 | 0 | |||
Stock Repurchased During Period, Shares | (2,600,000) | 0 | (300,000) | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 24,200,000 | 22,000,000 | 64,400,000 | 24,200,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (100,000) | |||||
Common Class B | ||||||
Class of Stock [Line Items] | ||||||
Common stock outstanding (in shares) | 111,800,000 | 25,400,000 | 47,400,000 | 111,800,000 | 136,000,000 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | (24,158,146) | (22,000,000) | (64,400,000) | (24,200,000) | ||
Common Class M-1 | ||||||
Class of Stock [Line Items] | ||||||
Common stock outstanding (in shares) | 3,500,000 | 3,400,000 | 3,400,000 | 3,500,000 | 5,200,000 | |
Stock Repurchased During Period, Shares | 0 | 0 | (300,000) | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | (100,000) | (1,100,000) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | 0 | (300,000) | |||
Common Class M-2 | ||||||
Class of Stock [Line Items] | ||||||
Common stock outstanding (in shares) | 1,100,000 | 800,000 | 900,000 | 1,100,000 | 3,100,000 | |
Stock Repurchased During Period, Shares | 0 | 0 | (100,000) | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (100,000) | (200,000) | (1,700,000) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | 0 | (200,000) | |||
Common Class M-3 | ||||||
Class of Stock [Line Items] | ||||||
Common stock outstanding (in shares) | 1,300,000 | 1,000,000 | 1,100,000 | 1,300,000 | 3,100,000 | |
Stock Repurchased During Period, Shares | 0 | 0 | (100,000) | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (100,000) | (200,000) | (1,500,000) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | 0 | (200,000) | |||
Common Class M-4 | ||||||
Class of Stock [Line Items] | ||||||
Common stock outstanding (in shares) | 5,400,000 | 4,100,000 | 4,700,000 | 5,400,000 | 5,000,000 | |
Stock Issued During Period, Shares, New Issues | 0 | 0 | 1,000,000 | |||
Stock Repurchased During Period, Shares | (100,000) | (400,000) | (100,000) | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (500,000) | (200,000) | (100,000) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | (100,000) | (400,000) |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) $ in Millions | Dec. 14, 2016 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||
Number of Classes of Common Stock | 6 | ||||||
Stock-based compensation expense | $ 26 | $ 45 | $ 84 | ||||
Common Stock, Voting Rights, Maximum Voting Power for Single Shareholder | 9.90% | ||||||
Common Stock, Voting Rights, Maximum Voting Power for Related Party Group | 3.00% | ||||||
Common Stock, Additional Shares Authorized | 150,000,000 | ||||||
Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Common Stock, Voting Rights, Percent of Total Voting Power | 45.00% | ||||||
Shares issued from conversion of securities (in shares) | 24,158,146 | 22,000,000 | 64,400,000 | 24,200,000 | |||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Common Stock, Voting Rights, Percent of Total Voting Power | 55.00% | ||||||
Shares issued from conversion of securities (in shares) | (24,200,000) | (22,000,000) | (64,400,000) | (24,200,000) | |||
Stock Repurchased During Period, Shares | 2,600,000 | 0 | 300,000 | ||||
Shares Sold by Existing Shareholders, Follow on Offering | 50,300,000 | ||||||
Stock Issued During Period, Shares, New Issues | 3,100,000 | 600,000 | 700,000 | 3,300,000 | |||
Shares Sold by Existing Shareholders, Initial Public Offering | 31,100,000 | ||||||
Employee Stock Purchase Plan | |||||||
Class of Stock [Line Items] | |||||||
Number of shares reserved for issuance | 3,800,000 | ||||||
Discounted stock purchase price | 85.00% | ||||||
AP Alternative Assets, L.P. [Member] | Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Shares issued from conversion of securities (in shares) | (21,900,000) | (21,400,000) | |||||
Follow-on Offerings [Member] | Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Shares issued from conversion of securities (in shares) | (41,700,000) | ||||||
Lockup Releases [Member] | Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Shares issued from conversion of securities (in shares) | (1,300,000) | ||||||
Repurchase Authorization 2018 | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||
Stock Repurchased During Period, Shares | 2,500,000 | ||||||
Stock Repurchased During Period, Value | $ 100 |
Stock-based Compensation Stock
Stock-based Compensation Stock Option Award Activity (Details) - Common Class A - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,000,000 | 800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 43.34 | $ 41.19 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 300,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 48.06 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 33.95 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (100,000) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 47.01 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 43.34 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 400,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 38.58 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 2 |
Stock-based Compensation LTIP V
Stock-based Compensation LTIP Valuation Assumptions (Details) - Common Class A | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock option valuation assumptions [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.50% | 1.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 25.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 7 months 18 days | ||
Maximum | |||
Stock option valuation assumptions [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.60% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 26.00% | 28.40% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 314 days | 2 years 296 days | |
Minimum | |||
Stock option valuation assumptions [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.40% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 25.00% | 25.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 168 days | 2 years 124 days |
Stock-based Compensation LTIP R
Stock-based Compensation LTIP RSUs Nonvested Award Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0.6 | 0.5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 44.19 | $ 42.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0.2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 47.97 | $ 51.28 | $ 33.95 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (0.1) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 41.84 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 41.41 |
Stock-based Compensation M Shar
Stock-based Compensation M Share Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 300,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 25.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 7 months 18 days | ||
Share Price | $ 32.90 | ||
Common Class M | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.50% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.80% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 30.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | ||
Common Class M | Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
Stock-based Compensation M Sh_2
Stock-based Compensation M Share Award Activity (Details) - Common Class M - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (500,000) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 22.37 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 23.62 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | $ 28.94 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 9,200,000 | 9,700,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 18.55 | $ 18.83 |
Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (200,000) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 21.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 23.62 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,700,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 17.97 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 80 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 3,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 15.36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 72 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | $ 30.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,700,000 | 3,900,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 17.97 | $ 18.30 |
Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (300,000) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 22.86 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 5,500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 18.94 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 115 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 4,300,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 15.93 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 102 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | $ 26.23 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,500,000 | 5,800,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 18.94 | $ 19.19 |
Stock-based Compensation M Sh_3
Stock-based Compensation M Share Nonvested Award Activity (Details) - Common Class M - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 11 | $ 29 | $ 117 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,900,000 | 2,500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (600,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 8.22 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 12.31 | $ 11.29 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 6.14 | ||
Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 700,000 | 1,100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (400,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 5.68 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 9.28 | $ 7.97 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 5 | $ 16 | $ 92 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 6.14 | ||
Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,200,000 | 1,400,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (200,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 12.60 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 14.03 | $ 13.81 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 3 | $ 40 | $ 122 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 0 |
Stock-based Compensation Stock-
Stock-based Compensation Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 26 | $ 45 | $ 84 |
Common Class M | Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3 | 8 | 11 |
Unrecognized share-based compensation expense, period for recognition | 1 year 18 days | ||
Allocated Share-based Compensation Expense | $ 5 | ||
Common Class M | Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4 | 21 | 69 |
Unrecognized share-based compensation expense, period for recognition | 230 days | ||
Allocated Share-based Compensation Expense | $ 4 | ||
Long Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 19 | $ 16 | $ 4 |
Unrecognized share-based compensation expense, period for recognition | 350 days | ||
Allocated Share-based Compensation Expense | $ 16 |
Stock-based Compensation Narrat
Stock-based Compensation Narrative (Details) $ / shares in Units, $ in Millions | Sep. 30, 2016USD ($) | Dec. 31, 2016shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ | $ 32 | $ 50 | $ 153 | ||
Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 300,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 9.43 | $ 9.44 | $ 5.83 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 400,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | |||
Employee Stock Purchase Plan, Number of Shares Sold | 3,100,000 | 600,000 | 700,000 | 3,300,000 | |
Common Class M | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 10.43 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 11 | $ 29 | $ 117 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 500,000 | ||||
Common Class M | Share-based Compensation Award, Tranche One, Period One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||
Common Class M | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation expense | $ | $ 5 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 5 | $ 16 | 92 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 3,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 200,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Eligible Vesting Period, Following Qualifying Termination | 6 months | ||||
Unrecognized share-based compensation expense, period for recognition | 1 year 18 days | ||||
Common Class M | Share-based Compensation Award, Tranche One, Period One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||
Common Class M | Share-based Compensation Award, Tranche One, Period Three [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||
Common Class M | Share-based Compensation Award, Tranche One, Period Four [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||
Common Class M | Share-based Compensation Award, Tranche One, Period Five [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||
Common Class M | Share-based Compensation Award, Tranche Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |||
Unrecognized share-based compensation expense | $ | $ 4 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 3 | $ 40 | $ 122 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 4,300,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 300,000 | ||||
Unrecognized share-based compensation expense, period for recognition | 230 days | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 47.97 | $ 51.28 | $ 33.95 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ | $ 3 | $ 2 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 200,000 | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Discounted stock purchase price | 85.00% | ||||
Number of shares reserved for issuance | 3,800,000 | ||||
2016 Share Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares reserved for issuance | 3,500,000 | ||||
2016 Modification [Member] | Common Class M | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | 27 | ||||
Stock-based compensation | $ | $ 83 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ | $ 42 | ||||
Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation expense | $ | $ 16 | ||||
Unrecognized share-based compensation expense, period for recognition | 350 days |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Common Class A | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income – basic and diluted | $ 857 | $ 749 | $ 216 | ||||||||||||
Effect of stock compensation plans on allocated net income | 18 | 1 | |||||||||||||
Net income available to AHL shareholders – diluted | $ 857 | $ 767 | $ 217 | ||||||||||||
Basic weighted average shares outstanding (in shares) | 160.5 | 107.7 | 52.1 | ||||||||||||
Dilutive effect of stock compensation plans (in shares) | 0.6 | 3.3 | 1.4 | ||||||||||||
Diluted weighted average shares outstanding (in shares) | 161.1 | 111 | 53.5 | ||||||||||||
Earnings per share | |||||||||||||||
Basic (in USD per share) | $ (0.53) | $ 3.16 | $ 1.30 | $ 1.40 | $ 2.23 | $ 1.25 | $ 1.52 | $ 1.96 | $ 2.71 | $ 5.86 | $ 5.34 | $ 6.95 | $ 4.14 | ||
Diluted (in USD per share) | (0.53) | 3.15 | 1.30 | 1.40 | 2.22 | 1.24 | 1.51 | 1.89 | 2.70 | 5.85 | $ 5.32 | $ 6.91 | $ 4.04 | ||
Common Class B | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income – basic and diluted | $ 157 | $ 567 | $ 556 | ||||||||||||
Effect of stock compensation plans on allocated net income | 0 | 0 | |||||||||||||
Net income available to AHL shareholders – diluted | $ 157 | $ 567 | $ 556 | ||||||||||||
Basic weighted average shares outstanding (in shares) | 29.3 | 81.6 | 134.5 | ||||||||||||
Dilutive effect of stock compensation plans (in shares) | 0 | 0 | 0 | ||||||||||||
Diluted weighted average shares outstanding (in shares) | 29.3 | 81.6 | 134.5 | ||||||||||||
Earnings per share | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | $ 5.34 | $ 6.95 | $ 4.14 | ||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 2.71 | 5.86 | $ 5.34 | $ 6.95 | $ 4.14 | ||
Common Class M-1 | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income – basic and diluted | $ 18 | $ 24 | $ 1 | ||||||||||||
Effect of stock compensation plans on allocated net income | 0 | 0 | |||||||||||||
Net income available to AHL shareholders – diluted | $ 18 | $ 24 | $ 1 | ||||||||||||
Basic weighted average shares outstanding (in shares) | 3.4 | 3.4 | 0.2 | ||||||||||||
Dilutive effect of stock compensation plans (in shares) | 0 | 0 | 4.2 | ||||||||||||
Diluted weighted average shares outstanding (in shares) | 3.4 | 3.4 | 4.4 | ||||||||||||
Earnings per share | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | $ 5.34 | $ 6.95 | $ 4.14 | ||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 2.71 | 5.86 | $ 5.34 | $ 6.95 | $ 0.20 | ||
Common Class M-2 | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income – basic and diluted | $ 5 | $ 4 | |||||||||||||
Effect of stock compensation plans on allocated net income | 0 | ||||||||||||||
Net income available to AHL shareholders – diluted | $ 4 | $ 4 | |||||||||||||
Basic weighted average shares outstanding (in shares) | 0.8 | 0.6 | |||||||||||||
Dilutive effect of stock compensation plans (in shares) | 0 | 0.3 | |||||||||||||
Diluted weighted average shares outstanding (in shares) | 0.8 | 0.9 | |||||||||||||
Earnings per share | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | $ 5.34 | [1] | $ 6.95 | [1] | |||
Diluted (in USD per share) | (0.53) | 3.16 | 1.29 | 1.39 | 2.21 | 1.24 | 1.49 | $ 0.08 | 2.68 | 5.83 | $ 5.31 | [1] | $ 5.05 | ||
Common Class M-3 | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income – basic and diluted | $ 5 | $ 5 | |||||||||||||
Effect of stock compensation plans on allocated net income | 0 | ||||||||||||||
Net income available to AHL shareholders – diluted | $ 5 | $ 5 | |||||||||||||
Basic weighted average shares outstanding (in shares) | 1 | 0.7 | |||||||||||||
Dilutive effect of stock compensation plans (in shares) | 0 | 0.5 | |||||||||||||
Diluted weighted average shares outstanding (in shares) | 1 | 1.2 | |||||||||||||
Earnings per share | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | $ 5.34 | [1] | $ 6.95 | [1] | ||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.38 | 1.99 | 0.95 | 0.91 | 2.68 | 5.83 | $ 5.31 | [1] | $ 3.86 | |||
Common Class M-4 | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income – basic and diluted | $ 11 | $ 9 | |||||||||||||
Effect of stock compensation plans on allocated net income | 0 | ||||||||||||||
Net income available to AHL shareholders – diluted | $ 11 | $ 9 | |||||||||||||
Basic weighted average shares outstanding (in shares) | 2.1 | 1.3 | |||||||||||||
Dilutive effect of stock compensation plans (in shares) | 0.6 | 1.6 | |||||||||||||
Diluted weighted average shares outstanding (in shares) | 2.7 | 2.9 | |||||||||||||
Earnings per share | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | $ 5.34 | [1] | $ 6.95 | [1] | ||||
Diluted (in USD per share) | $ (0.53) | $ 2.42 | $ 1.02 | $ 0.97 | $ 1.41 | $ 0.70 | $ 0.69 | $ 1.98 | $ 4.36 | $ 4.11 | [1] | $ 3.10 | |||
[1] | Basic and diluted earnings per share for Class M-2, M-3 and M-4 were applicable only for the years ended December 31, 2018 and 2017. See Note 13 – Earnings Per Share for further discussion. |
Earnings Per Share - Shares Exc
Earnings Per Share - Shares Excluded from Dilutive Calculation (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from dilutive shares outstanding (in shares) | 34.9 | 52.3 | 116 |
Common Class A | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares (in shares) | 34.7 | 50.9 | 113.5 |
Shares excluded from dilutive shares outstanding due to performance conditions (in shares) | 0.2 | 1.4 | 2.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Detail of AOCI (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | $ (585) | $ 1,769 |
Deferred income taxes | 113 | (320) |
Accumulated other comprehensive income (loss) | (472) | 1,449 |
AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (766) | 2,577 |
DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | 154 | (703) |
Noncredit component of OTTI losses on AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (19) | (13) |
Hedging instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | 51 | (95) |
Pension adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (2) | (5) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | $ (3) | $ 8 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Income tax expense (benefit) | $ 23 | $ 116 | $ 179 | $ 295 | $ 318 | $ 431 | $ (334) | $ (260) | |
Other comprehensive income (loss), after tax | $ (114) | $ (487) | $ (773) | $ (1,260) | $ (1,374) | (1,879) | 896 | 607 | |
Reclassification of taxes | $ (3) | ||||||||
Change in Accumulated Other Comprehensive Income | (1,921) | 1,083 | 607 | ||||||
Unrealized investment gains (losses) on AFS securities | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income (loss), before reclassifications, before tax | (3,291) | 1,680 | 1,397 | ||||||
DAC, DSI, VOBA, and future policy benefit adjustment on AFS securities | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income (loss), before reclassifications, before tax | 853 | (293) | (495) | ||||||
Unrealized gains (losses) on AFS securities, including DAC, DSI, VOBA, and future policy benefits | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Reclassification adjustment for gains (losses) realized in net income | 4 | 75 | 20 | ||||||
Income tax expense (benefit) | (461) | 355 | 262 | ||||||
Other comprehensive income (loss), after tax | (1,981) | 957 | 620 | ||||||
Noncredit component of OTTI losses on AFS securities | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income (loss), before reclassifications, before tax | (9) | (5) | (9) | ||||||
Reclassification adjustment for gains (losses) realized in net income | (3) | (9) | (7) | ||||||
Income tax expense (benefit) | (1) | 1 | 0 | ||||||
Other comprehensive income (loss), after tax | (5) | 3 | (2) | ||||||
Unrealized gains (losses) on hedging instruments | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income (loss), before reclassifications, before tax | 146 | (105) | (5) | ||||||
Income tax expense (benefit) | 31 | (22) | (2) | ||||||
Other comprehensive income (loss), after tax | 115 | (83) | (3) | ||||||
Pension adjustments | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income (loss), before reclassifications, before tax | 3 | (1) | 0 | ||||||
Foreign currency translation adjustments | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income (loss), after tax | (11) | 20 | (8) | ||||||
Accumulated other comprehensive income (loss) | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income (loss), after tax | $ (1,879) | 896 | $ 607 | ||||||
Reclassification of taxes | 187 | (42) | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Reclassification of taxes | $ 187 | ||||||||
Accounting Standards Update 2016-01 [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Reclassification of taxes | $ (42) |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||||
Current Income Tax Expense (Benefit) | $ 78 | $ 5 | $ (33) | |||||
Deferred income tax expense (benefit) | 44 | 101 | (28) | |||||
Income tax expense (benefit) | $ 56 | $ 64 | $ 45 | $ 109 | $ 165 | $ 122 | $ 106 | $ (61) |
Income Taxes Schedule of Income
Income Taxes Schedule of Income Before Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Holiday [Line Items] | ||||||||
Income before income taxes | $ 679 | $ 321 | $ 322 | $ 643 | $ 1,322 | $ 1,175 | $ 1,464 | $ 712 |
Domestic Tax Authority [Member] | Office of the Tax Commissioner, Bermuda [Member] | ||||||||
Income Tax Holiday [Line Items] | ||||||||
Income before income taxes | 641 | 1,165 | 566 | |||||
Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | ||||||||
Income Tax Holiday [Line Items] | ||||||||
Income before income taxes | 0 | 25 | 12 | |||||
Foreign Tax Authority [Member] | Internal Revenue Service (IRS) | ||||||||
Income Tax Holiday [Line Items] | ||||||||
Income before income taxes | $ 534 | $ 274 | $ 134 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 112 | $ 104 | $ 51 | |||||
Increase (decrease) in income taxes resulting from: | ||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 0 | (5) | (116) | |||||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 11 | 8 | 1 | |||||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | (3) | (8) | (7) | |||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | 1 | 5 | 5 | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | (7) | 0 | |||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 1 | 9 | 5 | |||||
Income tax expense (benefit) | $ 56 | $ 64 | $ 45 | $ 109 | $ 165 | $ 122 | $ 106 | $ (61) |
Effective Tax Rate | 10.00% | 7.00% | (9.00%) | |||||
Domestic Tax Authority [Member] | Office of the Tax Commissioner, Bermuda [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% | 0.00% | ||||||
Foreign Tax Authority [Member] | Internal Revenue Service (IRS) | ||||||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||||||
Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 31.00% |
Income Taxes Schedule of Inco_2
Income Taxes Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||||
Income tax expense (benefit) | $ 56 | $ 64 | $ 45 | $ 109 | $ 165 | $ 122 | $ 106 | $ (61) |
Income tax expense (benefit) related to other comprehensive income | $ (23) | $ (116) | $ (179) | $ (295) | $ (318) | (431) | 334 | 260 |
Income Tax Expense (Benefit), Intraperiod Tax Allocation | $ (309) | $ 440 | $ 199 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets, Gross | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | $ 1,186 | $ 1,402 |
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross | 112 | 0 |
Deferred Tax Assets, Operating Loss Carryforwards | 78 | 167 |
Deferred Tax Assets, Tax Credit Carryforwards | 0 | 6 |
Deferred Tax Assets, Property, Plant and Equipment | 43 | 26 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 24 | 37 |
Deferred Tax Assets, Other | 38 | 26 |
Deferred Tax Assets, Gross | 1,481 | 1,664 |
Deferred Tax Assets, Valuation Allowance | (52) | (96) |
Deferred Tax Assets, Net of Valuation Allowance | 1,429 | 1,568 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Deferred Tax Liabilities, Investments | 296 | 781 |
Deferred Tax Liabilities, Other Comprehensive Income | 0 | 325 |
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | 790 | 497 |
Deferred Tax Liabilities, Other | 3 | 8 |
Deferred Tax Liabilities, Gross | 1,089 | 1,611 |
Deferred Tax Assets, Net | $ 340 | |
Deferred Tax Liabilities, Net | $ (43) |
Income Taxes Summary of Valuati
Income Taxes Summary of Valuation Allowance (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 52 | $ 96 |
United States Federal and State Net Operating Losses [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | 52 | 46 |
German Other Deferred Tax Assets [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 50 |
Income Taxes Schedule of Gross
Income Taxes Schedule of Gross Current and Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Assets and Liabilities [Line Items] | ||
Income Taxes Receivable | $ 3 | $ 20 |
Deferred Tax Assets, Net | 340 | |
Deferred Tax Liabilities, Net | (43) | |
Other Assets [Member] | ||
Income Tax Assets and Liabilities [Line Items] | ||
Income Taxes Receivable | 36 | 29 |
Deferred Tax Assets, Net | 340 | 3 |
Other Liabilities [Member] | ||
Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Liabilities, Net | 0 | (46) |
Taxes Payable | $ 33 | $ 9 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation Allowance [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 308 | |||
Effective Tax Rate | 10.00% | 7.00% | (9.00%) | |
SEC Schedule, 12-09, Valuation Allowance, Operating Loss Carryforward [Member] | ||||
Valuation Allowance [Line Items] | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 102 | |||
Office of the Tax Commissioner, Bermuda [Member] | Domestic Tax Authority [Member] | ||||
Valuation Allowance [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% | 0.00% | ||
Internal Revenue Service (IRS) | Foreign Tax Authority [Member] | ||||
Valuation Allowance [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |
Statutory Requirements Statutor
Statutory Requirements Statutory Capital and Surplus and Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ALRe | Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 9,659 | $ 6,972 | |
Statutory Accounting Practices, Statutory Net Income Amount | 418 | 828 | $ 460 |
AARe | Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 2,095 | 0 | |
Statutory Accounting Practices, Statutory Net Income Amount | 997 | 0 | 0 |
ACRA | Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 393 | 0 | |
Statutory Accounting Practices, Statutory Net Income Amount | (287) | 0 | 0 |
AADE | Delaware | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 1,544 | 1,348 | |
Statutory Accounting Practices, Statutory Net Income Amount | 18 | 24 | 71 |
AANY | New York | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 282 | 268 | |
Statutory Accounting Practices, Statutory Net Income Amount | 6 | 29 | 1 |
ALICNY | New York | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 70 | 76 | |
Statutory Accounting Practices, Statutory Net Income Amount | (22) | 6 | 10 |
AAIA | Iowa | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 1,234 | 1,164 | |
Statutory Accounting Practices, Statutory Net Income Amount | 81 | 239 | 100 |
STAR | Iowa | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 92 | 90 | |
Statutory Accounting Practices, Statutory Net Income Amount | 9 | 3 | 17 |
Athene Re USA IV | Vermont | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 29 | 25 | |
Statutory Accounting Practices, Statutory Net Income Amount | $ 5 | $ (3) | $ (5) |
Statutory Requirements Narrativ
Statutory Requirements Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
ACRA | Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Minimum Solvency Margin, Assets Threshold | $ 500,000 | |
Statutory Accounting Practices, Minimum Solvency Margin, Percentage of Assets In Excess of Threshold | 1.50% | |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Capital And Surplus | $ (252,000,000) | |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Statutory Net Income | (267,000,000) | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | 0 | $ 0 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 393,000,000 | 0 |
ALRe | Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Minimum Solvency Margin Required | $ 8,000,000 | |
Statutory Accounting Practices, Minimum Solvency Margin, Percentage of Assets Threshold | 2.00% | |
Statutory Accounting Practices, Minimum Solvency Margin, Assets Threshold | $ 500,000,000 | |
Statutory Accounting Practices, Minimum Solvency Margin, Percentage of Assets In Excess of Threshold | 1.50% | |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Capital And Surplus | $ 554,000,000 | |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Statutory Net Income | (705,000,000) | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | 5,942,000,000 | 5,022,000,000 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 9,659,000,000 | 6,972,000,000 |
EBS Capital and Surplus | $ 12,000,000,000 | $ 7,700,000,000 |
BSCR ratio | 340.00% | 354.00% |
AARe | Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Capital And Surplus | $ 202,000,000 | |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Statutory Net Income | 179,000,000 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | 997,000,000 | $ 0 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 2,095,000,000 | 0 |
AADE | Delaware | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 310,000,000 | 103,000,000 |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | 154,000,000 | 135,000,000 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 1,544,000,000 | 1,348,000,000 |
AAIA | Iowa | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Permitted Practice, Amount | 39,000,000 | (66,000,000) |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 1,234,000,000 | 1,164,000,000 |
Athene Re USA IV | Vermont | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 29,000,000 | 25,000,000 |
Line of Credit [Member] | Athene Re USA IV | Vermont | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Permitted Practice, Amount | $ 153,000,000 | $ 153,000,000 |
Statutory Requirements Statut_2
Statutory Requirements Statutory Permitted Practices (Details) - Bermuda $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
ALRe | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Capital And Surplus | $ 554 |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Statutory Net Income | (705) |
AARe | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Capital And Surplus | 202 |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Statutory Net Income | 179 |
ACRA | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Capital And Surplus | (252) |
Statutory Accounting Practices, Permitted Practice, Increase (Decrease) To Statutory Net Income | $ (267) |
Statutory Requirements Statut_3
Statutory Requirements Statutory Maximum Dividends (Details) - Bermuda - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
AARe | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 997 | $ 0 |
ACRA | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 0 | $ 0 |
Related Parties - Summary of As
Related Parties - Summary of Assets Sub-Advised by Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||
Mortgage loans | $ 10,631 | $ 6,233 | ||
Investment funds | 3,559 | 2,580 | ||
Cash and cash equivalents | [1] | 3,405 | 4,997 | $ 2,516 |
Total assets | 125,505 | 100,161 | ||
Apollo affiliates | Related party | Assets sub-advised | ||||
Related Party Transaction [Line Items] | ||||
Trading securities | 87 | 121 | ||
Equity securities | 2 | 0 | ||
Mortgage loans | 3,507 | 2,232 | ||
Investment funds | 157 | 26 | ||
Funds withheld at interest | 4,126 | 1,737 | ||
Other investments | 70 | 75 | ||
Total assets | $ 18,746 | $ 13,996 | ||
Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets | 18.00% | 18.00% | ||
Apollo affiliates | Foreign governments | Related party | Assets sub-advised | ||||
Related Party Transaction [Line Items] | ||||
AFS securities | $ 153 | $ 152 | ||
Apollo affiliates | Corporate | Related party | Assets sub-advised | ||||
Related Party Transaction [Line Items] | ||||
AFS securities | 3,398 | 2,934 | ||
Apollo affiliates | CLO | Related party | Assets sub-advised | ||||
Related Party Transaction [Line Items] | ||||
AFS securities | 5,703 | 5,166 | ||
Apollo affiliates | ABS | Related party | Assets sub-advised | ||||
Related Party Transaction [Line Items] | ||||
AFS securities | 663 | 681 | ||
Apollo affiliates | CMBS | Related party | Assets sub-advised | ||||
Related Party Transaction [Line Items] | ||||
AFS securities | $ 880 | 872 | ||
Apollo Asset Management Europe | Related party | Assets sub-advised | ||||
Related Party Transaction [Line Items] | ||||
Total assets | $ 4,153 | |||
[1] | Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated variable interest entities. |
Related Parties - Management Fe
Related Parties - Management Fees Incurred (Details) - Related party - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset management fees | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | $ 290 | $ 261 | $ 229 |
Sub-advisory fees | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | $ 59 | $ 57 | $ 66 |
Related Parties - Other Related
Related Parties - Other Related Party Transactions (Details) - Related Party - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AmeriHome | Purchase of Residential Mortgage Loans Under Agreement | |||
Related Party Transaction [Line Items] | |||
Related party purchases | $ 722 | $ 57 | $ 22 |
A-A Mortgage | |||
Related Party Transaction [Line Items] | |||
Investment Owned, Balance, Principal Amount | $ 52 |
Related Parties - Narrative (De
Related Parties - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018USD ($)director | Dec. 31, 2018USD ($)director | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 24, 2018USD ($) | Jun. 01, 2018USD ($) | |
Related Party Transaction [Line Items] | ||||||
Assets | $ 125,505 | $ 125,505 | $ 100,161 | |||
Investment funds | $ 3,559 | $ 3,559 | 2,580 | |||
Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Number of directors on the conflicts committee | director | 3 | 3 | ||||
Related Party | MidCap | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Purchases from Related Party | $ 142 | 88 | $ 4 | |||
Related Party | Management fees associated with investment funds | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties | $ 34 | 34 | 28 | |||
Related Party | Sub-advisory fees associated with investment funds management | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties | 20 | 20 | 13 | |||
Related Party | AmeriHome | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Purchases from Related Party | 122 | |||||
A-A Mortgage | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment Owned, Balance, Principal Amount | 52 | |||||
Apollo Athene Strategic Partnership Advisors, LLC [Member] | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Strategic Partnership Capacity | $ 2,500 | |||||
MidCap | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment Owned, Balance, Principal Amount | 245 | 245 | 245 | |||
Equity Method Investments, Including Credit Facility Advances | 791 | 791 | $ 766 | |||
Athene Asset Management | Related Party | Portfolio Management Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Investment portfolio assets managed by affiliates | $ 88,356 | $ 88,356 | ||||
Investment portfolio assets, percentage rated at one or two by the NAIC | 84.00% | 84.00% | ||||
Management fee payable, percentage | 0.40% | |||||
Amended Management Fee, Percentage, Assets up to $65,846 million | 0.40% | 0.40% | ||||
Amended Management Fee, Percentage, Assets in Excess of $65,846 million | 0.30% | 0.30% | ||||
Amended Management Fee, Threshold | $ 65,846 | $ 65,846 | ||||
Apollo Asset Management Europe | Related Party | Apollo Asset Management Europe sub-advisory agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Management fee payable, percentage | 0.10% | |||||
Apollo Asset Management Europe | Related Party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Assets | $ 4,153 | |||||
Apollo affiliates | Related Party | Assets sub-advised | ||||||
Related Party Transaction [Line Items] | ||||||
Assets | 18,746 | 18,746 | 13,996 | |||
Investment funds | $ 157 | $ 157 | 26 | |||
Apollo affiliates | Related Party | German Special Investment Fund Advisory Fee | ||||||
Related Party Transaction [Line Items] | ||||||
Investment portfolio assets managed by affiliates | $ 1,190 | |||||
Management fee payable, percentage | 0.35% | |||||
Apollo affiliates | Related Party | Apollo Capital Efficient Fund I Advisory Fee | ||||||
Related Party Transaction [Line Items] | ||||||
Investment portfolio assets managed by affiliates | $ 97 | |||||
Pro rata share of operating expenses | 0.30% | |||||
Apollo affiliates | Related Party | Sub-advisory fees associated with investment funds management | ||||||
Related Party Transaction [Line Items] | ||||||
Amended Sub-Advisory Fee, Percentage, Assets up to $10,000 million | 0.40% | 0.40% | ||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $10,000 million up to $12,441 million | 0.35% | 0.35% | ||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $12,441 million up to $16,000 million | 0.40% | 0.40% | ||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $16,000 million | 0.35% | 0.35% | ||||
Amended Sub-Advisory Fee, Threshold One | $ 10,000 | $ 10,000 | ||||
Amended Sub-Advisory Fee, Threshold Two | 12,441 | 12,441 | ||||
Amended Sub-Advisory Fee, Threshold Three | 16,000 | 16,000 | ||||
AmeriHome | Related Party | Purchase of Residential Mortgage Loans Under Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Purchases from Related Party | $ 722 | $ 57 | $ 22 | |||
VA Capital Company LLC [Member] | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Equity Method Investment, Aggregate Cost | $ 75 | |||||
Venerable Holdings, Inc. [Member] | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment Owned, Balance, Principal Amount | $ 150 | |||||
Related Party Transaction, Rate | 6.257% | |||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||||
Related Party Transaction [Line Items] | ||||||
Interest sensitive contract liabilities | 96,610 | $ 96,610 | 68,099 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 2,232 | 2,232 | 1,310 | |||
Interest sensitive contract liabilities | 16,850 | 16,850 | 0 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private Equity Funds [Member] | A-A Mortgage | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 463 | 463 | 403 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private Equity Funds [Member] | Athora | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 105 | 105 | ||||
Payments to Acquire Investments | 20 | |||||
Investments [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Other Commitment | 3,036 | 3,036 | 2,358 | |||
Investments [Member] | A-A Mortgage | ||||||
Related Party Transaction [Line Items] | ||||||
Other Commitment | 125 | 125 | ||||
Investments [Member] | Athora | ||||||
Related Party Transaction [Line Items] | ||||||
Other Commitment | 307 | 307 | ||||
Variable Interest Entities | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 624 | 624 | 571 | |||
Payments to Acquire Investments | 83 | 23 | 19 | |||
Variable Interest Entities | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 583 | 583 | 571 | |||
Payments to Acquire Investments | 31 | 23 | $ 19 | |||
Variable Interest Entities | Apollo Athene Strategic Partnership Advisors, LLC [Member] | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Payments to Acquire Investments | 16 | |||||
Variable Interest Entities | Private Equity Funds [Member] | MidCap | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 552 | 552 | $ 528 | |||
Funding Agreements | Athora | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Interest sensitive contract liabilities | $ 166 | $ 166 |
Commitments and Contingencies -
Commitments and Contingencies - Pledged Assets and Funds in Trust (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Debt Securities, Available-for-sale, Restricted | $ 5,439 | $ 1,572 |
Debt Securities, Trading, Restricted | 68 | 0 |
Equity Securities, FV-NI, Restricted | 2 | 36 |
Investment funds | 53 | 20 |
Derivative assets pledged as collateral | 24 | 0 |
Mortgage loans | 1,830 | 914 |
Short-term investments | 77 | 10 |
Other Investments Pledged as Collateral | 47 | 0 |
Restricted cash | 492 | 105 |
Total restricted assets | $ 8,032 | $ 2,657 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Commitments [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 230,000,000 | |
Advances from FHLB | 926,000,000 | $ 573,000,000 |
COLI asset value | 362,000,000 | |
Value of guarantees on COLI | 187,000,000 | |
Athene Global Funding | Senior Notes | ||
Other Commitments [Line Items] | ||
Maximum borrowing capacity | 10,000,000,000 | |
Athene Global Funding | Funding Agreements | ||
Other Commitments [Line Items] | ||
Interest sensitive contract liabilities | 2,700,000,000 | $ 2,996,000,000 |
Pending Litigation | Caldera | ||
Other Commitments [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 1,500,000,000 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Revenues to Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 1,154 | $ 2,576 | $ 1,802 | $ 1,011 | $ 3,872 | $ 1,473 | $ 1,763 | $ 1,619 | $ 6,543 | $ 8,727 | $ 4,105 |
Operating Segments | Retirement Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 8,118 | 5,960 | 3,330 | ||||||||
Operating Segments | Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 44 | 368 | 268 | ||||||||
Non-operating adjustments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | (1,020) | 1,990 | 324 | ||||||||
Investment gains (losses), net of offsets | (515) | 461 | 164 | ||||||||
VIE expenses and noncontrolling interest | 1 | 0 | 13 | ||||||||
Other Nonoperating Income | $ (85) | $ (52) | $ 6 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segment Operating Income to Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Income tax (expense) benefit – non-operating | $ (56) | $ (64) | $ (45) | $ (109) | $ (165) | $ (122) | $ (106) | $ 61 | |||||
Net income available to Athene Holding Ltd. shareholders | $ (104) | $ 623 | $ 257 | $ 277 | $ 439 | $ 244 | $ 298 | $ 377 | 1,053 | 1,358 | 773 | ||
Operating Segments | Retirement Services | |||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Income tax (expense) benefit – non-operating | (100) | (83) | 53 | ||||||||||
Net income available to Athene Holding Ltd. shareholders | 1,201 | 1,038 | 808 | ||||||||||
Operating Segments | Corporate and Other | |||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Income tax (expense) benefit – non-operating | 0 | 2 | 4 | ||||||||||
Net income available to Athene Holding Ltd. shareholders | (61) | 17 | (49) | ||||||||||
Non-operating adjustments | |||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Investment gains (losses), net of offsets | (274) | 199 | 47 | ||||||||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | (1,020) | 1,990 | 324 | ||||||||||
Loss on Derivative Instruments, Net of Expenses, Pretax | (242) | (230) | 67 | ||||||||||
Integration, restructuring and other non-operating expenses | (22) | (68) | 22 | ||||||||||
Stock-based compensation, excluding LTIP | (11) | (33) | 82 | ||||||||||
Income tax (expense) benefit – non-operating | $ (22) | $ (25) | $ 4 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Segment Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net investment income | $ 4,004 | $ 3,269 | $ 2,914 |
Operating Segments | Retirement Services | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 4,188 | 3,241 | 2,953 |
Operating Segments | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 44 | 182 | 77 |
Non-operating adjustments | |||
Segment Reporting Information [Line Items] | |||
Reinsurance Embedded Derivative Gain (Loss) | (301) | (191) | (189) |
Income (Loss) from Variable Interest Entities, Net | (37) | (77) | (1) |
Alternative Income Gain (Loss) | 34 | 20 | 39 |
Other Adjustment to Net Investment Income | $ 76 | $ 94 | $ 35 |
Segment Information - Reconci_4
Segment Information - Reconciliation of Segment Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||||
Income tax expense (benefit) | $ 56 | $ 64 | $ 45 | $ 109 | $ 165 | $ 122 | $ 106 | $ (61) |
Non-operating adjustments | ||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||||
Income tax expense (benefit) | 22 | 25 | (4) | |||||
Retirement Services | Operating Segments | ||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||||
Income tax expense (benefit) | 100 | 83 | (53) | |||||
Corporate and Other | Operating Segments | ||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||||
Income tax expense (benefit) | $ 0 | $ (2) | $ (4) |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 125,505 | $ 100,161 |
Retirement Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 123,498 | 91,749 |
Corporate and Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 2,007 | $ 8,412 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Segment Information Premiums an
Segment Information Premiums and Deposits by Product (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Annuity Deposit Revenue, Gross | $ 36,663 | $ 9,546 | $ 9,018 |
Premiums | 3,368 | 2,465 | 240 |
Premiums and Annuity Deposits | 40,031 | 12,011 | 9,258 |
Fixed Indexed Annuity [Member] | |||
Segment Reporting Information [Line Items] | |||
Annuity Deposit Revenue, Gross | 29,973 | 5,480 | 5,322 |
Fixed Rate Annuity [Member] | |||
Segment Reporting Information [Line Items] | |||
Annuity Deposit Revenue, Gross | 5,501 | 873 | 3,565 |
Payouts Without Life Contingency [Member] | |||
Segment Reporting Information [Line Items] | |||
Annuity Deposit Revenue, Gross | 535 | 106 | 107 |
Funding Agreements | |||
Segment Reporting Information [Line Items] | |||
Annuity Deposit Revenue, Gross | 650 | 3,054 | 0 |
Life Insurance Product Line | |||
Segment Reporting Information [Line Items] | |||
Annuity Deposit Revenue, Gross | 4 | 33 | 24 |
Premiums | 54 | 254 | 219 |
Payouts With Life Contingency [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums | $ 3,314 | $ 2,211 | $ 21 |
Segment Information Premiums _2
Segment Information Premiums and Deposits by Geographic Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Premiums and Annuity Deposits | $ 40,031 | $ 12,011 | $ 9,258 |
Total U.S. Region | |||
Segment Reporting Information [Line Items] | |||
Premiums and Annuity Deposits | 16,369 | 11,156 | 5,617 |
Bermuda | |||
Segment Reporting Information [Line Items] | |||
Premiums and Annuity Deposits | 23,662 | 652 | 3,429 |
GERMANY | |||
Segment Reporting Information [Line Items] | |||
Premiums and Annuity Deposits | $ 0 | $ 203 | $ 212 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Revenues | $ 1,154 | $ 2,576 | $ 1,802 | $ 1,011 | $ 3,872 | $ 1,473 | $ 1,763 | $ 1,619 | $ 6,543 | $ 8,727 | $ 4,105 | ||||
Total benefits and expenses | 1,301 | 1,897 | 1,481 | 689 | 3,385 | 1,206 | 1,450 | 1,222 | $ 2,170 | $ 4,067 | 5,368 | 7,263 | 3,393 | ||
Net Income (Loss) Attributable to Parent | $ (104) | $ 623 | $ 257 | $ 277 | $ 439 | $ 244 | $ 298 | $ 377 | $ 1,053 | $ 1,358 | $ 773 | ||||
Common Class B | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | $ (0.53) | $ 3.16 | $ 1.30 | $ 1.40 | $ 2.23 | $ 1.25 | $ 1.52 | $ 1.96 | $ 2.71 | $ 5.86 | $ 5.34 | $ 6.95 | $ 4.14 | ||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 5.34 | 6.95 | 4.14 | ||||
Common Class M-1 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 2.71 | 5.86 | 5.34 | 6.95 | 0.20 | ||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 5.34 | 6.95 | $ 4.14 | ||||
Common Class M-2 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.29 | 1.39 | 2.21 | 1.24 | 1.49 | 0.08 | 2.68 | 5.83 | 5.31 | [1] | 5.05 | ||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | $ 1.96 | 5.34 | [1] | 6.95 | [1] | |||
Common Class M-3 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.38 | 1.99 | 0.95 | 0.91 | 2.68 | 5.83 | 5.31 | [1] | 3.86 | |||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 5.34 | [1] | 6.95 | [1] | ||||
Common Class M-4 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | (0.53) | 2.42 | 1.02 | 0.97 | 1.41 | 0.70 | 0.69 | $ 1.98 | $ 4.36 | 4.11 | [1] | 3.10 | |||
Basic (in USD per share) | $ (0.53) | $ 3.16 | $ 1.30 | $ 1.40 | $ 2.23 | $ 1.25 | $ 1.52 | $ 5.34 | [1] | $ 6.95 | [1] | ||||
Previously reported | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Revenues | $ 2,588 | $ 1,797 | $ 1,011 | $ 3,872 | $ 1,473 | $ 1,763 | $ 1,619 | ||||||||
Total benefits and expenses | 1,882 | 1,467 | 684 | 3,374 | 1,179 | 1,426 | 1,213 | $ 2,151 | $ 4,033 | $ 7,192 | $ 3,389 | ||||
Net Income (Loss) Attributable to Parent | $ 640 | $ 264 | $ 268 | $ 464 | $ 274 | $ 326 | $ 384 | ||||||||
Previously reported | Common Class B | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | $ 3.24 | $ 1.34 | $ 1.36 | $ 2.36 | $ 1.40 | $ 1.66 | $ 2 | $ 2.70 | $ 5.94 | $ 7.41 | $ 4.11 | ||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | ||||||||
Previously reported | Common Class M-1 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | 2.70 | 5.94 | 7.41 | $ 0.20 | ||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | ||||||||
Previously reported | Common Class M-2 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | 3.24 | 1.33 | 1.34 | 2.34 | 1.39 | 1.64 | 0.08 | 2.67 | 5.90 | 5.38 | |||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | $ 2 | ||||||||
Previously reported | Common Class M-3 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | 3.24 | 1.34 | 1.33 | 2.10 | 1.07 | 1 | 2.67 | 5.90 | 4.12 | ||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | |||||||||
Previously reported | Common Class M-4 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | 2.49 | 1.04 | 0.94 | 1.49 | 0.79 | 0.76 | $ 1.98 | $ 4.42 | $ 3.31 | ||||||
Basic (in USD per share) | $ 3.24 | $ 1.34 | $ 1.36 | $ 2.36 | $ 1.40 | $ 1.66 | |||||||||
Revision | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Revenues | $ (12) | $ 5 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Total benefits and expenses | 15 | 14 | 5 | 11 | 27 | 24 | 9 | $ 19 | $ 34 | $ 71 | $ 4 | ||||
Net Income (Loss) Attributable to Parent | $ (17) | $ (7) | $ 9 | $ (25) | $ (30) | $ (28) | $ (7) | ||||||||
Revision | Common Class B | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | $ (0.08) | $ (0.04) | $ 0.04 | $ (0.13) | $ (0.15) | $ (0.14) | $ (0.04) | $ 0.01 | $ (0.08) | $ (0.46) | $ 0.03 | ||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | ||||||||
Revision | Common Class M-1 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | 0.01 | (0.08) | (0.46) | $ 0 | ||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | ||||||||
Revision | Common Class M-2 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.05 | (0.13) | (0.15) | (0.15) | 0 | 0.01 | (0.07) | (0.33) | |||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | $ (0.04) | ||||||||
Revision | Common Class M-3 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.05 | (0.11) | (0.12) | (0.09) | 0.01 | (0.07) | (0.26) | ||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | |||||||||
Revision | Common Class M-4 | |||||||||||||||
Quarterly Results of Operations [Line Items] | |||||||||||||||
Diluted (in USD per share) | (0.07) | (0.02) | 0.03 | (0.08) | (0.09) | (0.07) | $ 0 | $ (0.06) | $ (0.21) | ||||||
Basic (in USD per share) | $ (0.08) | $ (0.04) | $ 0.04 | $ (0.13) | $ (0.15) | $ (0.14) | |||||||||
[1] | Basic and diluted earnings per share for Class M-2, M-3 and M-4 were applicable only for the years ended December 31, 2018 and 2017. See Note 13 – Earnings Per Share for further discussion. |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) - Quarterly Revisions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Premiums | $ 3,368 | $ 2,465 | $ 240 | ||||||||||||
Revenues | $ 1,154 | $ 2,576 | $ 1,802 | $ 1,011 | $ 3,872 | $ 1,473 | $ 1,763 | $ 1,619 | 6,543 | 8,727 | 4,105 | ||||
Future policy and other policy benefits | 4,187 | 3,200 | 1,030 | ||||||||||||
Deferred Policy Acquisition Costs, Additions | 2,481 | 493 | 601 | ||||||||||||
Benefits, Losses and Expenses | $ 1,301 | 1,897 | 1,481 | 689 | 3,385 | 1,206 | 1,450 | 1,222 | $ 2,170 | $ 4,067 | 5,368 | 7,263 | 3,393 | ||
Income before income taxes | 679 | 321 | 322 | 643 | 1,322 | 1,175 | 1,464 | 712 | |||||||
Income tax expense (benefit) | 56 | 64 | 45 | 109 | 165 | 122 | 106 | (61) | |||||||
Net income | 623 | 257 | 277 | 534 | 1,157 | 1,053 | 1,358 | 773 | |||||||
Unrealized investment gains (losses) on available-for-sale securities | (140) | (702) | (891) | (1,593) | (1,733) | (2,442) | 1,312 | 882 | |||||||
Other Comprehensive Income (Loss), before Tax | (137) | (603) | (952) | (1,555) | (1,692) | (2,310) | 1,230 | 867 | |||||||
Income tax expense (benefit) related to other comprehensive income | (23) | (116) | (179) | (295) | (318) | (431) | 334 | 260 | |||||||
Other comprehensive loss | (114) | (487) | (773) | (1,260) | (1,374) | (1,879) | 896 | 607 | |||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 509 | (230) | (496) | (726) | (217) | (826) | 2,254 | 1,380 | |||||||
Net cash provided by operating activities | 573 | 427 | 1,143 | 2,874 | 3,170 | 1,199 | |||||||||
Net Cash Provided by (Used in) Investing Activities | (2,884) | (3,812) | (6,054) | (8,173) | (5,769) | (2,661) | |||||||||
Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Revenues | 2,588 | 1,797 | 1,011 | 3,872 | 1,473 | 1,763 | 1,619 | ||||||||
Benefits, Losses and Expenses | 1,882 | 1,467 | 684 | 3,374 | 1,179 | 1,426 | 1,213 | 2,151 | 4,033 | 7,192 | 3,389 | ||||
Income before income taxes | 706 | 330 | 327 | 657 | 1,363 | 1,535 | 716 | ||||||||
Income tax expense (benefit) | 66 | 66 | 59 | 125 | 191 | 87 | (52) | ||||||||
Net income | 640 | 264 | 268 | 532 | 1,172 | 1,448 | 768 | ||||||||
Unrealized investment gains (losses) on available-for-sale securities | (103) | (667) | (910) | (1,577) | (1,680) | 1,269 | 878 | ||||||||
Other Comprehensive Income (Loss), before Tax | (100) | (568) | (971) | (1,539) | (1,639) | 1,187 | 863 | ||||||||
Income tax expense (benefit) related to other comprehensive income | (17) | (109) | (183) | (292) | (309) | 326 | 259 | ||||||||
Other comprehensive loss | (83) | (459) | (788) | (1,247) | (1,330) | 861 | 604 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 557 | (195) | (520) | (715) | (158) | 2,309 | 1,372 | ||||||||
Net cash provided by operating activities | 573 | 519 | 1,235 | 3,170 | 1,199 | ||||||||||
Net Cash Provided by (Used in) Investing Activities | (2,884) | (3,904) | (6,146) | ||||||||||||
Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Revenues | (12) | 5 | 0 | 0 | 0 | 0 | 0 | ||||||||
Benefits, Losses and Expenses | 15 | 14 | 5 | $ 11 | $ 27 | $ 24 | $ 9 | 19 | 34 | 71 | 4 | ||||
Income before income taxes | (27) | (9) | (5) | (14) | (41) | (71) | (4) | ||||||||
Income tax expense (benefit) | (10) | (2) | (14) | (16) | (26) | 19 | (9) | ||||||||
Net income | (17) | (7) | 9 | 2 | (15) | (90) | 5 | ||||||||
Unrealized investment gains (losses) on available-for-sale securities | (37) | (35) | 19 | (16) | (53) | 43 | 4 | ||||||||
Other Comprehensive Income (Loss), before Tax | (37) | (35) | 19 | (16) | (53) | 43 | 4 | ||||||||
Income tax expense (benefit) related to other comprehensive income | (6) | (7) | 4 | (3) | (9) | 8 | 1 | ||||||||
Other comprehensive loss | (31) | (28) | 15 | (13) | (44) | 35 | 3 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (48) | (35) | 24 | (11) | (59) | (55) | 8 | ||||||||
Net cash provided by operating activities | 0 | (92) | (92) | 0 | 0 | ||||||||||
Net Cash Provided by (Used in) Investing Activities | 0 | 92 | 92 | ||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Premiums | 526 | 731 | 1,009 | 1,535 | 3,368 | 2,465 | 240 | ||||||||
Gain (Loss) on Investments | 816 | 578 | (1,324) | 2,572 | 652 | ||||||||||
Revenues | 2,576 | 1,802 | 2,813 | 5,389 | |||||||||||
Interest Sensitive Contract Benefits Expense | 742 | 342 | 31 | 373 | 1,115 | 290 | 2,866 | 1,343 | |||||||
Future policy and other policy benefits | 928 | 864 | 1,265 | 2,193 | 4,187 | 3,200 | 1,030 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 36 | 89 | 82 | 171 | 207 | 174 | 344 | 304 | |||||||
Deferred Policy Acquisition Costs, Additions | (304) | 919 | 493 | 601 | |||||||||||
Interest sensitive contract liabilities | (189) | 34 | 591 | (365) | 2,564 | 956 | |||||||||
Other assets and liabilities | 70 | 111 | 77 | (266) | 238 | (42) | |||||||||
Trading securities (related party: 2018 – $30, 2017 – $55 and 2016 – $26) | 24 | 281 | 320 | 348 | 156 | 356 | |||||||||
Short-term investments | 161 | 538 | 351 | 870 | |||||||||||
Available-for-sale securities | (5,907) | (8,854) | (12,029) | (15,435) | (18,883) | (11,797) | |||||||||
Trading securities (related party: 2018 – $(4), 2017 – $0 and 2016 – $(39)) | (17) | (54) | (89) | (473) | |||||||||||
Investment funds (related party: 2018 – $(1,140), 2017 – $(509) and 2016 – $(441)) | (718) | (1,375) | (660) | (535) | |||||||||||
Short-term investments (related party: 2018 – $(121), 2017 – $(117) and 2016 – $0) | (370) | (478) | (421) | (873) | |||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable (related party: 2018 – $109, 2017 – $0 and 2016 – $0) | 262 | 997 | 2,457 | 2,019 | 331 | ||||||||||
Funds withheld assets and liabilities (related party: 2018 – $113, 2017 – $0 and 2016 – $0) | (232) | $ 270 | (419) | (128) | |||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Premiums | 531 | 726 | 1,004 | 1,535 | |||||||||||
Gain (Loss) on Investments | 823 | 585 | |||||||||||||
Revenues | 2,588 | 1,797 | 2,808 | 5,396 | |||||||||||
Interest Sensitive Contract Benefits Expense | 741 | 332 | 19 | 351 | 1,092 | 2,826 | 1,296 | ||||||||
Future policy and other policy benefits | 920 | 857 | 1,258 | 2,178 | 3,163 | 1,059 | |||||||||
Amortization of deferred acquisition costs and value of business acquired | 30 | 92 | 89 | 181 | 211 | 350 | 318 | ||||||||
Deferred Policy Acquisition Costs, Additions | (311) | ||||||||||||||
Interest sensitive contract liabilities | (201) | 7 | 562 | 2,513 | 925 | ||||||||||
Other assets and liabilities | 84 | 139 | 103 | 219 | (33) | ||||||||||
Trading securities (related party: 2018 – $30, 2017 – $55 and 2016 – $26) | 31 | 288 | 327 | ||||||||||||
Short-term investments | 220 | ||||||||||||||
Available-for-sale securities | (5,914) | (8,953) | (12,128) | ||||||||||||
Trading securities (related party: 2018 – $(4), 2017 – $0 and 2016 – $(39)) | (81) | ||||||||||||||
Investment funds (related party: 2018 – $(1,140), 2017 – $(509) and 2016 – $(441)) | (654) | ||||||||||||||
Short-term investments (related party: 2018 – $(121), 2017 – $(117) and 2016 – $0) | (429) | ||||||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable (related party: 2018 – $109, 2017 – $0 and 2016 – $0) | 352 | 1,080 | 1,993 | 344 | |||||||||||
Funds withheld assets and liabilities (related party: 2018 – $113, 2017 – $0 and 2016 – $0) | (239) | ||||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Premiums | (5) | 5 | 5 | 0 | |||||||||||
Gain (Loss) on Investments | (7) | (7) | |||||||||||||
Revenues | (12) | 5 | 5 | (7) | |||||||||||
Interest Sensitive Contract Benefits Expense | 1 | 10 | 12 | 22 | 23 | 40 | 47 | ||||||||
Future policy and other policy benefits | 8 | 7 | 7 | 15 | 37 | (29) | |||||||||
Amortization of deferred acquisition costs and value of business acquired | $ 6 | $ (3) | (7) | (10) | (4) | (6) | (14) | ||||||||
Deferred Policy Acquisition Costs, Additions | 7 | ||||||||||||||
Interest sensitive contract liabilities | 12 | 27 | 29 | 51 | 31 | ||||||||||
Other assets and liabilities | (14) | (28) | (26) | 19 | (9) | ||||||||||
Trading securities (related party: 2018 – $30, 2017 – $55 and 2016 – $26) | (7) | (7) | (7) | ||||||||||||
Short-term investments | (59) | ||||||||||||||
Available-for-sale securities | $ 7 | 99 | 99 | ||||||||||||
Trading securities (related party: 2018 – $(4), 2017 – $0 and 2016 – $(39)) | 64 | ||||||||||||||
Investment funds (related party: 2018 – $(1,140), 2017 – $(509) and 2016 – $(441)) | (64) | ||||||||||||||
Short-term investments (related party: 2018 – $(121), 2017 – $(117) and 2016 – $0) | 59 | ||||||||||||||
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable (related party: 2018 – $109, 2017 – $0 and 2016 – $0) | $ (90) | (83) | $ 26 | $ (13) | |||||||||||
Funds withheld assets and liabilities (related party: 2018 – $113, 2017 – $0 and 2016 – $0) | $ 7 | ||||||||||||||
Common Class A | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | $ (0.53) | $ 3.16 | $ 1.30 | $ 1.40 | $ 2.23 | $ 1.25 | $ 1.52 | $ 1.96 | $ 2.71 | $ 5.86 | $ 5.34 | $ 6.95 | $ 4.14 | ||
Diluted (in USD per share) | (0.53) | 3.15 | 1.30 | 1.40 | 2.22 | 1.24 | 1.51 | 1.89 | 2.70 | 5.85 | 5.32 | 6.91 | 4.04 | ||
Common Class A | Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | 2.70 | 5.94 | 7.41 | 4.11 | ||||
Diluted (in USD per share) | 3.23 | 1.33 | 1.36 | 2.35 | 1.39 | 1.65 | 1.92 | 2.69 | 5.92 | 7.37 | 4.02 | ||||
Common Class A | Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | 0.01 | (0.08) | (0.46) | 0.03 | ||||
Diluted (in USD per share) | (0.08) | (0.03) | 0.04 | (0.13) | (0.15) | (0.14) | (0.03) | 0.01 | (0.07) | (0.46) | 0.02 | ||||
Common Class B | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 5.34 | 6.95 | 4.14 | ||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 2.71 | 5.86 | 5.34 | 6.95 | 4.14 | ||
Common Class B | Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | ||||||||
Diluted (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | 2.70 | 5.94 | 7.41 | 4.11 | ||||
Common Class B | Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | ||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | 0.01 | (0.08) | (0.46) | 0.03 | ||||
Common Class M-1 | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 5.34 | 6.95 | 4.14 | ||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 2.71 | 5.86 | 5.34 | 6.95 | 0.20 | ||
Common Class M-1 | Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | ||||||||
Diluted (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | 2.70 | 5.94 | 7.41 | 0.20 | ||||
Common Class M-1 | Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | ||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | 0.01 | (0.08) | (0.46) | $ 0 | ||||
Common Class M-2 | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 1.96 | 5.34 | [1] | 6.95 | [1] | |||
Diluted (in USD per share) | (0.53) | 3.16 | 1.29 | 1.39 | 2.21 | 1.24 | 1.49 | 0.08 | 2.68 | 5.83 | 5.31 | [1] | 5.05 | ||
Common Class M-2 | Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | 2 | ||||||||
Diluted (in USD per share) | 3.24 | 1.33 | 1.34 | 2.34 | 1.39 | 1.64 | 0.08 | 2.67 | 5.90 | 5.38 | |||||
Common Class M-2 | Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | (0.04) | ||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.05 | (0.13) | (0.15) | (0.15) | $ 0 | 0.01 | (0.07) | (0.33) | |||||
Common Class M-3 | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 5.34 | [1] | 6.95 | [1] | ||||
Diluted (in USD per share) | (0.53) | 3.16 | 1.30 | 1.38 | 1.99 | 0.95 | 0.91 | 2.68 | 5.83 | 5.31 | [1] | 3.86 | |||
Common Class M-3 | Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | |||||||||
Diluted (in USD per share) | 3.24 | 1.34 | 1.33 | 2.10 | 1.07 | 1 | 2.67 | 5.90 | 4.12 | ||||||
Common Class M-3 | Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | |||||||||
Diluted (in USD per share) | (0.08) | (0.04) | 0.05 | (0.11) | (0.12) | (0.09) | 0.01 | (0.07) | (0.26) | ||||||
Common Class M-4 | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.53) | 3.16 | 1.30 | 1.40 | 2.23 | 1.25 | 1.52 | 5.34 | [1] | 6.95 | [1] | ||||
Diluted (in USD per share) | $ (0.53) | 2.42 | 1.02 | 0.97 | 1.41 | 0.70 | 0.69 | 1.98 | 4.36 | $ 4.11 | [1] | 3.10 | |||
Common Class M-4 | Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | 3.24 | 1.34 | 1.36 | 2.36 | 1.40 | 1.66 | |||||||||
Diluted (in USD per share) | 2.49 | 1.04 | 0.94 | 1.49 | 0.79 | 0.76 | 1.98 | 4.42 | 3.31 | ||||||
Common Class M-4 | Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Basic (in USD per share) | (0.08) | (0.04) | 0.04 | (0.13) | (0.15) | (0.14) | |||||||||
Diluted (in USD per share) | $ (0.07) | $ (0.02) | $ 0.03 | $ (0.08) | $ (0.09) | $ (0.07) | $ 0 | $ (0.06) | $ (0.21) | ||||||
Pension Risk Transfer Premiums [Member] | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Transfer to Investments | $ 92 | $ 92 | $ 435 | $ 334 | $ 0 | ||||||||||
Pension Risk Transfer Premiums [Member] | Previously reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Transfer to Investments | 0 | 0 | |||||||||||||
Pension Risk Transfer Premiums [Member] | Revision | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Transfer to Investments | $ 92 | $ 92 | |||||||||||||
[1] | Basic and diluted earnings per share for Class M-2, M-3 and M-4 were applicable only for the years ended December 31, 2018 and 2017. See Note 13 – Earnings Per Share for further discussion. |
Schedule I Summary of Investm_2
Schedule I Summary of Investments - Other Than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2018USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | $ 91,287 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 89,340 |
Trading securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 1,949 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,949 |
Fixed Maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 61,974 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 61,214 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 61,214 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 224 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 216 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 216 |
Mortgage loans, net of allowances | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 10,338 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 10,340 |
Investment funds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 596 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 703 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 488 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 488 |
Funds withheld at interest | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 15,023 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 15,023 |
Derivative | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 2,331 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,043 |
Short-term Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 191 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 191 |
Other investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 122 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 122 |
U.S. government and agencies | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 57 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 57 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 57 |
U.S. state, municipal and political subdivisions | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 1,183 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,293 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,293 |
Foreign governments | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 162 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 161 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 161 |
Public utilities | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 5,219 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 5,140 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 5,140 |
Redeemable Preferred Stock [Member] | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 100 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 96 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 96 |
Other corporate | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 32,699 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 31,861 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 31,861 |
CLO | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 5,658 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 5,361 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 5,361 |
ABS | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 4,915 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 4,920 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 4,920 |
CMBS | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 2,390 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 2,357 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 2,357 |
RMBS | AFS securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 7,642 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 8,019 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 8,019 |
Industrial, miscellaneous and all other common stock | Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 55 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 51 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 51 |
Nonredeemable preferred stocks | Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 169 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 164 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 164 |
Public Utilities [Member] | Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 0 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 1 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | $ 1 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Accumulated other comprehensive income (loss) | $ (472) | $ 1,449 | |||
Cash and cash equivalents | [1] | 3,405 | 4,997 | $ 2,516 | |
Investment funds | 3,559 | 2,580 | |||
Total assets | 125,505 | 100,161 | |||
Total liabilities | 117,229 | 90,985 | |||
Additional paid-in capital | 3,462 | 3,472 | |||
Retained earnings | 5,286 | 4,255 | |||
Total liabilities and equity | 125,505 | 100,161 | |||
Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
AFS securities | 45 | 38 | |||
Debt Securities, Available-for-sale, Amortized Cost | 46 | 35 | |||
Accumulated other comprehensive income (loss) | (472) | 1,449 | |||
Cash and cash equivalents | 112 | 142 | $ 189 | $ 260 | |
Other assets (related party: 2018 – $357 and 2017 – $0) | 24 | 3 | |||
Intercompany Note Receivable | 0 | 44 | |||
Intercompany Receivable | 21 | 2 | |||
Intercompany Investments | 9,108 | 9,086 | |||
Total assets | 9,415 | 9,315 | |||
Long-term debt | 991 | ||||
Notes Payable, Related Parties | 105 | ||||
Payables for collateral on derivatives | 1 | 0 | |||
Other Liabilities | 34 | 132 | |||
Intercompany Payable | 8 | 7 | |||
Total liabilities | 1,139 | 139 | |||
Additional paid-in capital | 3,462 | 3,472 | |||
Retained earnings | 5,286 | 4,255 | |||
Total Athene Holding Ltd. shareholders’ equity | 8,276 | 9,176 | |||
Total liabilities and equity | $ 9,415 | $ 9,315 | |||
Common Class A | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock outstanding (in shares) | 162,400,000 | 142,400,000 | 77,300,000 | 50,100,000 | |
Common stock | $ 0 | $ 0 | |||
Common Class A | Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock issued (in shares) | 162,400,000 | 142,400,000 | |||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | |||
Common stock outstanding (in shares) | 162,400,000 | 142,400,000 | |||
Common stock authorized (in shares) | 425,000,000 | 425,000,000 | |||
Common stock | $ 0 | $ 0 | |||
Common Class B | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock outstanding (in shares) | 25,400,000 | 47,400,000 | 111,800,000 | 136,000,000 | |
Common stock | $ 0 | $ 0 | |||
Common Class B | Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock issued (in shares) | 25,400,000 | 47,400,000 | |||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | |||
Common stock outstanding (in shares) | 25,400,000 | 47,400,000 | |||
Common stock authorized (in shares) | 325,000,000 | 325,000,000 | |||
Common stock | $ 0 | $ 0 | |||
Common Class M-1 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock outstanding (in shares) | 3,400,000 | 3,400,000 | 3,500,000 | 5,200,000 | |
Common stock | $ 0 | $ 0 | |||
Common Class M-1 | Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock issued (in shares) | 3,400,000 | 3,400,000 | |||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | |||
Common stock outstanding (in shares) | 3,400,000 | 3,400,000 | |||
Common stock authorized (in shares) | 7,109,560 | 7,109,560 | |||
Common stock | $ 0 | $ 0 | |||
Common Class M-2 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock outstanding (in shares) | 800,000 | 900,000 | 1,100,000 | 3,100,000 | |
Common stock | $ 0 | $ 0 | |||
Common Class M-2 | Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock issued (in shares) | 800,000 | 900,000 | |||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | |||
Common stock outstanding (in shares) | 800,000 | 900,000 | |||
Common stock authorized (in shares) | 5,000,000 | 5,000,000 | |||
Common stock | $ 0 | $ 0 | |||
Common Class M-3 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock outstanding (in shares) | 1,000,000 | 1,100,000 | 1,300,000 | 3,100,000 | |
Common stock | $ 0 | $ 0 | |||
Common Class M-3 | Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock issued (in shares) | 1,000,000 | 1,100,000 | |||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | |||
Common stock outstanding (in shares) | 1,000,000 | 1,100,000 | |||
Common stock authorized (in shares) | 7,500,000 | 7,500,000 | |||
Common stock | $ 0 | $ 0 | |||
Common Class M-4 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock outstanding (in shares) | 4,100,000 | 4,700,000 | 5,400,000 | 5,000,000 | |
Common stock | $ 0 | $ 0 | |||
Common Class M-4 | Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock issued (in shares) | 4,100,000 | 4,700,000 | |||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | |||
Common stock outstanding (in shares) | 4,100,000 | 4,700,000 | |||
Common stock authorized (in shares) | 7,500,000 | 7,500,000 | |||
Common stock | $ 0 | $ 0 | |||
Related Party | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Accumulated other comprehensive income (loss) | (25) | $ 48 | |||
Related Party | Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Investment funds | $ 105 | ||||
[1] | Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated variable interest entities. |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant Condensed Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Net investment income | $ 4,004 | $ 3,269 | $ 2,914 | ||||||||||
Total revenues | $ 1,154 | $ 2,576 | $ 1,802 | $ 1,011 | $ 3,872 | $ 1,473 | $ 1,763 | $ 1,619 | 6,543 | 8,727 | 4,105 | ||
Total benefits and expenses | 1,301 | 1,897 | 1,481 | 689 | 3,385 | 1,206 | 1,450 | 1,222 | $ 2,170 | $ 4,067 | 5,368 | 7,263 | 3,393 |
Income tax expense (benefit) | 56 | 64 | 45 | $ 109 | $ 165 | 122 | 106 | (61) | |||||
Net income available to Athene Holding Ltd. shareholders | $ (104) | $ 623 | $ 257 | $ 277 | $ 439 | $ 244 | $ 298 | $ 377 | 1,053 | 1,358 | 773 | ||
Parent Company [Member] | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Net investment income | 17 | 5 | 10 | ||||||||||
Investment related gains (losses) | 14 | (7) | 4 | ||||||||||
Other revenues | 20 | 0 | 0 | ||||||||||
Total revenues | 51 | (2) | 14 | ||||||||||
Policy and other operating expenses | 124 | 142 | 145 | ||||||||||
Total benefits and expenses | 124 | 142 | 145 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Equity Earnings in Subsidiaries | (73) | (144) | (131) | ||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||||
Income (Loss) from Subsidiaries, Net of Tax | 1,126 | 1,502 | 904 | ||||||||||
Net income available to Athene Holding Ltd. shareholders | 1,053 | 1,358 | 773 | ||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1,879) | 896 | 607 | ||||||||||
Comprehensive income (loss) available to Athene Holding Ltd. shareholders | (826) | 2,254 | 1,380 | ||||||||||
Parent Company [Member] | Related Party | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Net investment income | (3) | 3 | 8 | ||||||||||
Investment related gains (losses) | 24 | 0 | 0 | ||||||||||
Policy and other operating expenses | $ 7 | $ 8 | $ 16 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant Condensed Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net Investment Income | $ 573 | $ 427 | $ 1,143 | $ 2,874 | $ 3,170 | $ 1,199 | ||
Net cash provided by (used in) investing activities | $ (2,884) | $ (3,812) | $ (6,054) | (8,173) | (5,769) | (2,661) | ||
Proceeds from long-term debt | 998 | 0 | 0 | |||||
Net cash provided by financing activities | 3,707 | 5,048 | 1,155 | |||||
Net (decrease) increase in cash and cash equivalents | (1,592) | 2,481 | (320) | |||||
Cash and cash equivalents | [1] | 3,405 | 4,997 | 2,516 | ||||
Cash paid for interest | 26 | 0 | 9 | |||||
Parent Company [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net Investment Income | (66) | (54) | (45) | |||||
Payments to Acquire Additional Interest in Subsidiaries | (95) | 0 | (34) | |||||
Intercompany Receipts on Loans to Subsidiary | 64 | 0 | 20 | |||||
Intercompany Payments to Fund Loans to Subsidiary | (20) | (44) | 0 | |||||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 178 | 9 | 5 | |||||
Short-term investments | 64 | 0 | 0 | |||||
Available-for-sale securities | (994) | (17) | (3) | |||||
Payments to Acquire Short-term Investments | 64 | 0 | 0 | |||||
Cash settlement of derivatives | 6 | (8) | 5 | |||||
Other investing activities, net | (96) | 82 | (5) | |||||
Net cash provided by (used in) investing activities | (957) | 22 | (12) | |||||
Proceeds from Contributed Capital | 2 | 1 | 1 | |||||
Proceeds from long-term debt | 998 | |||||||
Proceeds from Related Party Debt | 105 | |||||||
Net change in cash collateral posted for derivative transactions | 1 | (6) | 6 | |||||
Repurchase of common stock | (105) | (10) | (21) | |||||
Other financing activities, net | (8) | |||||||
Net cash provided by financing activities | 993 | (15) | (14) | |||||
Net (decrease) increase in cash and cash equivalents | (30) | (47) | (71) | |||||
Cash and cash equivalents | 112 | 142 | 189 | $ 260 | ||||
Cash paid for interest | 23 | 0 | 0 | |||||
Non-cash Capital Contribution to Related Party | 803 | 0 | 0 | |||||
Capital Issued as Payment of Liabilities | $ 108 | $ 0 | $ 0 | |||||
[1] | Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated variable interest entities. |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant Condensed Footnotes of Parent (Details) - Parent Company [Member] € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 27, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 12, 2019USD ($) | Dec. 31, 2017EUR (€) | |
Condensed Financial Statements, Captions [Line Items] | |||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | $ 0 | ||||
Intercompany Note Receivable | $ 0 | 44 | |||
Assets Held-in-trust | 37 | 39 | |||
Contribution of Property | 898 | ||||
ALRe | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | 50 | ||||
Intercompany Note Receivable | $ 0 | 0 | |||
Intercompany Note Receivable Interest Rate | 1.25% | ||||
Maximum borrowing capacity | $ 250 | ||||
Line of Credit Facility, Interest Rate at Period End | 1.25% | ||||
Revolving note receivable, borrowing capacity | $ 250 | 250 | |||
Long-term Line of Credit | 105 | 0 | |||
Athene USA Corporation [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Intercompany Note Receivable | 0 | 16 | |||
Revolving note receivable, borrowing capacity | $ 250 | 250 | |||
AGER Burmuda Holding Ltd. [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Intercompany Note Receivable | $ 29 | ||||
Revolving note receivable, borrowing capacity | € | € 25 | ||||
Subsequent Event [Member] | ALRe | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Dividends | $ 750 | ||||
Maximum borrowing capacity | $ 1,000 | ||||
Revolving note receivable, borrowing capacity | $ 1,000 |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs, Deferred Sales Inducements, and Present Value of Future Profits | $ 5,907 | $ 2,972 | $ 2,959 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Liability for Future Policy Benefit, Loss, Claim and Loss Expense | 113,314 | 85,656 | 76,142 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | 142 | 211 | 217 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Premium Revenue | 3,368 | 2,465 | 240 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Net Investment Income | 4,004 | 3,269 | 2,914 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Benefit, Claim, Loss and Settlement Expenses | 4,568 | 6,247 | 2,449 |
Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Costs and Value of Business Acquired | 174 | 344 | 304 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Operating Expense | 625 | 672 | 627 |
Retirement Services | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs, Deferred Sales Inducements, and Present Value of Future Profits | 5,907 | 2,972 | 2,959 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Liability for Future Policy Benefit, Loss, Claim and Loss Expense | 113,314 | 80,818 | 71,828 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | 142 | 137 | 148 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Premium Revenue | 3,368 | 2,286 | 53 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Net Investment Income | 3,960 | 3,087 | 2,837 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Benefit, Claim, Loss and Settlement Expenses | 4,568 | 5,908 | 2,183 |
Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Costs and Value of Business Acquired | 174 | 344 | 304 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Operating Expense | 496 | 444 | 430 |
Corporate and Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs, Deferred Sales Inducements, and Present Value of Future Profits | 0 | 0 | 0 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Liability for Future Policy Benefit, Loss, Claim and Loss Expense | 0 | 4,838 | 4,314 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | 0 | 74 | 69 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Premium Revenue | 0 | 179 | 187 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Net Investment Income | 44 | 182 | 77 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Benefit, Claim, Loss and Settlement Expenses | 0 | 339 | 266 |
Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Costs and Value of Business Acquired | 0 | 0 | 0 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Operating Expense | $ 129 | $ 228 | $ 197 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Gross | $ 39,941 | $ 43,267 | $ 56,356 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Ceded | 45,957 | 49,860 | 63,894 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Assumed | 7,857 | 8,551 | 9,591 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Net | $ 1,841 | $ 1,958 | $ 2,053 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Percentage Assumed to Net | 426.80% | 436.70% | 467.20% |
Direct Premiums Earned | $ 2,772 | $ 2,639 | $ 448 |
Ceded Premiums Earned | 405 | 195 | 228 |
Assumed Premiums Earned | 1,001 | 21 | 20 |
Premiums | $ 3,368 | $ 2,465 | $ 240 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 29.70% | 0.90% | 8.30% |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 52 | $ 96 | $ 94 | $ 215 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 9 | 19 | 0 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 0 | 0 | 0 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (53) | (17) | (121) | |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 2 | 2 | 2 | $ 2 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 1 | 0 | 0 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 0 | 0 | 0 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ (1) | $ 0 | $ 0 |
Uncategorized Items - ahl-20181
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,000,000) |